Another pat on the back for DTC Marketers
Over my career in
marketing I have come to learn that trade magazines
don't offer a hell of a lot of insights into the
business we are in. In fact they are usually nothing
more that a sounding board for corporate public
relations and a tool for marketers to pat themselves
on the back. The latest issue of DTC Perspective has
the winners of the Excellence Awards and it seems
like every brand that has done some DTC won an award,
including brands that don't understand what DTC is
all about.
Trade magazines can be found in every industry and
some actually can be a source of great information
for marketers. DTC
Perspective is not one of those
magazines. While thumbing through the latest issue
they featured a report on awards, that they sponsor,
and everyone seemed to win either gold, silver or
bronze awards. This is called good public relations
to ensure that DTC marketers sign up for future
seminars held by DTC Perspectives.
Let's look at DTC Company of the year..Sepracor for
their Lunesta campaign. According to website hits
(see below) Lunesta is far behind market leader
Ambien and only slightly above the disastrous
Rozarem. Correct me if I am wrong but the whole
purpose of a DTC campaign is to gain market share?
The Silver winner was Botox Cosmetics..I am not even
going to go into why they should not be considered
for DTC awards.
Ambien CR is
leaving Lunesta in the dust in website hits and
Rozarem doesn't
even register !
For
sales over $5 billion the award went to GSK for their
work on Boniva, Levitra and Avodart. This to me makes
some sense. The spots for Boniva with Sally Fields
are great and communicate the unique point of
difference (once a month vs every week). However
Levitra's campaign, with the causes of ED, may have
hit a niche in the market but have failed to move the
market share needle. The Bronze award went to Amgen a
real DTC powerhouse and that alone should tell you
just how bad these award choices were.
These awards mean nothing but they do make
marketers feel good about themselves. They can go
back to their managers and say "look, we won" and pat
themselves on the back with the false sense that they
actually did something that added value to their
brands. However management is now starting to dive
deeper and deeper into the marketing dollars spent on
DTC. Want $40 million for a new campaign? Tell me
what it's going to do for share and how we are going
to measure it? Of course there are a number of savvy
marketers who can manipulate data to show that what
they spent actually drove share.
It's a shame that some marketers actually believe
this hype and self promotion. This author was part of
the DTC team of they year a while back for Cialis and
I can tell you that the award and $1.50 might get me
a New York subway token.
There is a lot that is wrong with DTC today and
pharma companies are not willing to fix it. Less than
1% of media, for example, is allocated to the
Internet at a time when premiere marketers like
P&G are allocating more dollars to the Web and
moving away from TV. When I receive an issue of DTC
Perspective I think next time it will just go into
the round file where it belongs with all the other
promotional materials. DTC marketers need to stop
looking for awards and start looking at the sales
numbers and patients response to ads before they pat
themselves on the back for a job well
done.
Working at Eli Lilly & Company
Since the NY Times
does a great job of kicking big pharma around I
thought that I would share with you some of my
experiences during my five years at Eli Lilly at
Indianapolis. I was primarily in the eMarketing area
and worked on several brands including Prozac,
Sarafem & Cialis. I learned a lot during my five
years and although I am not an ideologist I would
have left Lilly sooner if I thought there was any
truth to claims that Lilly pushed "off-label
promotion of ANY product.
While employed at Lilly we were required to take
quarterly compliance training. During this class we
were given instruction by our legal, medical and
regulatory people on what we could do and, more
importantly, could not do. Each employee, including
Directors, then had to take a test to ensure that
they understood the course materials. In addition
there was a book of ethics that Lilly maintained
called the Lilly Red Book. Again we were required to
read this book and take a test to ensure that we
understood the materials.
When preparing marketing materials we were required
to go through a MLR review (medical, legal and
regulatory). I can tell you first hand that this team
tended to be very conservative in both DTC and DTP
materials. If it didn't say it on the label then we
didn't say it to physicians or consumers, end of
discussion. I can't tell you how many times we argued
with the MLR team but their word was final as they
were the ones who had to sign off on all materials.
