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Getting to Yes: Corporate Power and the Creation of a Psychopharmaceutical Blockbuster

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Abstract

In this paper, I analyze documentary evidence from a pharmaceutical company’s strategic marketing campaign to expand the sale of an antipsychotic medication beyond its conventional market. I focus on the role of the managerial function known as channel marketing, the task of which is to minimize friction, achieve coordination and add value in the distribution of the company’s products. However, the path to achieving these objectives is challenged because members of the marketing channel, or intermediaries, may not be contractual members of the channel; in fact they may have widely divergent goals or may even be hostile to the manufacturer’s efforts at control. This can be construed to be the case for physicians and others who are in the pharmaceutical manufacturer’s distribution channel but not of it. Their views and actions must somehow be brought into alignment with the manufacturer’s goals. This paper seeks to show part of the process from the manufacturer’s strategic standpoint, in which potential dissenters are incorporated into the pharmaceutical company distribution channel. The routinization of this incorporation results in the diminishment of psychiatry’s professional autonomy by means of what is—paradoxically to them, but not to a student of marketing—a competitive threat. The paper concludes with a discussion of corporate power.

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Notes

  1. Eli Lilly Document: “Key Player Playbook.” Available at: http://www.furiousseasons.com/zyprexa%20documents/ZY100174816.pdf. Accessed December 14, 2007.

  2. Pharmaceuticals Research and Manufacturers of America, an industry trade group whose mission it is “to conduct effective advocacy for public policies that encourage discovery of important new medicines for patients by pharmaceutical/biotechnology research companies” (http://www.phrma.org/), especially abroad (Applbaum 2006a).

  3. So as to avert possible confusion on this point, I use managers’ professional lexicon in the same way and for the same reason that ethnographers usually use “native” key terms and cultural categories: to cut close to the bone of the native’s view of the world. I regard synergy, for instance, to be a key strategic cultural term (strategic in that its influence is prescriptive and vectorial), and my purpose is simultaneously to explain and, in a sense, respect it as a motivating cultural idiom at the same time that I wish to leverage that understanding for purposes of “ironizing” or objectifying it as a folk category and element of the managerial theory of practice. This procedure is not exceptional except that, contrary to usual ethnographic practice, I am forced to use words that “we” share in common with them and that are not foreign field terms in no danger of being confused with our own everyday usage.

  4. It is important to interject here that I am not judging all marketing efforts as reprehensible or unwholesome. The campaign to sensitize PCPs to depression combined with what must be regarded as a salutary, if interested, antistigma program resulted in the treatment of millions of people who had previously suffered from a debilitating, underdiagnosed and sometimes fatal disease. However, it is crux to any understanding of the contemporary state of affairs that, while pharmaceutical companies may be in the business of creating medicines that cure sickness, when good business and good medicine find themselves in competition, as quite often occurs, business takes precedence (see Applbaum 2009).

  5. This emphasis on brand positioning also does not contradict what I said earlier, that the drugs are nondifferentiated (“commodities,” in business lingo). Brand positioning here is a vehicle for seeking FDA approval for specific disorders. Also, branding pertains more to the early part of the drug life cycle.

  6. Cymbalta is a US$1.3 billion blockbuster. In 2006, the company spent $157.1 million on Cymbalta advertising in its “Depression Hurts” campaign (John Russell. FDA Orders Lilly to Drop Cymbalta Promo Material. Indianapolis Star, October 3, 2007).

  7. Eli Lilly Document: “Managed Care-June 2002.” Available at: http://www.furiousseasons.com/zyprexa%20documents/ZY200083405.pdf. Accessed December 14, 2007.

  8. See: http://www.psychsearch.net/documents/tmap/sheet.pdf. Accessed November 27, 2008. See also: http://www.psychsearch.net/lawsuits.html. Accessed November 27, 2007.

  9. Eli Lilly Document: “Zyprexa Product Team: Four Column Summary.” Available at: http://www.furiousseasons.com/zyprexa%20documents/ZY200270343.pdf. Accessed December 14, 2007.

