Across Health Digital Barometer 2012

Global Digital Barometerfor the life sciences industry

Across Health’s Digital Barometer Know which way the wind blows!“ For several years now, Across Health has been running a unique digital landscape survey among life sciences leaders in EMEA. This year’s edition of the Digital Barometer has taken a global perspective with exclusive results from our key markets Europe, US and China. It gives you a 360 ° view on the status, challenges and future of “The New Normal” in life sciences, i.e. when digital communication is no longer new, but is the norm. I’m convinced you’ll find these results inspiring and trust they will help you reach the next level... Thanks again for your participation and enjoy our hot-off-the-press findings! Fonny Schenck Managing Partner, Across Group CEO, Across Health 8/21/2012 Across Health Digital Barometer 2012 2

Table of contents • Executive summary • Key survey statistics • Current adoption of digital • Benchmark against competitors • Digital satisfaction • Most common eTactics • Key challenges • Key bottlenecks • Digital understanding • The future of digital in life sciences • Top priorities for digital • Digital marketing, sales & medical budgets8/21/2012 Across Health Digital Barometer 2012 3

Executive summary8/21/2012 Across Health Digital Barometer 2012 4

Executive summary• Overall, we witness a status quo or even a decline in many areas: digital expertise, HCP multichannel marketing, ... the first signs that digital is not the easy „silver bullet‟ many people thought it would be.• The new focus on cross-channel programmes however positively points to a more mature use.• Though digital satisfaction is low, it has improved compared to previous years.• Digital budgets continue to be low.• Standard websites are still most often used. “It’s not about being• The top 3 bottlenecks for success continue to be digital anymore, it’s now regulatory and legal issues, lack of digital about being clever with strategy and ROI, while lack of headcount and digital.” lack of budget are gaining ground as obstacles. Peter Hinssen8/21/2012 Across Health Digital Barometer 2012 5

8/21/2012 Across Health Digital Barometer 2012 6

Key survey statistics8/21/2012 Across Health Digital Barometer 2012 7

Key survey statistics • 358 respondents from life sciences companies completed the online survey between March and mid May 2012 • Industry spread Pharma, Biotech, OTC companies, Medical devices • Geographical spread Europe, Middle East & Africa (EMEA), North America (NA), China (CH), Latin America, Asia Pacific • Local vs international spread Global, regional, national / local • Functional spread Marketing, Medical, Sales, Digital, IT, CRM, other8/21/2012 Across Health Digital Barometer 2012 8

Most respondents come from pharma Pharmaceutical company 86% Medical devices company 5% Biotechnology company 5% OTC company 2% Business consulting 0% Others 1%8/21/2012 Across Health Digital Barometer 2012 9

The majority operates in the EMEA region Europe, Middle East & Africa 63% North America 12% China 12% Asia Pacific (exc. China) 7% Latin America 6%8/21/2012 Across Health Digital Barometer 2012 10

Half of the respondents is working nationally/locally, the other halfworks at the regional or global level Others 2% Global 21% National / local 51% Regional 27%8/21/2012 Across Health Digital Barometer 2012 11

Functional Spread Marketing 51%eBusiness/Digital 30% IT 11% Sales 8% • Marketing and Digital represent CRM 8% 81% of all answers • 3 major segments can be defined: Medical 4%  Sales, Marketing and Medical  eBiz  CRM, IT Others 15% 8/21/2012 Across Health Digital Barometer 2012 12

Current adoption • Benchmark against other industries and competitors • Digital satisfaction • Most common eTactics8/21/2012 Across Health Digital Barometer 2012 13

Current adoption of digital• The gap with other industries remains.• Digital initiatives geared towards patients are generally considered more competitive than those targeted towards HCPs.• Satisfaction with digital has improved with respect to previous years.• Most commonly used digital tools are classic eMarketing initiatives, specifically the product/disease/company website triangle. “The great thing in the• Emerging channels like social media and world is not so much particularly mobile marketing continue to rise – where we stand, as in with a special mention for iPad/tablet detailing. what direction we are eRep and eMSL remain small. moving.” Oliver W. Holmes8/21/2012 Across Health Digital Barometer 2012 14