As a marketer I often shared with them insights that
we had learned during consumer or physician research
so they had a better understanding of why we were
proposing certain tactics. This led to a better
session and after working with my MLR team I gained
their trust but they continued to scrutinize every
marketing message.
During my time with
Lilly one thing always seemed to guide me. The
Director of Marketing Services told us in a group
meeting once that we should do everything just as if
a patient, or consumer, were sitting right by our
side. Lilly's slogan is "answers that matter" and in
everything I observed and did we always tried to
provide patients with the answers to questions on our
products. In the rare occasion when a brand team
received a letter from the FDA the MLR team would
immediately go into action to amend or suspend the
materials in question. Management told us, in so many
words, that a letter from the FDA was unacceptable
and that "it won't happen again". (translation if it
does there is going to be hell to pay)
I was proud to be a Lilly marketer and I am still
very proud to list Lilly on my resume. A company is
only as good as the people it hires and retains. Yes,
there might have been some mistakes made by some
people in the past but for the most part they were
shown the exit. Because of my time at Lilly I am a
better marketer and while there I was able to
convince some senior people that the Internet was a
great channel for communicating with our audience and
that the Web was about users, not about pushing
information to visitors.
I read the NY Times everyday and for the most part I
consider it a good newspaper. They have had some
major blunders of their own in recent time but I
won't hold that against them. I am extremely
disappointed at the recent set of articles that ran
in the Times on Zyprexa however. It was old
information and the Times never seemed to question
the motives of the lawyer who released the
information. That's ashame because there are a hell
of a lot of good people at Lilly who deserve better
and who are trying to make a difference in patients
lives..and that is what it is all about.
Annals of Internal Medicine: Off label use common
among practicing physicians
If
you had a chance to read my BLOG last week then you
are well aware of the NY Times articles targeting
Lilly's marketing practice for off label use of
Zyprexa. Forget that this was leaked by an attorney
who is in litigation with Lilly and has a vested
interest in releasing this information what really
strikes me, once again, is the lack of research by
the NY Times and the reporter who wrote the articles.
Two medical journals have stated that off label use
is common among practicing physicians.
According to an article in August of 2006, the
Annals of Internal Medicine
stated the following:
Off-label use is the common practice of
prescribing a drug for an indication other than
those approved by the FDA. The physician rationale
for prescribing off-label is often based on the
lack of FDA-approved effective treatments, reports
of clinical effectiveness for the off-label use, or
both. A recent study confirms that off-label
prescribing continues in earnest, with 21% of drugs
listed in a data set being prescribed for off-label
uses, most with little scientific evidence of
efficacy. Although the responsibility for seeking
FDA approval for adding new uses to the product
label resides solely with the manufacturer,
companies are reluctant to invest the resources
necessary to develop the evidence required for FDA
review, particularly when the off-label uses are
already profitable.
In
addition another article in the
Archives of Internal Medicine
in May of this year found:
Off-label medication use is common in outpatient
care, and most occurs without scientific
support.
So
what does this mean? It means that physicians are
doing what they feel is in the best interests of
their patients. They don't have a lot of confidence
in the FDA or pharmaceutical representatives to give
them the information they need to make decisions
based upon what is best for patients. Pharma
companies, for the most part, do not promote off
label use of their products and anyone who engages in
such behavior is subject to immediate termination. It
also means that once again a reporter did not present
a balanced news story that was researched in depth.
Next time I read a story like this I am going to
check my drivers license to ensure that I was not
born yesterday...
Astra Zenca's getbcfacts.com is what good DTC is all
about
Astra
Zenca's website on breast cancer
(www.getbcfacts.com)
is an example of just how good a website can educate
and inform consumers with real answers and straight
forward communication. The site is very focused on
the user experience and visitors have an option to
customize the site to meet their needs. This to me is
what a great website is all about.
What
I really like about the getbcfacts.com website is the
way the information is presented to visitors. The
site navigation is very easy and is intuitive which
frankly you don't see that much in pharma websites.
