The Challenge of Marketing Cannabinoids

With the FDA approval of Epidiolex® (cannabidiol) CV – the first prescription drug extracted from the cannabis plant – the legitimacy of cannabinoid treatments in the US arrived. While this may be good news to patients and physicians alike, this approval opened a door that brand managers in this space must walk through.

Marketing cannabinoid therapy is a serious marketing challenge. In November 2019, the US Food and Drug Administration issued warning letters to companies marketing cannabis-based products for medical purposes. Additionally, the FDA issued a revised consumer update warning against dubious marketing and the potential risks of unapproved forms of cannabidiol (CBD).

HCPs also face a challenge in that they haven’t been trained on cannabis or the endocannabinoid system in medical school. So it can be frustrating that patients and their caregivers are often more educated on cannabis-based products than they are. This lack of education creates a vital role for brand managers in helping to advance these new therapies to healthcare practitioners.

Similarly, consumers need to be appropriately educated about the wave of CBD therapies on the horizon. This presents an even greater challenge to pharma brands. While many anticipate CBD treatments to become a preferred modality for many patients in the years to come, the dearth of legal consumer information will need to be filled.

All these factors present challenges to pharma marketers. But they also present opportunities.

Challenge #1:  FDA regulations

On November 25, 2019, fifteen companies were cited for illegally selling products containing cannabidiol “in ways that violate the Federal Food, Drug, and Cosmetic Act (FD&C Act).” So one challenge that can be expected to persist is the changing landscape of regulation. As new therapies advance, the FDA will be looking closely at how that new treatment differs from previously approved treatments. If the agency chooses to issue new guidelines, you’ll have to adapt your strategy.

The FDA revealed this landscape in its November 25th press release: “As we work quickly to further clarify our regulatory approach for products containing cannabis and cannabis-derived compounds like CBD, we’ll continue to monitor the marketplace and take action as needed against companies that violate the law in ways that raise a variety of public health concerns.”

The opportunity here is to be first-in with your FDA compliance initiatives as a brand. And once a product is approved, pharma brand marketers will need to stay vigilant with responding to the latest updates after launch of a newly-approved therapy. You can explore current FDA resources on cannabis-derived products here.

Challenge #2:  HCP Education

Because of the evolving, fragmented nature of legally prescribing cannabis-based treatments in the US, healthcare professionals are restricted in the educational resources and training they can follow. They are limited to state-approved resources only. This presents a huge challenge to brand managers marketing new medications nationally.

Targeting local sponsorship opportunities requires resources that you may not have, leaving you to focus on only the best potential for sales growth. So while you may see modest gains in HCP adoption, scaling your efforts will be difficult in the near term.

However, as the United States homogenizes HCP education around cannabis therapies, you’ll have opportunities to embed your brand within educational resources. For instance, more medical cannabis studies will come forth giving smart brand marketers opportunities to place their ads in journal reprints and multimedia publications.

Challenge #3:  Consumer Awareness

As pharmaceutical marketers navigate the evolving landscape, the key to success will be understanding consumer needs. While this is always important to marketing success, it will never be more crucial because of changing consumer sentiment around cannabis products. Pharma brand mangers will need to monitor and respond to that changing sentiment by identifying customer needs and positioning solutions that address those needs in their direct-to-consumer ads. 

This is where marketing analytics provides an opportunity to succeed. By examining audience and campaign analytics, you can create data-driven DTC campaigns based on cannabis sentiment. Doing so reduces the risk of gut-instinct decision-making that might not produce a good return on marketing investment. Now more than ever it’s important to measure consumer interest before you launch campaigns.

Marketing any product to HCPs can be challenging for brand managers. The good news is that Elsevier has the advertising options you need to connect, convince, and engage with HCPs in nearly every specialty. Stay tuned for more marketing trends, ideas, and tips by following our Elsevier blog.

Article Written by: Alex Brown