Health Care Reform May Force U.S. Pharmaceutical Companies to Overhaul Sales Strategies, Says New Report From ZS Associates and eyeforpharma

/PRNewswire/ -- While President Obama's push for a larger government role in health care and the prospect of a European-style health care model developing in the United States may worry some pharmaceutical companies, all should share a more immediate concern: the growing influence of payers over physician prescription decisions in the United States.

According to a new report by global management consulting firm ZS Associates and eyeforpharma, a leading provider of pharmaceutical business intelligence, this changing payer landscape will force companies in the United States to change their sales models much like pharmaceutical companies in Europe who must adapt today to serve the needs of the various decision-makers and influencers driving their local health economies. Still, this change won't happen in the U.S. as quickly as in Europe.

"Though U.S. health care has plenty of problems of its own, the lack of central decision-makers, as are common in much of Europe, allows the traditional practice of pharmaceutical representatives calling on physicians to remain effective and largely intact -- for now," said Chris Wright, principal and leader of the pharmaceutical practice at ZS Associates and co-author of the "Drivers of Change to Pharmaceutical Commercial Models" report. "Over the next several years, however, U.S. pharmaceutical companies should trim another 15-20 percent of their sales forces and prepare to do what many in Europe are doing today. They must modify their direct-selling strategies and prepare to sell to an increasingly diverse group of health insurance companies, government payers like Medicare and Medicaid and other opinion leaders who will increasingly influence prescription decisions."

Payer Restrictions in the U.S. versus EU

The fragmented nature of managed care organizations and government-led health care initiatives limits their influence over physician prescription decisions in the United States. So even if a pharmaceutical company fails to obtain a favored spot -- and the concomitant smaller co-pay -- for its drug on a payer's formulary in the United States, physicians and patients still can opt for the drug.

This contrasts with Europe, where government-funded payers such as the Primary Care Trusts (PCTs) in the United Kingdom administer most health care budgets. During the last five years, many of these payers have increased their influence over physician behavior by penalizing those who prescribe drugs that fall outside of increasingly restrictive formularies. They often use a combination of financial rewards and penalties to control prescribing.

"Unlike in the United States, pharmaceutical executives in Europe must immediately change the way they market and sell to increasingly powerful public health care payers who strive to provide their constituents the best drugs at the lowest possible cost," said Rohan Fernando, managing principal for ZS Associates Europe and co-author of the report. "Pharmaceutical companies in the United States should watch carefully the changes taking place in Europe to prepare for a future when they face similar challenges."

Lessons from Europe

Several companies in Europe, primarily in the United Kingdom, the Netherlands, Italy, Spain and Germany, have begun to make meaningful changes to their selling strategies to meet the needs of public payers. While there is no blueprint for strategies that will work for every European country, the "Drivers of Change to Pharmaceutical Commercial Models" report identifies some common features of effective changes to the sales model -- changes that could be relevant for companies in the United States in the near future:

1. Acquire the skills to manage "new" stakeholders effectively, and
integrate sales strategies that previously functioned separately. This
includes blending account management with regional health care payers,
stakeholder management with key opinion leaders and continuing
traditional promotion with physicians.
2. Design flexible, regional strategies that address the differences
between local health economies. This can be a complex undertaking since
many pharmaceutical companies are set up to implement national-level
strategies. Many companies that seek this flexibility will make a move
towards contract sales forces.
3. Create stronger, mutually beneficial relationships with regional health
care payers. Focus not just on product features and benefits, but also
on product value by explicitly tying outcomes to costs.


The Pharmaceutical Sales Rep is Safe -- for Now

Despite frequent news stories about the imminent demise of pharmaceutical sales people, the report suggests that while the rep function will not disappear in the near future, sales representatives will need to adapt.

The report also addresses select, long-term trends that are likely to have a dramatic influence on the future of the sales representative position. Among them: the development of personalized medicine, which would lead to multiple "versions" of a branded product and allow doctors to prescribe drugs that best align with a given patient's genetic makeup. Such a fundamental shift in the branding and marketing of pharmaceutical products could render the pharmaceutical sales representative irrelevant in the future. The report stresses, however, that the impact of personalized medicine won't likely be felt in the next decade.

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Partnership for Prescription Assistance Prepared to Help Georgia Workers Hurt by Recession

/PRNewswire-USNewswire/ -- The "Help is Here Express" bus tour will be stopping in Georgia the week of March 23-27 at various cities throughout the state in order to help uninsured and financially-struggling Georgians access information on programs that provide prescription medicines for free or nearly free. With unemployment rates in Georgia having risen for nine straight months, and having passed the national unemployment rate (7.6 percent) to stand today at 8.1 percent, the Partnership for Prescription Assistance (PPA) is ready to help state residents who face layoffs and loss of health care benefits determine if they may qualify for free or nearly free medicines.

