Across Health Multichannel Maturometer 2015

1. Across Health is pleased to present you with the state of the multichannel landscape in life sciences in Europe, US and emerging markets – for the seventh year already.

2. 01 02 03 04 05 © Across Health2 Key Survey Statistics Strategy & Organization Business Technology & Processes Multichannel Integration Measurement Multichannel @ Multispeed? I am pleased to present you with the 7th Across Health survey on multichannel in life sciences, previously known as the Barometer. We renamed it to the Maturometer, to reflect the content more aptly. Indeed, we have revamped and simplified the Barometer, by clustering all questions around 4 key dimensions of digital maturity: strategy & organization, business processes & technology, multichannel integration and measurement. We trust this will give you a structured view and will provide you with actionable input to take your company to the next level. Generally speaking, the 2015 results are in line with 2014 – with historically low satisfaction levels and the 4th consecutive year of plateauing budgets (at a low level). US and Europe are most pessimistic; emerging markets appear to be more positive overall – but that may be due to their relatively new entry into this space. We do see however a difference in speed in the market – around 14% is implementing multichannel very quickly, is spending significantly more than the average, and feels comfortable with impact measurement etc…multichannel @ multispeed! We trust that these early leaders will soon be followed by the early majority…my guess is that 2015 REALLY is the end of the beginning! Fonny Schenck CEO, Across Health Fonny.schenck@a-cross.com Preface

3. 01 © Across Health Key survey statistics 3

4. 01 Key Survey Statistics Pharma / biotech makes up the bulk of respondents 4 2% 3% 6% 89% Other OTC Medical devices Pharmaceuticals/biotech N = 260 Global scope © Across Health

5. 01 Key Survey Statistics Most respondents hail from Europe Lat-Am overtakes US for the first time 5 © Across Health 5% 6% 6% 8% 10% 65% Other Japan China US Latin-America Europe N = 260 Global scope

6. 01 Key Survey Statistics 55% work at national/local level, while 45% have an international role 6 © Across Health National/local 55%Regional 26% Global 19% N = 259 Global scope

7. 01 Key Survey Statistics Most respondents are at the (senior) manager level 7 © Across Health N = 253 Global scope 19% 8% 9% 16% 48% other Senior Director Associate Director Director Manager (Senior)

8. 01 Key Survey Statistics A strong focus on Digital & Marketing 8 © Across Health 11% 3% 4% 5% 8% 8% 29% 34% Other Medical IT Marketing Research CRM Sales Marketing Digital/Multichannel N = 260 Global scope

9. 01 Key Survey Statistics Most respondents have a multibrand role, but the leading TA’s are well represented too 9 © Across Health 7% 3% 4% 4% 4% 6% 8% 8% 8% 8% 9% 10% 22% Other Vaccines Psychiatry Pain Gastro-intestinal Rare diseases Diabetes Respiratory Neurology Immunology Cardiology Oncology Across all therapy areas N = 260 Global scope

10. 02 10 Strategy & Organization © Across Health

11. 02 Strategy & Organization Only around 1 in 4 European respondents has a strong digital vision and a leadership team; skill levels are even lower 11 15% 9% 8% 36% 30% 15% 40% 40% 50% 9% 20% 27% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% staff well-trained in digital strong digital/MC team with board support strong digital transformation vision & strategy Completely disagree Somewhat disagree Somewhat agree Completely agree N = 222 European scope © Across Health

12. 02 Strategy & Organization The digital transformation process is slow overall, but 14% of European companies are racing ahead 12 © Across Health 6% 5% 6% 57% 55% 53% 29% 25% 24% 6% 1% 2% 3% 14% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% US Europe Global Very Slow Slow About right Fast Very fast How would you rate the pace of implementation of digital transformation in your organization?

13. 02 Strategy & Organization Most organizations have dedicated international teams, but their effectiveness continues to be questioned as much as in 2014… 13 © Across Health 22% 61% 17% Yes, just being created Yes, but the impact is low Yes, and it is highly effective Don’t know / not sure 5% No 13% Yes 82% N = 260 Global scope Do you have a central digital team at the INTERNATIONAL level?

14. 02 Strategy & Organization Fewer respondents have digital teams at the local level, but they are seen as are much more effective 14 © Across Health 23% 38% 39% Yes, just being created Yes, but the impact is low Yes, and it is highly effective N = 260 Global scope Don’t know / not sure 2% No 26% Yes 72% Do you have a central digital team at the LOCAL level?

