Big Pharma Reacts to Its Drug Pipeline Problems

I have posted previous notes about the challenges facing Big Pharma in terms of the lack of potential blockbuster drugs in the development pipeline (see: Number of Global Drug Projects by Phase). David Williams has a posted a very interesting note in his Health Business Blog about how the pharmaceutical industry is reacting, or might react, to this problem (see: How big pharma might use manufacturing as a strategic marketing tool). Below is an excerpt from his note with boldface emphasis mine:

As pipelines dried up and the generic industry became more sophisticated and aggressive, big pharma adjusted its tactics. In product development it’s turned to in-licensing, creating new formulations (especially extended release products), and combination products. Big pharma has combated generics in the courtroom, introduced “authorized generics” that cut into the profits of the initial generic supplier, and attempted to bundle multiple products into its contracts with payers....It’s unlikely that big pharma will succeed in reviving its pipelines anytime soon, but there are things the industry could try. For example, if branded pharmaceutical companies can demonstrate better clinical results through medication adherence programs, they may be able to make the argument that they are selling a “solution” rather than a product.

The suggestion that pharmaceutical companies might launch a medication adherence program as a means to sell a solution rather than a product is very interesting. I know that patient non-compliance with their prescribed drugs is a major, and certainly muiltifactorial, problem. I am sure that some of the underlying reasons include the cost of the medication, avoidance of unpleasant side effects, forgetfulness, mental confusion, and even pure contrariness on the part of patients. I am also sure that inexpensive programs to counter drug non-compliance such as "reminder" web sites would be of little value in counteracting most of these problems. One such site is SmartMinder,  a refill reminder program utilizing phone, pager, cell phone, mail, or email notifications. The service is provide by Echo Pharmacies, a small set of independent pharmacies in the Long Island area.

I believe that visiting nurse or a pharmacy care program (see: Effect of a Pharmacy Care Program on Medication Adherence and Persistence, Blood Pressure, and Low-Density Lipoprotein Cholesterol) as a means to ameliorate drug non-compliance problems would be more effective than web reminder sites but certainly much more costly. However and given the price of many drugs these days, I suspect that many pharmaceutical companies would gladly eat these costs in order to preserve some portion of their market share in the face of stiff competition from generics.

Comments

[Susan Torrico]

There's a similar automated reminder service available called OnCellRx. The end-user sets up his own reminder messages and schedule. About the same price, but they offer a 30 minute free trial, so you can try before you buy into it. Big pharma should underwrite this kind of thing. It helps everyone!