Sales & Marketing Excellence Latam

Jun 20, 2013 - Jun 21, 2013, Miami, USA

Master new commercial models and drive efficiency in a changing stakeholder marketplace

Global Ethics Codes and the Latin American Pharma Market

Ben Steele talks with the Vice President of Ferring Pharmaceuticals in Latin America, about the impact of global ethics codes on business the Latin American (LatAm) pharma market.



Edvard Philipson sees the increase in regulation of the pharma industry’s behaviour as a “global initiative,” linked mostly to the global economic downturn. “When I started early on in the 80s as a sales rep it was ok for reps to take physicians for a round of golf, to football matches, tennis matches, and other entertainments. That is no longer possible.” Instead there is a growing awareness, especially in countries where the government is the payer, as “the government wants to ensure that the decision-maker, whether it is the hospital, the formulary, the doctor or the nurse can make independent decisions, based on the science and pharmaco-economic information instead of on favours performed by the pharmaceutical company.”

 

In Latin America the reputation of pharma is more positive - we are seen as partnering with healthcare providers to offer solutions to unmet healthcare and medical needs

 

Overall, pharma’s reputation in LatAm is better than in Europe and America, according to Edvard: “I would say that in Latin America the reputation of pharma is more positive - we are seen as partnering with healthcare providers to offer solutions to unmet healthcare and medical needs. I think this is why a lot of the compliance rules and the codes of ethics are more developed and advanced in Europe.” However, this has not stopped global practices from influencing the region, as “the trend for higher regulation of pharma companies is now coming to the LatAm region as well.”

Although the trend for higher regulation is finally catching up to the LatAm market, Edvard points out that this trend is more pronounced in some countries than others. “Brazil is probably the leader in regulations, driven by the physicians association and by the government. The industry association in Brazil, INTERFARMA, participates very actively in developing these regulations and ensuring their success. There are already very specific guidelines on what type of promotional materials can be given to physicians, the cost and size of samples provided, and so on. Brazil, followed by Chile, Mexico and Columbia are at the forefront – these are countries where the government is fundamentally the payer, and has more of a say in how things are done. However there are other countries where regulations there are not so strict or so well-enforced – countries such as Bolivia, Peru, Venezuela, even Argentina.”

Edvard thinks this presents a challenge to international companies operating in these countries, “companies who operate internationally will have a set of rules that they follow equally in all countries, which may sometimes leave them at a disadvantage when competing with local firms in some Latin American countries that are not especially committed to transparency. Yet ultimately, in the long run, international firms will be in the better position because success is built on reputation and trust. For instance, when a firm has the trust of the physicians, they will be prepared to listen when reps present scientific data on medications without concern that the data is being misrepresented.”

 

I think that while in the future reps will still exist, the interaction between the pharmaceutical community and the medical community is changing

 

In a market where some local companies may indulge in bad behaviour, how does your company avoid being tarred with the same brush? Edvard points out that while one of the greatest risks to a company’s reputation used to be the activities of sales reps, today the market in LatAm has changed.  “I think that while in the future reps will still exist, the interaction between the pharmaceutical community and the medical community is changing. At the moment there are a lot of physicians who do not talk to sales reps, either because the physicians are in remote locations inaccessible to reps, or because the physicians are already getting their information from other sources online, such as medical association sites or from the pharma industry.”      

Instead, he sees greater dangers elsewhere: “I think there are more risks in what the marketing department does, and what Key Account Managers (KAMs) do, especially those related to government accounts and hospital accounts. We need to be very observant over how KAMs interact with the formulary decision-makers. For instance, where there are tenders for access to formularies, there are sometimes issues with officials seeking favours. When we encounter situations like that, we simply cease to do business in that area. If we are competing with a local company, and the local company performs favours for the decision-maker to try and influence them, we will simply lose that tender. We are more concerned with doing the right thing, on the right terms, that winning that extra business.”

Edvard observes that in the attempt to distance themselves from some of the corruption that still exists in the region, and to signify that they have turned the page on their old physician-influencing days, some industry regulations in LatAm are now “stricter than the ethics code of the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA).”  He goes on to say that in many countries “the industry is self-regulated, so we watch each other and there are ethical committees where cases are brought up. All of this helps to communicate the ethical nature of our business as pharma companies to the public.” For Edvard, one effective way for a company to communicate its ethos is through engagement with corporate social responsibility.

 

It is one thing to call yourself a socially responsible company, but if there is an external body which certifies you, people know that they are dealing with a company that follows certain ethics practices and rules

 

Edvard explains that “for LatAm pharma companies, corporate social responsibility involves three main areas – the environment, the community, and business ethics.” In Mexico, Ferring Pharmaceuticals is certified as a socially responsible corporation. For Edvard this certification is important: “it is one thing to call yourself a socially responsible company, but if there is an external body which certifies you, people know that they are dealing with a company that follows certain ethics practices and rules.”

For pharma companies, one way of developing the ‘community’ strand of a corporate social responsibility commitment is through ‘Access to Medicines’ initiatives. “Companies in Latin America do a lot to work with governments and make sure innovation is available. Companies are working with orphan diseases, where there are very few treatment options; they are working with governments to develop vaccines to prevent the spread of infection, and they are working more generally to make the drugs available at affordable prices. For example, some companies are offering HIV drugs at cost-price to make them more affordable to populations. Other companies develop certain drugs under the assumption that they will not profit from them. I was in Geneva at a WHO conference and there was a discussion of river blindness; one company is developing a drug for this disease which they sell at cost-price.”


Edvard will be presenting on global and Latin American codes of ethics at this years Sales and Marketing Latin America Summit in Miami from June 20th - 21st. For more information on his presentation or to see which other pharmaceutical experts will be presenting visit the official website.



Sales & Marketing Excellence Latam

Jun 20, 2013 - Jun 21, 2013, Miami, USA

Master new commercial models and drive efficiency in a changing stakeholder marketplace