15. 02 Strategy & Organization Central healthcare innovation teams are becoming more established, but the impact is perceived low 15 © Across Health 26% 54% 20% Yes, just being created Yes, but the impact is low Yes, and it is highly effective Don’t know / not sure 11% No 35% Yes 54% N = 260 Global scope Do you have a central Healthcare Innovation team?

16. 02 Strategy & Organization Central patient engagement teams are starting to emerge, but their effectiveness is seen as low 16 © Across Health 25% 50% 26% Yes, just being created Yes, but the impact is low Yes, and it is highly effective Don’t know / not sure 15% Yes 43%No 42% N = 260 Global scope Do you have a central Patient Engagement team?

17. 02 Strategy & Organization Regulatory, legal and compliance issues remain the top bottlenecks, followed by unclear multichannel strategy and not enough internal knowledge 17 © Across Health 2% 4% 3% 5% 5% 6% 12% 12% 13% 16% 24% N/A Other No expert agencies with pharma background available Customers are not ready No senior management support No budget No headcount to support this ROI questions Not enough internal knowledge No clear digital strategy Regulatory / legal / healthcare compliance issues N = 260 Global scope

18. 02 Strategy & Organization Regulatory, legal and compliance issues are the biggest bottlenecks across regions. Emerging countries are mostly challenged by ROI questions 18 © Across Health 24% 16% 13% 11% 11% 21% 14% 14% 7% 13% 21% 14% 14% 19% 5% 0% 5% 10% 15% 20% 25% 30% Regulatory / legal / healthcare compliance issues No clear digital strategy Not enough internal knowledge ROI questions No headcount to support this Europe US Emerging

19. 02 Strategy & Organization In Europe, regulatory issues and insufficient headcount are significantly rising in importance vs 2011 … only ROI questions show a decrease. 19 © Across Health 3% 5% 5% 6% 11% 11% 13% 16% 24% No expert agencies with pharma background available No senior management support No budget Customers are not ready No headcount to support this ROI questions Not enough internal knowledge No clear digital strategy Regulatory / legal / healthcare compliance issues N = 223 EU scope % change since 2011 High increase Low increase Decrease No change= 5% 1% 2% 1% 4% 2% = 1% 1%

20. 02 Strategy & Organization Knowledge of digital remains low...and is not increasing over time 20 © Across Health 4% 2% 1% 2% 4% 2% 20% 24% 18% 16% 21% 17% 31% 42% 44% 36% 38% 41% 34% 21% 30% 34% 25% 33% 10% 10% 8% 12% 12% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2011 2012 2013 2014 2015 Totally insufficient Insufficient Between sufficient and insufficient Sufficient More than sufficient (expert) N = 260 Global scope Do you feel that you have sufficient knowledge of all opportunities offered by the internet for your business activities? (historical)?

21. 03 21 Business Processes & Technology © Across Health

22. 03Business Processes & Technology In Europe, the level of IT-business integration is acceptable, but channel mix processes and campaign automation technology are quite immature 22 © Across Health 29% 17% 10% 36% 43% 31% 30% 32% 47% 6% 8% 13% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% MC campaign automation robust process for channel mix digital/MC team integrated with business/IT Completely disagree Somewhat disagree Somewhat agree Completely agree N = 220 European scope

23. 03Business Processes & Technology For 9 out of 10 respondents, defining the optimal channel mix is not an obvious process 23 © Across Health 20% 49% 24% 6% 2% Very complicated Somewhat complicated Neither complicated nor simple Relatively simple Very simple N = 259 Global scope 1% -3% 2% -1% 1% % change since 2013 Increase Decrease No change= How complex is it to define the optimal channel mix, i.e. allocate the right amount of budget to digital vs. offline channels?

24. 03Business Processes & Technology No single region excels at channel mix optimization, yet Europe appears to be slightly ahead 24 © Across Health 20% 23% 10% 50% 60% 62% 22% 17% 24% 6% 5% Europe US Emerging Very complicated Somewhat complicated Neither complicated nor simple Relatively simple Very simple How complex is it to define the optimal channel mix, ie allocate the right amount of budget to digital vs. offline channels?

