Across Health Digital Barometer EMEA 2011

2011EMEA Digital Barometer for life sciences

Across HealthManaging Partner For several years now, Across Health has been running a unique digital landscape survey among life sciences leaders. This year‟s edition reached a record amount of respondents and 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 HealthMay 3, 2011 Across Health Digital Barometer EMEA 2011 2

Executive summaryMay 3, 2011 Across Health Digital Barometer EMEA 2011 3

Table of contents• Executive summary• Key survey statistics• The digital landscape: as-is situation • eBiz 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 & budgets • Trends in eTool adoption & new stakeholders• CRM minisurveyMay 3, 2011 Across Health Digital Barometer EMEA 2011 4

Digital Barometer EMEA 2011 Executive summary• Digital satisfaction is still very low• Digital activities continue to be fragmented and stand-alone• Regulatory/legal issues and lack of digital strategy remain the 2 key bottlenecks for success• Lack of internal knowledge is moving up quickly as a hurdle, while ROI questions are losing importance• Digital budgets continue to be low, and the rate of growth is only marginal “It‟s not about being digital anymore, it‟s• eMarketing, eMedical and eSales are the top value now about being generators clever with digital.”• CRM is gradually being embraced by the business, but it will be a long and winding road... Peter HinssenMay 3, 2011 Across Health Digital Barometer EMEA 2011 5

Key statisticsMay 3, 2011 Across Health Digital Barometer EMEA 2011 6

Key stats at a glance • 196 respondents from EMEA life sciences companies completed the online survey between Feb – Mar 2011 • Industry spread Pharma, biotech, generics companies, medical devices • Functional spread Marketing, medical, sales, digital, IT, CRM, other • Geographic spread Across EMEA • Local vs international spread Global, regional/EMEA, localMay 3, 2011 Across Health Digital Barometer EMEA 2011 8

Most respondents from traditional pharma Pharmaceutical company 87% Medical devices company 6% Biotechnology company 5% Generics company 2% OTC company 0,5%May 3, 2011 Across Health Digital Barometer EMEA 2011 9

Participant • Good representation of all levels,profile with exception of the most senior functions • Predominantly top-10 company stakeholders joined the survey Director Medium- 26% sized VP or company higher 26% Global 4% 34% Local 43% Small Reporting company Manager Leading 49% to manager 13% 21% company 60% EMEA/ Start-up International company 23% 1%May 3, 2011 Across Health Digital Barometer EMEA 2011 10

Functional • Marketing and digital representspread 65% of all answers • 3 major segments can be defined: • Sales, Marketing and Medical • eBiz Other 11% Marketing • CRM, IT 44% IT 9% CRM 5% eBusiness/ Digital Sales 21% 8% Medical 3%May 3, 2011 Across Health Digital Barometer EMEA 2011 11

Current adoptionMay 3, 2011 Across Health Digital Barometer EMEA 2011 12

Current adoption of digital Executive summary• Satisfaction with digital is still very low• The sentiment around activities towards HCPs goes down, while digital patient programmes are inching up, so that both reach around 15% satisfaction• The gap with other industries is huge and is only hesitantly being closed “The great thing in the world is not so• Most investments in the eTool mix still go to much where we “websites”, and particularly the stand, as in what product/disease/company site triangle... direction we are• But several new tools, like mobile marketing moving.” and tablet eDetailing are rising fast Oliver W. HolmesMay 3, 2011 Across Health Digital Barometer EMEA 2011 14

Only 12% are satisfied with their current digital activities … On a scale from 0 to 5, how satisfied are you with your current digital activities? 34% 34% 18% 11% 2% 1% Total EMEA 0 1 2 3 4 5 Extremely Extremely Dissatisfied Satisfied Average score 2,4May 3, 2011 Across Health Digital Barometer EMEA 2011 15

... and satisfaction has not changed much compared to last year On a scale from 0 to 5, how satisfied are you with your current digital activities? 2011 18% 34% 34% 11% 2010 4% 18% 34% 32% 10% 2009 5% 24% 26% 35% 8% 0% 20% 40% 60% 80% 100% Extremely 0 1 2 3 4 5 Extremely Dissatisfied SatisfiedMay 3, 2011 Across Health Digital Barometer EMEA 2011 16

