pharmaceutical industry-uw 2005[1]shigihara
TRANSCRIPT
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Pharmaceutical Industry
Mark Shigihara R.Ph. , CMRAccount Manager
UW Affiliate Faculty
Pharmaceutical Industry
Pharmaceutical Innovation
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What is a Medical Science Liaison (MSL)?
1st Generation Medical Science Liaisons
MSL Roles & ResponsibilitiesMSL 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
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A Typical MSL Question
MSLs educate pharmacists on XR dosage forms
MSL Profile ExampleUSC 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 MedicineResearch - Internal Medicine & Primary Care, Journal ClubP&T CommitteeResident Education - PharmacologyPatient Care- Inpatient Medicine Rounds & Outpatient Clinic
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General MSL Characteristics
Apply the scienceResponsive to inquiriesPrepare Medical Community for new therapiesEducateSupport researchDevelop relationships-internal and external colleagues Facilitate the acceptance and understanding ofWyeth-Ayerst products and assure their optimum use
Pharmaceutical Representative
The Untold Story........
Sales…The world’s oldest profession
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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”
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Representative role is to provide value for the
customerProduct education - fair balance/ethicalAddress contract/pricing issuesServe 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.
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Representative Benefits
Reward-recognition for individual achievement.The “master of your own destiny”-strategy, time allocation, priority..Customer relationships
Representative Benefits
Guaranteed SalaryBonus plan - matched to performanceStock OptionsCar / Insurance / Gas401 KMedical / Dental coverage
Representative Challenges
Customers with different points of view.TravelRelocation?Good bye to the 40 hour work week...
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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 responsibilityWork responsibilities and impact on pharmacists.Real life questions/quiz
Managed Care Environment
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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 labelsB) You can not decode the prescriber
handwriting and fill the Viagra prescription with Valium.
C) The COST of pharmaceuticals
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COST
Putting it into perspective
Drugs as % of US Healthcare Costs
8.6% 8.9%9.4% 10.0% 10.6% 10.8% 11.1%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
1994 1995 1996 1997 1998 1999(est.)
2000(est.)
Source: HCFA, National Center for Health Statistics
New Medicines Price Inflation Increased Utilization
Increased Utilization10.8% Price Inflation
3.8%
Source: IMS Health
Contributors to the 18.8% Increase in Rx Spending in 1999
New Medicines
3.8%
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COSTBut what about other
countries….. Pharmaceutical products cost
less there….
Mc Answer
(Undergraduate Tuition, Books, Room and Board)
One Year: $32,000
(Undergraduate Tuition, Books, Room and Board, Student
Services)One Year: $12,566
Yale University McGill University
Many Costs Are Lower in Canada
Source: Published University Data, 2000
U.S. CanadaFrom Higher Education...
…to Fast Food
$2.43 $1.98
McDonald’s Big Mac
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$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
Switzerl
and
Denmark UK
Sweden
France
German
y
Netherl
ands Ita
ly
Japan U.S.
Spain
Mexico
Canad
a
New Zela
nd
Austra
lia
Hungary
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
Switzerl
and
Denmark UK
Sweden
France
German
y
Netherl
ands Ita
ly
Japan U.S.
Spain
Mexico
Canad
a
New Zela
nd
Austra
lia
Hungary
International Price VariationMcDonald’s Big Mac(U.S. Dollars, 1999)
Source: Economist, April 3, 1999
0
1
2
3
4
5
6
7
8
Mexico
Irelan
d UK
Sweden
Natherl
ands
Spain U.S.
Canad
a
Finland
Denmark Ita
ly
Belgium
Austri
a
Luxem
bourg
0
1
2
3
4
5
6
7
8
Mexico
Irelan
d UK
Sweden
Natherl
ands
Spain U.S.
Canad
a
Finland
Denmark Ita
ly
Belgium
Austri
a
Luxem
bourg
Approximate Hours of Work Needed to Buy 1 Specific Rx
(50 mg, 30 tablets)
Source: Data on File, Pfizer, Inc and World Fact Book
COSTS
What about some detailed United States perspective…..
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Spending Patterns of ElderlyU.S. Consumers Aged 65+, 1998
Housing
Transportation
Food
Utilities
Cash Contributions
Health Insurance
Entertainment
Clothing
Medical Services & Supplies
Drugs
All Other
Housing
Transportation
Food
Utilities
Cash Contributions
Health Insurance
Entertainment
Clothing
Medical Services & Supplies
Drugs
All Other
Drugs 2.7%
Source: Bureau of Labor Statistics, 2000
Daily U.S. Consumption ExpendituresPer Capita, 1997
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
TobaccoRx DrugsAlcoholElectricityAuto RepairTelephoneGas & OilClothingFoodHousing
Consumption Expenditures per day
Source: U.S.Department of Commerce, Bureau of Economic Analysis, 1998.
COSTSBut what about pharmaceutical
companies…
Are they just trying to price gouge the customer….
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Research-based Pharmaceutical Companies* 20.8%
12.0%7.6%
6.0%5.1%
R&D for Pharmaceuticals and Other Industries (Percent of Sales)
4.9%4.1%
3.7%0.9%0.9%
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
Industrial Sector Comparison:Drugs and Medicine*
Office Equipment and ServicesElectrical and Electronics
TelecommunicationsLeisure Time Products
AutomotiveAerospace and Defense
Metals and MiningPaper and Forest Products
All Industries, Excluding Drugs and Medicine
Source: PhRMA, Based on Data From the Tufts Center for the Study of Drug Development, 1995
Compound Success Rates: 1 in 10,000Reach FDA Approval
0 2 4 6 8 10 12 14 16
1Approved by
the FDA
5Enter Clinical
Testing
250Enter Preclinical
Testing
5,000–10,000Screened
Discovery(2–10 Years)
Preclinical TestingLaboratory and Animal Testing
Phase I20–80 Healthy Volunteers Used
to Determine Safety and DosagePhase II
100–300 Patient Volunteers Used to Look for Efficacy and Side Effects
Phase III1,000–5,000 Patient Volunteers Used to Monitor
Adverse Reactions to Long-term Use
FDA Review/Approval
Additional Postmarketing Testing
Compound Success Rates by Stage
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
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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
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MSL or AAMConsider signing up for our rotation.In depth exposure to our positions.AdvantagesDisadvantagesAnswers the question – “Is the pharmaceutical industry a viable career option for me ?”
Questions?