Across Health Digital Barometer US 2011

2011US Digital Barometer for life sciences

Across HealthCEO For several years now, Across Health has been running a unique digital landscape survey among life sciences leaders. This year’s edition we have reached out to EMEA, US and ASIA. The results of the Asian respondents gives you a 360° view on the status, challenges and future of “The New Normal”, aka digital, in life sciences. 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 the hot-off-the press findings! Fonny Schenck Managing Partner, Across Group CEO, Across HealthJanuary 2012 Across Health Digital Barometer US 2011 2

Table of contents• Executive summary• Key survey statistics• Digital landscape: as-is situation • Digital satisfaction • Benchmark against competitors and other industries • Most common eTactics• Key challenges • Bottlenecks • Digital understanding & processes • ROI measurement• The future of digital in life sciences • Digital integration & budgetsJanuary 2012 3 Across Health Digital Barometer US 2011

Executive summaryJanuary 2012 4 Across Health Digital Barometer US 2011

Digital Barometer US 2011 Executive summary• Digital satisfaction is quite low in the US• The most popular tactics are websites and search engine optimization. But several new tools, like mobile marketing and social media are heavily piloted• Regulatory or legal issues are the main bottleneck followed by ROI and healthcare compliance concerns; 61% feel they do not have sufficient knowledge “It’s not about being• Digital opportunities are mostly being included in the digital anymore, it’s marketing process now about being• Digital budgets continue to be low vs total marketing clever with digital.” spend Peter HinssenJanuary 2012 5 Across Health Digital Barometer US 2011

Key survey statisticsJanuary 2012 Across Health Digital Barometer US 2011 6

Key stats at a glance • 46 respondents from US life sciences companies completed the online survey between September - October 2011 • Industry spread Pharma, biotech, medical devices, OTC, generics • Functional spread Marketing, eBusiness/Digital, IT, sales, medical, other • Local vs international spread Global, localJanuary 2012 8 Across Health Digital Barometer US 2011

Most respondents work in a global function in pharmaand have a marketing responsibility Pharmaceutical 65% Other 2% Biotechnology 20% Medical devices 11% US 41% Global OTC 2% 57% Generics 2% Sales Medical IT 6% 2% 8% eBusiness/ Digital 10% Marketing Other 56% 18%January 2012 9 Across Health Digital Barometer US 2011

Digital landscapeJanuary 2012 Across Health Digital Barometer US 2011 10

Digital landscape Executive summary• Satisfaction with digital is still very low• The satisfaction level around activities towards HCPs is 13% while digital patient programmes are even lower at 6%• Interestingly, the gap with other industries is less pronounced, but still only 24% feel ahead vs 31% who feel behind.• The most popular tactics are websites and “The great thing in search engine optimization the world is not so much where we• But several new tools, like mobile marketing stand, as in what and social media are heavily piloted direction we are moving.”• All eTactics will be increasingly used by the end of 2012 Oliver W. HolmesJanuary 2012 12 Across Health Digital Barometer US 2011

Only 19% is satisfied with current digital activities (Europe evenlower: 12%) On a scale from 0 to 5, how satisfied are you with your current digital activities? 35% 30% 19% 15% 9% 7% 4% 0 1 2 3 4 5 Extremely Extremely Dissatisfied Satisfied Mean: 3,57January 2012 13 Across Health Digital Barometer US 2011

Only 13% feel they are ahead in using digital towards healthcareprofessionals (Europe 15%) How would you rank your company versus your competitors in using digital marketing initiatives targeted at healthcare professionals? 39% 24% 21% 8% 5% 3% No opinion Far behind Behind Average Ahead Far ahead 13% HCPsJanuary 2012 14 Across Health Digital Survey US 2011

6% feels they are ahead of competition when it comes to digitalmarketing to consumers/patients (Europe 17%) How would you rank your company versus your competitors in using digital marketing initiatives targeted at consumers/patients? 53% 21% 16% 5% 3% 3% No opinion Far behind Behind Average Ahead Far ahead 6% PatientsJanuary 2012 15 Across Health Digital Barometer US 2011

31% feel they are behind the other industries in leveraging theinternet when comparing with other industries (Europe 67%) How would you rank your company versus leading other industries in optimally leveraging the internet? 42% 21% 18% 13% 3% 3% No opinion Far behind Behind Average Ahead Far ahead 31% Digital vs other industriesJanuary 2012 16 Across Health Digital Barometer US 2011

