Search results

The purpose of this paper is to consider the efficiency of US healthcare in an international context. The paper emphasizes the concept of efficiency and explores implications for pharmaceutical marketing.

Literature review, economic theory, secondary data and bivariate regression were used to describe and evaluate US healthcare spending and pharmaceutical marketing.

US healthcare spending is inordinately high as a share of gross domestic product within developed countries and this is associated with a relatively high share of private finance. But public sector finance is displacing private payment and this trend is especially pronounced for pharmaceuticals. Public finance combined with fiscal pressure can be expected to curb use of pharmaceutical detailing and other forms of marketing. The limits of affordability are not well assessed and socio‐economic institutions to facilitate decisions about present and future costs have yet to evolve.

This paper provides a macro perspective for healthcare finance and the marketing of pharmaceuticals. It pioneers analysis of economics and international healthcare systems integrated with the foundations of demand for pharmaceutical marketing.

The aim is to explore the potential of a hybrid genetic algorithm‐partial least squares (GA‐PLS) modeling approach to understand the important promotional spending variables that influence physicians' prescribing habits and to help leverage managers' insight to plan better spend on their promotional activities.

A GA was used as a variable‐selecting tool, and PLS analysis was employed for correlating these variables with the observed variation in the volume of prescriptions. This approach is illustrated using database from a marketing consultant on four major brands in the US antibiotic universe.

Good statistical models were derived that permit simpler and faster computational prediction of the effects of physician‐directed promotion. All final models established had r² values ranging from 0.835 to 0.922 and cross‐validated r² (q²) values ranging from 0.791 to 0.911 whereas the mean absolute percentage error (MAPE) values were confined within 5 percent range on averaging all brand models. Further, thorough statistical analyses revealed the usefulness of promotional spending as a variable and the robustness of GA‐PLS as a correlation tool.

Modeling frame was comprised of only antibiotic category, which may limit its general utility.

Managers can become more adept at interpreting the effects of promotion on prescribing behaviors of physicians and are able to build predictive models that would help identify where and how their curious blend of promotional cocktail would yield the highest future returns. Moreover, if the impact of individual promotional spending element can be measured, then this is perhaps a testament to the way the efficacy of interventions to reduce the harmful consequences of pharmaceutical marketing could be validated given a growing number of public beliefs that physician‐directed promotion has grown too heavy‐handed and is undermining medical professionalism.

This area of research has not received much attention in the pharmaceutical marketing literature until recent years, and hopefully this study will stimulate some interest.

The purpose of this paper is to investigate the current trend of pharmaceutical direct-to-consumer advertising (DTCA) in the USA and its effect to patients, physicians and drug utilization. The DTCA of pharmaceutical firms is defined as an attempt of pharmaceutical companies to advertise product directly to patients.

The methodology used is literature review complemented with a semi-structured interview.

Pharmaceutical DTCA showed a reduction in total spending, whereas the online channel experienced growth. DTCA affected the physician–patient relationship and patient satisfaction. Patients who received medication associated with DTCA showed higher satisfaction. DTCA of second-line drugs resulted in an increase of first-line drug utilization. Benefits of pharmaceutical DTCA include enhancing appropriate drug utilization and increasing awareness. DTCA might cause harm by interfering with physician’s decisions regarding drug choice.

Limitations include limited available information of DTCA spending from pharmaceutical companies and lack of quantitative data on the effect of pharmaceutical DTCA. In addition, DTCA is sometimes affected by research bias.

Improvement in the physician–patient relationship and patient satisfaction, as well as in the quality of care provided may be demonstrated.

Pharmaceutical firms using DTCA marketing advertisement methodologies can increase awareness of underdiagnosed conditions and affect medication costs and the utilization of appropriate drug utilization.

Review highlights current relationships between DTCA, patients, physicians and drug utilization to explore the effects DTCA on consumers.

This chapter examines the role of pharmaceutical patents in the on-going support of pharmaceutical innovation. The social value of pharmaceutical innovation and the importance of its sustained growth are explained. The government buy-outs of patents to reduce drug prices for all American consumers while preserving vital drug innovation are proposed.

