Four Strategies to Tell Your Health Innovation Story With Impact

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Executive Summary 4

The importance of innovation 6

Look further than R&D for inspiration 8

Ampllify messages of purpose, transparency and ethics 10

Leverage government support in Asian markets 12

Emphasise new ways of doing business 14

Key Takeaway: Own the innovation story 16

Sources 18

Table of Contents

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Executive Summary

While purposeful innovation is the heart and soul of healthcare organisations, the innovation story is quickly becoming white noise. Many companies continue to focus their narrative entirely on product and R&D. However, this inevitably means that they often get tied up in compliance concerns. Companies that look for inspiration for content beyond product are succeeding. This might be service delivery, ensuring patients have access to the right medicine at the right time, or patient adherence programmes. The pharma innovation story isn’t resonating with vital stakeholders: prescribers and payors working in healthcare settings.

WE’s Brands in Motion global study surveyed decision-makers in the space and found that stakeholders don’t see the health industry as innovative. It also found substantially different opinions across geographies. There is a marked contrast between the scepticism of the Western markets and the optimism of the Asian markets. There is also a difference in how markets are embracing technology. However, we are all moving in the same direction.

As new technology and more information help improve the public’s health literacy, the ‘empowered patient’ now expects much more from brands and their innovations. An organisation must now also communicate how it uses technology responsibly and operate with the highest ethics. Those that earn high ratings in the areas of ethics and transparency are also those perceived as forward-thinking. Many brands will have opportunities to tell innovation stories outside the traditional pharmaceutical R&D model, or to showcase innovative partnership with technology and device companies or governments. In Asian markets, where the government is significantly involved in pharmaceutical innovation, highlighting work done in tandem with government support can help audiences see your organisation as innovative.

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Brands have an opportunity to reframe their innovation story, overcome innovation fatigue and pull away from their competitor set. This requires a progressive approach to healthcare communications:

BALANCE INNOVATION WITH ETHICS …

EMPHASISE CUTTING-EDGE CREDENTIALS

… AND FUNCTION WITH PURPOSE

THINK PERSON, NOT PATIENT

FOCUS ON PROOF OVER PROMISE

LEAN INTO TECH

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The Importance of Innovation

In the healthcare space, the word ‘innovative’ is losing its impact, much like the term ‘cutting edge’ has lost its lustre in the tech space — if everything is ‘innovative’ then nothing is. The health industry’s penchant for calling products innovative when in reality they’re almost identical to an existing product adds to the noise and distracts key audiences. Incremental improvements are important, but if brands aren’t realistic about what is innovative and what is not, they run the risk of furthering innovation fatigue among consumers.

But when innovation is truly integral to your product offering, and the strategic direction of your communications plan, what to do?

According to the Brands In Motion 2018 global study, a majority of B2B decision makers in the space feel that prescription health brands are not innovative:

Percentage of respondents who rated prescription health companies as ‘stuck in the stone age’ vs. ‘cutting edge’

62% 61%

26%

49%

39%

50% 51%

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Brands in Motion is a global study of how consumer perception shifts over time. The 2018 iteration surveyed more than 25,000 consumers and B2B decision-makers about eight categories across eight global markets, and provided a set of new realities and data-backed principles brands can use to help them navigate an always-changing world.

The only sector seen by respondents as less innovative than prescription health was finance and banking, an industry not traditionally associated with innovation (although the rise of fintech is changing this). This isn’t great news for the prescription health industry, which defines and defends itself through its leadership in breakthrough science, pioneering discoveries and life-changing technology. Health companies have always told, and continue to tell, innovation stories, so why don’t prescribers and payors working in healthcare settings see them as innovative? Innovation fatigue may be one explanation.

The study also reveals variation across the globe. There is a marked difference between the scepticism of the Western markets and the optimism of the Asian markets. There is also a difference in how markets are embracing technology, and with which partners. However, globally, we

are all moving in the same direction: more tech-enabled, more patient-centric and more disruptive.

For large pharmaceutical and biotech companies, this means not only making sense of what disruption means for business operations but how and when they communicate their corporate values and innovation to key audiences. Companies that ignore the way in which technology is driving exponential audience expectations do so at their peril. Using this context, WE Communications created a framework to help the healthcare industry be strategic in its use of innovation stories, by looking beyond R&D for inspiration, amplifying messages of purpose, ethics and transparency when possible, and leveraging advanced technology and the benefits of government support, particularly when communicating in Asian markets.