15% feel they are ahead in using digital towards healthcareprofessionals How would you rank your company versus your competitors in using digital marketing initiatives targeted at healthcare professionals? 39% 26% 13% 13% 7% 2% No opinion Far behind Behind Average Ahead Far ahead 15% HCPsMay 3, 2011 Across Health Digital Barometer EMEA 2011 17

The 2011 overall sentiment strengthens the negative trend of 2010 How would you rank your company versus your competitors in using digital marketing initiatives targeted at healthcare professionals? 50% 40% 26% 30% 19% 25% 15% 20% 17% 13% 10% 1% 2% 2% 0% 2009 2010 2011 No opinion Far behind Behind Average Ahead Far ahead HCPsMay 3, 2011 Across Health Digital Barometer EMEA 2011 18

In terms of digital consumer/patient activities, 17% feel they areahead How would you rank your company versus your competitors in using digital marketing initiatives targeted at consumers/patients? 33% 30% 15% 13% 7% 2% No opinion Far behind Behind Average Ahead Far ahead 17% PatientsMay 3, 2011 Across Health Digital Barometer EMEA 2011 19

... and the number has been increasing year by year ... How would you rank your company versus your competitors in using digital marketing initiatives targeted at consumers/patients? 40% 36% 32% 32% 33% 31% 30% 30% 23% 15% 17% 20% 9% 14% 15% 13% 13% 10% 8% 7% 3% 4% 1% 2% 2% 0% 2009 2010 2011 No opinion Far behind Behind Average Ahead Far ahead PatientsMay 3, 2011 Across Health Digital Barometer EMEA 2011 20

… reaching similar scores for consumers/patients as for HCPactivities in 2011 How would you rank your company versus your competitors in using digital marketing initiatives targeted at consumers/patients? (% ahead + % far ahead) 40% 26% 20% 19% 17% 15% 15% 9% 0% 2009 2010 2011 HCP ConsumerMay 3, 2011 Across Health Digital Barometer EMEA 2011 21

67% of the participants feel they are behind in leveraging theinternet when comparing with other industries How would you rank your company versus leading other industries in optimally leveraging the internet? 36% 31% 17% 12% 3% 1% No opinion Far behind Behind Average Ahead Far ahead 67% Digital vs other industriesMay 3, 2011 Across Health Digital Barometer EMEA 2011 22

But, although very limited, the positive feeling is increasing year byyear…while the “far behind” group stays stable, hinting at a market with 2dynamics: the leaders are ramping up fast, while the laggards stay behind? How would you rank your company versus leading other industries in optimally leveraging the internet? 50% 41% 40% 36% 33% 33% 31% 31% 30% 13% 24% 9% 20% 6% 17% 15% 12% 10% 8% 6% 4% 3% 3% 0% 1% 1% 0% 2009 2010 2011 No opinion Far behind Behind Average Ahead Far ahead Digital vs other industriesMay 3, 2011 Across Health Digital Barometer EMEA 2011 23

Digital Strategyin 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 years, max. Peter Hinssen Managing Partner, Across Health For more information on Peter’s recent book “The New Normal”, click to neonormal.com.May 3, 2011 Across Health Digital Barometer EMEA 2011 24

Similar to the previous years, most respondents still think about “a website”, when asked about digital tools… but web conferencing is moving up fast and relatively new tools like mobile & tablet detailing are intensely being piloted Company website 83% 10% 5% 2% Product website 67% 17% 13% 2% Disease website 65% 16% 16% 3% eMail marketing 54% 24% 17% 5% Web conference 50% 24% 22% 4% Web analytics 45% 21% 29% 5%Online market research 44% 29% 21% 6% Web banners 44% 24% 24% 7% SEO 39% 24% 27% 10%HCP self-service portal 36% 29% 30% 5% Online slide library 35% 19% 40% 6% OnlineMedEd 34% 32% 31% 4% SEA 34% 23% 33% 11% Tablet eDetailing 33% 39% 23% 5% eCME 28% 26% 37% 9% Online eDetailing 15% 34% 44% 6% Social media 13% 31% 53% 3% Online advisory board 12% 27% 55% 7% eRep 12% 31% 52% 6% Mobile marketing 9% 44% 45% 3% eMSL 8% 23% 59% 10% Often / Standard practice (3&4) Pilot planned or ongoing (2) Never (1) Do not know (0) May 3, 2011 Across Health Digital Barometer EMEA 2011 25

