Novartis Case Study: Launch of New drug

1. TRIDIP DAS
ABHISHEK KUMAR SINGH
SAMIT BARAI
MANISH KUMAR
DATE – 4TH OCTOBER, 2015
TEAM CENTILONSUBMITTED BY
INDIAN INSTITUTE OF MANAGEMENT, BANGALORE

2. UNLEASH
AGENDA
1 KEY STRATEGIC DRIVERS
2 GO-TO-MARKET STRATEGY
3 ENSURING PROPER DOSAGE COMPLIANCE
4 DELIVERING HIGH STANDARD OF CARE

3. UNLEASH
KEY STRATEGIC DRIVERS
For a successful launch of the biologic “Fareto”, which is a first-line treatment for moderate-to-severe plaque
psoriasis, Novartis should make all of its strategic decisions and actions based on the four key strategic drivers.
Collectively, we call it as “D-TAP.”
Distributional Excellence Patients Consumption
Chain
 QR Code – On each pack of “Fareto”
 Website – “www.fareto.com”
 Mobile Application – “Fareto”
 Social Media – Facebook, Twitter & YouTube
 Real-time synchronization of demand-supply
data for optimum inventory management
Technology Acceptable Price
 Base price – Competitors’ average price
 Operational cost of running the Money Back Guarantee
Program – “UMEED”
 Technology cost of providing the value added services
 Premium Pricing – Premium charged for providing a
complete package of product and services – Maximizing
revenue in the initial stage of product life cycle
 “Fareto” – A high value, low volume Item –
Distribution through hospital’s pharmacy chain &
independent pharmacy chains – Easy access and
availability for patients
 Value proposition for pharmacy chains – Better
inventory management using technology and data,
low stock-out, optimum use of shelf space
 Low inventory carrying cost & distribution cost
optimization
 Matching Supply with Demand – Data driven
decision making
 Novartis will be a part of patients’ entire experience
with Psoriasis and “Fareto” – At every point from the
moment patients are diagnosed with psoriasis to the
time they are completely cured
 Creating points of differentiation – By offering patients
things they value but competitors don’t provide
 Engaging more deeply and directly with patients will
be the norm for Novartis

4. UNLEASH
GO-TO-MARKET STRATEGY
 Dermatologists –
 Top hospitals with department of dermatology
– About 40% of dermatologists are attached
with hospitals
 Top independent & prescribing type
dermatologists – Dermatologists who have
earlier used Biologics – Early adopters of
Biologics – Linked to independent pharmacy
chains for easy access and availability of Fareto
 Patients (moderate-to-severe plaque psoriasis) – 18 +
Age, Annual Income of 5 lakhs +, Familiarity with
smartphone & technology
TARGET CUSTOMERS
 Hospital pharmacy chain – E.g. – Apollo Pharmacy,
Medplus2
 Independent pharmacy chain – E.g. – Guardian
Pharmacy, Trust Chemists & Druggists, Zydus
Wellness, Reliance Wellness2
CHANNELS
 Market size – $13.3 Billion (Appendix 1)
 Geography –Tier I Cities
 90% dermatologists live in urban region1
 Rural population travels to cities for
Psoriasis treatment due to lack of good
medical conditions
 Competitors – High level of dissatisfaction
among Patients and Physicians with
Competitors’ drug – Dermatologists are
dissatisfied with current treatment outcomes
in about a third of cases and 41% of patients
are dissatisfied with their current level of
disease control (Appendix 1)
MARKET
 Small number of target customers for Psoriasis –
Creating high points of differentiation by
offering value added services which customers
value but competitors don’t provide
OFFERING
 Fareto is more efficacious and safe than other
biologics for Psoriasis – With Fareto the patients
can achieve clear or almost clear skin – On PASI
scale Fareto provides significantly better results
than current available treatment options
 Fareto Mobile Application – Notification for
dosage compliance, locating nearest pharmacy,
money back guarantee program & socializing
 Being an emotional support to patients – Using
content across different platforms – patients &
physicians Community
VALUE PROPOSITION
GO TO MARKET
STRATEGY
Fareto
Higher Efficacy, Safety &
Value Added Services –
High Perceived Value –
Premium Pricing –
Maximize Revenue
Competitors
Low Efficacy – No Value
Added Services – Patients
& Physicians
Dissatisfaction – Not
Perceived as a Value for
Money Product
Small
HighDifferentiation
Number of Target Customers
Low
Large