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Look further than R&D for inspiration

Although the life science industry (pharma and biotech) has the best innovation story to tell of almost any industry, it needs to find out how to best unlock it. Many companies continue to focus their narrative entirely on product and R&D, but this means they often get tied up in compliance concerns. Companies that look for inspiration beyond product are more successful.

For example, the EFPIA #WeWontRest campaign aims to tell the European Pharmaceutical industry’s innovation story by demonstrating the passion and commitment of individuals and companies. The campaign works alongside science and R&D, and shares examples of innovation, including patient engagement, access and eHealth. These are the stories B2B prescription health audiences want to hear.

Companies that position their science or product against the urgent needs of the broader ecosystem are also breaking through with an engaging innovation narrative. An example of this is Roche, the world’s largest biotech company. Roche tells a compelling story with its self-described ‘lab-in-a-tube’ cobas® Liat® system, by tying the diagnostic technology closely with its potential to address the much larger global health threat of antimicrobial resistance. Its private-public partnerships with Biomedical Advanced Research and Development Authority (BARDA) and the

US Department of Health and Human Services (HSS) further propel this narrative and make innovation real for stakeholders.

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In Australia, there is evidence of a shift towards this model. Pharma companies are building overarching corporate communications plans based on educating the value of medicines to society and the broader investment and time required to bring a product to market. For example, The AbbVie Discovery Series campaign focused on a new narrative around scientific revolution and evolution, bringing together the brightest minds in innovative medicine discovery, commercialisation and patient advocacy to show advancements in rheumatoid arthritis treatment.

Companies that look for inspiration beyond product are more successful.

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Amplify messages of purpose, transparency and ethics

Brands in Motion revealed a correlation between brands being seen as innovative and other important engagement drivers, such as customer experience, positive emotional engagement, and being seen as having a social purpose. Audiences worldwide continue to demand innovation — but now, in response to increasing technology-based fears, these same audiences are attaching strong new stipulations to these expectations, chief among them the requirement that brands use technology ethically and responsibly.

The prescription health data also revealed that in Western markets, B2B audiences see the industry as ‘doing more harm than good’ when asked about their overall impact on society. There is a marked difference in the Asian markets, which are much more positive.

60%63%

25%

44%

37%

47%44%

Percentage of respondents who indicated prescription health companies ‘did harm’ vs.

being ‘out for the common good’

This data reflects audience perception over reality.

According to the UK’s Charity Aid Foundation’s Corporate Giving by the FTSE 100 report, pharmaceutical companies have consistently been the most generous sector in terms of giving. They have donated over £6.7 billion to charitable causes over the past seven years, the equivalent of 7.5% of pre-tax profit over the same period. Average levels across FTSE 100 are just 2.4% of profit.

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PERCEPTION OF BUSINESS ETHICSThe Brands in Motion study also asked about ethics in relation to specific pharmaceutical brands, and found marked differences between the markets. Sceptical Western markets Germany and the UK do not believe that companies have a high level of commitment to responsible business practices for society and the environment. Between 33% and 42% answered positively in the UK, and 34% and 39% in Germany. In more optimistic Asian markets China and Singapore, the answers were between 79% and 80% and 62% and 66%, respectively.

THE INDUSTRY’S COMMITMENT TO TRANSPARENCYThe Charity Aid Foundation also recognises the commitment to transparency and disclosure, as evidenced by the fact that healthcare was one of only five industries where all companies provided data on charitable donations. Yet despite initiatives such as EFPIA’s Disclosure Code and the industry’s commitment to self-regulation, B2B audiences in many markets don’t recognise the industry as having high ethical standards. It may even be that this increased transparency has damaged the industry’s reputation, and dragged some healthcare professionals into the debate. In Australia and the UK, when the data was published it was possible to see how much certain physicians had been paid. The media picked up on this and ran several articles questioning these salaries.

Stakeholders will judge company ethics on the behaviour of the employees they interact with. A strong employee engagement programme will ensure that an organisation’s purpose and values are fully understood and displayed by team members. A communications narrative with proof points on ethics can help, but the judgement will ultimately be based on how company representatives act.

