The Medium Term Impact of Digital and Social Media on the Pharmaceutical Industry
Having attended two conferences recently, one about e-pharma and the other about e-clinical trials, I heard many great presentations that inspired the direction and some of the content included in this article. The first presentation of note was from Chris Andersen, Editor in Chief of Wired Magazine and bestselling author of two fantastic books: The Long Tail: The Future of Business is Selling Less of More, and Free: The Future of a Radical Price. The second presentation was by Thomas Senderovitz MD, FCP and Senior Vice President of Global Clinical Development at Grunenthal GmbH.
Both presenters addressed the structural issues facing the pharmaceutical industry today and in the next five years. Chris presented mass market examples, including one from the music industry. The music industry has historically been based on the blockbuster big hit model, which mirrors the blockbuster drug model of the pharmaceutical industry. In the last few years, the music industry’s model has been forced to change. That change- a structural shift to the long tail-- was driven, in part, by low barriers to entry, low costs of delivery and moving towards a model that is much more tailored to its target audiences. The industry’s new model has more molecules targeted at smaller populations. In the old model, we listened to music in the car or at home on CD players. With the invention of the iPod and other mp3 players, we can now listen to music wherever we are and search out and download the music that we want to hear.
Structurally, Pharma will be faced with a similar dilemma. Those that make an effort to adapt will be successful long term player. One strategy will be to move towards a model targeted at niche audiences. The clinical trial community predicts we will see the emergence of personalized medicine in five to ten years time.
Tom’s presentation looked at other strategies including ways in which Pharma could be more efficient in its pipeline development by using computer modeling and the wisdom of crowds. He also discussed how the changing landscape, and particularly social media, is affecting Pharma’s pipeline. Making use of available social media tools holds obvious benefits for Pharma. Sites like curetogether.com and patientslikeme.com, where patients are revealing the most intimate details of their personal health, can be used to find cures and crowd source valuable data. Big Pharma is already involved-on a test basis- in these endeavors. This is a trend that will only continue as the real potential for companies’ pipelines and R+D become clear. As Chris argued, the large patient populations online more than make up for the lack of clinical settings.
Knowing about these structural market pressures and recognizing the US (and NZ) specific DTC model, what can Pharma do in the digital and social media spaces? Having attended the FDA’s Part 15 hearings on the use of social media last year, I noticed three common themes: (1) that there is an overabundance of medical information on the Internet and in social media channels, (2) that both patients and doctors were using the Web to find and discuss this medical information, and (3) that there is a need for trusted sources in the space to provide content that is current and accurate. Pharma is uniquely positioned to work with patient groups to provide that content. No one else knows molecules or therapeutic categories better. Pharma has an abundance of non-confidential information that would be invaluable to the very audiences and markets they serve. Making this content available, either directly on a non-branded basis like Novartis’ CML Earth (A patient meeting place for those suffering from Chronic Myeloid Leukemia) outreaches or by working with a patient association to provide the content, is a huge opportunity for Pharma to demonstrate thought leadership. As an added bonus, it allows Pharma to directly serve the communities they depend on for market share. There is already information out there about products and patients are already discussing the drugs that are on the market. It is important this online discussion be an educated conversation with the most accurate information available. .
The second thing Pharma can and should be doing now is listening. In every other marketplace, industries are plugged into the online conversation. At a minimum, companies are aware of public opinion, sentiment and the relative share of conversation by their brands versus their competitors. Why has Pharma been so slow to follow suit? The MLR among us will point to a lack of clear regulations and the likelihood of increased AE reporting. For those who are uncomfortable with change, that might be enough to say no to digital projects. The FDA has never provided clear, specific guidance for online interaction and, as a result, Pharma has been left to determine its own policies within the very broad guidelines that the FDA does provide. From a regulatory perspective, it is status quo. The only exception to this confusion is Google’s new pharma advertising model, which resulted from an FDA warning sent to pharmaceutical companies here in the US. The industry responded to that warning, adapted to the new policy direction within six months, and is back to promoting DTC.
Given that pharmaceutical companies at their cores are R+D pipeline and sales/marketing companies, how long can the industry forgo the benefits of the digital space? A valuable opportunity in marketing and research is available now to those companies who are able to adopt these new tools. . Patients want transparent relationships with drug companies. Working in a partnership with patients will reveal the medical information needed to assist a company’s bench clinicians and researchers in their work. The cost effectiveness of portable monitors means that it is only a matter of time before the digital space is an even bigger reality for the pharmaceutical industry. There are already numerous examples of people sharing their data via social media channels such as Twitter and Facebook.
The digital space is an important social trend for the pharmaceutical industry to join. Here in the US, patient data offers valuable input for our American DTC drugs and drug companies pay a handsome price for market research to acquire that data. Why not get it online? In Europe, this same market research provides valuable insight into how to best communicate with prescribing doctors via the channels they are using.
After being in the digital listening phase for a minimum of three months, a pharmaceutical company would then be ready to employ tactical strategies for using social media to send messages to patients and doctors in the US or in Europe. After three months, a company would better understand what channels are needed to effectively and efficiently communicate to target audiences. I think this is the winning strategy for Pharma. What do you think?
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