The product website is the most important eTactic, shortlyfollowed by the company website and search engine optimization.Mobile marketing and social media are heavily piloted How often do you use the following digital tactics TODAY? Product website 83% 6% 6% 4% Company website 79% 2% 13% 6%Search Engine Optimization 62% 19% 11% 9% eMail Marketing 57% 23% 13% 6% Disease webstie 53% 13% 26% 9% Web conference 51% 21% 17% 11% Web banners 51% 15% 21% 13% Search Engine Advertising 47% 21% 19% 13% Tablet eDetailing 45% 28% 19% 9% HCP Self-service portal 34% 26% 28% 13% Online medical education 30% 23% 30% 17% Virtual eDetailing 30% 30% 28% 13% Mobile marketing 23% 55% 19% 2% Online advisory board 21% 19% 47% 13% eMSL 21% 21% 40% 17% Social media 19% 43% 36% 2% eRep 15% 26% 45% 15% Often / Standard practice Pilot planned or ongoing Never Do not know / NAJanuary 2012 17 Across Health Digital Barometer US 2011

By the end of 2012, all eTactics will be used more often. Mobilemarketing, Search Engine Optimization and eMail marketing areamong the fastest growers How often will you use the following digital tactics by the end of 2012? Mobile marketing 64% 15% 2% 19% Search Engine Optimization 53% 30% 4% 13% eMail marketing 53% 26% 6% 15% Social media 53% 15% 2% 30% Web conference 49% 30% 2% 19% Virtual eDetailing 47% 13% 9% 32% eRep 45% 15% 2% 38% Tablet eDetailing 45% 28% 4% 23% HCP self-service portal 45% 21% 4% 30% Product website 40% 45% 4% 11% Web Banners 40% 36% 4% 19% Online medical education 38% 28% 6% 28% Search Engine Advertising 36% 43% 2% 19% Disease website 34% 40% 4% 21% Company website 34% 51% 2% 13% eMSL 28% 19% 2% 51% Online advisory board 28% 23% 2% 47% Increase no change decrease not usedJanuary 2012 18 Across Health Digital Barometer US 2011

Key challengesJanuary 2012 Across Health Digital Barometer US 2011 19

Key challenges Executive summary• Introducing digital is still very challenging• Regulatory or legal issues are the main bottleneck followed by ROI and healthcare compliance concerns• 85% are measuring ROI in some way or another, still it remains a major bottleneck• 61% feel they do not have sufficient knowledge “When youre finished changing, youre finished.” Benjamin FranklinJanuary 2012 21 Across Health Digital Barometer US 2011

Regulatory, ROI and healthcare compliance concerns are most important bottlenecks Regulatory or legal issues 51% 13% 21% Healthcare compliance concerns 10% 23% 5% ROI questions 10% 13% 5% Pharmacovigilance issues (adverse event… 15% 10% No budget 10% 3% 15% No senior management support 3% 13% 10%Not enough internal knowledge in this area 8% 13% No clear eBusiness strategy 5% No headcount to support this 5% Customers are not ready 5%3% No expert agencies with pharma… 5% Most important bottleneck Second most important bottleneck Third most important bottleneck January 2012 22 Across Health Digital Barometer US 2011

ROI is seen as a major hurdle, however 85% is measuring this insome way or another Do you measure the impact of your digital activities? 85% 44% 41% 10% 2% 2% Never - would love to, but do not know how Never - not relevant Rarely Sometimes Always ROIJanuary 2012 23 Across Health Digital Barometer US 2011

61% feel they do not have sufficient knowledge Do you feel that you have sufficient knowledge of all opportunities offered by the internet for your business activities? 61% 37% 33% 20% 7% 4% Totally insufficient Insufficient Between sufficient and insufficient Sufficient More than sufficient (expert) Internal knowledgeJanuary 2012 24 Across Health Digital Barometer US 2011

69% confirms that SOPs are in place for digitalDoes your company have standard operating procedures or other procedures for the use of the internet in customer-facing activities? Do not know 2% No 29% Yes 69% Knowledge sharingJanuary 2012 25 Across Health Digital Barometer US 2011

