I am long and here is my thought....E will not advertise because sales would go through the roof too fast and buyout offers will occur from many large pharma companies. If there is advertising on national stations, we would be an overnight blockbuster for sure. E does not want that for some reason. Can anyone give me another reason besides ARNA's excuse that they are only targeting a special group of obesity? Advertising is the largest sales tool the world has ever seen and we are not capitalizing on that? I am patient, but frustrated as to why they want to sabotage their own success????? WTH
Saving their money for a huge SuperBowl advertisement. ((At first, I was LOL at this...but its not that crazy)). Can you imagine the ads? "Time to live up to that New Year's resolution with Belviq" or...", wouldn't you like to buy a smaller jersey next year?" (I've seen much worse ads).
Ref. "Advertising is the largest sales tool the world has ever seen and we are not capitalizing on that?"
Pharmaceutical Sales for any New Chemical Entity (NCE) has a 5 stage cycle that usually lasts 12 to 15 years, Advertising and other promotional activities usually occur in the second (Growth) and third (Maturity) stages and not in the introduction stage where Belviq is at this point.
Google “Pharmaceutical Sales and Marketing a Rapidly Evolving Business” Second Link from top
1. Introduction Stage: A new product is introduced to the physicians and either cures a disease in a different manner than existing therapies or is a TOTALLY NEW TREATMENT IN ITS OWN RIGHT. At this stage, sales future is uncertain and direct competition is very low.
2. Growth Stage: The new product receives widespread acceptance from the medical community and number of competitors increase. Promotion activities at this stage focus on advocating their own brands and sales volumes increase.
3. Maturity Stage: The effectiveness of the product is well established at this stage and promotional activities focus on selling the product to large volume buyers. Competition on the product line reaches an all-time high.
It's important to distinquish trader from intestor. EASAI is managing a caluculated approach that will result in one huge investment. Remember they do have experience at this. It wouldn't be prudent to spend a lot of $ to advertise now and have people running to their dr's asking for something they've never heard of....translation...they won't prescribe it! However, make the dr's aware of it first, then spend your $ to advertise that actually results in prescriptions....translation...more bang for your buck, and we're talking big bucks!!!!
I will add my 2 cents. If there were issues with the drug..key word being "were"...the last thing u would want is more lawsuits. It would make sense to me that u allow the drug to roll out slow and see what the experience is in a non-controlled environment. Once it starts gaining a track record and doctors are familiar with it, then I think advertising is most effective. They do this in retail to see how a product does in a few stores to put out the feelers. I think it is a great strategy! Eisia knows what they are doing.
That is one observation I can agree with I suppose --- makes a lot of sense - but we did already have a long term study on over 8 thousand people I think I recall -- was that not enough ? I agree slow and steady is good but I do think its time to turn the faucet on just alittle in the advertisement dept .... If they would we could blow the shorts off the shorts !!!!!! Would like to see this thing jump up a few bucks with 60 million being short !!!!!!
Sentiment: Strong Buy
I will give you an alternate view.
DTC advertising is extremely expensive. If they spend 100 million on DTC ads now they will be less effective than they will be in 6 month to a year. Eisai has patience and they SHOULD not spend money on DTC at this time because a.) When the consumer asks the doctor if "Belviq is right for them" the last thing they want is a blank stare from the doctor. That would be a very counter-productive.... and b.) Ads will be even MORE effective when people have already seen some who have had results.
I sort of look at DTC advertising like the icing on the cake. Without it the cake really isn't complete, but you cannot put the icing on while you are still sifting flour and cracking eggs.