Neuro Star Tms: Marketing Plan

Neuro Star TMS: Marketing Plan Proposal

NeuroStar TMS Therapy system represents the latest innovation for the treatment of Major Depressive Disorder in adults. This therapy is recommended for patients that failed to achieve satisfactory results one prior ant depressive medication at or but the minimal effective dose and duration for the current depressive episode (NeuroStar TMS, 2009). It is a non-invasive techniques based on the new research area, neuronetics. NeuroStar TMS and other similar devices being developed and marketed represent the next generation in treatment for Major Depressive Disorder. This is new technology and represents a major breakthrough in the field of clinical psychology. As such, Neuronetics must develop an aggressive marketing plan to promote this new technology. The following outlines a proposed marketing plan for the continued expansion of Neuronetics and their products.

The NeuroStar TMS System

NeuroStar is the first non-systemic, non-invasive treatment of its kind to be approved by the U.S. Food and Drug administration. It is recommended for patients that have not responded to traditional medication-based treatments. The treatment uses a highly-focused, pulsed magnetic field to stimulate function in the brain areas that are responsible for the depressive episode (NeuroStar TMS, 2009). Under the current licensing, treatment with the NeuroStar TMS system is a secondary treatment, which is used only after primary treatments fail to provide relief. Perhaps in the future, more information becomes available and data accumulates to support the success of the treatment, NeuroStar TMS will become a primary treatment for Major Depressive Disorder.

NeuroStar TMS passed U.S. Department of Agriculture tests for safety and efficacy (NeuroStar TMS, 2009). This device has only been tested in patients that have received no benefit from one antidepressant regimen. It has not been tested on patients that have had no success with two or more antidepressants, or on patients that have not received prior antidepressant therapy (NeuroStar TMS, 2009). This limits the eligible patient pool significantly and will affect the initial ability to market the device. However, further USDA testing on these groups of patients would significantly increase the potential client pool.

For the pool of eligible patients, the NeuroStar TMS significantly reduced the reported severity of symptoms using both the MADRS and the HAMD-24 scores. Treatments were carried out for a 6-week period. Those that received NeuroStar TMS in active mode experienced a 22.1% reduction in their depressive symptom, as compared to only 9% in patients that did not receive active treatment (NeuroStar TMS, 2009). Nearly one third of the patients reported a 100% reduction in symptoms at the end of the test period. These results are impressive and represent dramatic improvement for patients that use the system. The results of this study support the reliability and value of the NeuroStar TMS in treatment of unresponsive major depression.

Depression can have devastating effects on the patient and the patient's family. Persons suffering from depression may experience difficulty performing every day tasks. When depression does not respond to treatment, a feeling of hopelessness can develop, as the patient feels that there will be no end to how they feel. The NeuroStar TMS provides these patients with another option and a treatment that has a chance to alleviate many of the symptoms where traditional therapy was unable to bring relief. The NeuroStar TMS gives patients hope, where none existed before.

Size and Scope of the Market

It may be impossible to determine exactly how many people are suffering from Major Depressive disorder. According to the National Alliance on Mental Illness, Major Depression affects nearly 15 million Americans every year (NAMI, 2009). This is nearly 5-8% of the total adult population in any given year (NAMI, 2009). Depression occurs twice as frequently in women as in men, but the reasons for this are not known (NAMI, 2009). This device will be marketed toward clinicians who treat Major Depression. It will represent a significant marketing tool for their practice, as it represents state-of-the-art technology. It will give their patients with treatment-resistant depression another tool that they can use to combat the disease.

Currently, NeuroStar TMS is only approved for usage in the United States. It has not yet been marketed in other parts of the world. This would make a logical next step. However, expansion of the market should only be undertaken after a solid base has been established in the United States. Global expansion represents an almost unlimited potential for market growth in the future. The first targets should be industrialized nations, and then marketing efforts can move on to developing nations.

Competition Analysis

Research into the use of magnetic devices for the treatment of mental conditions is in its infancy. Neuronetics, the developers of NeuroStar TMS are pioneers in the field. This gives them the advantage of building brand equity and capturing the market before competition enters the scene. The first company to enter into a new field has an advantage over competition that may enter the arena in the future. They can establish recognition of their name with the product. Competition that enters later in the game will have to take established customers from earlier entrants. This can be more difficult for competitors than for the originator of the concept. The first company to enter the market can always claim to be the "first." Everyone else can be seen as an imitator. There are decided advantages to being the first to market with a new product.

