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How pharma can cope with consumerism

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.

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How pharma can cope with consumerism
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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.

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