Search engine marketing:US vs Europe Search engine advertising (SEA) is a key component of the marketing mix in the United States, also in life sciences. In Europe, this high-impact tactic is used much less often... It has been in the lower half of key tactics for 3 years in a row and surprisingly seems to drop even further this year... High time for marketers and their digital consultancy or agency to explore this option more fully... if you build it, they will NOT come! Craig Parnell Managing Partner, North AmericaMay 3, 2011 Across Health Digital Barometer EMEA 2011 26

No significant changes in experience between 2010 and 2011,except for tablet detailing ... Often / Standard Practice100%90% 2010 201180%70%60%50%40%30%20%10% 0%May 3, 2011 Across Health Digital Barometer EMEA 2011 27

… while mobile marketing and tablet detailing are being pilotedeven more intensively than in 2010, next to Online MedEd and eMSL Pilot Planned or Ongoing50% 2010 201140%30%20%10%0%May 3, 2011 Across Health Digital Barometer EMEA 2011 28

eRep and eMSLin the mix More and more often, HCPs don‟t have enough time for a decent visit by a sales rep or medical advisor. This endangers the main channel through which life sciences companies currently communicate with their customers. Through the internet, an innovative and convenient alternative way emerges for reps and MSLs to connect with their doctors. A webcall is not only more flexible: the overall attention span and thus message recall is also higher. Beverly Smet Managing Director, BelgiumMay 3, 2011 Across Health Digital Barometer EMEA 2011 29

Key challengesMay 3, 2011 Across Health Digital Barometer EMEA 2011 30

Key challenges Executive summary• Introducing digital is still very challenging• Regulatory or legal issues and lack of digital strategy are still the main issues. ROI stills holds the 3rd spot, but is gradually losing in importance...• Interestingly, lack of internal knowledge is quickly moving up, while also lack of internal staff to support digital is moving up slightly• These results may reflect a more widespread “When youre adoption of digital, leading to the realization that finished changing, the internal organization is not ready, pointing to a youre finished.” need for an integrated approach in digital training. Benjamin FranklinMay 3, 2011 Across Health Digital Barometer EMEA 2011 32

53% find it challenging to extremely challenging to adopt digital On a scale from 0 to 5, how challenging is it to adopt digital activities in your organization? 44% 27% 14% 9% 6% 1% 0 1 2 3 4 5 Not at all Extremely challenging challengingMay 3, 2011 Across Health Digital Barometer EMEA 2011 33

… and this stays at a quite constant level in time On a scale from 0 to 5, how challenging is it to adopt digital activities in your organization? 2011 6% 14% 27% 44% 9% 3,3 2010 7% 19% 22% 39% 11% 3,2 2009 2% 17% 32% 35% 14% 3,4 Avg score 0% 20% 40% 60% 80% 100% 0 1 2 3 4 5 Not at all Extremely challenging challengingMay 3, 2011 Across Health Digital Barometer EMEA 2011 34

Setting up thedigital organization There are no silver bullets in adjusting an organization to the digital age. It requires the right knowledge and the right mindset. It needs setting up new business and technology processes. A good integration of channels in marketing/sales activities is essential, and only a correct measurement of the results enables us to generate valuable learning insights. Think long term, act short term! Ruud Kooi Chief Operations OfficerMay 3, 2011 Across Health Digital Barometer EMEA 2011 35

