When a patient has a serious illness and there is no approved drug available, the physician may want to try one which has not been authorized for marketing by national health authorities but has shown promise in clinical trials. European Named Patient Programs, like US compassionate use programs, offer physicians access to pharmaceuticals which have not yet been licensed. However, there is one important difference: in Europe an unlicensed drug can be reimbursed. This presents drug-makers with an opportunity to generate revenues while development is still in-progress.
Significant Revenues Are Possible
The additional revenues can be considerable. For example, Pharmion, a US based company focusing on Oncology and Hematology reported dramatic increases in its Thalidomide sales from $1.9 million in 2Q ‘03 to $15.3 million in 2Q ‘04, primarily due to named patient sales in Europe for Multiple Myeloma. Thalidomide sales accounted for approximately 75% of Pharmion’s total revenues for the first half of 2004, according to company sources, and were generated while the product awaits marketing approval for this indication. Before receiving European Marketing Approval, Shire’s Argylin® for essential thrombocythaemia generated about 5% of its total sales from its European named patient program.
Though thalidomide and Agrylin were licensed in the USA for some indications, pharmaceutical companies do set-up named patient programs and receive full reimbursement for drugs that are not licensed for any indication in any market. Examples include: Insmed’s SomatoKine® authorized for named patient use for Primary Lateral Sclerosis, Growth Hormone Insensitivity Syndrome (GHIS) and Severe Insulin Resistance and Protherics’ ViperaTAb™ authorized for named patient use for adder snake bites.
Other Benefits of Named Patient Programs
A named patient program can speed uptake after official launch. Physicians, who have had experience before launch, via clinical trials or named patient programs, often become early adopters and references for other physicians once the drug is freely circulating.
Named patient programs, like US compassionate use programs, can increase good-will toward the company because they simplify the process of gaining access for patients in critical need. Smaller companies often can not afford the administrative time and costs of shipping drugs around the world before launch. This can lead to frustration and resentment towards a company that many physicians will remember long after a drug is officially on the market. Creating a formal channel eliminates the unfortunate need of denying requests and risking ill-will later.
A named patient program should be considered an important part of a pre-launch program. It increases awareness to a pharmaceutical’s existence, creates excitement, generates good-will and speeds penetration of the product after launch.
Frequent Communication is Necessary
If one of the objectives is to generate revenues, setting up a named patient program is just the beginning. In order to achieve success, physicians need to be aware of the product and what they need to do to get it. Typical methods of informing physicians, such as sales rep visits and ads, may not be appropriate because a license is necessary to market a drug. While physicians are used to simply writing a prescription and being done with it, named patient programs require paper-work that some find tedious. Therefore the company needs to create an appropriate communication plan and work closely with the targeted medical community to keep them informed and simplify the process.
Issues to Consider
You have decided to make a named patient program part of your pre-marketing plan, what now?
• Administration: Do you “go it alone" or work with a company that is experienced at administering named patient programs?
There are several experienced organizations that can assist your company by gaining approval, setting-up the program, doing administration and taking care of physical distribution. If your organization is well resourced and has a pipe-line of products that will require named patient programs, it might be worthwhile acquiring the expertise internally. However, if you have few appropriate products or a stream-lined organization, it is probably best to consider outsourcing.
• Communication: You’ve set up the program, how do you optimize it?
If you do not have an experienced European marketing group, an organization that is familiar in sales and marketing of pharmaceuticals in Europe can help you to maximize participation in the named patient program. A communication plan, if properly developed and implemented can increase product awareness, but communication concerning an unlicensed product must be done appropriately. This plan should ensure that your entire target group:
• Is fully aware of the product AND the program
• Knows what needs to be done to take advantage of the program
• Has an advocate available to guide them through the process
Pharmaceutical Sales And Marketing
A pharmaceutical sales career is a very rewarding one. Not many other careers offer the same types of perks and benefits along with a fairly high paying job as pharmaceutical sales position. The role of helping well educated health professionals treat their patients better is special indeed. I've even had the pleasure of being introduced to actual patients by some of my doctors. These patients were prescribed on my drugs and the treatments made a big difference in their lives. This is just one of the many intangible benefits of the job.
Senior Hospital Specialist Sales Positions
Many pharmaceutical companies have different levels of pharmaceutical sales representatives with sales forces divided into those who call on mostly general family physicians and those who call on hospital medical specialists. The specialist positions are considered a more senior level with higher salaries. Although both levels are still considered pharmaceutical sales, in many aspects, the specialist position is a very different job compared to the general rep level. Specialist reps often have the additional role of identifying and developing medical speakers among top specialist physicians in teaching centers. Specialist pharmaceutical reps are often the main company contacts for financial sponsorship activities within large hospitals.
It is thought that if a drug is successful and accepted at the level of top medical specialists, then this will influence family physicians to follow suit and adopt the drug into their own treatment protocols. This is why the specialist sales position is so important to pharmaceutical companies and usually requires experienced sales professionals to do the job.
Future in Management
Many pharmaceutical sales representatives eventually get promoted to become sales managers, marketing product managers, sales trainers and other senior management positions. In fact, most pharmaceutical companies consider being in the sales force for a number of years is a prerequisite for advancement into any other positions in the company. It is said that those who wish to become marketing managers or other executive level positions will have to ‘carry the bag' for at least a few years in order to get field experience. ‘Carry the bag' refers to the brief cases that pharmaceutical representatives carry with them throughout the day.
This ideology makes sense. For pharmaceutical product managers to be truly effective, they must convince the sales force including sales managers on the validity of their marketing programs. They would be more successful in achieving this if they have a good idea of what it's like to be out there in the sales field. Experience as sales reps would give potential future marketers this valuable experience. This is analogous to military commanders who would be much more effective in leading their troops if they have had combat experience themselves.
Of course there have been exceptions in the pharmaceutical industry but in general, the best marketing managers in my mind are the ones who have been sales reps themselves. I have encountered the odd product manager in the industry who never had any pharmaceutical sales experience and I have never been too impressed by any of them. Prior sales experience does make a big difference in the business styles of marketing managers. So being a pharmaceutical sales representative is a stepping stone for many individuals who want to be in management someday whether it's in the marketing, sales or training departments.
Career Pharmaceutical Sales Representatives
There are many pharmaceutical sales representatives who choose not to ever become managers even if they have been offered the opportunities for promotions. There is absolutely nothing wrong with this. Many career sales reps make a great deal of money from the combination of salaries and bonuses, particularly the high sales achievers. Some of these reps live in regions located far away from pharmaceutical head offices and would not dream of relocating for a promotion.
I have met many veteran pharmaceutical reps who live in beautiful locations such as near oceans or mountains and they absolutely refuse to move to large urban metropolitan centers where most pharmaceutical head offices are located. Lower costs of living, crime rates, pollution, family, scenery and other factors have influenced these types of decisions. One can imagine that a senior rep making good money in a scenic area with low costs of living will certainly have a great lifestyle without having to move to a large city to become a manager.
Then again, many reps just like being out in the field as opposed to working inside an office like marketing and training managers do. Some reps do not want the responsibilities of having to manage others like sales managers have to. I've met some representatives who actually did stints as sales managers and then decided to move back into sales territories to become reps again. These individuals just didn't want to do the hiring, firing and hand holding of reps that are often required of a sales management position. They didn't want to be involved with the management of people. They just wanted to do what they like doing best which was selling. So there's absolutely nothing wrong with being a career rep. It's a personal decision. I've known several career reps who worked in pharmaceutical sales right through to retirement.
Both Martin Luther & Clint Cora are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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