And I’ll show you how to sneak up on the roof of the drugstore
One of my many pet peeves is drug marketing. Even though Big Phama likes to tout how much it spends on R&D as a justification for high drug prices, it spends more on marketing as a percentage of revenues than it does on R&D. Think about it: in what other industry are the margins high enough to support in person selling to small businessmen? And I read once that over 88% of the so-called “new drug applications:” in the last 10 year have not been for new drugs, but new uses for existing drugs, and to extend the patent on existing drugs.
Drug companies are masters of this art. At Pfizer, which sets the gold standard for drug selling methods, each salesman markets only three drugs in his territory. So if a doctor is a candidate for more than three, he has more than one salesman calling on him. The scripts are highly refined, with a 15 second pitch that rolls into a one minute pitch that rolls into a longer chat if the drug detailman can get the time. All drug companies keep current records on how much each doctor is buying of each drug. Another tactic is “You aren’t prescribing as much of XXX as your peers are….”
They also give lots of little goodies (pens, notepads, desk toys). There is ample research that shows that giving even minor gifts is effective (doubters please read Robert Cialdini’s classic, Influence: The Art of Persuasion). And drug companies do all kinds of small scale research on existing drugs (as in this has no medical benefit, it’s just a sales tool, but those studies no doubt get lumped in the R&D total) to give the salesmen something fresh to talk about with existing drugs.
photo { Dr. Jeffrey F. Caren, a cardiologist in Los Angeles, created a display of the hundreds of pens given to him by the drug industry. | J. Emilio Flores for The New York Times }
