Digital Pharma: Evolution and Revolution in Marketing and Sales

Len StarnesHead of Global E-Business Primary Care, Bayer Schering pharma

A decade of digital pharma

Targeting doctors

Targeting consumers & patients

Healthcare social networking

Agenda

A decade of digital pharmaA decade of digital pharma

1996 2007

HypeRaising

expectations

Disillusionment

Trough of despair

EnlightenmentProductivity

Realistic expectations

Evolution vs revolution

Evolution2006

Revolution

Expectations ’96: The 24 x 7 rep – how wrong!

Branded websites will be more

effective than a rep visit

Sales forceswill be cut

Revenues will soar

Doctors will flock to

our sites

One-size fits-all portal will suffice

HCPs’ media consumption shifting from off to online

85% of EU HCPs say the internet

is critical for success of their

practice*

16% of EU HCPs use a PDA for

professional purposes*

5

6

18

19

21

22

28

49

0 10 20 30 40 50 60

Use podcasts

Subscribe to RSS feed

Use chatrooms

Download audio files

Read blogs

Use instant messaging

Watch online videos

Send SMS

Professional use of digital media by European HCPs*

% European HCPs

*Taking the Pulse Europe v6.0; sample of 1024 doctors from D/F/It/Sp/UK; Manhattan Research, 4Q06

Quality content yes,but in an

appropriate context Credibility and trustwill be crucial

Expectations ’96: Health information seeker – right!

Internet will becomethe most preferred

source of health andmedical information

Internet will becomea powerful medium for patient acquisitionand retention

Patients will be empowered

Consumers’ favoured sources of health information moving online

143 million EU consumers have accessed health

information or health services

online during the last 12 months*

Most frequently used sources of health information in Europe*

% European consumers

*Cybercitizen Health Europe; sample of 4302 consumers from 10 EU countries; Manhattan Research, 2Q07

7

16

19

40

42

49

70

74

40

0 20 40 60 80

None

Radio

Nurses

Family & friends

Pharmacist

TV

Print media

Doctor

Internet

Low digital marketing spend 1- 5%

Digital pharma status 06/07

Industry remains a late adopter

But solid experience and realistic expectations

Too few digital-visionaries at senior level

Moving slowly towards integrated solutions

Targeting doctorsTargeting doctors

Doctors generally prefer authoritative sources - medical societies, universities, hospitals

A major challenge

Doctors ambivalent towards pharma

Doctors’ prime information needs focus on new research, clinical studies, case studies, continuing medical educational, networking with colleagues, cost constraints, running a surgery as a business,…

The sales force arms race

Result: ever decreasing detailing time

USA: 1:30 minsEurope: 2 - 4 mins

Number of sales representatives

Detailing time

1980 - 2007

E-detailing is becoming a viable alternative

Convenient – access

after hours and at weekends

Complements sales force

Average session times 8 -12 mins

Greater reach & better message retention

Documented +ve ROI

Live detail with tablet-PC

Web-basede-detail

Multi-channelCRM application

Electronic details,interactions trackedand logged by CRM application

Closed-loop marketing is next

Interactive detailscustomized to meet

doctor’s needs

Iterative detailing process

Engaging doctors can only be successful if…

Real needs and expectations

are met

Focus is on integrated multi- channel services

* Taking the Pulse Europe v6.0; sample of 1024 doctors from D/ F/ I/ E/ UK; Manhattan Research, 4Q06

Over half of EU HCPs expect online service today*

Targeting consumers

& patients

Targeting consumers

& patients

Regulations constrain objectives

DTC markets

Disease & condition awareness

Non-DTCmarkets

Treatments awareness

Brand awareness& conversion

Drug compliance, loyalty & retention

Globally targeting womenScope

• Focus on contraceptives

• Targets women segmented by 5 lifestages

• 1 international, 28 country, 2 regional sitesKPIs

• > 4m visits/year

• > 70 years/year customer contact time

• Chinese site draws 0.6m visits/year

Femalelife

30 – 50% of medicines prescribed for long-term illnesses are not taken as directed*

