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Oncology Global Strategic Marketing Report Summary

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Global Strategic Marketing (GSM) organizations in oncology often face crowded markets that require high performance and proficiency to be successful. …

Global Strategic Marketing (GSM) organizations in oncology often face crowded markets that require high performance and proficiency to be successful.
Add to this increasing regulatory challenges, regional differences and the competitive nature of the oncology marketplace and it is easy to understand why GSM organizations to constantly assess their budgets and resource planning strategies to ensure a successful product launch.

Best Practices, LLC conducted primary research to identify valuable insights for Oncology-GSM leaders in budgeting and strategic planning. Specifically, this new report seeks to help GSM organizations understand the investment levels, marketing activities, timing and structures needed to successfully steer products and pipeline programs through the complex Oncology marketplace.

In addition, the report establishes meaningful benchmarks for the resource levels and the services scope of GSM organizations supporting Oncology products and programs.

Executives can use this study to compare their Oncology-GSM budget, staffing and services levels with industry averages and enhance their current practices.

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  • 1. Oncology Global Strategic Marketing: Benchmarking Budget Levels & Service Scope Best Practices, LLC Strategic Benchmarking ResearchCopyright © Best Practices®, LLC 1 BEST PRACTICES,® LLC
  • 2. Research Objective & Study MethodologyBest Practices, LLC conducted this benchmarking study to establish meaningful benchmarks forthe resource levels and the services scope of Global Strategic Marketing (GSM) organizationssupporting Oncology products and programs. Study Overview Topics Included Research Objective: Oncology-Global Strategic Total investment for Oncology-GSM Marketing (GSM) organizations today face increasing Distribution of budget across 6 key regulatory, regional and competitive challenges functional areas and across product in a crowded market. development phases This study seeks to help Oncology-GSM leaders Commercial spend - % budget allocated understand the investment levels, marketing activities, at launch & post-launch phases timing and structures needed to successfully steer Total # FTEs supporting GSM functions products and pipeline programs through the complex Oncology marketplace. Distribution of FTEs across 8 major activity areas Research findings provide industry metrics that will serve as a reference point for GSM leaders in % FTEs dedicated to developing and “rest of world” markets budgeting and strategic planning. Use of outsourcing and off-shoring Methodology: Best Practices, LLC developed # products, labels & programs a customized survey tool to capture industry data supported and deployed it to a representative sample of 17 Key Ratios: GSM investment/Oncology pharmaceutical companies with Oncology Sales, FTEs/$100M revenue, GSM $/ programs and portfolios. product, & GSM $/pipeline programCopyright © Best Practices®, LLC 2 BEST PRACTICES, ® LLC
  • 3. Participating Companies & Data SegmentationBenchmark participants included GSM leaders supporting Oncology organizations at 17 companies.The study included both large, established and small, emerging Oncology companies to providebroadest insights. Data is presented for large and emerging company segments throughout the report. Participating Companies Large Companies: • Abbott • Astellas • AstraZeneca • Baxter Oncology GmbH • Bayer • Boehringer Ingelheim • Bristol-Myers Squibb • Eisai Inc • Merck Serono • Onyx Pharmaceuticals • Sanofi • Takeda Emerging Companies: •Exelixis •Gilead Sciences, Inc. •MedImmune •Monogram Biosciences •Selvita S.A. Copyright © Best Practices®, LLC 3 BEST PRACTICES, ® LLC
  • 4. Key Findings 2: Normalized Metrics & RatiosThe following key findings, observations, insights and metrics emerged from thisbenchmarking study. GSM Spend per Pipeline Program Averages > $800K at Big Companies: Large company GSM spend per Oncology program in the pre-launch phases ranges from under $100K to $2 million, with an average of $805,231. The average for emerging companies is $201,894. Large Company GSM Supports Average of 16.4 Oncology Pipeline Programs: GSM organizations in the large company segment support an average of 16.4 pipeline programs, while emerging companies support an average of 9.4. GSM Spend per In-Market Oncology Product Averages $6.2M: GSM spend per in-market Oncology product ranges from $200,000 to more than $16 million, with an average of $6.2 million. Average per-Label GSM Spend Tops $2.8M: GSM spend per Oncology label ranges from $66,667 to $8.3 million across the benchmark class. On average, the GSM investment per label is $2.8 million. GSM Supports Average of <2 Oncology Products & <4 Labels: Large company GSM organizations support an average of 1.75 in-market Oncology products and 3.75 labels. Emerging company GSM predominantly supports development programs rather than products, and the averages reflect that position, with 0.8 products and one label supported. Total Oncology-GSM Spend Averages Nearly 1% of Sales: GSM investment as a percentage of total Oncology sales averages just under 1% for the largest companies (over $1 billion Oncology revenue) in the benchmark class. Their GSM investment ranges from 0.1% to 2.5% of sales. Commercial Investment as Percentage of Sales Averages 0.84%: GSM investment for commercial phases averages 0.84% of total Oncology product sales for the large company segment. The ratio ranges from 0.03% to 2%.Copyright © Best Practices®, LLC 4 BEST PRACTICES, ® LLC
