TEST 1 Flashcards
Medical Device
An instrument, including a component part intended uses for diagnosis. Not metabolized by the body and not for intended purposes.
Drug
The primary intended use of the product is achieved through chemical action or being metabolized by the body.
Examples of medical devices
Surgical tools, imaging machines, hospital beds, lab equipment, computer devices
CEO
CEO- Top of the hierarchy. Ensures patient safety. Maintains financial health and stability. Promotes quality of healthcare. Promotes patient satisfaction. Readmission rates-patient admission to a hospital within 30 days after being discharged from an earlier hospital stay
CFO
Creates business strategies for hospital. Acts as administrative leaders.
CMO
Lead and implement the clinical direction (involves patients) for the organization. Link between administration and physicians.
COO
Day to day operations of the hospital. Responsible for carrying out hospitals strategic initiatives. Physician relations, culture, and quality of care.
Joint commission
An independent, non profit organization to improve healthcare for the public.
Sales cycle
The amount of time it takes to close a a sale, from the first contact with the prospective customer. Long sales cycle occur when the decision is large and there are many decisions/ decisions makers in the sale.
Manufacturers
Develop, produce, sell their own product.
Distributors
Sell products on behalf of manufacturers.
Co-promotion
Two or more companies sell the same drug under the same trademark.
Vaccine
Preparation of killed microorganisms, living attenuated organisms or living fully virulent organisms that is administered to produce or artificially increase immunity to a particular disease.
Biotechnology
Technology that utilizes biological systems, living organisms or parts of this to develop or create different products.
4 P’s in marketing
Product, Price, Place, and Promotion.
Issues that pharmaceutical marketing attempt to solve
- Spatial separation (consumers and producers separated geographically)
- Separation in time
Compliance packaging
Pharmaceutical packaging that makes it easier for patients to understand how to take and adhere to the medication.
Adherence
Extent to which a patient continues and agreed on mode of treatment without close supervision.
Complience
Simply doing what they are told.
Reasons for medication related non-adherence for patients
- Feel better
- Lazy
- inconvenient
- Can’t afford medication
- Forgot
- Side effects
- Transportation
- Pervious experience
Physician related non- adherence factors
- Time
- Lack of communication
- Complex drug regimens
How to improve patient adherence
- Patient education
- Dr’s involve patients in decision making
- Refill reminders
- Combination therapies
- Electronic prescriptions
QD
Once daily
BID
Twice daily
TID
Three times a day
QID
Four times a day
How does increasing the number of medication doses/day affect
adherence
At QD the patient is 79% adherent. At BID the patient is 69% adherent. At TID the patient is 65% adherent. At QID the patient is 51% adherent. Data suggests that a 10% decrease in adherence will occur with each additional daily dose.
Formulary
A list of prescription drugs covered by a prescription drug plan or another insurance plan offering prescription drug benefits. Drug list
PhRMA
Pharmaceutical Research and Manufacturers of America
Most important factors in physician prescribing
- Height/ weight
- Age
- Existing medical conditions
- Drug interactions
- Sex
- Medication intolerance
How long does a patent last?
20 years
What is a generic drug?
A prescription drug that has the same active-ingredient formula as a brand-name drug..
PhaRMA position on gifts to Healthcare providers
Gifts should primarily be beneficial to patients and should not be too pricy. Items like textbooks and modest meals in the context of an educational function are acceptable, but cash payments are not permitted. Individual gifts related to a physician’s work, such as pens and notepads, are permissible.
Direct to Consumer Advertising (DTCA) how it affects physicians
If DTCA opens a conversation between patients and physicians, that conversation is likely to end with a prescription.
Pros and cons of DTCA
Pros- including patients’ enhanced information-seeking, increased patient requests for appropriate prescriptions (when addressing potential underuse) and patients’ perceptions of higher-quality interactions with prescribers
Cons- Aside from increased pressure on providers to prescribe particular drugs which may not be the best option, there are other downsides to DTC. The data show that DTC advertising leads to increased drug costs overall, adding to the already skyrocketing costs of medical care in America.