There is sufficient evidence to prove that the improved health status of a nation’s citizens results in economic growth and development via improved functionality and productivity of labor. It is also commonly accepted that healthcare expenditure significantly influences health status through, for instance, improving life expectancy at birth and reducing morbidity, death, and infant mortality rates. Within healthcare, medicines account for a considerable share of health-related expenditure in both developed and developing countries. Therefore, it seems reasonable to assume that improved access to medicines is likely to contribute not only to the well-being of families and individuals but also to the economic growth and development in all societies. It has been widely advocated that pharmaceutical multinational enterprises (MNEs) can play an important role to address this problem, as they develop and supply a significant proportion of the drugs imported by low- and middle-income countries. This chapter is dedicated to a systematic review of literature in order to identify the strategies implemented by pharmaceutical MNEs to improve access to medicines in the low- and middle-income countries. A total of 76 research articles have been identified, and we have found that the main strategies of pharmaceutical MNEs are related to improving health outcomes through R&D, establishing partnerships for product development, pricing strategies to improve access to medicines, technology transfer, licensing agreements, and nonmarket efforts to improve access to medicines, among other strategies to overcome barriers imposed by intellectual property rights. We have also found that pharmaceutical MNEs’ strategies take place within a complex system and often involve interactions with a wide range of actors, such as international organizations, governments, private not-for-profit sector, universities and research institutes, and generic manufacturers. However, there is still a need for major progress in the field of access to medicines, and pharmaceutical MNEs should be more active in this field in order to avoid potential negative consequences, such as loss of legitimacy and compulsory licensing of their patented medicines.

The World Health Organization estimated that in 1999 roughly one-third of the world's population lacked access to essential medicines that would have saved or improved their lives. Our analysis focuses on how pharmaceutical product patents restrict access to essential medicines in developing countries. It is well established that pharmaceutical product patents provide little incentive for pharmaceutical companies to develop new medicines designed to treat diseases prevalent in developing countries or to market in developing countries those patented medicines developed to treat diseases prevalent in developed countries. Economists have developed theoretical models showing that these incentives could be changed if (1) developing countries provided intellectual property protection for new pharmaceutical innovations and (2) an international regulatory framework were established to facilitate pharmaceutical companies setting lower prices in developing countries and higher prices in developed countries for patented medicines. We develop an index of property rights in pharmaceutical innovations covering 129 countries from 1960 to 2005. It shows that in 1960 only a handful of countries provided significant protection for pharmaceutical innovations, but by 2005 over 95 percent of countries in our sample provided significant statutory protections. However, an international framework to allow pharmaceutical companies to price discriminate has not been put in place. We conclude that international price discrimination mechanisms, compulsory patent licenses, and regional patent buyouts are not viable mechanisms for providing access to essential medicines to patients in developing countries. Global patent buyouts are more likely to achieve this goal, as they are not founded on an impractical separation of pharmaceutical markets in developing and developed countries and they provide critical incentives to develop new essential medicines.

The main purpose of the study is to analyze the impact of research and development (R&D) expenditure on firm performance and firm value in an emerging economy.

In this study, firm performance is examined by firm financial performance (return on asset (ROA) and return on equity (ROE)) and market performance (Tobin's Q (TBQ)). This study conducted a multivariate analysis on the sampled data using pooled ordinary least square (OLS) regression method. In addition, both the level and lagged models have been used to test hypothesis in order to get the results.

All the empirical results from different models found significant and positive association of R&D expenditure with firm performance and firm value. The study also validates that all results are robust and free from outliers and multicollinearity issues.

Most of the studies regarding the R&D expenditure and its impact were conducted on developed countries addressing only firm performance. Whereby, this study examined the impact of R&D expenditure on both firm's financial performance and market performance as well as firm value in the context of an emerging economy.

The outcomes of the study will enable the entrepreneurs, managers, investors and policymakers with more confidence to invest in R&D expenditure that will also ensure the organizational sustainability in the long run.

