How pharma can cope with consumerism

Under managed care, consumerism has become a threat: When consumers have to pay, they generally have responded more to financial incentives than brand-based promotion. To save money, they have increased their use of generics and reduced their adherence to prescribed regimens.

By Phyllis Yale and Elgar Peerschke

In Vivo

How pharma can cope with consumerism

By Phyllis Yale and Elgar Peerschke

First published on julio 01, 2006
min read


Given their success with consumer promotion in general, drug company marketers have been cautiously optimistic about their business prospects in a fast-growing corner of managed care: consumer-directed health plans (CDHPs). But consumers in these plans have responded more to financial incentives than brand-based promotion. To save money, they have increased their use of generics and reduced their adherence to prescribed regimens. In order to compete in some markets, pharma companies will have to reduce prices. In return for working with MCOs to structure discounts, pharma companies get repeat customers, in a cost-effective way. In other words, working with MCOs becomes even more critical for pharma companies to succeed as CDHPs grow. Download PDF

Given their success with consumer promotion in general, drug company marketers have been cautiously optimistic about their business prospects in a fast-growing corner of managed care: consumer-directed health plans (CDHPs). But consumers in these plans have responded more to financial incentives than brand-based promotion. To save money, they have increased their use of generics and reduced their adherence to prescribed regimens.

In order to compete in some markets, pharma companies will have to reduce prices. In return for working with MCOs to structure discounts, pharma companies get repeat customers, in a cost-effective way. In other words, working with MCOs becomes even more critical for pharma companies to succeed as CDHPs grow.

Download PDF