Estimation of promotional strategies for newer vs older drugs based on physician prescribing data

Abstract

Purpose – The purpose of this paper is to use results from a comprehensive analysis of a physician‐prescribing model to draw guidelines on how to promote a new drug in the presence of competing older drugs, in a chronic therapeutic state.Design/methodology/approach – The authors use an extensive database from SDI Health, LLC, and a second data set from IMS Health. They calibrate their model using logarithmic regression methodology. The dependent variable in the model is number of new prescriptions and the explanatory variables are physician and patient characteristics, and marketing variables.Findings – The authors' estimates imply that heavy prescribers are likely to be specialists, be in solo practice, have more experience, receive more sales rep traffic, have more HMO affiliations, have a higher proportion of patients in HMOs, write more prescriptions across all therapeutic categories, see a higher number of patients, receive more free samples from the sales reps, have more rep intensity in their offic...