Impact of E-Detailing on the Number of New Prescriptions

The recent trend of e-detailing in the pharmaceutical industry aims to increase the effectiveness of promotion of prescription products to physicians at a less expensive way than traditional detailing. In the proposed promotion response model, the effect of e-detailing on new prescriptions is accounted for in the presence of traditional face-to-face detailing and a host of product-specific factors. The model is calibrated on 21 ethical pharmaceutical products in six diverse therapeutic categories over a period of two years using datasets from two industrial sources. We estimate our model once at the aggregate level and once using a fixed-effects methodology to account for unobserved heterogeneity across products. We find that prescription product (Rx) manufacturers appear to benefit from increasing both e-detailing and traditional detailing. Our findings also lead us to conclude that there is room for improving the synergy between the two types of detailing