Archive for October, 2009

Social Media Lock Down in Pharma

October 13th, 2009

Please note: this post was originally published on 12/5/07.

We’ve talked a lot on this blog about the use of social media as an effective tool in a PR pro’s arsenal.  Others across the blogosphere have long chronicled the use of social media in PR.  This is all well and good when you are dealing with consumer PR or even high-tech PR, but what about those industries that tend to fiercely resist social media?  It is easy when you are out on the bleeding edge to throw practicality to the wind.

The pharmaceutical industry is a perfect example of an industry that makes social media tough.  And rightfully so.  In pharma, there are very strict regulations that govern a company’s ability to speak directly to consumers without disclaimers.  This is the reason for the long disclaimers at the end of every pharma commercial that sound like they are being read by that Micromachine Man.

Scott Monty at the “Social Media Marketing” blog has discussed Pfizer’s attempt at implementing social media tactics by teaming up with Sermo to create a social networking site.  As Scott points out, Pfizer is able to get around regulatory requirements by shifting the audience from the consumer to the doctor.  Certainly, this is a valid start and an innovative way to get a foot in the door with social media.  But in the end, social media is about engaging with your consumers.  How to do this in the pharmaceutical world is a question that remains largely unanswered.

The answer is certainly not a simple one.  The FDA cannot let pharmaceutical companies communicate with consumers without regard for what they are saying—the subject matter is just too sensitive.  At the same time, the FDA has helped to create an atmosphere where big pharma companies live in fear of statistical anomalies.  Is it really necessary for me to know that 1 in 3200 people get a headache when they take a certain type of medicine?  There has to be a middle ground we can strike that allows industries like the pharma industry to dip their toes in the social media water.

Could the answer be as simple as asking pharma companies to follow established guidelines such as the WOMMA code of ethics?  If a pharma company chose to interact in a social networking community and disclosed right up front that it was there as a representative of said company, would we meet the requirements of transparency?  As it stands now, that would almost certainly be a violation of FDA law.  But if the company is upfront and honest about its intentions, should we be inhibiting its ability to participate in discussions that are happening with or without them?

In the end, the reason the FDA requires those Mircomachine Man-type disclaimers is to ensure that the consumer is as informed as possible.  By limiting the ability of a pharma company to participate in social media, are we not limiting the information available to the consumer?

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“Pay-for-Performance,” in Pharma Cutting Out the Middle Man?

October 13th, 2009

Please note: This post was originally published on 10/12/07

A colleague pointed me to an article on the new plan launched by several pharmaceutical companies to take a “pay-for-performance” approach in countries where the healthcare system is government run.  Because many healthcare systems abroad are state run, it’s easy for governments to squeeze pharmaceutical companies out of the country entirely.

This is exactly what happened when Johnson and Johnson introduced a blood cancer drug last year in the U.K .  Officials made the proclamation that the drug was too expensive and did not warrant the strain it would put on the British healthcare system.  In response, JnJ came up with an innovative scheme—we’ll pay you if the drug doesn’t work.  Talk about accountability!

My first instinct upon reading this article was to applaud the prescription-drug industry for being bold enough to stand behind its products.  Why should a patient (or government in this instance) be forced to pay for a drug that failed?  The pessimists of the world will be quick to point out that this is nothing more than a calculated business decision on behalf of the pharma companies.  Offering to pay back the government in the instances when a drug does not live up to its promise is certainly less of a revenue drain than getting entirely squeezed out of a market.  True enough.  But the fact remains that only a few companies have stepped up to the plate and taken responsibility for their product.

But of course, I then questioned how this move could potentially impact PR.  My gut reaction was that the profit of the company would no longer depend on how people PERCEIVE the product anymore—it will be all about the reality of if it  works or not.  In essence, I wonder if this business model has the potential to cut out the middle man (i.e. PR)?  Is the message still important if ultimately, the success is a clearly defined, cut and dry result?

After kicking it around a bit, I think the message is every bit as important, if not more.  The part of me that worries about PR getting cut out of the process if more companies adopt the “pay-for-performance” business model is the part of my brain that still focuses on traditional media as the primary target of PR.  In actuality, that model has long since fallen by the wayside.  In this case, the public has broadened to include traditional media, emerging media, governments and customers.  Despite the fact that consumers will ultimately determine the fate of the drug companies in this model, there are steps that can be taken to engage in the process.

In this new model, it will be imperative for drug companies to engage with the end consumer.  This could mean providing a blog that discusses disease areas, or engaging via social media forums such as Twitter to discuss openly and honestly as much as regulatory bodies will allow.  In short, public relations’ strategies will need to change course and focus at educating the public.  In the end, this type of strategy does not cut out the middle man; it makes the middle man ever more important.

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