Compliance is a major issue

*Adherence to Long-Term Therapies: Evidence for Action, WHO 2003

Isolated compliance channels

Patient

SMS & mobile

Pack & devices

Contactcentre

Casemanager

VAT

Internet & email

Direct mail

Germany

Netherlands

UKGlobalonline supportfor Betaferon patients

Denmark

Norway

Sweden

International

Finland

Patient

Integrated compliance channels

Patient signs-upfor ‘daily tips’ on coping with SEs

Patient calls asking for advice about

a severe SE

Patient downloadsa PDF on SEs

management

Application softwareaccessed by

a case manager

All patient interactionsand interventions logged

Case manager alertedto SEs issue and makesappropriate interventions

Secure patient database

Multi-channel integration plus behavioural modelling

Smarter systems through incorporation of constructs from behavioural models

Identify a patient’s risk level and propose appropriate interventions

Healthcare social networkingHealthcare social networking

‘An expert moderated repository of the knowledge base, in the form of a medical wiki, may be the answer to the world’s inequalities of information access in medicine…’*

Web 2.0 is radically changing medicine and healthcare

Dean Giustini, How web 2.0 is changing medicine,BMJ, 23 December 2006

‘Is pharma ready for social networking?’

‘… it appears that the forces of change would come from the consumers’

‘Are social media dulling pharma’s marketing knife?’

‘…it won’t be long before pharma realizes that it isn’t in control anymore…’

But pharma is still debating

Source: www.forums.pharma-mkting.com

Web 2.0 is a disruptive technology

Adapted from: Web 2.0 in Healthcare, John Sharp, Cleveland Clinic, USA

Pharma values Web 2.0 values

Risk averse

Information from authoritative sources

Privacy & security are regulated

Long lead times

Controlling access to dataand information

Intellectual property closely guarded

Risk taking

Crowd wisdom

Anyone can join

Rapid deployment

Information contributed by and distributed to all

Open Source

Pharmaweb 2.0

Public relations

Consumers& patients

Sales forces

Internally:Enterprise 2.0

HCPs

Disruption at all levels

Collaborating with onlineHCPs’ communities

www.sermo.com

Captures bedside and hallway conversations

Helps ‘lonely’ doctors

Aims are to discuss new clinical findings and to ‘work together to dramatically impact patient care’

35,000 registered members

Posts comprise 2 elements - Post itself as a discussion thread Plus - Multiple choice poll which asks ‘What do you think?’

Sermo’s secret sauce

Adds a quantitative dimension to qualitative postings – in real time

Pharma may now mine the wisdom of the Sermo crowd

‘Observe’ - Alpha MDView community via a customized list

of subjects based on keyword tags

‘Insight’ Post questions directly

to communityand take polls

‘Action’ – Hot SpotsIcons next to targeted conversations allowing access to relevant pharma information and services

Pfizer signed-up October 15th 2007

6 more pharmas about to sign-up

US$ 26m VC injection

Launching in Europe & Asia-Pacific 2008

Responses to date

Paradigm shift

The doctor-industry relationship has the opportunity to become a true partnership based on mutual respect and collaboration

Doctors can now dictate the terms of engagement to the pharma industry

1/3 of consumers in USA consult a health SN site before visiting a doctor*

UGC from health mavens can profoundly influence consumer and patient preferences

Conversations are raging: patients are learning from one another

www.revolutionhealth.com*Manhattan Research, 2007

Revolution Health

136 Betaseron ratings Effectiveness: 6.2/10

Lack of SEs: 5.3/10

Ease of use: 6.2/10

Health SN sites allow patientsto rank treatments, doctors, hospitals & payers

> 2500 ratings of all MS treatments

Health warning to pharma marketeers

Don’t fake it

Paradigm shift

The industry must decide whether it wants to actively participate in the conversations or remain an outsider

Consumers and patients are taking ownership of brands, diseases and conditions

Managing UGC on pharma sitesis a major issue… but possible

Regulators mandate pharmas to report ADs

Regulators forbid off-label discussions

Open discussion areas in 14 countries:

D: 6,000 members, 25,000 postsS: 1,500 members, 9,000 postsTR: 1,400 members, 19,000 postsJP: 900 members, 1,200 posts

www.ms-gateway.com

3rd generation community area for MS patients, carers, family & friends

Pharma corporate blogs are emerging

J&J BTW blog

J&J bloggerMarc Monseau

‘Everyone else is talking about our company, so why can’t we?’

Pharma sales reps are the most visible active bloggers

5,000 threads60,000 posts

Rants & raves,corporate grapevines,jobs

The pharma marketing and sales revolution has begun

The pharma marketing and sales revolution has begun

Head of Global E-BusinessPrimary careBayer Schering Pharma

E: leonard.starnes@bayerhealthcare.comT: + 49 30 4681 4877M: + 49 175 438 4521I: www.bayerhealthcare.com

Len Starnes