Visitors can get information on a wide variety of
subjects from diagnosis to treatment options. There
is even some information on clinical trials for
people that maybe interested in working with a
physician to test new pharmaceutical products.
Where I think the site really excels is the
customization or personalization feature within the
site. Users are guided by a video to enter
information about themselves and then they are
presented with information relevant to their profile
(obviously the folks at Astra Zenca get it). We need
more of these type of websites to educate and inform
a public hungry to research health issues on the
Internet. The only issue I had with this site is that
I was served the ad while surfing the Internet and I
am sure that I am not in their target audience. They
maybe able to do a better job of targeting these ads
online.

First shots fired in the cholesterol wars
It
looks like there is a potential battle brewing in the
multi-billion dollar prescription cholesterol market.
Vytorin has fired the first shot with the results of
head to head clinical studies against market leader
Lipitor. A three-quarter page ad in todays Wall
Street Journal with the headline saying that "Vytorin
was clinically proven
to lower bad cholesterol more than Lipitor alone".
They also show a graph that indicates that Vytorin
lowered bad cholesterol by 53% compared to 45% for
Lipitor alone. It seems the battle lines are
drawn.
Merck and Schering-Plough are promoting the head to
head clinical studies on their health care
professional and consumer websites as well. The key
question is will it be enough for patients to ask
their physician or will Vytorin become a second line
statin for people whose high cholesterol doesn't
respond to treatment with Lipitor? I believe that
this battle is going to be fought in the doctors
office not with patients. Pfizer has done a great job
in promoting Lipitor with physicians. Pfizer is
promoting clinical studies that show that Lipitor may
reduce the risk of major CV events by almost half. In
addition Pfizer is firing back with three key points;
lower LDL reductions, outcomes such as stroke
reduction of 48% and nonfatal MI reduction of 45%,
safety and experience and finally health care access
"available for 94% of patients with managed care
coverage.
Will these work? Hard to tell, Pfizer tried some of
these tactics when Viagra faced competition from
Cialis and Levitra and they didn't work that well but
the ED market is mostly a patient/consumer driven
market. Pfizer does a great job of bundling their
products to managed care plans and that might give
them a slight edge but the real question is will
patients ask to be switched and will physicians
switch patients? My guess is that patients currently
taking Lipitor and responding to treatment will not
ask to to switch to Vytorin. Why should they? Either
way it will be interesting to see this battle unfold
in the multi-billion dollar cholesterol war. Pfizer I
am sure will not allow this attack to go
unchallenged.
A
key message to HCP's on Lipitor
As
you can see Pfizer is hitting back to Vytorin's
challenge with this
message on the Lipitor HCP
site.
Why I love working in DTC marketing
Another
year is about to enter the books as history and I
believe that that that the future of DTC advertising
is needed more now than ever. I believe that there is
value in DTC advertising. It allows me to make better
and more informed choices when it comes to my
healthcare so that I don't always have to rely on my
physician. I can work with her to chose the
medication that I believe will be best for me.
I love the challenge of DTC marketing in an era when
more and more boomers are reaching ages when they are
going to require more Rx's to help them maintain a
better quality of life. Even when I was marketing
Cialis I believe, as I still do, that it's the best
treatment for ED on the market. Although lifestyle
drugs have gotten somewhat a bad rap in the press
they play a role in bringing people closer together.
I remember ,during some qualitative research with
women (partners of ED suffers), how one person in
particular made me realize the importance of what we
do. Her husband had ED due to diabetes and they had
not had intimate relations for over a year. After
dealing with some internal issues (i.e. "it's my
fault") she finally talked him into going to see
their doctor and ask for Viagra. She planned a
special weekend away and rented a cabin in the woods
and had arranged for relatives to take care of their
children. When her husband came back from the doctor
he came back empty handed because he was too
embarrassed to ask their physician for an Rx for
Viagra. When she told this story there was pain in
her voice and you could clearly see that the lack of
intimacy was having an effect on her and their
marriage. That is when I learned that ED is not just
a mans condition but a couples condition and I wanted
to do as much as possible to reach these people to
try and communicate this along with steps they could
take to address this issue together.