The PPA, a nationwide effort sponsored by America's pharmaceutical research companies, provides a single point of access to more than 475 patient assistance programs that help those who are uninsured or struggling financially. Nearly 200 of the programs are provided by pharmaceutical companies.

The "Help Is Here Express" bus will be at the following Georgia locations:

Monday, March 23
EVENT TIME: 9:00am - 11:00am
ADDRESS: Woodlawn Forrest Church of Christ
1515 N. Forrest Street
Valdosta, GA

EVENT TIME: 1:00pm - 3:00pm
ADDRESS: Tift County Health Department
305 12th Street East
Tifton, GA

Tuesday, March 24
EVENT TIME: 9:00am - 11:00am
ADDRESS: Albany Tech College/Georgia Dept of Labor Parking Lot
1701 South Slappey Blvd.
Albany, GA

EVENT TIME: 1:00pm - 3:00pm
ADDRESS: First Baptist Church of Americus
221 South Lee Street
Americus, GA

Wednesday, March 25
EVENT TIME: 8:30am - 10:00am
ADDRESS: Columbus Health Department
2100 Corner Avenue
Columbus, GA

EVENT TIME: 1:30pm - 3:00pm
ADDRESS: Bibb County Health Department
171 Emery Highway
Macon, GA

Thursday, March 26
EVENT TIME: 9:00am - 11:00am
ADDRESS: Hall County DFCS
970 McEver Road
Gainesville, GA

EVENT TIME: 1:00pm - 2:00pm
ADDRESS: Clarke County DFCS
284 North Avenue
Athens, GA

Friday, March 27
EVENT TIME: 9:00am - 11:00am
ADDRESS: Lamar Medical Center
1448 Lee Beard Way
Augusta, GA

EVENT TIME: 1:00pm - 2:00pm
ADDRESS: Burke County DFCS
729 West 6th Street
Waynesboro, GA


"The PPA, so far, has helped well over 230,000 Georgians find out if they may qualify for free or discounted medicines and as we move forward into 2009, the assistance is still available," said PhRMA President and CEO Billy Tauzin. "That's good news for the citizens of Georgia, where the unemployment rate has jumped from 5.3 percent to 8.1 percent since April 2008 and where some 393,000 people are now out of work."

Patients who qualify for help from the PPA's participating patient assistance programs have access to more than 2,500 brand-name and generic prescription medicines. In addition, the PPA provides information on more than 10,000 free health care clinics in America and has connected more than 277,000 patients with clinics and health care providers in their communities.

Patients seeking help from PPA can call a toll-free number (1-888-4-PPA-NOW) to talk to a trained operator or access the PPA Web site (www.pparx.org). It only takes 10 to 15 minutes to find out if someone may qualify for free or discounted medications.

To help spread the word about the assistance available, the PPA's "Help Is Here Express" buses continue to visit communities all over the country with trained specialists on board to provide information on how to access patient assistance programs. All 50 states and more than 2,500 towns and cities have been visited so far, and more than 5.6 million patients have been helped nationwide since the PPA began in April 2005.

"At a time when national unemployment is the highest in almost two decades, the PPA has become an important lifeline for a growing number of patients," PhRMA's Tauzin said. "Millions of Americans have been added to the jobless rolls over the last several months and there could be a sharp increase in the number of our citizens losing health care benefits."

"PPA is currently helping thousands of people every day," Tauzin added, including those who need treatments to fight such debilitating chronic diseases as cancer, heart disease, diabetes and asthma.

On a national level, the Partnership for Prescription Assistance is represented by Emmy-winning syndicated television talk show host Montel Williams, named PPA's national spokesman in January 2006. In addition, nationally recognized Telemundo talk show host and author Mayte Prida leads the PPA's Hispanic outreach effort.

"Since January 2006, I've been traveling the country talking about the Partnership for Prescription Assistance, urging people to pick up the phone, log on to the Web site or visit the big, orange PPA bus to see if they may qualify for assistance," said Williams. "As a patient who must cope every day with the effects of multiple sclerosis, I understand only too well the importance of having access to the medicine you need."

More than 1,300 national, state and local partners are working with America's pharmaceutical research companies to spread the word about the program. Trained specialists work with doctors, pharmacists, health care providers and community groups, educating them on the process and use of the PPA's easy-to-access Web site and toll-free number.

To find out if there are patient assistance programs that may meet their needs, patients should call toll-free 1-888-4PPA-NOW (1-888-477-2669) to speak with a trained specialist or visit www.pparx.org.

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