Diversion – Hot Topic at the Annual Academy of Dermatology Meeting

Professional Skin Care
Professional Skin Care

Industry buzz was across the board at this year’s AAD conference held in sunny Orlando, FL, as marketers, suppliers, and dermatologists converged to discuss emerging medical technologies, new treatments for skin conditions, and the impact of a new administration on the healthcare system. The exhibit hall showcased new products—both topical and devices. It was also a place where marketers chatted with us openly about areas like amalgamation of dermatologist groups and how to curtail diversion.

From a business standpoint, marketers acknowledged their frustrations with the diversion epidemic, which is rampant in this industry. Marketers spoke about the merits of Amazon’s new professional platform, but realized it has limitations as well. Other diversion-curbing platforms at the show were RegimenMD, which is slowly ramping up its physician bases of subscribers. The problem is an internal one as well, with marketers agreeing that they must do a better job of tracking sales to accounts who blatantly overorder.

ZO Skin Health continues as the gold standard for its zero-tolerance policy for diverters. The company will close accounts that divert and is known for even taking legal actions against diverters. The Amazon Professional platform will shut down third-party retailers for those brands that sign on to their platform. However, the new problem is Walmart.com, which is where many third-party resellers are relocating.

From a business standpoint, dermatologists are increasingly signing up to be part of regional and national doctor-owned groups where they can still can be independent from hospital groups, but gladly give up the pressures of business overheads, such as office support and IT services, as well as insurance contracting.

The neck was in the spotlight! It is a chief skin care concern that marketers rallied around this year with their entries in this area. Revision Skin Care’s Nectifirm, which has extremely high awareness among physicians, led the pack of products. Other products include Jan Marini’s Juveneck, newcomer Senté’s Neck Firming Cream, and NeoStrata’s Triple Firming Neck Cream.

Another stalwart professional skin care ingredient receiving attention this year is hyaluronic acid. SkinMedica introduced its entry last year with HA5; priced at $178, the product is said to be receiving high acceptance among dispensing doctors. Last month, SkinCeuticals debuted its hyaluronic product H.A. Intensifier at $98, which is also on the fast track!

Micro needling or skin rolling emerges as a substantial area interest at this year’s meeting as many companies are introducing this technique to help with an array of concerns, ranging from acne scarring to aging signs. We see a reduced version of this device gaining popularity in the at-home devices market soon.

The new edition of our Professional Skin Care Global Series will address many of the concerns we heard about at the meeting and will provide business executives with a full picture of the dynamics of the professional skin care market in key regions, such as Asia, Europe, and North America. To give marketers a clearer perspective on diversion and who the third-party resellers are and what physicians think about new platforms like Amazon.com and RegimenMD, a new report will be announced soon. To learn more about this new report on the diversion topic, please contact us.