Summary
Fines for inappropriate marketing are part of the cost of doing business for Big Pharma. However they seem to be changing their marketing to physicians due to government scrutiny.
Analysis
Pfizer has been tremendously successful in marketing various products over the last decade. Whether celebrex, bextra, neurontin, or viagra, their sales force has a knack of generating huge buzz amongst the medical community. The sort of fine recently incurred is part of the cost of doing business for an aggressive company like Pfizer. However, the fine for bextra is sizable not only in dollar terms, but possibly also in changing their marketing tactics. Physicians are allowed to prescribe medications for indications of their choice, including non-approved ones, as long as the medication has a fda approval. This being the case, pharma companies traditionally have an incentive for physicians to prescribe off label, especially if the market is large. Non-approved marketing is not done directly by the sales reps any longer. Via physician sponsored lecturers and the non-sales side of pharmaceutical companies, information regarding non-approved indications can still be spread amongst healthcare providers, albeit less efficiently than before. But given the current government oversight environment, even the most aggressive companies are taking a step back. This will likely affect sales of some of Pfizer's blockbuster drugs at least in the short term. Whether this is a longterm permanent scenario is unclear.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