Regulatory issues, strategies and ROI questions are the threemain bottlenecks for digital within organizations Regulatory or legal issues 28% 17% 11% No clear eBusiness strategy 19% 12% 14% ROI questions 12% 13% 11% Not enough internal knowledge in this area 8% 11% 11% Healthcare compliance concerns 8% 14% 6% No headcount to support this 5% 6% 10% N/A 4% 5% 11% Pharmacovigilance issues (adverse event…3% 7% 6% No budget 2% 4% 7% No senior management support 5% 3% 3% Customers are not ready 4% 4% 4% Other (please specify) 2%2%3%No expert agencies with pharma background… 3% 2% 0% 10% 20% 30% 40% 50% 60% Most important Second most important Third most importantMay 3, 2011 Across Health Digital Barometer EMEA 2011 36

While some structural bottlenecks are losing importance, lack ofinternal knowledge is quickly moving up 57% Regulatory or legal issues 63% 45% No clear eBusiness strategy 45% 36% ROI questions 41% 30% Not enough internal knowledge in this area 25% 28% Healthcare compliance concerns 24% 20% No headcount to support this 18% 11% No senior management support 18% 13% No budget 18% 20% N/A 17% 16% Pharmacovigilance issues 12% 11% Customers are not ready 9% 2011 7% Other 8% 2010 5% No expert agencies with pharma background… 2% 0% 10% 20% 30% 40% 50% 60% 70%May 3, 2011 Across Health Digital Barometer EMEA 2011 37

Barriers todigital adoption Digital adoption is an organization-wide process. Not only marketing and sales are changing the way they operate, but also regulatory and legal have to adapt. Defining a well-rounded and comprehensive digital strategy linked to the business objectives, as well as building the right competences and setting up specific processes are essential steps towards moving to the “New Normal”, and being clever with digital (v.s. just “being there”). Hans-Fredrik Gustafsson Director, FranceMay 3, 2011 Across Health Digital Barometer EMEA 2011 38

68% feels NOT having sufficient knowledge about digital Do you feel that you have sufficient knowledge of all opportunities offered by the internet for your business activities? 68% 42% 24% 21% 10% 2% Totally insufficient Insufficient Between sufficient and insufficient Sufficient More than sufficient (expert) Internal knowledgeMay 3, 2011 Across Health Digital Barometer EMEA 2011 39

The need for more internal knowledge increased dramatically inthe past year Do you feel that you have sufficient knowledge of all opportunities offered by the internet for your business activities? 2011 2% 24% 42% 21% 10% 2010 4% 20% 31% 34% 10% 2009 4% 24% 27% 31% 14% 0% 20% 40% 60% 80% 100% Totally insufficient Insufficient Between sufficient and insufficient Sufficient More than sufficient (expert) Internal knowledgeMay 3, 2011 Across Health Digital Barometer EMEA 2011 40

There is still quite some room to improve knowledge sharing Are there any formal processes to share the information about digital strategies within your company? Do not No, it is not know Yes required 11% 45% 7% No, but should be in place 37% Knowledge sharingMay 3, 2011 Across Health Digital Barometer EMEA 2011 41

This did not significantly change in the past years Are there any formal processes to share the information about digital strategies within your company? 2011 11% 7% 37% 45% 2010 8% 6% 47% 39% 2009 9% 43% 48% 0% 20% 40% 60% 80% 100% Do not know No, it is not required No, but should be in place Yes Knowledge sharingMay 3, 2011 Across Health Digital Barometer EMEA 2011 42

Although ROI is a major hurdle, 77% of respondents do measure itsometimes or always Do you measure the impact of your digital activities? 77% 47% 30% 14% 4% 6% Never - not relevant Never - would love to, but do not know how Rarely Sometimes Always ROIMay 3, 2011 Across Health Digital Barometer EMEA 2011 43

Which also did not significantly change compared to last year Do you measure the impact of your digital activities? 48% 47% 34% 30% 13% 14% 4% 6% 3% 2% 2010 2011 Never - not relevant Never - would love to, but do not know how Rarely Sometimes AlwaysMay 3, 2011 Across Health Digital Barometer EMEA 2011 44

KPI measurementand analytics Most often the metrics used for digital projects stay very standard: views, clicks, average time on a page, .. These are some perfect metrics for improving a website, but don‟t necessarily reflect its success. One needs to go back to the business goals of the project to establish the right KPIs and then look for a way to (approximately) measure this. HITS : How Idiots Track Success. Edwin de Fouw Managing Director, The NetherlandsMay 3, 2011 Across Health Digital Barometer EMEA 2011 45

