Marketing Dilemma of pharmaceutical products

Specifically, in South Korea, the marketing of prescription medicines is restricted while OTC drugs are allowed to be advertised to the public. In that, the law allows OTC drugs to be actively purchased while ensuring that a prescription is needed for the purchase of prescription medicine. Since pharmaceutical companies are then unable to promote their products to consumers directly, they then target medical practitioners. At the surface level, this simply means that medication is promoted to the clinicians who are then updated with the latest information regarding pharmaceutical options for patients as well as advancements in treatment. However, due to this marketing process, certain problems have arisen.

Rebate is the act of refunding a partial amount to be paid by one party to the counterparty by giving a benefit equivalent to that amount. This could mean that both parties could benefit in their transaction, however, in the case where the buyer is an intermediary consumer, the cost is passed on to the final consumer. Thus, as the rebate does not go to the patients/consumers of pharmaceutical products, the rebate ultimately influences the price determination of the drug and adversely affects the decision of the clinicians to select the optimal drug. Although cases of illegal rebate have reduced significantly, it has not been eradicated. The act of prescribing medication by health care professionals can be viewed as part of the medicine business, but the fundamental purpose of prescription is for the well-being of patients which differentiates medication from other commercial relationships which seek to maximize profit and utility. If such commercial activities between the clinician and pharmaceutical companies are deemed more beneficial to these two parties than the patients they are helping, there are questions regarding ethics.

In other countries, such as the U.S. and New Zealand, direct-to-consumer pharmaceutical advertising (DTCPA) is allowed and has been growing rapidly. This method shifts from the conventional advertisements targeting medical professionals to consumers themselves. The Food and Drug Administration (FDA) oversees the DCTCPA of prescription drugs, requiring that the pharmaceutical companies provide the generic name of the drug, at least one approved use, and all the adverse effects listed in the “prescribing information” of the drug. DTCPA empowers patients as it educates them, allowing the patients to take charge of their health. Furthermore, DCTPA encourages patients to discuss with medical professionals about adverse reactions, and the optimal options for their treatment. However, DCTPA has been criticized with arguments against it. To begin with, it could misinform patients, omitting certain information such as risk factors. Additionally, the benefits of the drugs could be overemphasized, and as the patient may lack the skills to evaluate medical information, they may choose drugs that could potentially be harmful to them. Thus, this could lead to inappropriate prescriptions or choosing a different medication than the one that was prescribed by a medical professional.

Promoting ethical marketing of drugs

Complicated by financial incentives, the ethical concerns of advertising strategies lead to the question: How can drugs be ethically marketed? In order to further reduce illegal rebates and rising prices, the implementation of DCTPA seems to be an effective solution, with some adjustments.

Product-specific ads should be prohibited and DCTPA should be focusing more on non-branded information such as common medical conditions and classes of prescription drugs. Quantitative Information should also be included, removing qualifying statements in order to display the realistic benefits and the risks. Through these crucial modifications, we move a step closer to achieving ethical marketing of pharmaceutical products. B