How to market pharmaceuticals to dispensing doctors

Effective pharmaceutical marketing is vital for success, but one group often overlooked by pharmaceutical companies is dispensing doctors. Here, we explore why dispensing GP practices are a key segment, their specific challenges and actionable strategies for tailoring your marketing approach to meet their unique needs. Whether you aim to improve product adoption, strengthen relationships with prescribers, or optimise patient outcomes, understanding this group could be the key to unlocking new opportunities.  

What is a dispensing doctor?

A dispensing doctor is a general practitioner (GP) who can both prescribe and dispense medications directly to their patients, under the GMS contract. This often applies to practices located in rural areas where patients often lack access to a pharmacy nearby. Dispensing GP practices can be found across the UK, with approximately 1,000 of the 7,500 GP practices in England classed as dispensing practices. There are also many dispensing practices in Scotland and Wales.  

What makes dispensing GP practices so important to pharmaceutical companies is the dual role they play. Unlike other General Practices, they operate as prescribers and dispensers, balancing clinical decision-making with commercial considerations. A clear separation of the prescribing and dispensing roles is encouraged, where possible, to avoid conflicts of interest and dispensing doctors must also adhere to ethical prescribing practices, ensuring prescriptions are based on clinical need.

Understanding this unique dynamic offers pharmaceutical companies a chance to align their strategies and achieve better engagement.

Issues dispensing GP practices face

Dispensing doctors face financial and operational constraints distinct from those of standard GP practices. The NHS reimbursement model poses one of their most significant challenges. Dispensing doctors are reimbursed for the cost of medicines they supply, but often at "cost price minus clawback" rather than a margin above cost. The clawback rate is currently around 11% in England and 7% in Scotland, meaning that dispensing doctors must secure discounts from pharmaceutical suppliers to make any profit.

Other challenges include:

• Managing product availability and sourcing discounts from manufacturers.

• Balancing their dual clinical and commercial roles.

• Limited time and capacity to understand new products or therapies.

How pharma companies can help

Pharmaceutical companies are uniquely positioned to mitigate these issues:

• Discount strategies: Offering competitive manufacturer discounts can make your product more attractive to dispensing practices.

• Education and support: Training dispensing GP practices on your product's clinical and commercial value positions your brand as a partner in their success.

• Tailored communication: Show an understanding of their unique pressures by framing product benefits both commercially and clinically.  

Why tailoring your approach matters

Dispensing doctors are not just another GP audience. Their commercial focus means traditional clinical sales narratives may fail to resonate. If pharmaceutical company representatives lack knowledge of how a dispensary operates or the terminology dispensing doctors use, they risk undermining their credibility.  

Tailored approaches align your product's value proposition and their dual priorities (clinical effectiveness and profitability). Successful strategies require aligning the message with language that resonates with their concerns, including reimbursement, clawback, and product discounts. Communicating with dispensing doctors without acknowledging their commercial concerns is like only telling half the story.

How to market pharmaceuticals to dispensing doctors

Effective marketing to dispensing doctors requires a nuanced approach.

1. Understand dispensing practice operations

Before building a relationship, ensure your sales and marketing teams understand how dispensing doctors operate, including:

• How reimbursement models work (e.g., clawback rates).

• The role of discounts in profitability.

• The distinction between clinical and commercial decision-makers (e.g., GPs, practice managers, or dispensary managers).

2. Tailor messaging for the audience

Different team members within a dispensing practice focus on different priorities. For example:

• For GPs: Highlight the clinical benefits of your product and how it aligns with treatment pathways.

• For dispensary managers, practice managers and business managers: Share commercial details, such as manufacturer discounts and how using your product improves profitability.

3. Upskill your teams

Equip your Key Account Managers (KAMs) with the knowledge and language needed to engage dispensing practices effectively. Training should include:

• Dispensing-specific terminology.

• How to hold both commercial and clinical conversations (while remaining within ABPI guidelines).

• Case studies or examples demonstrating the financial impact of choosing your product.

4. Audit and analyse product positioning

Work with your teams to assess and refine your product offering:

• Does your product offer competitive discounts?

• Are there specific product categories (e.g., respiratory therapies) where your product provides a clear cost/benefit advantage?

Regular audits of your distribution model can highlight areas for improvement in your market access strategy.

5. Leverage insights and data

Invest in a consultancy or insights services to improve your engagement strategy. For example, CHASE provides expert, tailored advice on:

• Product positioning.

• Optimising sales approaches.

• Analysing market access challenges within dispensing practices.

6. Build Long-Term Relationships

Success with dispensing doctors is built on trust. Regularly engage with both practice staff and decision-makers to maintain strong relationships. Consider offering:

• Educational events or training days.

• Resources that enhance their practice operations.

• Exclusive offers or support to demonstrate your commitment to their success.

Conclusion

Dispensing doctors represent an important segment for pharmaceutical companies. Understanding their unique challenges and tailoring your marketing and sales approaches can unlock significant commercial opportunities while improving patient outcomes.  

Effective engagement starts with the right strategy and tools, and that's where CHASE can help. Our expert consultancy services and sales training for pharmaceutical companies are tailored to improve your market access and ensure your messaging resonates with dispensing doctors.  

Contact us to discover how we can help your pharmaceutical teams achieve better results with dispensing practices.

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