Healthy Skepticism Library item: 10863

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Publication type: news

May J.
Web is a growing link for drugmakers
The New Jersey Star-Ledger 2007 Jul 13
http://www.nj.com/business/ledger/index.ssf?/base/business-7/1184302388134070.xml&coll=1

Full text:

Pharmaceutical companies are becoming increasingly reliant on the Internet and other alternative media to connect with patients and doctors, according to survey by Cegedim Dendrite.

Most industry insiders expect spending on direct-to-consumer advertising to grow in 2007, but at a lower rate than in previous years, the pharmaceutical support services firm said. The greatest increase is projected in targeted approaches such as Web sites, search engine advertising or industry-supported programs to ensure patients take their medication correctly.

One factor behind the trend is the ability to deliver more customized content, said Dominique Hurley, vice president and general manager of relationship marketing operations for Cegedim Dendrite. People weighing treatment options need different resources than those already on therapy. And doctors require more specialized information.

“If you look at other industries, such as financial services, it’s still a brand-to-consumer dialogue,” Hurley said.

Drugmakers see diminishing returns from mass-market advertising, but have yet to drastically cut back on newspaper, television or radio spots.

“Fifty-eight percent of respondents believe pharmaceutical companies should spend less on national TV while only 44 percent actually plan to spend less,” the survey said.

Cegedim Dendrite, whose U.S. operations are based in Bedminster, polled 134 companies — a mix of drugmakers, consulting firms, ad agencies and industry vendors — for the annual survey.

The biggest perceived challenge for drug promotions is government regulation, according to the survey. Consumer backlash to ads is another issue, but drugmakers see the problem abating. Thirty-one percent of the companies in the survey listed it as a challenge this year, down from 44 percent a year ago.

“Last year, the Vioxx scandals were hot,” Hurley said. “And this year, they’re not.”

Drug companies helped their image by launching patient assistance programs, which provide free or discounted prescription drugs to needy patients, she said. The adoption of voluntary direct-to-consumer advertising guidelines also helped, she said.

Jeff May covers pharmaceuticals and can be reached at jmay@starledger.com or (973) 392-4282.