Pfizer Launches Direct Sales for Paxlovid, Targets Migraine Relief

Key Takeaway

• Pfizer to launch a direct-to-consumer platform for medications like Paxlovid and Zavzpret, bypassing traditional intermediaries.
• The initiative aims to simplify medication access amidst a US neurologist shortage, enhancing patient convenience.
• Reflects a strategic shift in pharma, with Pfizer and Eli Lilly leading towards more consumer-centric healthcare models.

Pfizer's Direct-to-Consumer Strategy

Pfizer is set to launch an online platform allowing patients in the US to directly order medications, including the anti-Covid drug Paxlovid and a migraine nasal spray named Zavzpret. This initiative is part of a broader movement among pharmaceutical companies to bypass traditional industry intermediaries and engage directly with consumers. The platform will connect customers with independent telehealth consultants for prescriptions, which will then be filled and shipped by a drug-dispensing partner. This move mirrors a trend initiated by Eli Lilly earlier this year with the launch of LillyDirect, marking a significant shift in how pharmaceutical companies approach drug distribution.

Expanding Access to Medications

The upcoming Pfizer platform aims to simplify the process of obtaining medications for patients, offering products such as Paxlovid, the combined Covid and flu test Lucira, and Zavzpret, among others. This approach is particularly relevant in the context of a neurologist shortage in the US, as it could alleviate pressure on prescribers by making several migraine medications readily available online. This strategy not only enhances patient access to essential drugs but also reflects a growing industry focus on direct-to-consumer sales as a means to streamline the medication distribution system.

Strategic Shift Amidst Post-Pandemic Challenges

The direct-to-consumer initiative is highlighted as a key strategic priority by Pfizer's CEO Albert Bourla, coming at a time when the company seeks to demonstrate its growth potential beyond the pandemic. Despite generating $93bn in revenues from Covid vaccines and treatments during the pandemic, Pfizer's market value has seen a significant decline, now standing at $145bn, less than half of its peak during the pandemic era. This strategic pivot to direct sales is not new to Pfizer, which previously experimented with direct-to-consumer sales for its anti-cholesterol drug Lipitor to combat generic competition.

Industry Trends and Future Outlook

The move by Pfizer and Eli Lilly towards direct-to-consumer sales is expected to set a precedent for other pharmaceutical companies, with industry experts predicting a shift towards patient portals as a primary means of engaging with and converting customers. This trend underscores a broader realization within the pharma industry of the benefits of providing patients with direct access to medications and healthcare information. Pfizer's commitment to offering timely and accurate information about its medicines and facilitating access to them is indicative of a larger industry shift towards more consumer-centric healthcare models.

Street Views

• Timothy Mackey, University of California San Diego (Neutral on the pharmaceutical industry's direct-to-consumer strategy):

  "All it takes is one large company like Eli Lilly to do it and then more risk-averse companies follow suit... Pharma groups were realising that 'the best way to convert customers is through patient portals where they can act as a consumer in medicine.'"

Management Quotes

• Pfizer statement:

  "The company had 'a history of and an ongoing commitment to providing timely and accurate information about our medicines and vaccines, and resources to help access them, so that [patients] can make informed decisions about their healthcare, together with a medical professional'."