The future of digitalIn Life SciencesMay 3, 2011 Across Health Digital Barometer EMEA 2011 46

The future of digitalin Life Sciences Executive summary• Digital opportunities are now being included in the marketing process• Digital budgets continue to be low vs total marketing spend (around 7%)• Digital budgets will continue to increase, but the absolute growth will remain limited due to the low base: 20% growth on 7% will yield only 8.4% next year.• Digital budgets will be released by shifting budget away from traditional channels: advertising, direct mail and “My interest is in the primary care sales force future because I am• eMarketing, eMedical and eSales are the top value going to spend the generators rest of my life there.”• Specialists, KOLs and GPs are the main target groups, with payers on the rise Charles F. KetteringMay 3, 2011 Across Health Digital Barometer EMEA 2011 48

78% of respondents are including digital opportunities in themarketing planning process Are digital opportunities included in the budget and marketing planning processes? 53% Not at all 26% No, but it is changing 18% Yes, this is the case for several brands 4% Yes, this is the case for all brandsMay 3, 2011 Across Health Digital Barometer EMEA 2011 49

This is more and more often the case for all brands, pointing to ansignificantly improving integration of digital in marketing Are digital opportunities included in the budget and marketing planning processes? 52% 53% 26% Not at all 23% 19% 18% No, but it is changing Yes, this is the case for several brands 6% 4% Yes, this is the case for all brands 2010 2011May 3, 2011 Across Health Digital Barometer EMEA 2011 50

eMarketing, eMedical and eSales are the top 3 value generators for digital In which areas do you believe that digital could generate the highest value to you and your customers? e-Marketing initiatives 38% 31% 15%e-Medical education initiatives 25% 17% 25% e-Sales initiatives 27% 19% 19% e-PR initiatives 15% 15% Market access 8% 10% Health Economics 8% e-Medical initiatives e-R&D initiatives Other 0% 50% 100% Highest value Second highest Third highest May 3, 2011 Across Health Digital Barometer EMEA 2011 51

Digital marketing budgets are still low compared to otherindustries If you oversee a product budget, which percentage of it is allocated to digital marketing THIS YEAR? 46% 30% Less than 5% 24% Between 5 and 10% More than 10% EMEAMay 3, 2011 Across Health Digital Barometer EMEA 2011 52

Although more and more companies are slowly closing the gapand crossing the 5% or 10% level If you oversee a product budget, which percentage of it is allocated to digital marketing THIS YEAR? 60% 52% 46% 40% 31% 30% 24% Less than 5% 20% 17% Between 5 and 10% More than 10% 0% 2010 2011May 3, 2011 Across Health Digital Barometer EMEA 2011 53

Life sciencesspending on digital Life science companies are spending about 8% of their overall marketing budget on digital activities, and intend to increase this by less than 20% in 2012 – bringing the total to less than 10%. More importantly, the marketing budgets are quite small vs the sales budget (30% vs 70%, on average). Hence, digital budgets are less than 2.5% of the total sales & marketing budget... In other industries, 15 tot 20% of total marketing budgets are the rule rather than the exception...and the marketing budgets there represent a much higher % of the total sales & marketing spend. Clearly this spend trend does not reflect the interest in and value of these channels for physicians and consumers...we expect to see more disruptive spend trends in digital going forward with companies that NEED to change as well as innovator companies that WANT to change. Patric Jarchow Managing Director, GermanyMay 3, 2011 Across Health Digital Barometer EMEA 2011 54

The overall marketing budget will decline, while digital budgets willincrease…but the rate of increase is still limited in view of the low base(8% of marketing budget for digital) How do you think your overall marketing budget and digital budget will evolve? 58% Overall Digital 39% 33% 21% 17% 14% 4% 4% 3% 4% 1% 0% 0% 1% Decrease Decrease No change Increase Increase Increase Increase (> 25%) (1-24%) (1-20%) (21-50%) (50-100%) (> 100%)May 3, 2011 Across Health Digital Barometer EMEA 2011 55

