Disclosure: this is an observation/opinion post on ALKS (the producer of Vivitrol) and the increased sales potential of that drug based on reform in the addiction treatment industry.
I mistakenly posted this in /WSB, this really isn't their cup of tea since it's not an overnight YOLO gamble. I work in the addiction marketing industry and some big changes are happening. Medication assisted treatment is the direction this industry will be forced to take. People are sick and tired of the same old message about addiction, traditional treatment is widely ineffective. We know that the public has been inundated with the same tired marketing message. We know that many people lack faith in traditional treatment protocols. We know that there is an awareness by the public that relapse is common, even after successive treatments.
The payers are starting to demand treatment that is evidence/science/outcome based. We’re already seeing the push back…insurance won’t continue to fund treatment services with poor outcome studies. In S. Florida, Cigna already has treatment centers scrambling to adjust. I personally know treatment center owners who are owed millions by Cigna, they are starting to apply the breaks on payouts for traditional treatment practices. The fact is that the majority of addicts who enter an inpatient treatment facility will relapse within the first year, and most relapse multiple times thereafter. The traditional treatment revenue model is propped up by alumni, the revolving door of treatment keeps addicts coming back in to facilities because they are offered nothing more than counseling and willpower. Most practices have not yet caught wind, but a changing tide is coming and the media, government and insurance companies are all increasing their attention on medication assisted treatment protocols. I'm not talking about addictive opioid substitutes like suboxone and methadone, I'm talking Naltrexone (specifically Vivitrol).
Alkermes (ALKS) addiction drug Vivitrol is a game changer in an industry that has barely begun to recognize it or incorporate it into their practices. long-term growth potential is underrated. I work for a marketing company and our main objective is to socialize and mainstream a protocol that is based on incorporating Naltrexone (Vivitrol) into traditional treatment practices. In just eight weeks, spending less than $40k on national TV/Radio, we generated over 20,000 phone inquiries from people all over the US wanting this form of treatment....the response was insane vs the media dollars spent. The public simply isn't aware of this treatment protocol, nor has Alkermes been successful in socializing it because it's not a standalone product....it has to be combined with detox, then treatment, then aftercare (taking the Vivitrol shot every month to prevent relapse). We have projected as a mere function of marketing spend, that demand will exceed 150,000 inquiries per month by the third quarter of 2016. What does this mean for ALKS? Our marketing initiative has barely taken off, our test spend was pennies vs the capital we are preparing to deploy. Even without our media campaign, ALKS is up over 40% in the past month. Vivitrol sales are measly compared to what they could be when our message is airing nationwide 24/7 generating hundreds of thousands of inquires every month seeking treatment that incorporates Vivitrol. When the payers stop paying for traditional treatment (already happening), when the government starts increasing attention on science based/outcome based medication treatment protocols (already happening) and when the public starts asking for these protocols.....Vivitrol sales will skyrocket.
Submitted April 22, 2016 at 04:08PM by iBoga_Shrub http://ift.tt/1qGVlo8
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