25. 03Business Processes & Technology Average multichannel marketing budgets are low vs other industries – even more so in emerging markets…but around 20% spends over 20% in Europe 25 © Across Health 7% 4% 22% 48% 48% 67% 14% 17% 6% 12% 17% 13% 4% 6% 7% 9% Europe US Emerging less than 5% 5% to 10% 11% to 15% 16% to 20% 21% to 25% more than 25% Average 15.1% Average 15.2% Average 8.2% % of MARKETING budget allocated to digital

26. 03Business Processes & Technology Despite the uncertainty around channel mix, substantially more respondents see digital budgets increase again by 2016… 26 © Across Health 6% 13% 7% 5% 19% 29% 36% 22% 75% 56% 57% 74% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2012 2013 2014 2015 Increase Equal Decrease N = 260 Global scope How do you think your digital budget will evolve next year?

27. 03Business Processes & Technology Yet, overall investment in digital has been relatively flat for the past 4 years 27 © Across Health 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 2011 2012 2013 2014 2015 Perhaps the high % of “increase” intents in 2015 (74%) will lead to new growth in 2015, similarly to 2012 (75%) ? 8% 15% 16% 15.6% 15.1% N = 209 European scope

28. 03Business Processes & Technology Despite limited data, we can see an even lower average budget allocation to digital within sales and medical 28 © Across Health 12% 71% 6% 12% less than 5% 5% to 10% 11% to 15% 16% to 20% 21% to 25% more than 25% 40% 40% 20% SALES* Average 8.2% MEDICAL* Average 5.0% N = 28 Global scope N = 12 Global scope *Limited data collected

29. 04 Multichannel Integration 29 © Across Health

30. 04 Multichannel Integration The “multichannel” rep is gaining traction in Europe, but omnichannel customer knowledge remains quite low 30 15% 24% 27% 23% 38% 34% 43% 31% 28% 18% 8% 11% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% reps equipped with digital tools beyond edetail good view of HCP channel acceptance integrated customer Db across channels Completely disagree Somewhat disagree Somewhat agree Completely agree N = 221 European scope © Across Health

31. 04 Multichannel Integration Tablet eDetailing overtakes websites as the most popular tactic 31 © Across Health 79% 74% 60% 57% 54% 45% 44% 42% 38% 34% 33% 31% 25% 22% 22% 21% 18% 15% 14% 11% 11% 8% 8% 6% 6% 12% 18% 29% 15% 27% 39% 35% 28% 37% 43% 27% 24% 51% 41% 35% 37% 37% 39% 15% 36% 29% 23% 18% 26% 23% 5% 4% 7% 18% 13% 12% 13% 19% 17% 17% 28% 34% 20% 25% 34% 37% 38% 37% 43% 42% 46% 51% 53% 50% 53% 4% 5% 4% 10% 6% 4% 8% 10% 9% 6% 12% 11% 5% 12% 9% 5% 7% 10% 28% 11% 15% 18% 22% 18% 19% Tablet eDetailing Pharma-owned website* Email marketing Direct marketing Web Banners Web conference or virtual meeting Online medical education SEO HCP self-service portal Mobile marketing SEA Outbound call centre Integrated cross-channel campaigns Patient adherence tools Virtual eDetailing Social media marketing Social media monitoring eRep e-sampling e-MSL Marketing automation software e- or PHR** ad & promo services ePrescribing advertising & promo services Quantified self / self-tracking devices Remote patient monitoring Standard practice Pilot planned or ongoing Never Do not know / not applicable *Company, product, or disease website. **electronic or personal health record. N = 260 Global scope

32. 04 Multichannel Integration Top tactics in Europe: similar to global, and lots of piloting ongoing in integrated cross-channel; same for mobile marketing (and much less so for social) 32 © Across Health 78% 75% 61% 60% 55% 45% 44% 42% 36% 33% 31% 29% 23% 21% 21% 21% 19% 15% 13% 11% 9% 7% 6% 6% 4% 12% 17% 29% 12% 26% 34% 41% 29% 39% 44% 27% 26% 53% 41% 37% 35% 36% 39% 13% 29% 35% 16% 21% 24% 23% 6% 4% 7% 18% 13% 13% 10% 19% 16% 17% 30% 34% 19% 26% 38% 35% 38% 37% 43% 45% 43% 55% 54% 51% 52% 4% 4% 4% 10% 6% 8% 4% 10% 9% 6% 12% 11% 4% 12% 4% 9% 7% 10% 30% 15% 12% 22% 19% 19% 20% Tablet eDetailing Pharma-owned website* Email marketing Direct marketing Web Banners Online MedEd Web conference SEO HCP self-service portal Mobile marketing SEA Outbound Call Center Integrated cross-channel campaigns Patient compliance/adherence Social media marketing Virtual eDetailing Social media monitoring eRep e-sampling Marketing automation software eMSL ePrescribing advertising personal health records advertising Quantified self / self-tracking devices Remote patient monitoring Standard practice Pilot planned or ongoing Never Do not know / not applicable N = 223 EU scope *Company, product, or disease website. **electronic or personal health record.