The digital budget increase is funded by shifting money away from thetraditional marketing budget…there is no “free” pilot money anymore! How are you planning to fund the increase in digital spending? 9% 91% We will increase digital budget by shifting money away from the traditional marketing budget We will increase digital budget but will not shift money away from the traditional marketing budgetMay 3, 2011 Across Health Digital Barometer EMEA 2011 56

Digital’s share of the marketing budget is steadily increasing, butstill stays rather small How do you think your overall marketing budget and digital budget will evolve? * -5% -2% -2% +10% +16% +14% 2009 2010 2011 2012 * Graph calculated using averages of expectations and estimations classified in intervals; for illustrative purposes onlyMay 3, 2011 Across Health Digital Barometer EMEA 2011 57

The budget shift is mostly at the expense of advertising, direct mail and the primary care sales force From which of the following traditional channels will you shift money away to digital? Advertising 29% 26% 26% Direct mail 13% 26% 23%Primary care salesforce 26% 6% 13% Specialist salesforce 19% 16% 3% Other 13% 10% 16% Newsletter 6% 10% Medical education 6% 6% Public relations 3%3% 0% 20% 40% 60% 80% 100% Most important Second most important Third most important May 3, 2011 Across Health Digital Barometer EMEA 2011 58

Only 26% rely on an actual framework around marketing mix, whileanother 37% has at least some foundation for their decisions How do you define your marketing mix? 37% 26% 23% 16% 13% 14% 6% 2% EMEA Based on econometric modeling Based on last years budget Based on customer feedback Based on market research Based on a conceptual framework on marketing mix Based on experience/gut feeling OtherMay 3, 2011 Across Health Digital Barometer EMEA 2011 59

Marketing mixassessment Albeit slowly, companies are shifting budgets away from traditional channels to digital. The key question then becomes: which channels can I safely reduce and to which new channels should I allocate those budgets? And how much should I invest in each channel to ensure I have at least the same impact as before at a lower cost? In times of change, it is very tricky to rely on experience or “gut feeling”, as this may lead to the wrong investments or, possibly even worse, underinvestment. A marketing mix assessment is an objective and powerful basis for making these crucial decisions, as many of our clients have already realized. Bernard Depaepe Senior Management ConsultantMay 3, 2011 Across Health Digital Barometer EMEA 2011 60

Growth is expected across the board, while the outliers areproduct websites, mobile marketing & tablet eDetailing How often will you use the following tools to by end of 2012? 3,5 Product website High use High growth 3,0Mean score CURRENT USE (0-4 rating) Company website Medium use Medium use Disease website No/low growth Medium growth Online slide library Web analytics 2,5 Web banners SEO eMail marketing 0 (Not used) Online advisory board eCME 1 (Strong decrease) OnlineMedEd 2 (Slight decrease) Social media Web conference Online eDetailing SEA 3 (No change) HCP self-service portal 4 (Slight increase) eMSL eRep Online market research 5 (Strong increase) 2,0 Mobile marketing Low use High growth Tablet eDetailing 1,5 2,5 3,0 3,5 4,0 Average GROWTH (0-5 rating)May 3, 2011 Across Health Digital Barometer EMEA 2011 61

Social mediastrategy Many pharma companies have experimented with social media, but most efforts are still piecemeal and opportunistic. As a result, the true value of social media has not been tapped yet, witness the “medium investment/medium growth” category it is in. Using social media is not a strategy in itself. Which social media to use? How to interact? Where does the use of social media serve brand value? Does it make sense altogether to use social media for these goals and target group in view of the buying process priorities? With the internet becoming social it is important not to blindly fall for this „shiny object‟, but to challenge our thinking and use it for the better. . Gary Monk Managing Director UKMay 3, 2011 Across Health Digital Barometer EMEA 2011 62