57% rate their companies as behind other leading industries when itcomes to optimizing the use of internet How would you rank your company versus other leading industries in optimally leveraging the internet? 42% 30% 15% 11% 2% 1% No opinion Far behind Behind Average Ahead Far ahead 57%Digital vs other industries8/21/2012 Across Health Digital Barometer 2012 15

In Chinese life sciences companies almost no one feels ahead of otherindustries How would you rank your company versus other leading industries in optimally leveraging the internet? 40% 39% 36% 31% 30% 9% 7% 32% 2% 28% 27% 17% 7% 7% 3% 2% 1% EMEA NA CH No opinion Far behind Behind Average Ahead Far aheadDigital vs other industriesNote: EMEA: Europe, Middle East & Africa - NA: North America - CH: China8/21/2012 Across Health Digital Barometer 2012 16

In EMEA, the share of respondents believing that life sciences is far behind decreases over time, while the percentage thinking they are ahead is more or less stable How would you rank your company versus other leading industries in optimally leveraging the internet?60% 41% 40%40% 6% 9% 36% 13% 9% 33% 33% 31% 31% 25% 24% 23%20% 17% 15% 12% 6% 8% 7% 4% 3% 3% 3% 2% 1% 1%0% 2009 2010 2011 2012 No opinion Far behind Behind Average Ahead Far ahead Digital vs other industries 8/21/2012 Across Health Digital Barometer 2012 17

Digital Strategy in the New Normal“ Once we cross over into the times where digital is the New Normal, the way we interact with our customers will change completely. The worst mistake you could make is to take your existing analog interaction patterns with customers and transfer them to the web. Don’t transfer, but re-think. It’s all about intelligence. It’s all about the contact, it’s all about “you”. As the master of marketing, Philip Kotler, once said: “Marketing takes a day to learn. Unfortunately it takes a lifetime to master.” You’ve got a couple of years, max.” Peter Hinssen Chairman, Across Technology Author of the best-selling “The New Normal” 8/21/2012 Across Health Digital Barometer 2012 18

1 out of 4 rank their company ahead of competition in using digitalmarketing towards HCPs How would you rank your company versus your competitors in using digital marketing initiatives targeted at healthcare professionals?HCPs 40% 25% 26% 23% 6% 3% 2% No opinion Far behind Behind Average Ahead Far ahead8/21/2012 Across Health Digital Barometer 2012 19

Companies in North America feel more confident when it comes to usingdigital marketing towards HCPs How would you rank your company versus your competitors in using digital marketing initiatives targeted at healthcare professionals?HCPs 45% 40% 9% 24% 13% 31% 31% 27% 25% 24% 23% 14% 11% 10% 7% 5% 3% 2% 2% EMEA NA CH No opinion Far behind Behind Average Ahead Far aheadNote: EMEA: Europe, Middle East & Africa - NA: North America - CH: China8/21/2012 Across Health Digital Barometer 2012 20

Remarkably, the confidence of mastering multichannel HCP marketing isdecreasing strongly over time... while the need to do so is rising yearafter year (EMEA data) How would you rank your company versus your competitors in using digital marketing initiatives targeted at healthcare professionals?HCPs 26% 19% 15% 9% 39% 40% 38% 31% 31% 25% 26% 25% 23% 23% 16% 17% 13% 13% 7% 7% 7%3% 4% 2% 3% 1% 2% 2% 2009 2010 2011 2012 No opinion Far behind Behind Average Ahead Far ahead8/21/2012 Across Health Digital Barometer 2012 21

In terms of consumer / patient-driven digital marketing initiatives,17% ranked their companies as ahead of competition... How would you rank your company versus your competitors in using digital marketing initiatives targeted at consumers/patients?Patients 17% 39% 27% 14% 12% 4% 3% No opinion Far behind Behind Average Ahead Far ahead8/21/2012 Across Health Digital Barometer 2012 22

… with again a higher level of confidence in North American companiescompared to the other regions How would you rank your company versus your competitors in using digital marketing initiatives targeted at consumers/patients?Patients 48% 43% 39% 19% 21% 16% 27% 24% 21% 20% 18% 14% 14% 12% 5% 7% 3% 2% 2% EMEA NA CH No opinion Far behind Behind Average Ahead Far aheadNote: EMEA: Europe, Middle East & Africa - NA: North America - CH: China8/21/2012 Across Health Digital Barometer 2012 23