DTC marketing at its best can provide answers to both
the physical and emotional aspects of health
problems. At its worst it can be intrusive and overly
promotional but I believe that most DTC marketers can
find that balance. DTC marketers have to believe in
what they do and what they are selling. You can't
take someone who used to work for Coke and put them
in a DTC marketing position and expect them to excel,
at least that is what I believe. When you ask
yourself "what am I selling?" the answer should
always be "hope and health". We're not selling purple
pills or blue tablets..we're selling a better quality
of life and that is what America's pharmaceutical
companies need to communicate to the public.
There will be no doubt that changes are in store for
DTC as we approach another year. We have a new head
of the FDA who must take an agency under siege and
prioritize issues facing the public with a newly
elected skeptical Congress and House. Vioxx
litigation continues in the news and the recent
series of story on Lilly's Zyprexa are all sure to
keep the media spotlight on the pharmaceutical
industry. Maybe I am an idealist but I will continue
to believe that DTC marketing is an essential
strategy for reaching consumers. I will continue to
develop DTC programs that provides answers and as I
develop and implement these program I will do so just
as if my patients were looking over my shoulder
because in the end it's all about them not
us..
What I would do to repond to articles in NY Times
It
seems that the New York Times is on a crusade against
Lilly. Again, in today's Business section is another
article on Zyprexa and the data that Lilly had
collected in early clinical trials relating to weight
gain in patients. Once again this is from internal
correspondence released by a lawyer in Alaska is who
currently is in litigation with Lilly over Zyprexa.
It's time for Lilly to stop hiding their head in the
sand and come up with an action plan to counteract
all this negative publicity on a drug that helps
millions of people.
Here is an action plan that I would put in place if I
were in Lilly's shoes:
1. Invite the reporter who wrote these articles,
along with his editor, to Indianapolis for a meeting.
At this meeting I would address each "allegation"
one-on-one with open honest responses. For example,
Lilly might to point out that some people from the
Zyprexa team were terminated for actions that Lilly
felt "were not keeping in traditions with our
compliance policy".
2. I would then invite the reporter to one of Lilly's
compliance training programs which are held
quarterly.
3. I would then ask the reporter to interview some
family members of patients who are currently on
Zyprexa so that they can asses the impact this
medication has had on a patients quality of life.
4. Finally; I would let the reporter meet with
current members of the Zyprexa team and interview
them one on one if necessary.
Are these risky? Yes they might be but in this age of
media spotlights and 24/7 information Lilly can't
afford to hide behind statements like "no comment"
and "we don't comment on pending litigation". That
went out the door when the attorney in Alaska
released this confidential information. Unless
America's pharmaceutical companies take the offensive
once in a while they are going to continue to get
kicked around like an old shoe. Time for the industry
to speak up and talk about all the positive things we
do.
Will DTC Spending overtake DTP promotional spending?
According
to IMS Health DTC spending in 2005 was $4.2 billion
while DTP spending was $7.2 billion. Although a
majority of dollars are still being allocated to DTP
spending DTC has been growing by leaps and bounds.
Although my colleague
John Mack in his Pharma Marketing Blog
thinks that DTC advertising will overtake DTC I don't
think that will happen
.
I believe that some drugs may launch with huge DTC
budgets of $100 million or more but that will be an
exception rather than a standard. There is just too
much inefficiency in mass media to justify those
types of budgets. TV costs are increasing at a time
when marketers are questioning its effectiveness in
driving brand objectives. Just look what happened in
the ED wars. There was a time when Cialis, Levitra
and Viagra commercials were all over TV, now they are
far and few between. Other brands like Enbrel,
and their horrible DTC spot
with lethal side effects, don't have the dollars to
sustain a heavy DTC media plan.
