Three weeks ago, British Big Pharma company GlaxoSmithKline GSK +0.02% (GSK)
announced plans to dramatically reform the way it sells and markets its
drugs to doctors. For years now, drug makers have been operating on the dark
side, financially incentivizing doctors and health care providers to promote
their drugs, and compensating pharmaceutical sales reps based on the number of
prescriptions written by the doctors they call on. It’s a practice rife with conflict of interest, leading to
over-prescription of medications that may not even be the most appropriate for
patients, and it’s been the cornerstone of drug marketing for decades.
Granted, it’s far better than the 90s when high volume prescribers, called
“champions” (conjuring up images of a Vegas high roller) were treated to free
“conferences” in exotic locals and routinely wined and dined at the most
expensive restaurants. But, when you incentivize a sales person with a hefty
bonus check based on the number of prescriptions emanating from their
territory, they’ll find a way to get doctors to write their drug.