2002 PMSA Conference, New Orleans, April 28 May 1, 2002.
Presented at the 3rd Rx & Biotech Portfolio Management Conference, Mar 25-27, 2002, Park Hyatt at the Bellevue Hotel in Philadelphia.
1. The return may not come on the heels
of the investment. Some time may have to elapse before the benefits may
be reaped. Think of planting a seed. Ignoring the time delay/lag may
lead to pessimistic conclusions and premature uprooting of the project.
2. The return on
investment may not be cash flows but a call/put option. For instance, a
larger sales force than materially required may facilitate the inking of
a co-promotion alliance that may not have been possible otherwise. The
launch of a product may pave the way for other drugs in that therapeutic
franchise. The value of the option cannot be ignored.
3. Some investments are not meant to generate
returns, cash flows or options. They are meant to gather knowledge and
reduce uncertainty. Case in point: test market studies. Detailing a
physician, beyond taking a shot at boosting script writing, captures
invaluable information on the responsiveness of the physician to
4. The return may
ripple beyond the traditional confines of measurement. Detailing a
product in the hospital may increase community sales since physicians
sold on the therapy in the hospital will prescribe the same therapy in
their practices (hospital-community spillover). A physician conditioned
by managed care formularies will prescribe drugs on the formulary even
when the patient is paying cash (plan-cash spillover). Spillover in
general calls for a broadening of perspective when measuring impact/ROI.
5. The return is
dormant, not absent. Indeed, some external conditions have to be met for
the return to materialize. A physician sold on a therapy may not be
prescribing the drug simply because none of her patients requires that
therapy. As soon as a patient with the right profile walks in, the
therapy will be dispensed. This is a bit like an option except it is
nature that calls it, not you.
6. An initial investment may have the unintended impact of altering response to promotion, for the better or for the worse. Subsequent investments may generate returns that are out of line compared with prior investments of comparable sizes. Physicists call this hysteresis. Lay people call this memory.
7. The return may not
correlate with the investment. This is the case when the investment
fires up a diffusion process that takes life of its own. For instance,
physicians sold on the product turn around and start promoting the
therapy to their peers, regardless of the reps activity. Some people
call this viral marketing. Certainly, it has to do with diffusion.
We have done several ROI projects to date and have acquired considerable expertise in the process. Whats more we are willing to put our insights and findings at your disposal. If you are working on a project that involves ROI, optimization, or resource allocation, do not hesitate to give us a call. Winning combination: (847) 920-1000. Youll be happy you did. Wed love to hear from you
One of the brightest individuals that I've met in my career. JP has an incredible skill regarding simplifying issues, and preparing presentations for senior management." -- Director, Large Pharmaceutical Company
brilliant and gets it right away.
and I are a great team. I get all kinds of ideas and he gets them
does quality work.
amount of knowledge that they bought, not only about their tools but about
the industry & tool applications.
am very pleased with Baysers work.
real guru at Excel. Taught me everything I know about spreadsheets.
to a demo of Baysers Rx Tracker:
am having an out-of-body experience right now. --VP,
Large Pharmaceutical Company
am having an out-of-body experience right now.
--VP, Large Pharmaceutical Company
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