New study shows drug manufacturers actually increased opioid marketing after Kentucky’s Purdue pharma lawsuit

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Kentucky’s 2007 lawsuit towards Purdue Pharma marked a serious flip within the opioid disaster. It was the primary time a member of the Sackler household, who owned Purdue, was deposed in regards to the firm’s function within the opioid epidemic. As a result of the choose unsealed the courtroom paperwork, public outrage soared, and different potential plaintiffs towards Purdue throughout the nation gained entry to the case’s proof. However a brand new research within the Strategic Administration Journal finds that the case dissuaded solely Purdue’s opioid advertising and marketing. Promotion of opioids by competing drug corporations really elevated.

“Regardless of rising scrutiny across the prescription opioid {industry}’s function within the opioid epidemic, the prospect of capturing revenue from Purdue appeared to outweigh any heightened worry of litigation amongst competing drug corporations,” says David Tan, an affiliate professor of administration on the College of Washington and co-author of the research. “Relatively than function a warning to the remainder of the {industry}, the case created a chance for opponents by weakening Purdue’s advertising and marketing grasp over its profitable OxyContin prescribers.”

Tan and co-author Nicole V. West, an assistant professor on the College of Texas, Dallas, discovered proof that following the lawsuit’s settlement in December 2015, Purdue’s opponents intensified promotional spending particularly focused at OxyContin prescribers and prescribers beforehand focused by Purdue gross sales representatives. The authors cross-referenced knowledge on prescribing conduct from greater than 670,000 physicians discovered within the CMS Half D Prescriber database with knowledge from Open Funds, which tracks funds to physicians for drug promotion. From 2014 to 2015, Purdue spent $1.5 million on meals and beverage to advertise OxyContin throughout gross sales consultant visits to prescribers. Within the two years following the settlement, that dropped to $54,000. Against this, their opponents elevated spending from $911,000 to $2.4 million, a 160% enhance.

“After Purdue decreased its promotion of OxyContin, different companies elevated their promotion of competing opioids, regardless of the elevated stigma round OxyContin advertising and marketing as an alleged driver of the opioid epidemic,” West says.

The authors used the CMS Half D Prescriber database’s measure for sufferers’ underlying well being to rule out a rise in promotion because of respectable opioid wants. They used CDC knowledge on opioid-related overdoses to see if Purdue’s opponents restricted their opioid promotion to counties the place the opioid epidemic was much less extreme or the place prescription opioids had been much less chargeable for opioid overdoses.

“The numerous enhance in opponents’ promotion of opioids wasn’t merely a byproduct of focusing on physicians who prescribed dearer medication, extra model identify medication, or extra opioids normally,” Tan says. “Opponents didn’t try and distance themselves from Purdue’s OxyContin promotion or its affiliation with communities affected by the opioid epidemic.”

The research demonstrates a transparent exception to a long time of analysis and real-world proof exhibiting that protests, boycotts, and lawsuits towards corporations utilizing questionable enterprise practices can spark industry-wide modifications. The authors posit that the character of competitors within the opioid market created a income alternative that made the reward well worth the threat. But the instance units an ominous precedent for regulating dangerous enterprise conduct.

Extra data:
David Tan et al, Dangerous drugs: Litigation, competitors, and the advertising and marketing of prescription opioids, Strategic Administration Journal (2023). DOI: 10.1002/smj.3509

Supplied by
Strategic Administration Society

New research reveals drug producers really elevated opioid advertising and marketing after Kentucky’s Purdue pharma lawsuit (2023, August 3)
retrieved 3 August 2023

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