Opposite to the trend for HCP digital initiatives, more EMEA companiesfeel ahead of competition in using digital towards patients How would you rank your company versus your competitors in using digital marketing initiatives targeted at consumers/patients?Patients 39% 36% 32% 32% 31% 33% 30% 9% 15% 17% 27% 19% 23% 14% 13% 15% 14% 13% 12% 8% 7% 4% 5%3% 2% 2% 3% 1% 2009 2010 2011 2012 No opinion Far behind Behind Average Ahead Far ahead8/21/2012 Across Health Digital Barometer 2012 24

Comparing regions once more, it is clear that the level of confidence in NorthAmerica is much higher than in other regions, especially regarding HCPcommunication How would you rank your company versus your competitors in using digital marketing initiatives targeted at HCPs OR consumers/patients? (% ahead + % far ahead) 40% 28% 45% 30% 24% 21% 20% 19% 16% 14% 9% 0% EMEA NA CH HCP PatientsNote: EMEA: Europe, Middle East & Africa - NA: North America - CH: China8/21/2012 Across Health Digital Barometer 2012 25

The iPad (r)evolution“ For long, we all have been using legacy CRM systems and some of us have even tried out tablet computers in day-to-day calls. It almost started to seem normal practice to work with the slow and heavy tools we had. But then the iPad (and cloud computing) took us all by surprise. Still today, almost weekly companies are approaching us with the same question: “We just bought iPads... how do we go beyond the rapidly waning novelty factor – and PDF detail aids?” And this is only the start... Indeed, the iPad holds a lot of promise for integrated cross-channel approaches. But the tool itself is already being commoditized... If done well, interactive detailing can quickly become the main gateway for reps and their customers to access the company’s whole multichannel service offering. In that scenario, the iPad can completely change the way we have been doing business for decades in just a few years... If not, it will be just another technology-led hype... and the track record of pharma is not really strong in this area! Pat Thistlethwaithe Managing Director, USA 8/21/2012 Across Health Digital Barometer 2012 26

Only 17% of respondents are satisfied with their current digital activities On a scale from 0 to 5, how satisfied are you with your current digital activities? 42% 30% 17% 15% 11% 1% 2% 0 1 2 3 4 5 Extremely Extremely Dissatisfied Satisfied Average score 2,68/21/2012 Across Health Digital Barometer 2012 27

Respondents in EMEA and NA regions report satisfaction levels ofaround 17%, while China’s is much lower On a scale from 0 to 5, how satisfied are you with your current digital activities? AVG. Score 2% EMEA 13% 28% 41% 15% 2,6 2% NA 2 5 43% 33% 14% 2,6 CH 5% 7% 50% 36% 2% 2,3 0% 20% 40% 60% 80% 100% Extremely 0 1 2 3 4 5 Extremely Dissatisfied SatisfiedNote: EMEA: Europe, Middle East & Africa - NA: North America - CH: China8/21/2012 Across Health Digital Barometer 2012 28

The EMEA region records a gradual increase in digital satisfaction overthe years, with a marked increase over the last year…although theabsolute number remains low. On a scale from 0 to 5, how satisfied are you with your current digital activities? 2% 2012 13% 28% 41% 15% 1% 2011 2 18% 34% 34% 11% 2010 4% 18% 34% 32% 10% 2% 2% 2009 5% 24% 26% 35% 8% 0% 20% 40% 60% 80% 100% Extremely 0 1 2 3 4 5 Extremely Dissatisfied Satisfied8/21/2012 Across Health Digital Barometer 2012 29

Digital strategy in China“ Although China is set to be the second largest market for pharmaceuticals within the next few years... and already has almost twice as many internet users as the number 2 market, the United States... the cross-channel potential remains largely untapped. With around two million doctors and massive sales forces serving only 5% of this fast broadening market, doctors remain largely underinformed and undereducated. The potential for digital (or multichannel) programmes is huge... Considering both the budgets and the stakes are high, pharmaceutical companies cannot permit themselves to “understrategize”. Unfortunately, this tends to run against the rather implementation focused Chinese mindset. This is a call to do something about it. Sound insights, strategic planning and the right impact measurement are all key for success. As in many other situations, the chain is only as strong as its weakest link. Francis Chay Managing Director, China 8/21/2012 Across Health Digital Barometer 2012 30

