On Tuesday, Pfizer (PFE) announced its entry into the direct-to-consumer (DTC) business, a move that mirrors the strategy employed by its major pharmaceutical competitor, Eli Lilly (LLY). Eli Lilly had already set a precedent earlier this year by launching its own DTC initiative in January. Now, Pfizer is following suit with its new platform, PfizerForAll, which is designed to streamline patient access to certain medications, including treatments for migraines, respiratory viruses like COVID-19, and the flu. Although Pfizer is offering its own products through this platform, the company emphasizes that patients are not obligated to choose Pfizer medications; the final decision on prescriptions remains firmly in the hands of healthcare providers.
Pfizer’s Chief U.S. Commercial Officer, Aamir Malik, explained the company’s motivation in an interview with Yahoo Finance. He highlighted the challenges patients face when navigating the complex U.S. healthcare system, which can be time-consuming, confusing, and overwhelming. Malik noted that one of the primary goals of PfizerForAll is to simplify access to medications. “Navigating our healthcare system is time-consuming. It’s complicated. It’s overwhelming. And the last thing that anybody needs when they’re trying to get the care that they need for themselves or a loved one is to have to navigate that complex, painful, difficult system,” Malik said.
A significant issue for many patients is the difficulty in finding a healthcare provider who can promptly see them and prescribe the necessary medication. The additional hurdles of dealing with insurance companies—such as obtaining pre-authorizations and finding a pharmacy that offers the drug at a lower co-pay—further complicate the process. While PfizerForAll does not aim to overhaul the existing healthcare system, it seeks to provide an alternative route for patients to obtain the medications they need. Malik emphasized that the platform is not intended to address broader issues like drug shortages, which are typically within the purview of drug manufacturers.
The PfizerForAll platform will also feature a customer support helpline to assist patients who encounter typical barriers, such as insurance-related issues. The helpline will either assist patients in contacting their insurers to remove access barriers or guide them through the process of doing so independently.
How It Works
Pfizer plans to attract patients to PfizerForAll through targeted social media advertising. These ads will lead patients to the platform, where they will be directed to a landing page tailored to their specific health concerns, such as migraine relief. From there, patients can choose between a $35 telehealth visit facilitated by UpScript, a third-party vendor, or an in-person consultation arranged through the booking portal ZocDoc.
Once the patient enters this pathway, they are effectively outside the Pfizer portal and interacting with a healthcare provider who can prescribe the appropriate medication. While this could be a Pfizer product, it is not a requirement, according to Malik. Notably, there is no revenue sharing from the clinical visits or the prescriptions, ensuring that healthcare providers are not financially incentivized to prescribe Pfizer medications.
After the prescription is issued, patients have the option to receive their medication via mail or pick it up from their regular pharmacy. For vaccines, Pfizer will assist in booking appointments at major retail pharmacies such as CVS (CVS) and Walgreens (WBA), which collectively have over 17,000 locations across the country. In the realm of respiratory care, Pfizer will also offer same-day delivery of at-home tests through Instacart (CART) or two-day shipping via Amazon (AMZN).
According to Malik, PfizerForAll is not designed as a profit-driven venture. “We’re not building this as a standalone business with a revenue and a profit objective to it,” Malik told Yahoo Finance. Instead, the success of the platform will be measured by its popularity and how effectively it meets the needs of patients.
The Competitive Landscape
Pfizer’s move into the DTC market follows Eli Lilly’s launch of LillyDirect earlier this year, which was created to help patients manage conditions like diabetes, obesity, and migraines. Lilly’s platform is particularly beneficial for obesity patients, who often struggle to find healthcare providers willing to prescribe popular drugs like Zepbound. Lilly CEO David Ricks pointed out in January that patients frequently resort to “doctor shopping” to obtain necessary prescriptions. LillyDirect seeks to address this by offering telehealth services and assisting patients in finding specialists in their area.
LillyDirect’s structure shares similarities with PfizerForAll, though there are notable differences in execution. While Pfizer relies on a single telehealth platform and ZocDoc for in-person visits, Lilly uses multiple telehealth providers. For example, Lilly’s platform for diabetes and obesity management, 9amHealth, only accepts insurance in Texas and California, while FormHealth, another platform used by Lilly, covers most major insurers and Medicare for obesity treatment. For migraine care, Lilly partnered with Cove, which offers insurance coverage and a $30 copay, or $99 per visit without insurance.
In contrast, Pfizer charges a flat $35 fee for its telehealth services through UpScript. Despite launching earlier this year, the performance of LillyDirect remains somewhat ambiguous. Lilly has been reticent in providing specific metrics on the platform’s success. However, in an April earnings call, Patrik Jonsson, President of Lilly USA Diabetes and Obesity, mentioned that the site was “gaining traction by weeks.” Yet, when pressed about the number of prescriptions processed through LillyDirect, he acknowledged that the volume remains relatively low, with a slightly higher uptake among new patients who are filling prescriptions for the first time.
In summary, Pfizer’s entry into the DTC market with PfizerForAll reflects a growing trend among pharmaceutical giants to offer patients more direct and streamlined access to medications. While it remains to be seen how successful this initiative will be, it represents a significant shift in how patients might interact with the healthcare system and access the treatments they need.