Strong employee engagement will ensure your values and purpose are understood and displayed.

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Leverage government support in Asian markets

The optimism in the Asian markets is notable. In Singapore, relatively affordable and easy access to brand name products, coupled with an efficient and well-publicised healthcare system, likely provides a halo effect for the pharmaceutical industry. The government is also a vocal supporter of the acceleration of technology in digital health innovation, making it a welcoming incubator for public-private healthcare partnerships and health tech start-ups looking to improve patient outcomes and drive efficiencies. These ties to government can add credibility and weight to innovation stories.

With the government’s support in fostering an innovation-driven economy, China has stepped up investment in healthcare innovation, both in industry R&D and digitalisation, to offer patients easier and better access. China has seen an explosion of homegrown healthcare companies, some of which

are making their debuts to the global stage by addressing unmet global needs using innovative technology. Regulatory changes such as a shortened drug approval process have also benefitted multinational pharma players seeking to bring innovative solutions to the Chinese market. In the meantime, digitalisation has started to reshape China’s healthcare system. Many brands have embraced evolving digital opportunities by collaborating with leading Chinese tech giants, such as Alibaba, Tencent, and JD.

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For example, GSK China has formed a strategic partnership with JD to drive ‘Internet + Healthcare’ to improve access and the patient experience. The two parties plan to explore how to harness medical information and big data in ways they hope will lead to new solutions for chronic disease management, and improved health and wellness education. As part of the cooperation, they will work on community programmes, helping people access medical services for diseases like HIV more easily.

Merck has signed a strategic collaboration agreement with Chinese internet healthcare company Alibaba Health to provide Chinese patients and their families with improved access to patient-centric healthcare services. The collaboration will focus on the areas of drug track and trace and internet health services, and jointly exploring areas such as pharmaceutical e-commerce and artificial intelligence.

Aligning with government

supported programs can

add credibility and weight

to innovation stories.

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Emphasise new ways of doing business

Last year, we wrote about how two different cultures are coming together in health tech companies, and how communicators can help bridge the gap between the fast-moving iterative tech culture and the cautious, regulation-aware healthcare industry. In 2019, understanding this new way of doing business is more important than ever.

From drug development to data analytics, electronic health records and clinical diagnostic solutions, the healthcare industry is undergoing dramatic technological change. Healthcare innovation shows us how quickly learning and technology translate into life-changing treatments. Just look at the pace of progress in hepatitis C: 25 years from discovery to cure, with technology playing a key role in this success.

It’s no surprise healthcare companies are working overtime to leverage new technologies and figure out how best to communicate the compelling promises they represent. And the field is growing exponentially every day. In 2017, American venture capital investment firms put $800 million towards AI-based health

tech start-ups alone. Communicating how AI and other technologies help improve lives is a way to focus on the human benefit these innovations represent.

Tech collaborations, partnerships and consolidations also drive a new way of interacting with healthcare providers. For example, a devices company might work with a software company and sell its co-produced product to a pharmaceutical company, which in turn will market it at scale to healthcare providers. These kinds of partnerships are breaking new ground and can help communicate an overall message of being a next-generation leader.

Ground-breaking partnerships help communicate the

overall message of being a next-

generation leader.

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INDUSTRY INNOVATION PERCEPTIONS: A CHECKLIST

INNOVATION FATIGUE: All companies use the same language, and the word ‘innovation’ has become clichéd. The industry can be guilty of badging products innovative when in reality they are similar to an existing drug. Incremental improvements are important — but we need to be honest about what is innovative and what is not.

COMPLIANCE AND REGULATORY GUIDELINES: In many markets, companies are rightly concerned about industry Code of Practice or following regulatory guidelines, which focus on disguised promotion of medicine. Using R&D and products as the basis for innovation can be problematic, and stories often need to be made less compelling to stay within the Code.

TRANSPARENCY: Overall, the industry is committed to transparency in terms of publishing clinical data in its entirety. In many markets, companies disclose payments made to both healthcare professionals and patient and professional organisations. Transparency, of course, creates questions and debate, which are not bad things. The challenge is that pharmaceutical companies often deal with high science and complicated issues in a highly regulated space. It isn’t easy to explain the data or ways of working — although pharma often doesn’t help itself.