Mobilestrategy In February of last year Google revealed its new strategy: mobile first. Why? Because mobile internet will overtake desktop internet usage by 2013. Indeed, smartphones and tablets are finding their ways at an incredible pace to HCPs, patients and sales reps. Mobile websites, smartphone apps, different platforms, location-based opportunities, real-time connectivity between stakeholders.. Our 2011 digital survey reveals the same trend: you are seeing high growth in mobile for the future...but what is your mobile strategy and how are you going to take advantage of the mobile opportunity? Koen Pellegrims Digital Consultant and Mobile ExpertMay 3, 2011 Across Health Digital Barometer EMEA 2011 63

Specialists and GPs remain top 3 target groups for digital communication, and its use for KOLs has significantly increased Who are the main customer groups that you target using digital channels today? Specialists 49% 36% 6% General practitioners 23% 15% 15% Key opinion leaders 14% 23% 15% from 35 to 52.6 % compared to last year Patients & consumers 7% 11% 21% Pharmacists 6% 14% Nurses & caregivers 8% Hospitals 7% Patient associations 7%Payers/Policy makers/Health authorities 5% Other 0% 20% 40% 60% 80% 100% First Second Third May 3, 2011 Across Health Digital Barometer EMEA 2011 64

The outlook for the near future is quite similar, with the exception of a large increase for digital channel use towards payers Which main customer groups will you be targeting most through digital channels BY THE END OF 2012? Specialists 43% 33% 13% General practitioners 20% 16% 12% Key opinion leaders 15% 19% 15% Patients & consumers 12% 14% 17% Pharmacists 7% 10% Nurses & caregivers 4% 11%Payers/Policy makers/Health authorities 4% 10% from 7 to 16 % compared to last year Hospitals 6% Patient associations 5% Other 0% 20% 40% 60% 80% 100% First Second Third May 3, 2011 Across Health Digital Barometer EMEA 2011 65

Patient awareness& adherence The key target groups for digital in our 2011 survey confirm that pharma still sees the internet very much as an online extension of the offline world: offline, we focus on specialists, so we should do the same online... I agree that some of our digital budget should be spent on specialists (“incremental innovation”), but I would argue that we are leaving huge transformational opportunities on the table, particularly with regard to massively “underserved” audiences, including GPs (significant salesforce reduction), pharmacists and... patients. Indeed, thanks to the ubiquity of the (social) internet & mobile, a myriad of channels is available to communicate with patients along the buying process – from awareness through to patient adherence... So, what is your patient strategy for digital? Janne Pamsgaard Managing Director Denmark (Nordics)May 3, 2011 Across Health Digital Barometer EMEA 2011 66

CRM minisurveyMay 3, 2011 Across Health Digital Barometer EMEA 2011 67

CRM minisurvey EMEA 2011 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 DruckerMay 3, 2011 Across Health Digital Barometer EMEA 2011 69

CRM minisurveyEMEA 2011 At Across Health, we firmly believe that digital is just part of the solution... true impact can only be generated by “fusion marketing”, i.e. integrating online & offline. Indeed, if done well, 1+1 should equal more than 2. Digital campaigns are often standalone initiatives. Still they could be so much more powerful when linked to customer profiles, integrated multichannel approaches,... Think about it when you launch your next campaign! To achieve this, a customer-focused strategy should be put in place, supported by an agile and high-performing CRM platform, with clear business KPIs... CRM is the key to orchestrating touch points throughout a range of channels in a customer-centric way. Let‟s see what the state of the industry is in the next few slides... Dina Rey Director, SwitzerlandMay 3, 2011 Across Health Digital Barometer EMEA 2011 70

Most respondents consider their organization to be customer-centric Please rate the following statement on a scale from 0 to 5: We are a customer-centric organization Average 3,0 31% 28% 11% 11% 12% 5% 3% Totally EMEA Totally Disagree Agree Do not know 0 1 2 3 4 5 Customer-centric organisationMay 3, 2011 Across Health Digital Barometer EMEA 2011 71

And they see CRM as as a strategic asset – but opinions still varyhugely... Please rate the following statement on a scale from 0 to 5: CRM is a strategic asset in our company and not just an IT tool Average 3,2 34% 20% 15% 12% 7% 7% 4% Totally EMEA Totally Disagree Agree Do not know 0 1 2 3 4 5 CRM strategic assetMay 3, 2011 Across Health Digital Barometer EMEA 2011 72

