Pharmaceutical Industry

Mark Shigihara R.Ph. , CMR

Account Manager
UW Affiliate Faculty
Pharmaceutical Industry
Pharmaceutical Innovation
What is a Medical Science
Liaison (MSL)?
 1stGeneration
Medical Science Liaisons
 MSL Roles & Responsibilities
 MSL is a medical representative in the field
for Wyeth.

 Provide fair-balanced scientific clinical

information, including full scientific data on
products in response to unsolicited requests
A Typical MSL Question
MSLs educate pharmacists on
XR dosage forms
 MSL Profile Example
 USC School of Pharmacy
– Doctor of Pharmacy (Pharm.D.)
 Post Doctoral Residency
– Primary Care / Ambulatory Medicine
 UCLA - Santa Monica Medical Center
– Director of Pharmacology Education and Research &
Assistant Clinical Professor of Medicine
 Research - Internal Medicine & Primary Care, Journal Club
 P&T Committee
 Resident Education - Pharmacology
 Patient Care- Inpatient Medicine Rounds & Outpatient Clinic
 General MSL Characteristics
 Apply the science
 Responsive to inquiries
 Prepare Medical Community for new therapies
 Educate
 Support research
 Develop relationships-internal and external
colleagues
 Facilitate the acceptance and understanding of
Wyeth-Ayerst products and assure their optimum
use
 Pharmaceutical
Representative

The Untold Story........

 Sales…
The world’s oldest profession
The Art of Selling
Pharmaceutical Sales
Candidates
 What people used to say
about Pharmaceutical
Representatives..
 “Oh no... not him again....I don’t have the
time”
 “ He would have made a great used car
salesman”
 “ I can’t remember what he said about this
product but this pen is really cool”
 Representative role is to
provide value for the
customer
 Product education - fair balance/ethical
 Address contract/pricing issues
 Serve as a liaison to home office
departments: medical affairs, product
quality, product marketing, clinical studies...
 Meet customer needs: speakers, grants,co-
promotion....
Office Based Representatives
 Works in private practice setting with MD s
and RNs.
 Calls on chain and or independent
pharmacies.
 The majority of pharmaceutical
representatives are in office based roles.
 Medical Center
Representatives
 Works in hospital/academic medical center
environment.
 Audience: MD,residents, pharmacists, RN...
 Key responsibility- to identify and develop
academic thought leaders.
 Representative Benefits
 Reward-recognition
for individual
achievement.
 The “master of your
own destiny”- strategy,
time allocation,
priority..
 Customer relationships
 Representative Benefits
 Guaranteed Salary
 Bonus plan - matched to performance
 Stock Options
 Car / Insurance / Gas
 401 K
 Medical / Dental coverage
 Representative Challenges
 Customers with
different points of
view.
 Travel
 Relocation?
 Good bye to the 40
hour work week...
Representative opportunities:
 Multiple career options- home office, sales
management, training...
 Multiple company options: Wyeth, Ayerst,
Robins, Lederle, Genetics Institute...
 The pharmacy degree is a tremendous asset
in the pharmaceutical industry.
 Mark Shigihara
Managed Care Area Account Manager

 Job responsibility
 Work responsibilities and impact on
pharmacists.
 Real life questions/quiz
Managed Care Environment
 Managed Care RAM
 Work with managed care health plans-
Premera Blue Cross, Group Health,
PacifiCare, Kaiser….
 Offer product information to accounts-
influence formulary /reimbursement
position of products.
 Co promote- initiatives with customers
Reimbursement Role
 Real Life Quiz
What causes the most complaints from
patients regarding their prescriptions?

A) Your typing speed on labels

B) You can not decode the prescriber
handwriting and fill the Viagra
prescription with Valium.
C) The COST of pharmaceuticals
 COST
Putting it into perspective
 Drugs as % of US Healthcare
Costs
12.0% 11.1%
10.8%
10.0% 10.6%
9.4%
10.0% 8.9%
8.6%
8.0%

6.0%

4.0%

2.0%

0.0%
1994 1995 1996 1997 1998 1999 2000
(est.) (est.)
Source: HCFA, National Center for Health Statistics
 Contributors to the 18.8% Increase in
Rx Spending in 1999