CHALLENGES WITH DEFENDING PRICING: With innovation comes higher pricing, and often very public debates between insurers, health systems and the pharmaceutical industry. In the US, companies are risk-sharing with insurers. Luxturna, the first gene therapy, is a good example of this. Similarly, in the UK, companies are developing innovative patient access schemes to share the risk with the NHS.

PROOF OVER PROMISE: Brands in Motion shows that the average global rationale driver scores are up by 16% and average emotional scores are up 14%. This means that the need for rationality is outpacing consumers’ needs to connect emotionally with a brand. They’re looking for more proof, less promise. Our B2B audiences are not seeing enough evidence of innovation or purpose in action.

AUDIENCE EXPECTATIONS: Driven by technology, audience expectations are growing exponentially. Technology companies release new product updates in real time. Science and major health breakthroughs don’t have the benefit of tech’s iterative ‘fail fast, fail often’ process. Technology is speeding up drug discovery and improving clinical decision-making but audiences are impatient for change and want companies to solve problems faster — whilst retaining the ethics and evidence that their products do what they say they do.

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Key takeaway: Own the innovation story

WE Communications’ framework helps pharmaceutical and healthcare clients create a competitive advantage:

BALANCE INNOVATION WITH ETHICS …

EMPHASISE CUTTING-EDGE CREDENTIALS

… AND FUNCTION WITH PURPOSE

THINK PERSON, NOT PATIENT

FOCUS ON PROOF OVER PROMISE

LEAN INTO TECH

Reframing the innovation story presents brands with a huge opportunity to pull away from their competitors, but doing so requires a progressive approach to healthcare communications. Being seen as ‘cutting-edge’ can be just as powerful as having an innovative product, and as Brands in Motion shows, if pharmaceutical brands don’t employ a more progressive approach, others with an interest in the space certainly will.

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How are you owning your innovation story? Reach out to WE to find out how you can elevate your brand’s strategy.

Catherine Devaney Head of Health, WE UK +44 (0) 20 7632 3800 cdevaney@we-worldwide.com

Stephanie Marchesi President, Health Sector and Eastern Region +1 (212) 551-4855 smarchesi@we-worldwide.com

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Sources

1. European Federation of Pharmaceutical Industries and Associations (EFPIA), “WeWon’tRest.” 3 November 2018, https://efpia.eu/we-wont-rest

2. Roche, “Joining forces to address a major public health challenge.” 4 October 2016, https://www.roche.com/media/store/roche_stories/joint-forces.htm

3. AbbVie, “AbbVie Discovery Series.” 18 October 2018, https://www.abbvie.com.au/our-science/abbvie-discovery-series.html

4. Charities Aid Foundation, “Community Investment in the Pharmaceutical Industry.” 14 July 2018, https://www.cafonline.org/giving-as-a-company/industry-spotlight-hub/spotlight-on-pharmaceuticals

5. Economic Development Board Singapore, “Singapore: a gateway to SoutheastAsia’s digital healthcare market?” 21 November 2017, https://www.edb.gov.sg/en/news-and-events/insights/innovation/singapore-a-gateway-to-southeast-asias-digital-healthcare-mark.html

6. GovInsider, “AI is changing healthcare – and insurers are taking notice.” 30 May 2018, https://govinsider.asia/inclusive-gov/ai-changing-healthcare-insurers-taking-notice/

7. GSK, “GSK China partners with JD to drive ‘Internet + Healthcare’ to improve patient experience and access to healthcare.” 8 May 2018, http://www.gsk-china.com/en-gb/media/press-releases/2018/gsk-china-partners-with-jd-to-drive-internet-plus-healthcare-to-improve-patient-experience-and-access-to-healthcare/

8. Adam Najberg, “Alibaba Health, Merck Team Up on China Healthcare Services.” 20 June 2018, https://www.alizila.com/alibaba-health-merck-china/

9. John W. Ward, “Hepatitis C: 25 Years From Discovery to Cure.” 10 November 2014, https://www.medscape.com/features/slideshow/hepatitis-c

10. Kate Clark, “’The promise is real’: Inside the burgeoning AI-healthcare ecosystem.” 8 March 2018, https://pitchbook.com/news/articles/the-promise-is-real-inside-the-burgeoning-ai-healthcare-ecosystem

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