Classic websites remain the most commonly used digital channels on both a global and regional level. Mobile and particularly tablet detailing are moving up the ranks fast, while social media seems to lose momentum. Company website 88% 5% 5% 3 Product website 72% 15% 9% 4% Disease website 66% 14% 14% 5% eMail marketing 58% 22% 14% 6% Web banners 53% 16% 23% 8% Tablet eDetailing 46% 33% 17% 5% Web conference 44% 32% 20% 4%HCP self-service portal 43% 28% 21% 8% SEO 43% 23% 23% 11% Online MedEd 41% 30% 21% 8% SEA 41% 20% 28% 11% Mobile marketing 28% 46% 22% 4% Virtual eDetailing 22% 36% 34% 8% Social media 18% 38% 40% 4% eMSL 11% 27% 48% 13% eRep 11% 36% 44% 9% Often / Standard practice Pilot planned or ongoing Never Do not know / NA 8/21/2012 Across Health Digital Barometer 2012 31

A cross-region comparison shows...• The top 5 eTactics are consistent across regions and are classic eMarketing tools• The upcoming stars immediately follow: tablet edetailing is the number 6 in EMEA, while in North America HCP self- service portals are more widely adopted• SEO & SEA are bigger in North America, most probably due to the larger importance of consumers• Mobile marketing is most used in the Chinese market• Surprisingly the EMEA market scores better in terms of Online MedEd and web conferences than the MedEd-loving Chinese market• The promising eMSL and eRep initiatives are still not taking off on a large scale8/21/2012 Across Health Digital Barometer 2012 32

Top eTactics used in: Europe, Middle East and Africa Company website 86% 6% 6% 2 Product website 69% 16% 12% 3% Disease website 63% 17% 15% 4% eMail marketing 58% 22% 14% 6% Web banners 52% 16% 26% 7% Tablet eDetailing 48% 34% 16% 1HCP self-service portal 42% 30% 23% 6% Online MedEd 42% 30% 23% 5% Web conference 40% 35% 23% 2 SEO 39% 23% 27% 11% SEA 34% 21% 32% 12% Mobile marketing 24% 47% 26% 3 Virtual eDetailing 22% 34% 38% 5% Social media 13% 37% 48% 3 eRep 10% 38% 48% 4% eMSL 10% 24% 55% 11% Often / Standard practice Pilot planned or ongoing Never Do not know / NA 8/21/2012 Across Health Digital Barometer 2012 33

Top eTactics used in: North America Company website 88% 2 7% 2 Product website 81% 10% 7% 2 Disease website 62% 12% 17% 10% eMail marketing 62% 10% 17% 12% Web banners 60% 10% 12% 19%HCP self-service portal 55% 14% 19% 12% SEO 52% 10% 17% 21% SEA 52% 12% 17% 19% Web conference 43% 24% 17% 17% Tablet eDetailing 43% 31% 19% 7% Online MedEd 33% 12% 24% 31% Mobile marketing 33% 48% 14% 5% Virtual eDetailing 26% 24% 38% 12% Social media 24% 43% 26% 7% eRep 17% 19% 50% 14% eMSL 14% 17% 38% 31% Often / Standard practice Pilot planned or ongoing Never Do not know / NA 8/21/2012 Across Health Digital Barometer 2012 34

Top eTactics used in: China Company website 86% 9% 2 2 Product website 68% 23% 5% 5% Disease website 61% 20% 14% 5% eMail marketing 48% 32% 14% 7% Web banners 45% 25% 25% 5% SEO 41% 32% 23% 5% SEA 41% 27% 27% 5% Mobile marketing 39% 45% 14% 2HCP self-service portal 36% 32% 25% 7% Web conference 36% 30% 30% 5% Online MedEd 32% 36% 25% 7% Social media 30% 36% 34% Tablet eDetailing 27% 39% 23% 11% Virtual eDetailing 16% 36% 36% 11% eMSL 11% 30% 50% 9% eRep 9% 20% 57% 14% Often / Standard practice Pilot planned or ongoing Never Do not know / NA 8/21/2012 Across Health Digital Barometer 2012 35

In EMEA, the highest increase compared to previous years occurs for tablet edetailing and mobile marketing100% Often / Standard Practice90%80% 2010 2011 201270%60%50%40%30%20%10% 0% 8/21/2012 Across Health Digital Barometer 2012 36