New
Medicines
3.8%
Increased Utilization
10.8% Price Inflation
3.8%

New Medicines Price Inflation Increased Utilization

Source: IMS Health

 COST
But what about other
countries…..
Pharmaceutical products cost
less there….
Mc Answer
 Many Costs Are Lower in
Canada
From Higher Education...
U.S. Canada
Yale University McGill University
(Undergraduate Tuition, Books, (Undergraduate Tuition, Books,
Room and Board) Room and Board, Student
Services)
One Year: $32,000 One Year: $12,566
…to Fast Food
McDonald’s Big Mac

$2.43 $1.98
Source: Published University Data, 2000
 International Price Variation
McDonald’s Big Mac
(U.S. Dollars, 1999)
$4.00

$3.50

$3.00

$2.50

$2.00

$1.50

$1.00

$0.50

$0.00

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Source: Economist, April 3, 1999

 Approximate Hours of Work Needed
to Buy 1 Specific Rx
(50 mg, 30 tablets)
8
7
6
5
4
3
2
1
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Source: Data on File, Pfizer, Inc and World Fact Book

 COSTS
What about some detailed
United States
perspective…..
 Spending Patterns of Elderly
U.S. Consumers Aged 65+, 1998
Drugs 2.7% Housing
Transportation
Food
Utilities
Cash Contributions
Health Insurance
Entertainment
Clothing
Medical Services & Supplies
Drugs
All Other

Source: Bureau of Labor Statistics, 2000

 Daily U.S. Consumption Expenditures
Per Capita, 1997
Consumption Expenditures per day

$9.00
$8.00 Tobacco
$7.00 Rx Drugs
Alcohol
$6.00
Electricity
$5.00 Auto Repair
$4.00 Telephone
Gas & Oil
$3.00
Clothing
$2.00 Food
$1.00 Housing
$0.00

Source: U.S.Department of Commerce, Bureau of Economic Analysis, 1998.

 COSTS
But what about pharmaceutical
companies…

Are they just trying to price

gouge the customer….
 R&D for Pharmaceuticals and
Other Industries (Percent of Sales)
Research-based Pharmaceutical Companies* 20.8%
Industrial Sector Comparison:
Drugs and Medicine* 12.0%
Office Equipment and Services 7.6%
Electrical and Electronics 6.0%
Telecommunications 5.1%
Leisure Time Products 4.9%
Automotive 4.1%
Aerospace and Defense 3.7%
Metals and Mining 0.9%
Paper and Forest Products 0.9%

All Industries, Excluding Drugs and Medicine 3.7%

*“Research-based Pharmaceutical Companies” Based on Ethical Pharmaceutical Sales and Ethical Pharmaceuticals R&D
Only as Tabulated by PhRMA; “Drugs and Medicine” Sector as Tabulated by Standard & Poor’s Compustat, a Division
of McGraw-Hill
Source: PhRMA, 1999, Based on Data From PhRMA Annual Survey and Standard & Poor’s Compustat, a Division
of McGraw-Hill
 Compound Success Rates: 1 in 10,000
Reach FDA Approval
Compound Success
Discovery Rates by Stage
(2–10 Years)
5,000–10,000
Preclinical Testing Screened
Laboratory and Animal Testing
Phase I
20–80 Healthy Volunteers Used 250
to Determine Safety and Dosage Enter Preclinical
Phase II Testing
100–300 Patient Volunteers Used to
Look for Efficacy and Side Effects
Phase III
1,000–5,000 Patient Volunteers Used to Monitor 5
Adverse Reactions to Long-term Use Enter Clinical
Testing
FDA Review/Approval

Additional Postmarketing Testing

1
Approved by
0 2 4 6 8 10 12 14 16 the FDA

Source: PhRMA, Based on Data From the Tufts Center for the Study of Drug Development, 1995
Pharmaceutical Industry Facts
 Revenues from approved drugs (1 of 5 to
10,000) must cover the “dry holes” of non
approved compounds.
 Average cost of bringing a drug to market is
500 to 800 million dollars.
 Average approval time is 12 to 15 years.
 Time to recoup investment is shrinking-
generic drugs and limited patent life
 COST Perspective
What is the cost if
pharmaceutical
manufacturers did not create
revolutionary drugs……..
COST of Uncured Disease
States
 COST
And this does not even
take into consideration…
patient quality of life
 MSL or AAM
 Consider signing up for our rotation.
 In depth exposure to our positions.
 Advantages
 Disadvantages
 Answers the question – “Is the
pharmaceutical industry a viable career
option for me ?”
Questions?