How much DTCA does average viewer see each year
30 hours of consumer advertising a year
Direct to Consumer Advertising (DTCA) how it affects patients
- Educates patients
- Increased drug costs
- Reduce use of generic medications
Effects of DTCA on drug prices
12% increase in cost per unit dispensed after DTCA initation
Orphan drug
Drugs that are not developed by the pharmaceutical industry for economic reasons but which respond to public health need.
Marketing
Process of creating value for customers through exchange
Needs
Can become wants
Wants
Combined with ability to pay becomes a demand
marketing role in research and development
Identifying needs and opportunities to how you go to market
Buying power
The number of goods/services that can be purchased with a unit of currency (i.e. money). For example, in the pharmaceutical industry, those with large buying power (e.g., large chain or wholesale customers) typically can negotiate lower pricing from the pharmaceutical manufacturer.
Market share
Percentage of a market accounted for by one item/ service. For example, a certain medication in a class can have 50% market share, accounting for half of all sales within that medication class.
Manufacturer example
Big drug companies/ generic companies. 1. Johnson and Johnson
2. Pfizer 3. Novartis
Wholesaler example
- McKesson
- AmerisourceBergen
- Cardinal Health
Retail pharmacy example
CVS, Walgreens, Walmart
Blockbuster drug
An extremely popular drug that generates annual sales of at least $1 billion for the company that sells it.
Patent cliff
A sharp decline in revenue or profitability when a firm’s patents expire, opening them up to competition.
Disease awareness campaign
Designed to distribute important healthcare messages to large populations
Segmentation
Breaking down a mass market inclusive of all individuals into a variety of segments, or fragments, of the population who have similar characteristics.
Targeting
Focusing marketing messages on specific segments of the population
Positioning
How a drug will be fit in the market vs. competitors
Demographics
- Age
- Gender
- Race
- Occupation
- Origin
legal and regulatory involvement involving prescriptions
informed consent of the patient
MSL (Medical Science Liaisons)
Our company’s scientific expert for specific drugs, acting as the key link between clinicians, research and the pharmaceutical industry. Do not promote products and no incentives for sales, and non biased work to promote KOLs.
KOL
Key Opinion Leaders
Community pharmacy
The most common type of pharmacy that allows the public access to their medications and advice about their health. AKA a retail pharmacy
Speciality pharmacy
Focuses on high cost, high touch medication therapy for patients with complex disease state
Hospital pharmacy
the health care service, which comprises the art, practice, and profession of choosing, preparing, storing, compounding, and dispensing medicines and medical devices, advising patients, doctors, nurses and other healthcare professionals on their safe, effective and efficient use.
Nursing home pharmacy
Supporting residential facilities that serve seniors or adults who need ongoing care and support.
Mail- order pharmacy
Prescriptions delivered to your door.
Warehousing chain
A chain pharmacy business that maintains its own warehouse for inventory delivery and management
Non-warehousing chain
A chain pharmacy that does not maintain its own warehouse for medication stock and delivery and, thus, depends on pharmaceutical wholesalers for inventory delivery and management
Shared decision making
Results of advertising and directed consumer
Shared decision making increased why
increasingly advocated to enable patients to participate in decisions that affect them, to protect patients from insufficiently individualized supply-driven care, and to reduce health care costs and waste by avoiding the provision of unwanted interventions.
1st party
Patient
2nd party
Physician
3rd party
Insurance company
PBMs
Prescription benefit portion of health insurance
Reinbursment
the payment received by a healthcare provider, hospital, diagnostic facility, or another healthcare facility for providing a medical service
AWP
Average wholesale price (used by 3rd party payers as a basis for reinbursment)
WAC
Wholesale acquisition cost (baseline price of which wholesale distributors purchase products)