As the use of web banners becomes more of a standard practice, piloting efforts for this digital tool slow down. On the other hand, eMSL and eRep are piloted more often each year50% Pilot Planned / Ongoing 2010 2011 201240%30%20%10%0% 8/21/2012 Across Health Digital Barometer 2012 37

eRep and eMSL require thoughtful management“ The traditional business model in pharma is waning. The role of the sales force is being redefined and their tools modernized, as iPad detailing and remote live customer interactions, a.k.a. eRep and eMSL, are being introduced. As opposed to the amount of attention iPad detailing currently gets, the more disruptive and potentially more impactful remote approaches are still only used by a limited group of early adopters. Indeed, introducing remote detailing requires more courage, investment and change management. Our experience teaches us that it is truly about changing the business model step by step – any other approach will quickly fail and die, leaving behind a wound in the organization that is hard to heal. Patrick Vidal Managing Director, France 8/21/2012 Across Health Digital Barometer 2012 38

Finally, in the mobile space, “beyond the pill” still seems a far cry fromreality… product info apps are most commonly developed; the promisingmonitoring tools seem to be the hardest MOBILE: What apps / tactics do you develop or have developed? Product info / updates 41% Mobile website 30% Medical news / article updates 28% Adherence / compliance tracker 27% Dosage calculator 26% Diagnostic tool 25% Treatment guidelines 25% CME 24% Symptom tracker 11% Remote monitoring of patients 9% Others 4% None 22%8/21/2012 Across Health Digital Barometer 2012 39

Key challenges • Key bottlenecks • Digital understanding8/21/2012 Across Health Digital Barometer 2012 40

Key challenges• Regulatory or legal issues, lack of digital strategy, and ROI are still the main challenges.• Lack of headcount and lack of budget are rising to the top – a sign that companies are finally starting to right-resource the cross-channel opportunity?• Lack of internal knowledge is relatively more important in EMEA. North America focuses more on resource issues and China on ROI concerns.• More than half feel they have insufficient knowledge of all online opportunities for their “When youre finished business activities... and this number has been changing, youre going down rather than up in the past few years. finished.” Benjamin Franklin8/21/2012 Across Health Digital Barometer 2012 41

The 3 primary bottlenecks for digital are regulatory issues, ROI questionsand unclear eBusiness strategies Regulatory or legal issues 25% 18% 8% ROI questions 17% 11% 11% No clear eBusiness strategy 18% 11% 9% Not enough internal knowledge in this area 9% 10% 12% No headcount to support this 6% 7% 12% Healthcare compliance concerns 6% 10% 6% No budget 4% 8% 9% No senior management support 4% 6% 6% Pharmacovigilance issues adverse event reporting etc 3% 5% 6% Customers are not ready 3% 4% 4% No expert agencies with pharma background available 1 3 4% Others 2 21 NA 1 4% 11% Most important Second most important Third most important8/21/2012 Across Health Digital Barometer 2012 42

The same top 3 reigns supreme in EMEA. Lack of internal knowledge isrising quickly… Europe, Middle East and Africa Regulatory or legal issues 26% 20% 8% No clear eBusiness strategy 19% 10% 9% ROI questions 16% 11% 10% Not enough internal knowledge in this area 9% 12% 15% No headcount to support this 8% 7% 11% Healthcare compliance concerns 7% 10% 6% No budget 3% 6% 9% No senior management support 4% 5% 6% Pharmacovigilance issues adverse event reporting etc 2 5% 6% Customers are not ready 3 4% 5% No expert agencies with pharma background available 2 3% Others 2 3 1 NA 1 4% 11% Most important Second most important Third most important8/21/2012 Across Health Digital Barometer 2012 43

Again, the same top 3 holds for North America. Resource issues(budget/headcount/knowledge) are important runner-ups here North America Regulatory or legal issues 43% 14% 10% ROI questions 7% 12% 19% No clear eBusiness strategy 17% 12% 7% No budget 7% 12% 12% No headcount to support this 5% 14% 10% Not enough internal knowledge in this area 10% 7% 10% Healthcare compliance concerns 7% 12% 5% Pharmacovigilance issues adverse event reporting etc 2 7% 7% No senior management support 2 7% 7% No expert agencies with pharma background available 2 5% Customers are not ready 2 Others 2 NA 5% Most important Second most important Third most important8/21/2012 Across Health Digital Barometer 2012 44