Only 49% has formal processes to share information about digitalstrategies Are there any formal processes to share the information about digital strategies within your company? Do not No, it is not know required 2% 12% Yes No, but 49% should be in place 37% Knowledge sharingJanuary 2012 26 Across Health Digital Barometer US 2011

The future of digitalIn Life SciencesJanuary 2012 Across Health Digital Barometer US 2011 27

The future of digitalin Life Sciences Executive summary• Digital opportunities are now being included in the marketing process• Digital budgets will continue to increase, but the absolute growth will remain limited due to the low base• Digital budgets will be released by shifting budget away from traditional channels: advertising, direct mail and primary care sales force• Mobile: most apps are around treatment guidelines and product info/updates, are directed to physicians, and “My interest is in the are developed on Apple iOS and Android future because I am• Social media: Patients are the most important target going to spend the group; most communication is one-way vs two-way rest of my life there.”• For digital communication in general, specialists, patients and GPs are the key target groups Charles F. KetteringJanuary 2012 29 Across Health Digital Barometer US 2011

69% of respondents are now including digital opportunities in themarketing planning process Are digital opportunities included in the budget and marketing planning processes? 45% Not at all 29% No, but it is changing 24% Yes, this is the case for several brands Yes, this is the case for all brands 2%January 2012 30 Across Health Digital Barometer US 2011

However the digital marketing budgets are on the low side… If you oversee a product budget, which percentage of it is allocated to digital marketing this year? 40% Less than 5% 28% Between 5 and 10% 24% Between 10 and 15% More than 15% 8%January 2012 31 Across Health Digital Barometer US 2011

Only 34% thinks their OVERALL marketing budget will increase bythe end of 2012 How do you think your OVERALL budget will evolve BY THE END OF 2012? (NOTE: this is the marketing budget EXCLUDING salesforce costs) 34% 41% 31% 18% 8% 3% 0% 0% Decrease by more than 25% Decrease between 1 and 24% Stay the same Increase between 1 and 20% Increase between 21 and 50% Increase more than 50% and 100% Will more than double Overall budgetJanuary 2012 32 Across Health Digital Barometer US 2011

...while 58% think DIGITAL budget will increase by the end of 2012 How do you think your DIGITAL budget will evolve BY THE END OF 2012? (NOTE: this is the marketing budget EXCLUDING salesforce costs) 58% 44% 36% 8% 8% 3% 3% 0% Decrease by more than 25% Decrease between 1 and 24% Stay the same Increase between 1 and 20% Increase between 21 and 50% Increase more than 50% and 100% Will more than double Digital budgetJanuary 2012 33 Across Health Digital Barometer US 2011

73% plan to increase digital budget by shifting money away fromtraditional marketing budgets How are you planning to fund the increase in digital spending? will increase digital budget by shifting money away from the traditional 27% marketing budget 73% will increase digital budget but will NOT shift money away from the traditional marketing budget Knowledge sharingJanuary 2012 34 Across Health Digital Barometer US 2011

Advertising, direct mail and primary care salesforce are mostimportant channels to shift money away from From which of the following traditional channels will you shift money away to digital? Advertising 53% 20% 7% Direct mail 27% 40% 13% Primary care salesforce 7% 20% 13% Medical education 7% 27% Specialist salesforce 7% 20% Newsletter 7% 13% Other 13% 7% Most important channel you intend to shift money away from Second most important channel you intend to shift money away from Third most important channel you intend to shift money away fromJanuary 2012 35 Across Health Digital Barometer US 2011

The delay of FDA guidance negatively impacts digital marketing Will the delay of FDA guidance limit your use of digital marketing for patient and/or physician engagement? No 37% Yes 63% FDA guidanceJanuary 2012 36 Across Health Digital Barometer US 2011

Social media: patients are the most important target group for use of social media, followed by SPs and GPs; most communication is one-way vs two-way In which way are you using the following social media tactics? Listening or talking (1 way) Engaging (2 ways) Patients &… 39% Patients & consumers 24% Specialists 29% General practitioners 16% General… 27% Specialists 16% Key opinion leaders 27% Key opinion leaders 16% Nurses & caregivers 25% Payers 12% Payers 22% Pharmacists 10% Pharmacists 14% Nurses & caregivers 10% others 2% others 0%* Percentages in total base (e.g. percentage = # that engage with specialists / # that answered this question) Social media January 2012 37 Across Health Digital Barometer US 2011