  10. Eli Lilly Document: “Zyprexa Sales Force Resource Guide.” Available at: http://www.furiousseasons.com/zyprexa%20documents/ZY200061996.pdf. See also: http://www.furiousseasons.com/zyprexa%20documents/ZY200189276.pdf. Accessed December 14, 2007.

  11. Eli Lilly Document: “Zyprexa Frequent Areas of Concern, or FAOC.” Available at: http://www.furiousseasons.com/zyprexa%20documents/ZY200083622.pdf. Accessed December 14, 2007.

  12. The same process may be at work in the case of the vastly overdiagnosed ADHD (attention deficit/hyperactivity disorder). A growing percentage of all those millions of children who are failing to show improvement on a class of drugs quickly falling from patent are being diagnosed with pediatric bipolar disorder (Healy and Le Noury 2007).

  13. Eli Lilly Document: “Global Value Committee Review of Zyprexa.” Available at: http://www.furiousseasons.com/zyprexa%20documents/ZY200227498.pdf. Accessed December 14, 2007.

  14. Eli Lilly Document: “Cross Brand Segmentation: An Introduction to Selling Through Advanced Customer Knowledge.” Available at: http://www.furiousseasons.com/zyprexa%20documents/ZY200085380.pdf. Accessed December 14, 2007.

  15. Eli Lilly Document: “Zyprexa Primary Care Q3 Implementation.” Available at: http://www.furiousseasons.com/zyprexa%20documents/ZY100520636.pdf. Accessed December 14, 2007.

  16. Eli Lilly Document: “Zyprexa Launch March 2000.” Available at: http://www.furiousseasons.com/zyprexa%20documents/ZY201448094.pdf. Accessed December 14, 2007.

  17. Eli Lilly Document: “2001 Integrated Plan Zyprexa Product Team.” Available at: http://www.furiousseasons.com/zyprexa%20documents/ZY200061996.pdf. Accessed December 14, 2007.

  18. Available at: http://www.sptimes.com/2007/11/18/Worldandnation/Dementia_relief__with.shtml Accessed December 1, 2007.

  19. Many key opinion leader physicians (KOLs) are comforted in their work as representatives of industry in the belief that, since they do not endorse only one company’s products, they are not acting in a biased fashion. The existence of several apparently competing pharmaceutical companies serves as a guarantee to them that the race to a cure is genuine and balanced. It is a widely held view in a society that sees itself as market-based that competition implies that a system of checks and balances functions as a bulwark against monopolistic power. This 19th-century trust-busting view of competition, which conforms to an implicit ethical equilibrium model, distracts us from the collaborative nature of contemporary corporate competition. “Collaborate with Your Competitors—and Win,” the title of a Harvard Business Review article in 1989, announced the age of “strategic alliances” (Hamel et al. 2002), which has come to form only one visible dimension of the ways in which competition not only does not weaken monopolistic coalition-building, but functions to strengthen it. The presence of industry trade groups such as PhRMA should alert us to the fact that a sort of segmentary opposition—“an organization of predatory expansion” (Sahlins 1961)—is at work here. Or, for the nonanthropologist, let us say that the formation of marketing channel alliances over time signifies competitive, rather than vertical, integration and, in many regards, is indistinguishable from it. The last to know are all the psychiatrists who take money from the industry in the benighted or self-serving belief that, since they are not taking from any single company, they are not being corrupted. All the while, they are bringing their entire profession inexorably to yes, which is a form of extinction. (This is another sense in which the drugs may be causing rather than preventing suicide.)

  20. I Do not mean to suggest that corporate power is omnipotent, or that informal outlets for economic engagement or interpretive action are weak agencies. However, in their pragmatic intercourse with consumers—in which physicians and their patients become indistinguishable except by the technique with which they are engaged—pharmaceutical corporations are somehow managing to incorporate their opposer’s positions and to make it seem like everyone is running in the same direction. The somehow is what I am calling—not entirely as an objectivist proposition, since it is their own term—synergistic power.