33. 04 Multichannel Integration Top tactics in United States: similar pattern, but higher levels of “standard practice” almost everywhere, and more acceptance of social media marketing 33 © Across Health 86% 86% 69% 66% 66% 63% 57% 54% 51% 51% 43% 34% 31% 31% 29% 29% 23% 17% 17% 14% 9% 9% 9% 6% 6% 9% 6% 23% 17% 23% 29% 29% 31% 14% 29% 51% 31% 31% 40% 17% 40% 40% 54% 40% 37% 31% 29% 29% 43% 29% 3% 3% 3% 11% 6% 9% 9% 11% 14% 14% 3% 20% 20% 29% 31% 26% 23% 23% 29% 37% 40% 43% 34% 40% 49% 3% 6% 6% 6% 6% 6% 3% 20% 6% 3% 14% 17% 23% 6% 14% 6% 14% 11% 20% 20% 29% 11% 17% Pharma-owned website* Tablet eDetailing Email marketing Web Banners SEO Web conference or virtual meeting Online medical education SEA Direct marketing HCP self-service portal Mobile marketing Patient adherence tools Outbound call centre Social media marketing e-sampling Social media monitoring Virtual eDetailing Integrated cross-channel campaigns e-MSL eRep Quantified self / self-tracking devices e- or PHR** ad & promo services ePrescribing advertising & promo services Marketing automation software Remote patient monitoring Standard practice Pilot planned or ongoing Never Do not know / not applicable N = 35 US scope *Company, product, or disease website. **electronic or personal health record.

34. 04 Multichannel Integration 34 © Across Health Top tactics in emerging countries 86% 67% 62% 57% 52% 43% 38% 38% 33% 33% 29% 24% 24% 24% 24% 24% 14% 14% 14% 14% 10% 10% 10% 10% 10% 14% 24% 29% 14% 33% 38% 43% 48% 29% 33% 19% 38% 62% 24% 57% 43% 19% 71% 24% 14% 33% 19% 24% 14% 24% 5% 10% 29% 14% 19% 19% 14% 33% 29% 52% 29% 14% 43% 19% 33% 62% 14% 52% 67% 52% 62% 57% 71% 52% 5% 5% 5% 10% 10% 5% 10% 5% 5% 10% 10% 5% 14% Tablet eDetailing Pharma-owned website* Email marketing Outbound call centre Web conference or virtual meeting HCP self-service portal Web Banners Integrated cross-channel campaigns SEO Virtual eDetailing Social media marketing Direct marketing Online medical education SEA Mobile marketing e-MSL Social media monitoring eRep Marketing automation software Remote patient monitoring Patient adherence tools ePrescribing advertising & promo services e- or PHR** ad & promo services Quantified self / self-tracking devices e-sampling Standard practice Pilot planned or ongoing Never Do not know / not applicable N = 21 Emerging scope *Company, product, or disease website. **electronic or personal health record.

35. 04 Multichannel Integration Respondents are most confident about their multichannel HCP initiatives and least towards payors… 35 © Across Health 30% 52% 66% 45% 30% 29% 25% 18% 5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HCPs Consumers/patients Payors Behind Equal Ahead N = 258 Global scope Using digital initiatives targeted at stakeholders vs competition

36. 04 Multichannel Integration And the customer perspective: physicians are not satisfied with the digital offerings from pharma 36 © Across Health 33% 42% 25% Across Health GP Navigator 2015 – EU5+US+BE Our Navigator DB of 5500+ respondents tells us: 1. reps with tablets are rated as similarly impactful as reps without 2. HCPs want much more medical & service offerings online (vs promo)

38. 05 Measurement Less than 20% of European respondents feel very comfortable with measuring impact & engagement 38 © Across Health 14% 15% 13% 37% 34% 33% 40% 39% 39% 9% 12% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% good mix qualitative & quantitative KPIs measure customer engagement measure results of all channels Completely disagree Somewhat disagree Somewhat agree Completely agree N = 217 European scope

39. 05 Measurement Around 40% of our Europe & US respondents have a poor to very poor understanding of ROI – and around 25% is (very) comfortable with this concept. Emerging markets are more positive 39 © Across Health 7% 6% 5% 31% 31% 38% 35% 37% 29% 20% 14% 24% 7% 11% 5% Europe US Emerging Very poor Poor OK Well Very well

