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Healthy Skepticism Library item: 9301

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

 

Publication type: Journal Article

Mishra A, Rappaport HM.
Alteration of the Total Prescription Volume of a Product Class by a New Molecular Entity
APhA Annual Meeting 1994 Mar; 141:58


Abstract:

The pharmaceutical industry can be characterized as research-intensive and innovation-dependent. The research intensity is evident from its huge R&D expenditures, a fact used by the pharmaceutical industry to defend its pricing policies. According to Pharmaceutical Manufacturers’ Association (PMA), 80% of their R&D expenditure is on developing New Molecular Entities (NMEs). The industry is highly regulated and has stringent patent protection. Therefore, development of NMEs is also a tool of product differentiation and means of entering the market. If an NME has better therapeutic value over existing products in the class, it should significantly increase the total prescription volume of its product class. The objective of the study was to see the effect that the entry of NMEs have on the total prescription volume of their respective product classes. Prescription data were provided by IMS America Ltd. The data were obtained for 36 months before and after the introduction of an NME The study had time series design. The data were autocorrelated which violates the assumptions of linear regression. Therefore, the data were analyzed using autoregression procedure. Autoregression was done on SAS/ETS version 6.07 using PROC AUTOREG. An intervention model was used to achieve the objective. The results indicate no significant change in the total prescription volume of a product class due to the entry of an NME. The results of the study suggest that the growth of an NME may be due to substitution rather than enhancement of usage of the product class.

 

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Far too large a section of the treatment of disease is to-day controlled by the big manufacturing pharmacists, who have enslaved us in a plausible pseudo-science...
The blind faith which some men have in medicines illustrates too often the greatest of all human capacities - the capacity for self deception...
Some one will say, Is this all your science has to tell us? Is this the outcome of decades of good clinical work, of patient study of the disease, of anxious trial in such good faith of so many drugs? Give us back the childlike trust of the fathers in antimony and in the lancet rather than this cold nihilism. Not at all! Let us accept the truth, however unpleasant it may be, and with the death rate staring us in the face, let us not be deceived with vain fancies...
we need a stern, iconoclastic spirit which leads, not to nihilism, but to an active skepticism - not the passive skepticism, born of despair, but the active skepticism born of a knowledge that recognizes its limitations and knows full well that only in this attitude of mind can true progress be made.
- William Osler 1909