Most of the prior studies regarding the R&D expenditure and its impact were conducted on developed countries addressing only firm performance. Herein, both firm's financial performance and market performance along with firm value have been analyzed in the context of an emerging economy. This paper is unique empirical research study due to different institutional and regulatory setting as well as corporate characteristics. This study strongly advocates the organizational learning theory, agency theory and resource-based view theory of firms' allocation of funds for future growth and innovation.

The purpose of this paper is to explore ethical issues related to pharmaceutical marketers’ social media efforts including the prevalence and forms of direct-to-consumer web 2.0 advertising (eDTCA) and corporate social responsibility (CSR) messages across social networking sites (SNSs). One goal is to determine if these eDTCA posts comply with draft guidelines issued by the Food and Drug Administration (FDA).

Content analysis of ten pharmaceutical marketers’ SNS posts documented the frequency and types of posts devoted to eDTCA, drug risks and benefits, CSR, and other purposes.

eDTCA represents about 35 percent of all pharmaceutical firm SNS posts and primarily communicates help-seeking messages via Facebook, Twitter, and YouTube. Firms also promote their ethical image through CSR-related posts. These posts primarily highlight employee-focussed and community-focussed initiatives. Analysis of consumer behavior in response to each post shows that eDTCA affects only liking of YouTube videos, but CSR increases behavior responses on all SNSs except LinkedIn.

Despite absence of final guidance, pharmaceutical marketers seem to abide by FDA draft social media guidance. In line with the FDA’s draft fair-balance regulations, almost all product-claim eDTCA posts state both benefit and risk information. Nevertheless, the FDA should issue final eDTCA guidance without delay consistent with traditional media direct-to-consumer advertising guidance. This should benefit consumers through consistency with their existing advertising literacy competencies.

The study represents an initial attempt to document ethical issues in the current state-of-the-practice of pharmaceutical social media marketing related to eDTCA and CSR.

This study aims to explore the downstream pharmaceutical supply chain (PSC) and provides insight to the delivery process of medicines and associated operational inefficiencies.

An exploratory, qualitative approach was adopted to examine PSC inefficiency within two European contexts, namely, the UK and Greece. Data was gathered through interviews and a thematic analysis conducted to analyse the data and identify challenges faced by both supply chains(SCs).

The medicines delivery system needs to be enhanced in terms of quality, visibility, speed and cost to perform effectively. The findings demonstrated that although the healthcare SCs in the two European contexts have different operational structures, the results are in concordance with each other. Financial, communication, waste and complexity issues were the major concerns.

To the knowledge this is the first study to examine aspects of the medicines SC via a cross-case analysis in the UK and Greece and extends the body of knowledge. A broader sample of responses is warranted to further validate these findings.

The study outputs can inform pharmacies’ strategic to instigate targeted improvement interventions. The implications of which may be extrapolated further to other European healthcare organisations.

This research contributes to the academic literature by adding further theoretical insights to SC strategy development, especially those that have been characterised as highly complex. The study identifies four key areas of intervention needed within this SC (in both countries) to promote higher level efficiencies and effectiveness.

The purpose of this paper is to investigate the influence of direct-to-physician promotion on physicians’ prescription behaviour. There were very few studies which have investigated to what extent the pharmaceutical promotion directed towards physicians influences physicians’ prescription behaviour in the Malaysian context.

A research framework has been developed based on the buyer behaviour stimulus-response model. A survey method has been used to collect data from 154 medical practitioners from private health-care facilities located at Klang valley in Malaysia. IBM SPSS and SmartPLS statistical programs have been used to analyse the data and validate the model.

This study found that personal selling is the most significant promotional tool for physicians’ prescription behaviour, whereas advertising is the least significant one. Sales promotion and public relations are the second and third most significant promotional tools. Direct marketing is found to be not significant.

This paper will help the pharmaceutical companies develop more effective plans to gain a competitive advantage for their business by having a guideline for pharmaceutical marketers as an input to the more efficient allocation of their promotional budgets.

This study has introduced a comprehensive understanding of all the factors in the pharmaceutical promotion that influence physicians’ prescription behaviour in Malaysia and how these factors are interrelated, influencing physicians’ prescribing medicines for patients.