 Spectrum --
June 2005
 In This Issue...
Promotional expenditure is the
principal area of cost for the pharmaceutical industry. Fully expressed, these
costs far outweigh R&D expenditure, yet they tend to receive less attention
from pharmaceutical and biotechnology companies than other cost areas and are
prioritized far behind sales when companies gauge the factors that determine a
product's or project's viability. In this report, the first of a
two-part series, we present quantitative data to support a realistic
perspective on promotional expenditure in the pharmaceutical industry, and we
explore the implications that modifications of promotional spend would have for
pharmaceutical and biotechnology companies. We explain how close attention to
this critical area of cost can increase the accuracy of decision making
regarding the commercial viability of products and suggest how the industry
should view recent trends in promotional expenditure. We offer advice on how
the role of promotion should be conveyed to those outside the industry.
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