40. 05 Measurement Almost 4 of out 5 respondents have not implemented a robust framework to leverage customer data for closed- loop marketing yet…hardly any change since 2013 40 © Across Health 2% 28% 53% 13% 4% We do not see the need for collecting or using customer data We are not collecting useful customer data yet, but we should We have started doing some analysis on our multichannel customer data We have already implemented some robust customer analytics frameworks We leverage this data consistently % change since 2013 Increase Decrease No change= -2% -2% = 5% -2% 17% Do you leverage customer data from your cross-channel initiatives for advanced customer analytics and closed-loop marketing?

41. 05 Measurement And Europe appears to be lagging in this space vs US & emerging markets 41 © Across Health 2% 27% 20% 24% 57% 51% 48% 11% 23% 24% 4% 6% 5% Europe US Emerging We do not see the need for collecting or using customer data We are not collecting useful customer data yet, but we should We have started doing some analysis on our multichannel customer data We have already implemented some robust customer analytics frameworks We leverage this data consistently

43. CONCLUSION Overall, only 13% are satisfied with their current digital activities 43 © Across Health 2% 16% 28% 40% 12% 1% 0 1 2 3 4 5 N = 258 Global scope 13%

44. CONCLUSION …in Europe, satisfaction rates drop to the lowest percentage since 2011…similar trend in US… 44 © Across Health 0% 10% 20% 30% 40% 50% 60% 2010 2011 2012 2013 2014 2015 Dissatisfied Neutral Satisfied N = 222 EU scope

45. CONCLUSION As in previous years, satisfaction rates were highest in emerging markets… 45 © Across Health 47% 43% 50% 41% 46% 20% 12% 11% 30% Europe US Emerging Dissatisfied Neutral Satisfied

46. CONCLUSION 2015 analysis of satisfaction drivers…a comparison of satisfied vs dissatisfied respondents 46 © Across Health

47. CONCLUSION Effectiveness of local/INT teams • 27% vs 12% find their local & international digital teams effective Impact of digital • 45% vs 25% say they understand the ROI of digital well or very well Companywide vision • 70% vs 20% fully agree MCM programmes • Satisified group use MCM 20% more often than dissatisfied group Digital satisfaction 4 key drivers for digital satisfaction in 2015…the same factors as in our 2011-2014 historic analysis! 47 © Across Health BUT: no significant difference in budget, channel mix understanding & legal/regulatory

48. CONCLUSION Digital pharma in 2015: (another) Catch-22? 48 © Across Health Limited investment (digital budgets & internal change) Limited satisfaction CATCH-22

49. 01 02 03 04 05 © Across Health49 Key Survey Statistics Strategy & Organization Business Technology & Processes Multichannel Integration Measurement Just do it! Our final thoughts for the 2015 Maturometer could almost be a copy of the 2014 endnote...Indeed, the industry seems to have cornered itself in a catch-22 situation: satisfaction with digital is low, therefore budgets do not increase, which in turn leads to suboptimal programmes with limited impact and back to lower satisfaction...creating a plateau of improductivity...for 4 years already. Physicians are not satisfied either, with only 25% rating pharma’s digital offering 4 or 5/5. And yet, 70% of pharma respondents feel ahead of or on par with the competition in this space...clearly some work needs to be done here re customer channel affinity... So how can we move out of the catch-22? By analyzing what highly satisifed respondents do differently from the dissatisfied ones, we can start to identify some key success factors: having a robust strategy, skilled resources, a well-rounded impact framework and...a high level of cross-channel implementation are key differentiators. Also, a select set of respondents is moving ahead quickly, with 14% rating their digital roll-out programmes as very fast...so clearly the digital pharma landscape is up for pervasive change. We hope to have given you some handles to improve your organization’s digital maturity. Good luck on your omnichannel journey! Just do it! Fonny Schenck CEO, Across Health Fonny.schenck@a-cross.com Final thoughts

50. Across Health key numbers 2014 © Across Health50 • Focus on enhancing customer engagement through optimizing & integrating the channel mix (“fusion”) in healthcare • over 70 consultants • Physical presence in 10 markets • Over 500 projects (40% in customer insight & strategy) • Channel affinity of 5500 HCPs • 35+% CAGR since 2007 • www.a-cross.com/health

Across Health Multichannel Maturometer 2015

Across Health Multichannel Maturometer 2015

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