Why is this happening? Because in the phrama matrix
business environment every dollar that you want has
to be justified with an ROI model. It's getting
tougher for marketers to justify huge budgets when
share stays flat or only rises a couple of points. In
addition there is ongoing research that shows that
patients still rely on their physicians
recommendations for medications. I think that we will
also see a shift in media spending to more efficient
channels like the Internet. The Web can reach more
people at a better cost effective model and it's easy
to measure the impact of the dollars
spent.
DTP
spending growth will level out in the near future for
several reasons. First, pharmaceutical companies are
reducing the size of their sales force. They have
come to realize that they can't have 3 reps calling
on the same doctor. Physicians are also too busy to
see sales reps these days. The average time with a
pharmaceutical sales rep continues to decline and
more and more physicians are using eCME or eDetailing
to get information on new pharmaceutical products.
Finally the pharma industry is going to have to think
about the reps that they recruit. Most are right out
of college and go through training that teaches them
the best way to "pitch" the product. If a HCP wants
to talk to someone in depth about the compound he or
she usually has to find a medical liaison person who
more often than not does not have the information the
HCP wants.
DTC
advertising will continue to play an important role
in the brand mix but marketers are going to have to
learn to do more with less. Today's time pressed
consumers just don't have the time to sit through
your message anymore and it's going to get harder to
cut through the clutter with relevant messages. Still
there are some marketers that will continue to think
in "old school" marketing and request a huge media
budget to launch new products but when the numbers
roll in share had better be tied to the dollars that
were spent.
NY Times Continues to Attack Eli Lilly
I
guess the
NY Times
has a bone to pick with Lilly and the pharmaceutical
industry. Again Lilly was featured in a front page
story about Zyprexa. This time it reported on Lilly's
attempts to promote Zyprexa with for off label use. I
was not on the Zyprexa team at the time but what the
Times failed to report is that the people who were
responsible for this poor judgement are no no longer
with Lilly. They were shown the door a long time ago
and, now it seems, for good reason.
I
really don't understand how a national newspaper as
respected as the NY Times could be so one-sided in
reporting a story. The information that they are
reporting was again given to them by a attorney in
Alaska who is no doubt trying to cash in by forcing
Lilly into a settlement. Lilly already settled most
of the lawsuits with a $700 million payment but there
are still some lawyers who want their big payday from
the pharmaceutical company based in Indiana. What
these legal people don't understand is that Zyprexa
may have helped millions of mentally ill people lead
better lives. It may have eased the burden on society
for some people that otherwise might have to be
institutionalized. These so called legal people reach
out to patients but it is they who will reap the
majority of the rewards not patients.
If the reporting in the Times is accurate than in
fact several people did use extremely bad judgement
in the marketing of the product. A lot of the Zyprexa
team people were shown the door and Lilly cleaned
house in the brand team a while back. I don't know
where theses marketers wound up but I can assure you
being fired from a pharmaceutical company is not
something you want on your resume.
There are always two sides to every story and instead
of the Times sitting down with Lilly with the
documents they had in their possession the Times
chose to run this story on the front page. So much
for balanced reporting. They did contact Lilly and
asked them to "comment" but what's the use when you
know the outcome is going to be negative. I have a
relative who is on Zyprexa and he is doing very well
and working full time because of this medication.
That is a blessing to family members because the
stress of caring for him has affected their well
being as well. He has not gained weight and has not
had issues with his A1C but you won't hear about that
you'll only hear about the people who gained weight
and may have become diabetic as a result.
The media reporting in this country has really gone
down hill. They seek headlines rather than
fact....they don't research stories and the news is
more about sensationalism than facts. That's a shame
because as a former Lilly employee I was always were
told to put patients first and I observed this in the
development of a lot of our marketing materials. Like
one Director of Lilly taught me "always work like
patients are looking over your shoulder". There are a
lot of good people at Eli Lilly and they deserve a
better more balanced story than the one running in
the Times. It's a shame that one of the best
newspapers in the world has had to stoop this type of
journalism but then again it's about selling papers
isn't it?