Also in China the top 3 is the same. However, ROI questions are muchmore prominent, while regulatory/legal issues come in only 3rd… China ROI questions 32% 16% 14% No clear eBusiness strategy 14% 18% 11% Regulatory or legal issues 11% 16% 5% Not enough internal knowledge in this area 14% 5% 9% No budget 7% 11% 9% No senior management support 7% 7% 9% Healthcare compliance concerns 5% 9% 9% Customers are not ready 5% 9% 2 No headcount to support this 22 11% No expert agencies with pharma background available 22 9% Pharmacovigilance issues adverse event reporting etc 22 Others 2 NA 2 9% Most important Second most important Third most important8/21/2012 Across Health Digital Barometer 2012 45

In EMEA, the top 2 receded as a bottleneck giving way to resource topics (lack of internal knowledge, low budgets, lack of headcount) Regulatory or legal issues No clear eBusiness strategy ROI questions Not enough internal knowledge in this area Healthcare compliance concerns No headcount to support this No senior management support 2012 2011 2010 No budget Customers are not readyPharmacovigilance issues adverse event reporting etcNo expert agencies with pharma background available Others NA 0% 10% 20% 30% 40% 50% 60% 70% 8/21/2012 Across Health Digital Barometer 2012 46

Only slightly more than 1 out of 3 respondents feels confident about theirdigital expertise Do you feel that you have sufficient knowledge of all opportunities offered by the internet for your business activities? 38% 44% 30% 18% 8% 1% Totally Insufficient Between Sufficient More than insufficient sufficient sufficient / and expert insufficient Internal knowledge8/21/2012 Across Health Digital Barometer 2012 47

Setting up the multichannel organization“ When organizing your company for integrated cross-channel and customer centric approaches, a lot of small and big steps need to be taken, and sometimes retaken. Zero-based definition of the channel mix, upgrading the CRM platform for true 360° CLM, introducing new sales tools, training & change management, synchronizing sales-marketing-service-medical teams, investing in customer analytics, building the required digital infrastructure, defining new policies and processes, ... It requires considerable vision, experienced people and a willingness to keep moving forward. The production agencies of the past – who recently acquired digital capabilities – are no appropriate partners to take along in this transformation. We believe in multichannel, and we’ve been there. Have a look at our website and give us a call! Patric Jarchow Managing Director, Germany 8/21/2012 Across Health Digital Barometer 2012 48

The future of digitalin life sciences • Top priorities for digital • Digital marketing, sales & medical budgets8/21/2012 Across Health Digital Barometer 2012 49

FUTURE OF DIGITALThe future of digitalin life sciences• Cross-channel marketing mix optimization is the top priority for most. Strategy development and impact measurement/dashboarding immediately follow.• Currently, digital initiatives capture only a small percentage of the total marketing budget. For medical and sales this is even lower.• 3 out of 4 believe the digital budget will increase – but only moderately (and still too slowly to really change something). Meanwhile, the majority “My interest is in the believes that the overall marketing budget will future because I am either remain the same or decrease. going to spend the rest of my life there.” Charles F. Kettering8/21/2012 Across Health Digital Barometer 2012 50

FUTURE OF DIGITALOverall, cross-channel marketing optimization is the most importantdigital priority while assessing landscape trends comes in last What are priorities in your organization regarding DIGITAL? Cross-channel marketing mix 20% optimization Strategy development 18% Impact measurement / reporting / 15% dashboarding Full-scale execution of tactics 14% Training 14% Best practice sharing 12% Assessing landscape trends 8%8/21/2012 Across Health Digital Barometer 2012 51

FUTURE OF DIGITAL Marketing mix optimization leads in EMEA. On the other hand, full-scale execution of tactics is NA’s priority while CH focuses on impact measurement and strategy EMEA NA CHCross-channel marketing 17% 15% 22% mix optimization Strategy development 18% 16% 16% Impact measurement / 16% 16% 15%reporting / dashboarding Full-scale execution of 18% 15% 13% tactics Training 13% 15% 15% Best practice sharing 11% 10% 13% Assessing landscape 7% 8% 9% trends Note: EMEA: Europe, Middle East & Africa - NA: North America - CH: China 8/21/2012 Across Health Digital Barometer 2012 52

