Pharmaceutical Industry

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					   Pharmaceutical Industry



Mark Shigihara R.Ph. , CMR
    Account Manager
   UW Affiliate Faculty
Pharmaceutical Industry
Pharmaceutical Innovation
What is a Medical Science
     Liaison (MSL)?
     1 st
        Generation
Medical Science Liaisons
    MSL Roles & Responsibilities
   MSL is a medical representative in the field
    for Wyeth.

   Provide fair-balanced scientific clinical
    information, including full scientific data on
    products in response to unsolicited requests
A Typical MSL Question
MSLs educate pharmacists on
     XR dosage forms
                      MSL Profile Example
   USC School of Pharmacy
    –   Doctor of Pharmacy (Pharm.D.)
   Post Doctoral Residency
    –   Primary Care / Ambulatory Medicine
   UCLA - Santa Monica Medical Center
    –   Director of Pharmacology Education and Research &
        Assistant Clinical Professor of Medicine
          Research  - Internal Medicine & Primary Care, Journal Club
          P&T Committee
          Resident Education - Pharmacology
          Patient Care- Inpatient Medicine Rounds & Outpatient Clinic
    General MSL Characteristics
   Apply the science
   Responsive to inquiries
   Prepare Medical Community for new therapies
   Educate
   Support research
   Develop relationships-internal and external
    colleagues
   Facilitate the acceptance and understanding of
    Wyeth-Ayerst products and assure their optimum
    use
          Pharmaceutical
          Representative


The Untold Story........
          Sales…
The world’s oldest profession
The Art of Selling
Pharmaceutical Sales
    Candidates
    What people used to say
     about Pharmaceutical
       Representatives..
 “Oh no... not him again....I don’t have the
  time”
 “ He would have made a great used car
  salesman”
 “ I can’t remember what he said about this
  product but this pen is really cool”
    Representative role is to
     provide value for the
           customer
 Product education - fair balance/ethical
 Address contract/pricing issues
 Serve as a liaison to home office
  departments: medical affairs, product
  quality, product marketing, clinical
  studies...
 Meet customer needs: speakers, grants,co-
  promotion....
Office Based Representatives
 Works in private practice setting with MD s
  and RNs.
 Calls on chain and or independent
  pharmacies.
 The majority of pharmaceutical
  representatives are in office based roles.
          Medical Center
          Representatives
 Works in hospital/academic medical center
  environment.
 Audience: MD,residents, pharmacists, RN...
 Key responsibility- to identify and develop
  academic thought leaders.
     Representative Benefits
 Reward-recognition
  for individual
  achievement.
 The “master of your
  own destiny”-
  strategy, time
  allocation, priority..
 Customer relationships
    Representative Benefits
 Guaranteed Salary
 Bonus plan - matched to performance
 Stock Options
 Car / Insurance / Gas
 401 K
 Medical / Dental coverage
    Representative Challenges
 Customers with
  different points of
  view.
 Travel
 Relocation?
 Good bye to the 40
  hour work week...
Representative opportunities:
 Multiple career options- home office, sales
  management, training...
 Multiple company options: Wyeth, Ayerst,
  Robins, Lederle, Genetics Institute...
 The pharmacy degree is a tremendous asset
  in the pharmaceutical industry.
           Mark Shigihara
Managed Care Area Account Manager

 Job responsibility
 Work responsibilities and impact on
  pharmacists.
 Real life questions/quiz
Managed Care Environment
       Managed Care RAM
 Work with managed care health plans-
  Premera Blue Cross, Group Health,
  PacifiCare, Kaiser….
 Offer product information to accounts-
  influence formulary /reimbursement
  position of products.
 Co promote- initiatives with customers
Reimbursement Role
             Real Life Quiz
What causes the most complaints from
  patients regarding their prescriptions?

A)   Your typing speed on labels
B)   You can not decode the prescriber
     handwriting and fill the Viagra
     prescription with Valium.
C)   The COST of pharmaceuticals
          COST
Putting it into perspective
      Drugs as % of US Healthcare
                Costs
      12.0%                                                                11.1%
                                                                 10.8%
                                               10.0%     10.6%
                                      9.4%
      10.0%                8.9%
                 8.6%
        8.0%

        6.0%

        4.0%

        2.0%

        0.0%
                 1994       1995       1996       1997    1998    1999      2000
                                                                  (est.)    (est.)
Source: HCFA, National Center for Health Statistics
        Contributors to the 18.8% Increase in
                Rx Spending in 1999

                                         New
                                       Medicines
                                         3.8%
                Increased Utilization
                       10.8%                  Price Inflation
                                                   3.8%




            New Medicines   Price Inflation   Increased Utilization

Source: IMS Health
           COST
But what about other
 countries…..
Pharmaceutical products cost
 less there….
Mc Answer
             Many Costs Are Lower in
                    Canada
 From Higher Education...
        U.S.                                                   Canada
          Yale University                                McGill University
(Undergraduate Tuition, Books,                       (Undergraduate Tuition, Books,
      Room and Board)                                  Room and Board, Student
                                                               Services)
         One Year: $32,000                               One Year: $12,566
 …to Fast Food
                                          McDonald’s Big Mac