In 2005, the FDA approved an implantable nerve stimulation device made by Cyberonics, to treat depression (Zwillich, 2007). The NeuroStar TMS has an advantage over this device in that it does not require invasive surgery. Another company, Brainsway, is currently attempting to gain approval for a similar deep TMS device, similar to NeuroStar TMS (Brainsway.com, 2009). Neuronetics was able to gain approval for their device sooner than Brainsway. However, since the two devices are similar, it is likely that the device designed by Brainsway will gain approval as well. This device poses the greatest threat of competition for NeuroStar TMS.

Currently, the device by Cyberonics and the one being developed by Brainsway pose the greatest chance for competition. NeuroStar TMS has the advantage because it is currently being marketed. Once practitioners have one device, the high cost of the machines makes it unlikely that they will simply switch to the competition. The costs for switching are exceptionally high in this case. It is likely that the first one to grab a customer will have them for life. Getting the NeuroStar TMS to market first was a key advantage in the ability to overcome competition in the future.

Promotion

The NeuroStar TMS has many advantages when traditional treatments fail. It offers a non-invasive alternative to pharmaceuticals or invasive techniques. Its target market will consist of clinicians that treat patients who are unresponsive to a least one pharmaceutical treatment. It provides an alternative for patients that have not responded to pharmaceuticals, but who are not severe enough to warrant ECT (electro shock therapy) or hospitalization. TMS works in a similar manner to ECT, but it can be carried out in a non-invasive fashion.

One of the key difficulties that can be anticipated in the marketing of NeuroStar TMS is that the device has drawn the attention of many critics and skeptics. Overcoming these criticisms will be a key to the successful marketing of the product. Criticisms and accusations cannot be ignored, but must be answered with sound evidence and facts about the product.

Some of the critics mentioned brought into question the effectiveness of TMS over the placebo. They claim that the differences in depression scores were barely above the levels at which the efficacy of the device would have been rejected (Zwillich, 2007). To overcome this argument, the sample size of the study must be emphasized. The study that led to FDA approval of the NeuroStar TMS involved over 10,000 patients (NeuroStar TMS, 2009). Significant clinical results in a study this large are comparable to the results for many pharmaceuticals on the market. In addition, the incidence of off-label use of pharmaceuticals is much less reliable than a device that is backed by such a large clinical trial.

The device is new on the market and many questions and concerns can be anticipated. The sales force will have to stay updated as to new findings and evidence regarding the device. Concerns have been raised as to potential future side effects of the device. The NeuroStar TMS uses the same strength magnetic force as an MRI. There are no known lasting effects from exposure to MRIs. However, any side effects that may develop will have to be addressed in the marketing material. An up front approach to concerns is always better than risking the reputation of the company by failing to inform clinicians about potential negative effects.

One of the key selling points of the NeuroStar TMS is its cost effectiveness. The economic impacts of major depression have a devastating effect on the economy. Major depression can lead to the inability to be employed. The healthcare costs associated with major depression are astronomical. Compared to antidepressants, costs for treatments with NeuroStar are economical. One session is expected to cost approximately $400 per treatment session, with typical patient needing four to six treatments (Neuronetics, Inc., 2008). Compared to ongoing medicine and therapy sessions, this is a quite cost effective alternative. This will be another key selling point for the device. However, it is expected that clinicians will see the potential to increase their clientele as a more important factor than the initial costs of the device.

The NeuroStar TMS is already in use in a few treatment centers around the country (Neuronetics, Inc., 2008). This provides credibility that others find the device to be beneficial. Testimonials from doctors and patients would be another supportive element to add to the marketing campaign. However, this element is not expected to hold as much weight as clinical evidence and research findings.

Primary Markets

Primary markets for the device will include individual clinical practices and groups that treat major depression in their clients. The most lucrative of these will be those that have large populations of clients that are already on antidepressant medicine. These clinicians have the greatest likelihood of obtaining clients that are treatment resistant. Another important type of practice will be those that specialize in the treatment of major depression as their primary focus. Private practices will consist of the bulk of primary market targets.

Secondary Markets

Several secondary markets exist that may yield results. In addition to clinical practitioners, general hospitals may also prove to be a worthy target. They may be a particularly lucrative source in rural areas. Many times in rural areas, people are accustomed to going to a local hospital to receive treatments that they cannot get in their physician's office. Purchasing decisions in small practices will depend on the costs of the device compared to the potential client base that they feel they can generate from it. In some cases, it may be more cost effective for centrally located hospitals to have the machine available. The device could draw clients from many different practices in the area, thus sustaining itself from a larger geographic area. Larger mental health facilities are likely to take this approach as well.

Another potential secondary market is Universities and Colleges that offer degrees in clinical psychology. These institutions may be interested in having a NeuroStar TMS onsite for teaching purposes. This could also be a potential source for the conduct of other research studies that could help to promote the units. These secondary markets have the potential to play a key role in the ability to expand usage and awareness of the product.