Augusto Villanueva<br />21 July 2010<br />The Medical City, Pasig, Philippines<br />Business and Healthcare<br />
Snapshot CV<br />Worked for Hoffmann-La Roche from 1997-2010.<br />Variety of roles in affiliates and headquarters, mostly marketing or strategy related.<br />Most recent assignment was General Manager, Philippines until March 2010.<br />First career in consumer products with Procter and Gamble.<br />Education: Economics (University of Western Ontario, 1988) and MBA (INSEAD, 1996).<br />
Disclaimers<br />The content of this presentation does not reflect the policies of Hoffmann-La Roche or any other pharmaceutical manufacturer.<br />Any opinions, insights, and inaccuracies are the responsibility of the presenter.<br />
Objectives<br />“…Emphasize on the marketing strategies that you have employed to promote Roche…”<br />Summarize the most important considerations to bring a research-based medicine to market and keep it there<br />Discuss how practices differ across regions and countries and why<br />Discuss some issues and controversies, especially those most relevant to clinicians<br />
What does marketing of pharmaceuticals encompass?<br />New product introductions<br />Customer-directed activities about products and diseases:<br />Deployment of sales representatives<br />Promotional materials and programs (paper and electronic)<br />Continuing Medical Education sponsorship<br />Ensuring and broadening access<br />Public health systems<br />Private insurance-based systems<br />Less important in cash-based systems (e.g. Philippines)<br />Clinical trials (pre- and post-registration)<br />Pharmacovigilence and safety monitoring<br />
New product introductions<br />Innovation is lifeblood of all research-based companies<br />Only one chance to launch<br />Sales in Q3 Year 1 are predictive of sales in Year 5<br />Issues:<br />What is label? Where is unmet need? Where is competition vulnerable?<br />What is current level of disease awareness and education?<br />What resources is company prepared to commit?<br />What is the optimal marketing mix?<br />What is the global pricing strategy and approach with payers?<br />
Many controversies surrounding the promotion of medicines today<br />What is the value to public health of promotion and does it affect prices?<br />Are reps helpful and credible?<br />Do companies have the right to engage in scientific promotion and education?<br />Minimal impact on price, but high marginal profit leads to higher spending<br />Good reps: yes and yes; but very inefficient channel<br /> Will public health systems assume cost of education in place of industry? Current approach is to have transparency and disclosure<br />
Marketing depends on disease area, lifecycle stage, and competition (1)<br />
Marketing depends on disease area, lifecycle stage, and competition (2)<br />
Most people cannot afford treatment for serious illness<br />Percentile<br />PHP 000<br />Source: 2006 Family Income and Expenditure Survey<br />
Impact of poverty on healthcare<br />Less than half the population can afford occasional treatment<br />Only the top 10% can “afford” to be sick<br />Most people cannot afford to see a doctor<br />Many people in rural areas have no access to a local clinic<br />Incentives for too many specialists and hospitals, not enough GPs and community facilities<br />Many live without proper shelter, hygiene, water, etc.<br />Many families are trapped in a cycle of poverty that flows from one generation to the next<br />No single institution – government, industry, private enterprise, NGO – can remedy this situation on its own<br />
Improved access to treatment makes social and commercial sense<br />Creation of access systems would permit more people to participate in the healthcare economy<br />Combination of public and private seems most likely<br />Increased demand from these patients would have probable consequences for industry:<br />Create negotiation opportunities for public and private payers (higher volume for lower prices)<br />Widen market space between positions of multinationals and local firms<br />Greatest growth potential exists in emerging economies<br />
China and India alone are double the size of current developed economies<br />Source: World Bank , United Nations 2009 data<br />
Summary<br />Successful new product launches are most important activity for research-based pharmaceutical companies<br />Most crucial factor(s) for determining launch success or failure can very tremendously from one product to another<br />Traditional promotion channels are inefficient and/or under scrutiny for accuracy, completeness, and objectivity<br />Pharma industry's geographic focus is shifting due to aging populations in West and growing developing economies<br />Innovation in the commercial model is needed to exploit near-term growth in developing world<br />
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