                     $2.43                                       $1.98
Source: Published University Data, 2000
            International Price Variation
                McDonald’s Big Mac
                 (U.S. Dollars, 1999)
 $4.00

 $3.50
 $3.00

 $2.50

 $2.00

 $1.50

 $1.00
 $0.50

 $0.00


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   Source: Economist, April 3, 1999
    Approximate Hours of Work Needed
           to Buy 1 Specific Rx
                                      (50 mg, 30 tablets)
8
7
6
5
4
3
2
1
0
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    Source: Data on File, Pfizer, Inc and World Fact Book
        COSTS
What about some detailed
 United States
 perspective…..
   Spending Patterns of Elderly
        U.S. Consumers Aged 65+, 1998
Drugs 2.7%                                 Housing
                                           Transportation
                                           Food
                                           Utilities
                                           Cash Contributions
                                           Health Insurance
                                           Entertainment
                                           Clothing
                                           Medical Services & Supplies
                                           Drugs
                                           All Other


Source: Bureau of Labor Statistics, 2000
   Daily U.S. Consumption Expenditures
              Per Capita, 1997
Consumption Expenditures per day


    $9.00
    $8.00                                                                     Tobacco
    $7.00                                                                     Rx Drugs
                                                                              Alcohol
    $6.00
                                                                              Electricity
    $5.00                                                                     Auto Repair
    $4.00                                                                     Telephone
                                                                              Gas & Oil
    $3.00
                                                                              Clothing
    $2.00                                                                     Food
    $1.00                                                                     Housing
    $0.00


                            Source: U.S.Department of Commerce, Bureau of Economic Analysis, 1998.
            COSTS
But what about pharmaceutical
 companies…

Are they just trying to price
 gouge the customer….
               R&D for Pharmaceuticals and
              Other Industries (Percent of Sales)
 Research-based Pharmaceutical Companies*                                                         20.8%
               Industrial Sector Comparison:
                           Drugs and Medicine*                                12.0%
                 Office Equipment and Services                         7.6%
                       Electrical and Electronics                 6.0%
                            Telecommunications                  5.1%
                          Leisure Time Products                 4.9%
                                      Automotive              4.1%
                        Aerospace and Defense                 3.7%
                              Metals and Mining        0.9%
                     Paper and Forest Products         0.9%


  All Industries, Excluding Drugs and Medicine                3.7%

*“Research-based Pharmaceutical Companies” Based on Ethical Pharmaceutical Sales and Ethical Pharmaceuticals R&D
 Only as Tabulated by PhRMA; “Drugs and Medicine” Sector as Tabulated by Standard & Poor’s Compustat, a Division
 of McGraw-Hill
Source: PhRMA, 1999, Based on Data From PhRMA Annual Survey and Standard & Poor’s Compustat, a Division
of McGraw-Hill
       Compound Success Rates: 1 in 10,000
             Reach FDA Approval
                                                                                                 Compound Success
                                Discovery                                                          Rates by Stage
                                (2–10 Years)
                                                                                                    5,000–10,000
                                           Preclinical Testing                                        Screened
                                           Laboratory and Animal Testing
                        Phase I
 20–80 Healthy Volunteers Used                                                                          250
to Determine Safety and Dosage                                                                    Enter Preclinical
                                  Phase II                                                            Testing
       100–300 Patient Volunteers Used to
         Look for Efficacy and Side Effects
                                        Phase III
   1,000–5,000 Patient Volunteers Used to Monitor                                                        5
             Adverse Reactions to Long-term Use                                                    Enter Clinical
                                                                                                      Testing
                                               FDA Review/Approval


                                           Additional Postmarketing Testing
                                                                                                        1
                                                                                                   Approved by
   0          2          4         6           8        10         12         14         16          the FDA

    Source: PhRMA, Based on Data From the Tufts Center for the Study of Drug Development, 1995
Pharmaceutical Industry Facts
 Revenues from approved drugs (1 of 5 to
  10,000) must cover the “dry holes” of non
  approved compounds.
 Average cost of bringing a drug to market is
  500 to 800 million dollars.
 Average approval time is 12 to 15 years.
 Time to recoup investment is shrinking-
  generic drugs and limited patent life
    COST Perspective
What is the cost if
 pharmaceutical
 manufacturers did not create
 revolutionary drugs……..
COST of Uncured Disease
        States
             COST
 And this does not even
take into consideration…
  patient quality of life
       MSL or AAM
 Consider signing up for our rotation.
 In depth exposure to our positions.
 Advantages
 Disadvantages
 Answers the question – “Is the
  pharmaceutical industry a viable career
  option for me ?”
Questions?

				
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posted:6/25/2012
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