This appears in the January 2010 edition:

Gil Bashe

EVP, Health Practice Director

Makovsky + Company

gbashe@makovsky.com

Convergence of the “watch-your-wallet” and “show-me” gatekeepers point the way to the

essential 2010 product launch strategy—demonstrate clinical value before, during, and after

launch. Emphasizing scientific innovation and ongoing clinical trial effort must be center stage in

the new marketing communications environment. In a world of “What am I paying for?” science

returns to the forefront as the cornerstone for successful brand positioning and extensions.

Communication tools evolve (for instance, digital); however, in a spendthrift healthcare reform

environment, marketers need to ramp up their efforts around amplifying innovation.

The House bill includes a Wal-Mart-esque proposal for generics’ "First-Free Fill," eliminating co-

pay costs the first time a patient switches from brand to generic. Who doesn’t like free? Marketers

need to focus on physicians making prescribing decisions by communicating a strong clinical

rationale for the brand. Physicians and PBM medical directors will advocate for brands showing

clear clinical differences and addressing their patient needs.

The ’90s gave consumers greater voice in health product decision making and DTC became the

mascot of mega-brands. Today government agencies and pharmacy benefit managers hold

product selection sway. The combination of code-bundling averaging reimbursement between

brands and generics—already comprising 70% of medicines dispensed—cemented change in the

branded marketing landscape. Not showing scientific difference is to fall into the trap set by

legislatively mandated comparative effectiveness measures.

Communications is about creating dialogue. Healthcare audiences are speaking with one

another. Physicians will take prescribing cues from traditional and new decision makers—third-

party guidelines, reimbursement agency recommendations, public comment (for example,

analysts, investigators, and media) and company promotion. To neglect audiences influencing the

national healthcare wallet is tantamount to opening a door to bad press, poor formulary position,

and unenthusiastic health professionals and possible thumbs-down on the brand.