*
I should note that the author of this BLOG used to be
an employee of Eli Lilly & Company
NY Times Article on Zyprexa: Shoddy Journalism
This
is a week when a lot of people in the pharma industry
take vacations but I have a feeling that there will
be a lot of important meetings at Lilly's
headquarters in Indianapolis this week. As if Lilly,
and the whole phrama industry, didn't have enough
problems the front page of todays
New York Times
has an article on Lilly's alleged attempts to play
down the risks of its top selling drug Zyprexa. These
allegations came from
documents — which include e-mail, marketing material,
sales projections and scientific reports — and they
are replete with references to Zyprexa’s importance
to Lilly’s future and the need to keep concerns about
diabetes and obesity from hurting sales.
Is this really new news or is it a well timed leak
from an attorney who still is in litigation with
Lilly on Zyprexa and wants to put more pressure on
the Indianapolis pharmaceutical company?
According to the article in todays Times;
The documents, given to The Times by a lawyer
representing mentally ill patients, show that Lilly
executives kept important information from doctors
about Zyprexa’s links to obesity and its tendency
to raise blood sugar — both known risk factors for
diabetes. Lilly’s own published data, which it told
its sales representatives to play down in
conversations with doctors, has shown that 30
percent of patients taking Zyprexa gain 22 pounds
or more after a year on the drug, and some patients
have reported gaining 100 pounds or more. But Lilly
was concerned that Zyprexa’s sales would be hurt if
the company was more forthright about the fact that
the drug might cause unmanageable weight gain or
diabetes, according to the documents, which cover
the period 1995 to 2004.
But as early as 1999, the documents show that Lilly
worried that side effects from Zyprexa, whose
chemical name is olanzapine, would hurt sales.
“Olanzapine-associated weight gain and possible
hyperglycemia is a major threat to the long-term
success of this critically important molecule,” Dr.
Alan Breier wrote in a November 1999 e-mail message
to two-dozen Lilly employees that announced the
formation of an “executive steering committee for
olanzapine-associated weight changes and
hyperglycemia.” Hyperglycemia is high blood sugar.
A
couple of things about this story seem fishy to me.
First,
The Zyprexa documents were provided to the Times
by
James B. Gottstein, a lawyer who represents mentally
ill
patients and has sued the state of Alaska over its
efforts to force patients to take psychiatric
medicines against their will. Mr. Gottstein said the
information in the documents raised public health
issues. Second, the release of these documents maybe
illegal given the pending litigation of continued
Zyprexa lawsuits. This, to me, seems like a well
placed story by a savvy attorney who wants to
pressure Lilly into a settlement that will, in all
likelihood, support a win and of course monetary
collection of fees.
As I see it there are a couple of issues here:
1. Did Lilly try and hide Zyprexa's side effects
(weight gain) from health care professionals because
they didn't want to hurt sales ?
2. Are health care professionals responsible to
monitor patients for possible side effects when they
start them on new medications?
This author worked for lilly for almost 5 years and
during that time, as an employee, I was required to
attend quarterly compliance training to ensure that I
was aware of marketing compliance guidelines for both
health care professionals and patients. I believe
that these documents are being taken out of context.
Zyprexa may have helped thousands of mentally ill
patients lead better lives and be more productive to
society. In addition isn't it the obligation of a
prescribing physician to monitor patients while they
are on prescription medications? The biggest
pharmaceutical product in the world, Lipitor, for
example requires that physicians monitor patients
while on the medication to ensure that liver damage
does not occur.
If anything maybe Lilly should have included a
stronger warning to health care professionals about
the weight gain issue and to monitor patients weight
while on the compound. I just don't believe that in
an age where every marketing message is archived that
Lilly would have tried to hide anything or risk
patients health for sales dollars.
Of course decisions like these are made ordinary
business and medical people and sometimes they can
chose the wrong path despite the efforts to keep
patients best interests at heart.
GAO Report: DTC Getting Off Easy
Regulators
are issuing fewer citations to drug companies for
false and misleading advertisements and are taking
longer to do it, a congressional report says. DUH !
