Post by mnholdem on Aug 14, 2015 8:54:39 GMT -5
I recently read through an October 2007 article by Fortune magazine's John Simons. What caught my attention was not the article's heading, but the byline:
"The small firm that invented inhaled insulin got blindsided, but the real loser could end up being giant Pfizer, argues Fortune's John Simons."
This may be an interesting read for those of us who would like to know what NOT to do with the product launch. It gave me a greater appreciation for what Sanofi-Aventis is trying to accomplish by setting up a solid foundation.
archive.fortune.com/2007/10/19/magazines/fortune/simons_pfizer_erbitux.fortune/index.htm?postversion=2007101916
Here are a few excerpts from the article:
"Exubera was not our finest day," Pfizer vice chairman, David Shedlarz acknowledged in a conference call with analysts last summer. "We made a lot of mistakes with what is a profoundly important therapeutic."
Once Exubera hit the market in the summer of 2006, a few things became clear, according to Pfizer: Doctors were uncertain about how the Pfizer-designed inhaler device worked and were reluctant to learn about it in order to train their patients.
Executives at Nektar say they watched in amazement as Pfizer failed to roll out an aggressive physician education program, or even a direct-to-consumer advertising effort. Robin had been telling investors all along that its surveys showed patients and doctors liked Exubera as an alternative to insulin injections with needles - but only after they were sufficiently educated about the product. And Nektar could not afford to lose: a true biotech with its own pipeline of future medicines and no profits, Nektar was burning through cash at a rate of $100 million per year.
Earlier this year, Nektar CEO Robin instituted a plan to cut spending and announced layoffs of 350 employees, or a third of its workforce. It was counting on Pfizer's marketing might to drive sales of Exubera. By May 2007, Exubera had been on the market for almost a year with little traction. Nektar's Robin had grown exasperated with questions about Exubera's poor performance.
In the company's first quarter conference call with analysts, Robin blew up: "We've all talked to physicians that when asked what do you think of Exubera, they say, 'Well, it's too large or it's uncomfortable. I don't know how to use it'. And then you say to them, 'Well, have you actually seen one? Have you actually held one in your hands?' 'No, I actually haven't. But I've heard things about it'," Robin said. He went on to say: "The fact is that it hasn't done well, and we know it has done miserable. It's one of the worst performing products for new launch that I could ever recall. That doesn't mean the product is flawed. The product is excellent. The launch has been flawed and Pfizer has been very open about admitting that they have really done a very poor job of launching this drug."
Disgusted with Pfizer's efforts, Nektar's top management began a regular series of weekly meetings with Pfizer's marketing team last spring. Pfizer had previously had little contact with Nektar executives regarding the sales plan. According to people familiar with the meetings, Nektar executives pushed hard for a re-launch of the product and a new advertising campaign, featuring television ads with the tagline "Now I Get It."
The commercials aired in July of 2007. But it was too late. Pfizer said Thursday that Exubera generated a paltry $12 million in sales this year. Pfizer had little choice but to stop spending billions on drug that isn't likely to put up the big numbers it needs to show growth.
-----
It has become evident, to me anyway, that Sanofi is not about to let history repeat itself with Afrezza.
Sanofi presentations have confirmed that a physician education program is crucial to Sanofi's marketing strategy. Initially, this program was focused at diabeticians. Using valuable feedback obtained from these diabetes specialists, Sanofi likely adjusted the physician education program and next targeted some of the larger endocrinologists.
All along the way, Sanofi has continued to gather valuable patient and provider information, such as the fact that most endocrinologists don't have a spirometer, and has used this information to adjust their strategy. Identifying and removing obstacles BEFORE implementing a major launch demonstrates both the wisdom and experience Sanofi possesses. Al Mann was wise in choosing them to collaborate in Afrezza's future.
One "branch" of the physician education program involves educating the 3rd Party Payers (insurers, healthcare organizations, etc.) as part of the process of negotiating good Tier coverage to lower co-pays for patients and provide greater access to Afrezza. These payers typically evaluate the Tier placement during the 6-12 months period after launch. Afrezza has only just started its 6th month on the market and I am hopeful that Sanofi will successfully demonstrate to these payers that Afrezza fills an important and unmet need for diabetes care.
We are only now learning how getting Afrezza into the hands of U.S. diabetics has involved a great deal of detail, planning and execution by Sanofi. Initially, it will take some patience on the part of diabetics. From what we are learning via social media, Afrezza is worth the wait.
It somehow seems hollow to advocate to somebody who has held MNKD stock for 5-10 years to "be patient", so perhaps a better choice is for me to write, "be confident".
Sanofi will not make the mistakes that Pfizer made.