  • 5. Key Findings 5: GSM Leadership & Future Investment TrendsThe following key findings, observations, insights and metrics emerged from thisbenchmarking study. ONCOLOGY-GSM LEADERSHP GSM Often Has Full Lifecycle Involvement: A majority of Oncology-GSM groups maintain a leadership role in the Launch and Post-Launch phases of product development. GSM Key Leadership Areas Are Market Intelligence & Marketing: In the early phases of product development, Oncology-GSM most often takes a lead role in Market Intelligence activities. After Phase II, Marketing is the area where GSM most frequently leads. INVESTMENT TRENDS Up to 73% Expect Increased GSM Funds for Pipeline Marketing: Budget increases are anticipated by as many as 73% of benchmark participants for activities supporting the Oncology pipeline. Activities most often expected to gain are ad boards, marketing and market intelligence. Few project any decreases. Up to 42% Expect GSM Increases for In-Line Product Marketing: More benchmark participants anticipate GSM investment level decreases and fewer anticipate increases for in-line products than for pipeline products. Marketing is projected to as the top area for funding increases, and the top area for cuts is Congresses. Interestingly, companies are evenly split at 33% on whether funding for Ad Boards will go up, down or remain unchanged.Copyright © Best Practices®, LLC 5 BEST PRACTICES, ® LLC
  • 6. Marketing Activities Take Biggest Share of Total GSM Spend At large companies, the top two activity areas—Marketing and Market Intelligence—account for 51% of the total Oncology-GSM budget. Emerging companies focus even more on those two key areas, with a combined 68% of total funds channeled there. Percentage of GSM Investment Allocated to Key Activity Areas Large Companies Emerging Companies Advocacy OTHER: Other Thought Websites, Thought 5% 4% Leaders Training, Leaders/ Strategic KOLs /KOLs Council Market 11% Global Training, 10% Congresses/ Market Congresses Intelligence E-media Conventions Intelligence /Convention Personalized 31% 13% 20% Management Healthcare 20% Ad Boards 11% Advisory Boards Marketing Marketing 9% 37% 31% N=12 N=5 Q. What percentage of the total Oncology-GSM investment was allocated to each activity category during the last fiscal year?Copyright © Best Practices®, LLC 6 BEST PRACTICES, ® LLC
  • 7. Product Strategy Has Biggest Share of GSM Marketing SpendSpending patterns are similar for the large and emerging company segments, with productstrategy consuming more than 70% of total GSM budgets and speaker training taking the smallestshare at only 4%. Q. Estimate the percentage of the Marketing Activities budget category that was allocated to each of the following activity sub-categories during the last fiscal year. Marketing Activities: Investment Allocation Breakout Large Companies Emerging Companies Websites Other SpeakerMarket Access/ 3% PR, Speaker PR, TrainingReimbursement Training Media 1% Media 9% 5% 9% Publications Product Pubs 21% Strategy 12% Product Product Strategy 70% includes branding, Strategy product campaigning 72% & strategic marketing planning. N=11 N=4 Copyright © Best Practices®, LLC 7 BEST PRACTICES, ® LLC
  • 8. Market Intel Activities Most Often Involve GSM LeadershipMarket Intelligence is the area where GSM organizations most frequently take on a lead role, with alarge majority leading at all product development phases. At Phase II, 85% of participating GSMorganizations take the lead for Marketing Intelligence activities. Role in Market Intelligence Activities by Development Phase Lead Support None 77% 15% 8% Market Pre-Clinical Intelligence Activities Phase I 77% 8% 15% Activities included in Phase II 85% 8% 8% survey definition: Pricing, Health Phase III 79% 14% 7% Economics, Market Access, Launch 71% 21% 7% Market Research, Forecasting, & Post-Launch 71% 14% 14% Business/ Competitive Intelligence N=14 % Responses Q. For Market Intelligence activities, please indicate the type of role that Oncology Global Strategic Marketing plays in at each development phase.Copyright © Best Practices®, LLC 8 BEST PRACTICES, ® LLC
  • 9. Additional Activities Led or Supported by Oncology-GSMBenchmarked GSM-Organizations lead or support a variety of additional activities not included inthe survey. These range from developing e-media to developing payer information aroundpersonalized healthcare. Additional GSM Activity Involvement by Phase Pre- Post- Phase I: Phase II: Phase III: Launch: Clinical: Launch Personalized Healthcare / x Payer evidence Forecasting x x x x M&S cost planning x x x x Training x x Educational programs x E-media x Q. In the past fiscal year, what other important activities (not listed in survey) were led or supported by Oncology GSM? (List additional GSM activities conducted at each phase.)Copyright © Best Practices®, LLC 9 BEST PRACTICES, ® LLC
  • 10. Voices from the Field: Key Success Factors in Oncology-GSM Verbatim Responses from Benchmark Partners “Close co-operation between global, regions and countries – ‘common language’ & Global Issues common targets.” “Ensure development of global brand and quick execution globally.” “Proper leadership in building the oncology organization (including other functional areas, such as Medical Affairs).” Collaboration “Develop a strong global Medical Affairs organization.” “Seek appropriate Commercial input on clinical development plans.” “Gain KOL support earlier than launch phase-- especially if new technology is involved.” New Technology, “Understanding the impact of biomarkers and diagnostic capabilities.” Markets, “Personalized medicine, cost of therapy.” Stakeholders “Define the right target audience, including new stakeholders (e.g., on biomarkers).” “Patient segmentation, efficacy and safety requirements, personalized care, payer & Market market access requirements.” Access “Market access is becoming more and more critical.” Other “Segment the market so positioning is performed for all market segments.” Success “Accelerate uptake through EAP at launch.” Factors “Strategic planning is vital.” Q. What issues will be critical for Oncology Global Strategic Marketing to address in the next 24-36 months to ensure the success of products your organization hopes to bring to market? Copyright © Best Practices®, LLC 10 BEST PRACTICES, ® LLC
  • 11. About Best Practices, LLC Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics and winning strategies of world-class companies. Best Practices, LLC 6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517 919-403-0251 bestpractices@best-in-class.com www.best-in-class.comCopyright © Best Practices®, LLC 11 BEST PRACTICES,® LLC

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