Rethink the marketing mix“ When reading the Digital Barometer results, it strikes and delights me that this year’s top priority regarding digital is the redefinition of the cross-channel marketing mix. It is truly essential to rethink the cross-channel mix, as it is only when you visualize your optimal mix from the eye of your customers, calculate budgets and resources accordingly, and redesign your customer-facing activities, that you will be able to lead the required change, generate true business impact... and create a virtuous circle of success. Even if the large cross-channel breakthrough may not come before 2013-2015, visualize it today and plan for the near future. It will be a helpful map in your exciting journey in the “New Normal”...and any procrastination is to be avoided – your competitors have the same priority! Charles MacKinnon Managing Director, UK 8/21/2012 Across Health Digital Barometer 2012 53

FUTURE OF DIGITALMarketing budget for digital initiatives continues to go up year after year If you oversee a product budget (marketing), which percentage of it is allocated to digital initiatives THIS YEAR? less than 5% Average 14,1% 41% 5% to 10% 11% to 15% 17% 16% 16% to 20% 12% 9% 6% 21% to 25% more than 25% Digital marketing8/21/2012 Across Health Digital Barometer 2012 54

FUTURE OF DIGITALAcross regions, the digital marketing budget is approximately the same.China has relatively more budgets below 10% If you oversee a product budget (marketing), which percentage of it is allocated to digital initiatives THIS YEAR? Average 42% 14,8% Average 36% Average 14,2% 15,4% 29% 24% 22% 19% 17% 18% 15% 12% 12% 12% 9% 9% 7% 8% 6% 4% EMEA NA CH less than 5% 5% to 10% 11% to 15% 16% to 20% 21% to 25% more than 25% Digital marketing8/21/2012 Across Health Digital Barometer 2012 55

FUTURE OF DIGITALIn EMEA, the reported budget for digital marketing jumped compared to2011. This is most probably due to our new budget split in the survey (nowadditionally into medical and sales budgets). If you oversee a product budget (marketing), which percentage of it is allocated to digital initiatives THIS YEAR? 54% 52% 46% Average 7% less than 5% 36% 31% 30% 5% to 10% 24% Average 14,8% more than 10% 17% Average 8% 9% 2010 2011 2012 Digital marketing8/21/2012 Across Health Digital Barometer 2012 56

FUTURE OF DIGITALMedical budgets do not prioritize digital initiatives. Digital is howeverslowly taking off If you oversee a product budget (medical), which percentage of it is allocated to digital initiatives THIS YEAR? less than 5% 49% 5% to 10% Average 34% 9,7% 11% to 15% 16% to 20% 21% to 25% 6% 4% 4% 3% more than 25% Digital medical8/21/2012 Across Health Digital Barometer 2012 57

FUTURE OF DIGITALCompared to other regions, China is far ahead in terms of budget fordigital medical initiatives If you oversee a product budget (medical), which percentage of it is allocated to digital initiatives THIS YEAR? 50% 50% 46% 41% Average 8,9% Average Average 12,4% 8,6% 25% 25% 22% 11% 11% 5% 6% 3% 3% 4% EMEA NA CH less than 5% 5% to 10% 11% to 15% 16% to 20% 21% to 25% more than 25% Digital medical8/21/2012 Across Health Digital Barometer 2012 58

FUTURE OF DIGITALSimilarly, digital sales budgets are also quite low, but rising If you oversee a product budget (sales), which percentage of it is allocated to digital initiatives THIS YEAR? less than 5% 47% 5% to 10% 34% Average 9,4% 11% to 15% 16% to 20% 7% 5% 3% 4% 21% to 25% more than 25% Digital sales8/21/2012 Across Health Digital Barometer 2012 59

FUTURE OF DIGITALNorth America spends the most on digital initiatives linked to sales If you oversee a product budget (sales), which percentage of it is allocated to digital initiatives THIS YEAR? 60% Average 8,5% 48% 44% 40% 38% Average 28% Average 11,7% 9,6% 17% 6% 6% 6% 4% 4% 1% EMEA NA CH less than 5% 5% to 10% 11% to 15% 16% to 20% 21% to 25% more than 25% Digital sales8/21/2012 Across Health Digital Barometer 2012 60

