Industry Perceptions Study

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Industry Perceptions Study

• PBIRG 2003 Annual General Meeting
• Naples, Florida

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April 24, 2003
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INTRODUCTION

• But what
• ..do key stakeholders in this industry really
  think?
• specific practices do they disapprove of?
• Todays sessions are dedicated to uncovering some
  of the answers by
• Listening To Our Partners
• To contribute to this process, P\S\L Research
  conducted an industry perceptions study

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STUDY METHODOLOGY

• Conducted with 2 key stakeholder groups
• Physicians
• Pharmaceutical company employees (pharma)
• Internet-based quantitative questionnaire
• Individualized e-mail invitations
• E-mail contained URL linked to questionnaire
• 5 10 minute duration
• Fieldwork conducted over 6 days (April 24 30,
  2003)

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STUDY SAMPLE
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STUDY OBJECTIVES

• Overall Objectives to assess
• What are the overall opinions of the pharma
  industry?
• Have opinions deteriorated in the past year?
• Which companies are most shaping perceptions?
• How bad are the actual perceptions of hot
  issues?
• Throughout to compare
• How divergent are physicians opinions from those
  of pharma employees?

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WHAT ARE THE OVERALL OPINIONS?
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HAVE OPINIONS DETERIORATED?
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PERCEPTIONS OF HOT ISSUES

• Wished to evaluate some issues for which industry
  may be criticized, to
• Assess the extent of negative perceptions
  outsideof media reports
• Identify those areas in which there are
  perception problems
• To this end asked respondents to rate
• 16 factors relating to current industry
  practices, policies, behavior
• With respect to their level of approval vs.
  disapproval

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16 FACTORS EVALUATED

• Focus of RD over past 5 years

Clinical/Medical

• Level of RD spending

• Role in, influence on the conduct analysis of
  c.trials

• Role in, influence on the content of articles in
  med. journals

• Role in, influence on the content of CME

• Marketing practices used with patients / consumers

• Marketing practices used with physicians

Marketing

• Promotion of products prior to regulatory approval

• Promotion of products outside of approved
  indication

• Business practices towards generic competition

• Size of sales forces

• Level of profit margins

• Drug pricing policies in your (their) country

Financial

• Financial reporting accounting practices

• Level of executive compensation

• Pharmaceutical company mergers

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KEY FINDINGS PRESENTED TODAY

• Focus on the level of DISAPPROVAL (vs. approval)
  to identify problem areas
• Share some of the KEY findings with respect to
• Disapproval level for the 16 factors overall
• Highest disapproval - physicians
• Greatest divergence - between the 2 groups
• Opposite trend - pharma employees more negative
• Lowest disapproval physicians

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1. OVERALL DISAPPROVAL LEVELS
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1. OVERALL DISAPPROVAL LEVELS
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2. HIGHEST DISAPPROVAL - PHYSICIANS
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DRUG PRICES

• US Physicians several comments on drug prices
  in the US vs. other countries some strong
  opinions
• The price differential among the developed
  countries, such as the US, Canada, and Denmark is
  absurd. Americans are being gouged.(IM, USA)
• In other regions comments on absolute prices
• The pharmaceutical companies need to recognize
  the reality of people in developing countries and
  offer medications at a cost much more compatible
  with that reality. (Oncologist, Brazil)

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3. GREATEST DIVERGENCE IN OPINION
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MARKETING PRACTICES WITH PATIENTS

• Some examples of physicians comments
• I think direct to consumer advertising for
  particular products should not be allowed.
  Patients need balanced information. Not
  information about 1 product. (GP, Canada)
• Direct to consumer advertising negates the
  Doctor, puts the medicine in the general domain
  with foods. (GP, South Africa)

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4. OPPOSITE TREND

• In 2 areas, greater numbers of PHARMA employees
  disapproved vs. physicians

• Unprompted, many US pharma employees commented on
  the size of sales forces
• The industry is its own worst enemy by putting
  too many reps in the field and making it almost
  impossible to get access to many physicians.

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5. LOWEST DISAPPROVAL - PHYSICIANS
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CONTINUING MEDICAL EDUCATION

• The pharmaceutical industrys involvement with
  CME is generally well accepted
• In Spain it is thanks to the pharmaceutical
  industry that there is continuing medical
  education. The Spanish government invests zero
  Euros in such education. (Neurologist, Spain)
• In France, unfortunately, there is no continuing
  medical education in the public sector, so thank
  you to the pharmaceutical industry for enabling
  us to keep our knowledge up to date.
  (Cardiologist, France)

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CONCLUSION

• Overall - the majority of physicians pharma
  employees have a positive opinion of the industry
• However, there certain industry practices
  policies where there is an important level of
  disapproval
• We do need to recognize there is room for
  improvement

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CONCLUSION

• A parting comment from a physician
• despite all of the preaching by politicians, we
  must recognize that the industry has produced
  drugs not even thought about 10 years ago I
  hope it will continue to the benefit of all
  concerned, especially sick patients who
  increasingly have hope that they will be cured of
  dreadful diseases

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THANK YOU