Most respondents assume a “wait & see attitude” regarding therecent Facebook decision to allow commentsWhat impact does the recent Facebook decision to allow comments have on your social media activities? 16% Discontinuing 29% Facebook page Will open page to 13% comments No impact for now N/A 42% FacebookJanuary 2012 38 Across Health Digital Barometer US 2011

Most apps are around treatment guidelines and productinfo/updates; more interactive types of apps stay behind What types of apps do you develop or have developed? Treatment guidelines 18% Product info/updates 17% Medical news/article updates 12% Adherence/compliance tracker 11% Diagnosis tool 11% Dosage calculator 11% Symptom tracker 7% CME 6% Other 5% Remote monitoring of patients 2% MobileJanuary 2012 39 Across Health Digital Barometer US 2011

Mobile: app development is mostly directed to physiciansWhich target group do you develop or have developed apps for the following operating systems? Physicians 63% Patients 46% Other target group 20%* Respondents that have at developed at least one app (on any OS) for a specific target group Mobile January 2012 40 Across Health Digital Barometer US 2011

Mobile: app development is mostly for Apple iOS and AndroidWhich target group do you develop or have developed apps for the following operating systems? Physicians Patients Other Apple iOS Apple iOS Apple iOS 39% 34% 9% (iPhone) (iPhone) (iPhone) Apple iOS Apple iOS Blackberry 39% 21% 9% (iPad) (iPad) (phone) Android Android Android 20% 16% 5% (phone) (phone) (phone) Blackberry Blackberry Apple iOS 18% 14% 5% (phone) (phone) (iPad) Android Blackberry Blackberry 9% 7% 5% (tablet) (tablet) (tablet) Blackberry Other OS 5% 9% Other OS 7% (tablet) Android Android Symbian 4% 5% 4% (tablet) (tablet) Other OS 4% Symbian 5% Symbian 4%* Percentages in total base (e.g. percentage = # that develop for Apple iOS for physicians / # that answered this question) Mobile January 2012 41 Across Health Digital Barometer US 2011

Specialists, patients and GPs are the key target groups for digitalcommunication today Which main customer groups will you be targeting most through digital channels TODAY? Please select your the target group in terms of budget spend. Specialists 38% 23% 6% Patients 21% 23% 17% GP 23% 23% 9% KOL 11% 19% 9% Hospitals 2% 15% Pharmacists 4% 11% Payers 13% Nurses/caregivers 13% Other 2% 6% 4% Patient assoc 2% 4% First Second ThirdJanuary 2012 42 Across Health Digital Barometer US 2011

They will remain key target groups for digital communication by theend of 2012, with patients & consumers gaining more importanceWhich main customer groups will you be targeting most through digital channels BY THE END OF 2012? Please select your the target group in terms of budget spend. Specialists 36% 21% 9% Patients 26% 21% 11% GP 15% 26% 13% KOL 9% 13% 13% Payers 4% 4% 15% Pharmacists 6% 2% 11% Patient assoc 2% 4% 6% Nurses/caregivers 13% Hospitals 4% 6% Other 2% 4% 4% First Second ThirdJanuary 2012 43 Across Health Digital Barometer US 2011

24% rely on an actual framework around marketing mix and 8% on(expensive) econometric modeling, while another 34% has at leastsome foundation for their decisions How do you define your marketing mix / multichannel allocation? 34% 26% 24% 13% 13% 8% 8% Based on experience/gut feeling Based on a conceptual framework on marketing mix Based on market research Based on customer feedback Based on last years budget Based on econometric modelingJanuary 2012 44 Across Health Digital Barometer US 2011

CRM minisurveyJanuary 2012 Across Health Digital Barometer US 2011 45

CRM minisurvey Executive summary• CRM integration is poor• Still, CRM is considered a strategic asset by the majority of the respondents• And even more respondents consider their organization to be customer-centric, despite the poor CRM integration• There are companies all along the spectrum with "Weve spent the last regard to the size of email databases, but overall 30 years focusing on the score is low the T in IT, and well spend the next 30 years focusing on the I.“ Peter DruckerJanuary 2012 46 Across Health Digital Barometer US 2011

