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Executive Summary

LEXIS ORAL CONTRACEPTIVE TV ADS ACCEPTED FOR BROADCAST by independent San Antonio station KENS, Lexis VP-Market Development Al McConnell said. Several other affiliate stations, he noted, have contacted Lexis and expressed interest in running the price comparison ads for N.E.E. 1/35. Reportedly, KENS initially had misgivings about airing the commercials, which are scheduled for broadcast in June. The planned TV ads, which mention the prescription product by name, would be the first TV commercials for oral contraceptives ("The Pink Sheet" May 8, T&G-2). According to Lexis, the three major networks rejected the commercials due to their policy not to run ads for oral contraceptives. The 30- and 60-second spots, which feature Lexis President John Bryer, focus on the cost savings that can be achieved with Lexis' oral contraceptive, McConnell said. Bryer informs consumers that they can save up to 50% over Ortho-Novum 1/35 and Syntex' Norinyl 1 + 35 oral contraceptives. The ads also include a toll-free number, 800-485-7455, which consumers can call for further information about N.E.E. 1/35. Bryer appeared in televised ads comparing the price of Boots' Rufen to Upjohn's Motrin when he headed Boots in the early 1980's. Lexis also plans to test an advertisement in a national women's magazine identifying the drug stores which stock N.E.E. 1/35. Four magazines have been targeted to carry the ads, McConnell said. Since June 7, the company has been test marketing a patient consultation fee program in an unidentified East Coast drug chain, McConnell said. Under the program, a fee is paid to a drug chain based on the number of consumers a pharmacist starts on N.E.E. 1/35. After 24 patients, Lexis provides $ 25 for each patient started on the product. McConnell noted that 17 small chains have signed up for the test market program. The chains have indicated that the consultant fees would go into funds for pharmacists' programs, he added. McConnell explained that the pharmacist makes a note for his files of the new prescriptions of N.E.E. 1/35 filled and then sends in a form, void of the patient's name, to Lexis to receive the consultant fee. The program also provides pharmacists with an educational visual aid for consumers that compares the patient package inserts for N.E.E. 1/35 and Ortho-Novum 1/35.

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