FUTURE OF DIGITALOnly 25% reported that the general marketing budget will increase, while75% of respondents foresee an increase of their digital budget How do you think your overall marketing budget and digital budget will evolve? 55% Overall 43% Digital 28% 21% 19% 13% 3% 5% 4% 1% 2% 1% 3% 1% Decrease Decrease Stay the Increase by Increase by Increase by Will more >25% <25% same <20% 21% to 50% >50% than double8/21/2012 Across Health Digital Barometer 2012 61

Life sciences spending on digital“ In terms of digital budget in life sciences, we’ve come a long way. Still, a 14,1% digital marketing budget is nothing more than a “good start”, even despite the double-digit yearly growth from a low base...14.1% is not at all reflecting the true potential of the new channels and customer expectations! The companies that are really changing the game tend to be the ones that are forced to. Only if resources need to be reallocated to other products or traditional approaches do not cut it anymore, bold moves towards a multichannel approach are made. My question is: why do we wait for circumstances to get critical to review the way we spend our marketing-sales budgets? Why don’t we embrace the New Normal and really rethink the way we do business from the customer’s perspective? Eva Velasco Managing Director, Spain 8/21/2012 Across Health Digital Barometer 2012 62

Final thoughts8/21/2012 Across Health Digital Barometer 2012 63

So will 2013 go on record as the first year in the New Normal?“ Some Barometer trends could certainly tempt me into answering with a strong “YES”. Indeed, there are several positive signs for a higher level of cross-channel maturity: the importance of internal knowledge/resources is on the rise, budgets are increasing and cross-channel marketing and robust execution are seen as key priorities. On the other hand, the limited overall spend on digital, the incessant focus on ROI, the strong focus on ipad detailing (which is already becoming a commodity and not solving some bigger issues), the product-centric approach to mobile and the limited overall knowledge, despite many well-intended training efforts and pilot projects, lead me to say: probably not until 2014... Nevertheless, many enlightened teams and greenfield companies will continue to lead the way and change the game...good luck on your journey towards the New Normal! Fonny Schenck Managing Partner, Across Group CEO, Across Health 8/21/2012 Across Health Digital Barometer 2012 64

About Across HealthCOMPANY • 60+ strong consultancy • Focus on innovative customer-centric approaches (e-powering traditional channels– “fusion”) • From insight to innovation strategy, integrated execution & impact measurement • Unique offering in the industry • 35+% CAGR since the start (2007)CUSTOMERS Extensive experience at • Pharmaceuticals regional/global level • Devices & Diagnostics • Hospitals AND • Patient & Professional Associations local execution powerINTERNATIONAL EXPANSION ONGOING • Head offices in Belgium (Ghent) • Offices in Spain, France, UK, Switzerland, Netherlands, Nordics, Germany, New Europe, China, Australia and US8/5/12 Across Health Digital Barometer 2012 65

How do we play? 04 Impact 01 Insight We summarize key trends, best practices and benchmarks - also from related and other industries - and compare them to your current We measure the impact of the new situation. strategy using dashboards, KPIs, … and create best-practice The 4 Is documents/tools. Integrated execution 03 We handle the project from A to Z as 02 Innovation We come up with a 2-3 year innovative, balanced and integrated roadmap and strategy for the well as supporting in related activities program that builds on the strenghts of such as change management, process your existing channels. & organizational development, design, training of sales reps, etc.8/21/2012 Across Health Digital Barometer 2012 66

We advocate a balanced approach Experiment Enhance • Mobile strategy & Execute • Dashboards tactics • (on-site) programme • Customer experience • Social strategy & management of large- tactics • Online marketing scale projects: cross- • PHR/EHR strategy • Personalization channel projects, • Innovation pilots teledetailing, self- • Search engine service portal, … optimization • Social media optimization • …21-8-2012 Across Health - Introduction 67

Some of our key references8/21/2012 Across Health Digital Barometer 2012 68

Our international footprint8/21/2012 Across Health Digital Barometer 2012 69

Contact DetailsDISCLAIMER: These results have been compiled by Jeroen Corthout & Fadi BaddurCurrent presentation is confidential. All For any question, mail to jeroen.corthout@a-cross.comproposed concepts and ideas Make sure also to check out our fields of expertise onpresented here are intellectual propertyof Across Health, and are to be used incollaboration with Across Health. www.a-cross.com/health

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Across Health Digital Barometer 2012

by Across Health on Aug 17, 2012

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