With direct to consumer advertising over $4 billion
and increasing and a small staff of reviewers just
what is the FDA supposed to do?
From 2002 through 2005, it took the Food and Drug
Administration four months on average to draft,
approve and send warning letters and other
correspondence to companies that were in violation of
the rules, government auditors said. Between 1997 and
2001, before FDA lawyers began reviewing the letters
as a matter of policy, it took two weeks on average
to issue the letters. The number of letters fell off
by about half between the two time periods.
The Government Accountability Office also said
the FDA lacks an effective way to screen, review
and track the more than 10,000 ads and Web sites
brought to the agency's attention each year. The
amount has doubled in four years.
The Health and Human Services Department, the FDA's
parent agency, acknowledges that the FDA's six
reviewers can't scrutinize everything so they focus
on those ads with the greatest potential to affect
public health. The department said the lengthy legal
reviews give the FDA more teeth because the letters
that are sent rest on a more solid legal foundation.
"As a result, companies take our letters more
seriously and quickly react to the problems
identified therein," the department said in written
comments to the GAO, the investigative arm of
Congress.
Will this lead to more reviewers? Probably not but
you can be sure that when Democrats take control of
both houses that this report will be used against the
FDA. The new head of the FDA is sure to be called in
front of Congress to explain the the FDA's lack of
oversight of DTC ads and websites. Changes are in
store but for now the direction and scope of those
changes are anybody's guess.
Eli Lilly's Strategy: The Long Tail in pharma?
There
is a good analysis of the strengths and weaknesses of
Lilly's potential long term strategy in today's Wall
Street Journal. Zyprexa, Lilly's biggest product, is
coming off patent in 2011 and Lilly is looking to its
pipeline to replace lost Zyprexa sales. Will this
strategy work? That's a good question but this author
believes that Lilly maybe aware that the days of
blockbuster drugs are coming to an end.
Cymbalta has had a tough time achieving the
blockbuster sales status of Prozac. It seems, in
order to cut costs, research is being circulated that
shows that Cymbalta may not be any better at treating
depression than of Fluoxetine ( generic Prozac) which
is a lot less expensive. Zyprexa is also under attack
with similar research studies and it's feasible to
think this trend will continue as insurers look to
cut the costs of prescription drugs. When I was
prescribes Celebrex, for example, for my shoulder my
health provider sent me a letter stating that OTV
Ibuprofen was just as effective as Celebrex and a lot
less expensive.

The new drugs in Lilly's pipeline do look promising
but as Pfizer learned the hard way there is always
some risk in the development of new
drugs.
One of the new drugs in development at
Lilly is
Prasugrel, a blood thinner which Lilly hopes can
rival popular Plavix. This product does have risks
and let's hope that Lilly is not too dependent on the
success of Prasugre. According to today's WSJ:
The drug appears to create a greater risk than
Plavix of causing bleeding in patients, a potential
side effect since blood thinners inhibit clotting.
The drug faces greater scrutiny and a tougher
environment for clinical trials in light of recent
disappointments from Nuvelo and Bayer AG, whose
jointly developed blood thinner failed to meet
targets in late-stage tests, and Pfizer's decision
to stop developing the good-cholesterol drug
torcetrapib. Lilly also will have to split
prasugrel profits with Japanese partner Daiichi
Sankyo, making the drug even "less of a long-term
earnings driver for Lilly.
The
analysis of the Lilly in today's WSJ is good but it's
not a thorough analysis which is what I have come to
expect from newspapers. In addition to the drugs in
the pipeline you also need to take a look at the
people who will market these products. Lilly has
never been known as a marketing powerhouse and they
are going to need marketers with a lot of skill to
market products in this era of increases scrutiny and
consumer power. One thing is for sure there is a lot
of uncertainty at Lilly and in the whole
pharmaceutical industry. Lilly will survive and may
even prosper but they may have hit a ceiling in
overall sales growth. For a while they may just be a
$10-$12 billion profitable pharma company with a
diversified portfolio and that is fine in the new
economy where blockbusters may be few and far
between.