Most respondents consider their organization to be more or lesscustomer-centric Please rate the following statements on a scale from 0 (totally disagree) to 5 (totally agree): We are a customer-centric organization 68% 32% 26% 16% 11% 8% 5% 3% Do not know 0 1 2 3 4 5 Customer-centric organisationJanuary 2012 47 Across Health Digital Barometer US 2011

And they see CRM as as a strategic asset – but opinions still varyquite a lot... Please rate the following statements on a scale from 0 (totally disagree) to 5 (totally agree): CRM is a strategic asset in our company and not just an IT tool 58% 24% 21% 18% 13% 13% 11% 0% Do not know 0 1 2 3 4 5 CRM strategic assetJanuary 2012 48 Across Health Digital Barometer US 2011

If we dig a bit deeper, the “360° vision” is not supported by day-to-day CRMpriorities: only 18% is integrating web initiatives into the CRM system today Are your web initiatives integrated into your CRM system to ensure a 360°view of your customers? 34% 18% 26% 18% 11% 11% 0% do not know not at all not yet, but we have plans to do this project underway basic integration in place sophisticated integration in place CRM integrationJanuary 2012 49 Across Health Digital Barometer US 2011

And customer email address databases are still not a reality Please rate the following statements on a scale from 0 (totally disagree) to 5 (totally agree): We have over 40% of our customers email addresses in our CRM system 29% 34% 18% 18% 13% 11% 5% 5% Do not know 0 1 2 3 4 5 CRM email databaseJanuary 2012 50 Across Health Digital Barometer US 2011

Final thoughtsJanuary 2012 Across Health Digital Barometer US 2011 51

So will 2012 be agrand cru for “fusion”? Clearly, digital is increasingly being seen as a key component of the future business model... Although low, budgets are increasing and companies want to enhance their knowledge around digital. The key hurdles remain the same however: regulatory/legal concerns and lack of a digital strategy... So, will 2011 be the digital “turning point”? Will you boost your online budget beyond the symbolic level? Will you spend it on the right digital channels based on a marketing mix assessment and integration with your marketing strategy? Will you integrate digital with offline? And will you go for the right mix of implementation of best practices, improvement of existing initiatives and true innovation? I wish you every success on this exciting journey!! Fonny Schenck Managing Partner, Across Group CEO, Across HealthJanuary 2012 Across Health Digital Barometer US 2011 52

About Across HealthCOMPANY • 60+ strong consultancy • Focus on innovative customer-centric approaches • (e-powering traditional channels– “fusion”) • From strategy to implementation and success metrics/KPIs • Unique offering in the industryTARGET CUSTOMERS • Pharmaceuticals Extensive experience at • Devices & Diagnostics regional/global level • Hospitals • Patient & Professional Associations ANDINTERNATIONAL EXPANSION ONGOING local execution power • Head offices in Belgium • Offices in the US, Netherlands, France, UK, Switzerland, Spain, Nordics, Germany, and ChinaJanuary 2012 Across Health Digital Barometer US 2011 53

How do we operate? 04 Impact 01 Insight We summarize key trends, best practices and benchmarks - also from related and other industries - and compare them to your current situation. We measure the impact of the new strategy using dashboards, KPIs,…and create best-practice The 4 Is documents/tools. Integrated 03 execution We support you in the implementation 02 Innovation We come up with a 2-3 year innovative, balanced and integrated roadmap and strategy to move into of our recommendations – from project management to website development, the new space, based on workshops, edetailing, dialogue marketing, customer interviews and Across remote selling & education, change insights. management, process & organizational design and creative executionJanuary 2012 Across Health Digital Barometer US 2011 54

Our international footprintJanuary 2012 Across Health Digital Barometer US 2011 55

Some of our key referencesJanuary 2012 Across Health Digital Barometer US 2011 56

Contact Details These results have been compiled by Joshua Caggiula, Yue Feng & Bernard Depaepe For any question, mail to joshua.caggiula@a-cross.com; yue.feng@a-cross.com; bernard.depaepe@a-cross.comDISCLAIMER:Current presentation is confidential. All Make sure also to check out our fields of expertise onproposed concepts and ideaspresented here are intellectual property www.a-cross.com/healthof Across Health, and are to be used incollaboration with Across Health. Or follow us on

Across Health Digital Barometer US 2011

by Across Health on Jan 11, 2012

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