The Hindu Business Line : Market not ripe for pharma ads

A country with a large illiterate population cannot really benefit from advertising for prescription-based drugs. Such advertising has to have adequate safeguards to prevent wrong use.

With the arrival of fast moving health goods companies, one sees a lot of advertising for OTC products these days. However, I have seen advertising for prescription drugs too, though on a much smaller level, mostly at doctors' offices. Why is pharmaceuticals not a much advertised sector? I have seen ads in foreign magazines for prescription drugs too, in fact, they extend to two pages as they specify all the details. Is there any law prohibiting the advertising of prescription drugs in India? And why are OTC products beyond this rule?

- C. Sridhar, on e-mail

PHARMACEUTICAL drugs are broadly classified as ethical and OTC, where the regulatory laws do not allow mass advertising for the former which are meant to be prescription-based. On the other hand, over the counter (OTC) drugs are products that can be dispensed even without the written order or prescription of a licensed physician or dentist, for the symptomatic relief of minor or self-limiting ailments. These drugs can be sold under the direct supervision of a registered and licensed pharmacist and can be advertised. The Act also specifies criteria which technically classify the drug as OTC.

When you refer to fast moving health goods or FMHG (though I am not quite clear why one needs to replace the original FMCG acronym) and the growing plethora of brands and companies in this category, I think you have Dr Morepen, Himalaya, Paras Pharma, and the like, in mind. From the restricted advertising even for strong traditional OTC brands such as Disprin and Crocin, we are suddenly seeing a lot more fight for share of voice in the OTC category. More and more companies are investing in this category and it has also seen the rise of several strong brands.

Prescription-based drugs, as you have rightly noticed, rely heavily on doctor detailing. It is a direct marketing tool used successfully over the years to explain the formulation and benefits of a drug, and leave behind samples for the doctor to specify this to their patients.

Though the Indian pharma industry is still restrained from any mass advertising, `direct-to-consumer' advertising in pharmaceutical marketing is a revolutionary concept fast catching up in the US and other developed countries in the West. The objective of DTC advertising of prescription medicines is to enhance consumer knowledge about diseases and treatments, mainly amongst the informed public.

DTC helps to generate a dialogue between the patients and the doctors. The benefit of such a medium is not purely aimed at the doctor prescribing the drug when the patient asks for it. However, it will certainly prompt a discussion around symptoms leading to diagnosis and then prescription of the right medical aid. All this will no doubt lead to a better understanding and treatment of the patient's condition. Growing consumer involvement in healthcare has further accelerated this concept, particularly in the US, the largest pharmaceutical market, as it empowers patients to participate in decisions concerning their healthcare. The US FDA has been sensitive to this need and had been allowing DTC advertising in mass media. It is these advertisements which you must have seen in the foreign magazines.

Can this be replicated in India? A country with a large illiterate population cannot really benefit in totality by DTC advertising for prescription-based drugs. Moreover, such advertising has to have adequate safeguards to avoid inappropriate use of medicines.

Prescription medicine advertising raises awareness amongst patients about conditions and diseases that often go undiagnosed and untreated. It is true that advertising of prescription medicines will not benefit the public at large. But such advertising can help informed public get a better diagnosis in a lesser time frame.

In spite of the limitations on advertising in this category, healthcare communication has been predicted to have a huge growth in the coming few years. Advertising agencies have already rolled out integrated healthcare communication solutions services, which cover DTC, disease awareness branding, doctor-targeted programmes, and so on. Besides pharmaceutical drugs, clinical care brands like Apollo and Max have further stepped up the excitement in the healthcare category. After all, there have to be enough reasons which have prompted the creation of FMHG!

(The author is CEO, Quadra Advisory, a strategic marketing consultancy. Readers can send in their questions on marketing issues to The Editor, The Hindu Business Line, 859, Anna Salai, Chennai, 600 002, or e-mail them to bleditor@thehindu.co.in)

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