If we dig a bit deeper, the “360° vision” is not supported by day-to-dayCRM priorities: only 25% is integrating web initiatives into the CRMsystem today Please rate the following statement on a scale from 0 to 5: Are your web initiatives integrated into your CRM system to ensure a 360° view of your customers? 25% 31% 29% 21% 10% 5% 4% EMEA 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 integrationMay 3, 2011 Across Health Digital Barometer EMEA 2011 73

And customer email address databases are still not a realityPlease rate the following statement on a scale from 0 to 5: We have over 40% of our customers email addresses in our CRM system Average 2,2 16% 15% 15% 15% 14% 12% 11% Totally EMEA Totally Disagree Agree Do not know 0 1 2 3 4 5 CRM email databaseMay 3, 2011 Across Health Digital Barometer EMEA 2011 74

Still, some progress is being made, especially with regard to thecustomer email databases Please rate the following statement on a scale from 0 to 5: Averages Totally 5 Agree 4 3,2 3,3 3,0 3 2,4 2,2 2010 2 2011 1,4 1TotallyDisagree 0 We have over 40% of our We are a customer-centric CRM is a strategic asset in our customers email addresses in organization company and not just an IT tool our CRM system CRM strategic assetMay 3, 2011 Across Health Digital Barometer EMEA 2011 75

Final thoughtsMay 3, 2011 Across Health Digital Barometer EMEA 2011 76

So will 2011 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 HealthMay 3, 2011 Across Health Digital Barometer EMEA 2011 77

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 (Ghent) • Offices in Netherlands (Breda), France (Paris), UK (London), Switzerland (Basel), Nordics (Copenhagen), Germany (Munich), New Europe (Prague), China (Shanghai) and North America (New Jersey)January 2012

Across Health Expertise Overview BE NL FR GE SW IT SP UK Nordics TU USA ASIA EMEAINSIGHTLandscape AnalysisMarketing Mix Assessment Projects coordinated at EMEA level, but taking place in different EU countriesCRM/Ebiz Benchmarking Projects coordinated at EMEA level, but taking place in different EU countriesBuzz Monitoring BE NL FR GE SW IT SP UK Nordics TU USA EMEA INNOVATION Fusion Strategy Projects coordinated at EMEA level, but taking place in different EU countries Social Media Strategy Projects coordinated at EMEA level, but taking place in different EU countries Mobile Strategy Innovation Bootcamps BE NL FR GE SW IT SP UK Nordics TU USA EMEA IMPACT Dashboards Web Analytics Rep equivalent model Customer-centricity metrics 1 proposal 1 project finished + learnings 1 project ongoing >2 projects finished + learningsJanuary 2012 79

Across Health Expertise Overview BE NL FR GE SW IT SP UK Nordics TU USA ASIA EMEA IMPLEMENTATION iPad detailing Other iPad projects Teledetailing eRep/Hybrid Rep Vdetailing HCP Portal Mobile Marketing HCP Mobile Marketing CONS Social Media for HCPs Social Media for CONS Patient website Multichannel HCP Marketing Change Mgt & on-site consulting 1 proposal 1 project finished + learnings 1 project ongoing >2 projects finished + learningsJanuary 2012 80

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 situation. We measure the impact of the new strategy using dashboards, KPIs,…and create best-practice The 4 Is documents/tools. Implementation 03 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 executionMay 3, 2011 Across Health Digital Barometer EMEA 2011 81

Our international footprintJanuary 2012 Across Health Digital Barometer EMEA 2011 82

Some of our key referencesMay 3, 2011 Across Health Digital Barometer EMEA 2011 83

Contact Details These results have been compiled by Jeroen Corthout &Bernard Depaepe For any question, mail to jeroen.corthout@a-cross.comDISCLAIMER: Make sure also to check out our fields of expertise onCurrent presentation is confidential. Allproposed 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

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Across Health Digital Barometer EMEA 2011

by Across Health on May 06, 2011

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Across Health Digital Barometer EMEA 2011 — Presentation Transcript