    I believe that health care is a special case. Not because marketers operate according to a unique scheme in that field—quite the opposite—but because health care is the ultimate arena in the struggle between human need and corporate power. “What drives suffering?” Farmer (2003) asks. He advocates the notion of structural violence to explain what drives suffering in public health in the developing world. I think he is utterly correct. Let us call what I am identifying in this paper “corporate structural violence,” and let us analyze it as a social process, with all the good intentions gone awry included.

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Acknowledgements

A version of this paper was presented in January 2008 at the London School of Economics. Ingrid Jordt contributed many ideas to the paper. My medical anthropology colleagues at UWM, Paul Brodwin, Michael Oldani and Ben Campbell, read and commented on the earlier version, as did Thomas Malaby and Andreas Glaeser. My colleagues and teachers, Sidney Mintz, Keith Hart, Arthur Kleinman and David Healy, also read the paper and offered valuable reflections. I wish to thank all of the above for their generous input while absolving them of answerability for my forceful positions.

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Correspondence to Kalman Applbaum.

Appendix: A View from the Bridge: Methods for Analyzing the Mind of Capitalist Agency

Appendix: A View from the Bridge: Methods for Analyzing the Mind of Capitalist Agency

In this paper I am not drawing on fieldwork among pharmaceutical company managers, but on records that were obtained by subpoena from Eli Lilly & Co. during a suit against them in Alaska in 2006. Three hundred fifty-eight documents, which include marketing plans, sales training manuals, scientific reports and a host of internal correspondence, were given to The New York Times by one of the plaintiff’s attorneys. A Times reporter published several articles using the documents (Berenson 2006) and then leaked them to the public. The documents are, following an unsuccessful attempt by Lilly to repatriate them, legally in the public domain and available for download from the Internet (see Footnote 1). It is not principally my interest to use the documents to embellish on the company’s violations, which have by now been widely reported on in connection with an avalanche of suits against the company. My aim is rather to illustrate the ways in which the marketing practices exposed in the documents are not exceptions to, but indicative of, the competitive structure and normative, everyday practices in this industry, and of marketing in general. They may, if anything, reflect a systematization and normalization of corruption.

The unusual data source invites remark with regard to the questions of both what sort of data is adequate to securing insight into corporate activity and how anthropologists might go about conducting research into transnational corporations in the first place. Corporations are extraordinary ethnographic sites and subjects. Many are as vast and influential as nation-state bureaucracies. In addition to their size, their reach and the complexity of their interface with the world, they are animated by managerial expertise each of several areas of which is a discipline larger than anthropology. Yet the elite business world and the specialized professions that cross-cut it may be counterintuitively more secluded and stable for anthropological “ironization” (Marcus 1998) than are many of the places anthropologists continue to seek out hoping to find boundedness and authenticity.

While corporations take pains to remain unnoticed and inaccessible to the public, and membership in their society is highly restricted, their attachment to secrecy may be inversely proportional to the actual accessibility of their information. Most large corporations are publicly owned. Future business plans, patent applications, financial projections, market research and the like are kept safe from competitors; after the fact, much of this material becomes available for inspection. Particularly in regulated industries such as the pharmaceutical industry, there is public access at some point even to past strategic and strategic-scientific data (the hyphenated term will explain itself below). Individual companies are linked in an informational and often cooperative, rather than competitive, web to other companies in their industry. Investor analysts, management consultants, business-school case writers and innumerable others who make their living as experts openly report their insights into corporate activities in trade journals, how-to books and similar venues. Conferences, workshops and trade shows can be rich veins of information. Managerial personnel with indistinguishable résumées circulate like ball players among the leading firms, pollinating each other with standard notions billed as the latest innovation, all of which generates a suite of models and street wisdoms that managers apply to solve the problems of their work, and in which the anthropologist can find cultural coherence. It is from this store of primary data that I construct the case presented here.

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Applbaum, K. Getting to Yes: Corporate Power and the Creation of a Psychopharmaceutical Blockbuster. Cult Med Psychiatry 33, 185–215 (2009). https://doi.org/10.1007/s11013-009-9129-3

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