5. UNLEASH
GO-TO-MARKET STRATEGY (CONTD…)
The launch strategy of “Fareto” is divided into three major stages – Pre-Launch, Launch & Post-Launch
Getting Ready with Technology
• Tools – Website, Mobile Application & Social Media
• Content Creation – Information, Videos, Photos, Articles
• Creation of SCM & Inventory Management Platform
Patients & Dermatologists Insights
• Understanding Patient Consumption Chain & Treatment Flow
• Dermatologists’ attitude, behavior and prescription pattern
Analysis of Competitors in the Market
• Benchmarking of Competitor’s Drug Price, efficacy & safety
• Analysis of mismatch between patients’ needs and competitors’
current value proposition
Fareto Positioning & Branding
• Medical Representatives – Promote Fareto – Leaflet, Fareto Guide
Book – Dermatologists and Pharmacy Chains
• Creating Awareness about Fareto’s Efficacy and Safety – Using
Print and Digital Media – Through Key Opinion Leaders, Educators
Building Distribution Channel
• Build distribution network with top hospitals’ pharmacy chains
and independent pharmacy chains of India
Pricing & Money Back Guarantee Program (Appendix 4)
• Cost Model for Value Added Services
• Developing Pricing Strategy – Premium Pricing
Stakeholder Engagement
• Stakeholder Mapping – Engage & connect
• Engagement Strategies
Fareto Launch Event
• Raising the curtain – Inviting all the stakeholders – Dermatologists,
Pharmacists KOL, Regulators, Innovators and Early Adopters of Fareto
• Documentary Video – “Overcome Psoriasis With Fareto”
• Patients’ Engagement Program – “Discover the happy self in you”–
Patients to post photos on social media
Resource Assignment
• Marketing & Distribution Resource Assignment
• Medical Representatives Resource Assignment
• Skill Assessment, Training & Workshops
Stakeholders – Mobilization & Activation
• Prioritization of Stakeholders & Targeting
• Assessment of Quality of Interaction
• Public Relations and Communication Plan
Operational Strategy
• Supply & Distribution Strategy – Quantity of “Fareto” at different
locations of Pharmacy chains
• Matching Supply with Demand – Optimum Inventory Management
• Packaging – QR Code on every pack of Fareto to deliver value added
services to Patients
Pre-Launch Launch
Novartis’sVision,Mission,Ambition&StrategyforFareto
• Periodic Assessment of Sales, Demand Uncertainty, Efficacy and
Safety of Fareto in real-life Conditions, Feedback, Patients’
Satisfaction, Inventory of Fareto
• Taking measures to tackle any kind of issues emerging post-launch
Post-Launch

6. UNLEASH
ENSURING PROPER DOSAGE COMPLIANCE
Articles, blogs, videos, photos
Know about Psoriasis
Peers and Experts
Chat
Socialize
Locate Pharmacy
Measure and Monitor
PASI and DLQI calculator
1. Diagnosis
2. Fareto
3.Prescription
4.Fareto
5. Scan
6. Install the app
Patient
Dermatologist
Pharmacy Smartphone
APP
FEATURES





Track Progress
Reminders and Notifications
Caregiver



Connect the app with Caregiver
Easy refund processing through app
 Money back guarantee program
QR code
STEP-BY-STEP PROCEDURE
Reminders and Notifications
Notification to be sent to the patient and the caregiver 1-2
days prior to the scheduled date
Dosage Notification for nth week
FARE
TO
FARE
TO
0 1 2 3 4 8… 12 16 20 …
 Root Cause Analysis – Identified real causes behind lack of proper dosage compliance (Appendix 2)
 Devised Strategy – RECME (Appendix 3)

Safety
Authenticate your serial number

7. UNLEASH
DELIVERING HIGH STANDARD OF CARE
The “Ecosystem Linkage” – Delivering message of high Standard Of Care (SOC) through all possible direct and
indirect linkages to build trust in the ecosystem Physician
(Product focus Awareness)
Patient
(Functional & Emotional Benefit Awareness)
 Approach dermatologists in hospitals and prescribing
dermatologists in Tier I cities through MRs and aware them
about the efficacy, safety and the added benefits (especially
the mobile app and money back guarantee) of “Fareto”
 Ask Key Opinion Leaders of the industry to review “Fareto”
and publish those case studies through psoriasis related
websites and LinkedIn where dermatologists can be targeted
through profession and interest
 Launch the product in a Tier I city like Mumbai or Delhi by a
renowned dermatologist
 Institute initiatives like Talk with your Doctor in social media
 The mobile application will provide timely notification to
patients and care-givers for proper compliance – this way
Novartis can show its high standard of care for patients
 Adopt patient engagement programs in social media –
 Facebook – Provide facts about psoriasis and “Fareto”
Build a community of patients and engage with them
 Twitter – Initiate hashtag campaigns like #HappySelf,
#FightAgainstPsoriasis, #SaferThanNeverBefore
 YouTube – Upload customer testimonials
 Safety – patient has visibility of the drugs' source
Patient
Caregiver
Dermatologist
Pharmacy
ECOSYSTEM LINKAGE
KOL, Educators, Media

8. UNLEASH
APPENDIX – 1
Population of India 1.25 Billion3
Incidence Rate of Psoriasis 1.02%4
Adult Population (>18 Years) 70%5
Medium - To -Severe Psoriasis 30%
Average Cost of Psoriasis Treatment INR 3200006
Market Size INR 13.3 Billion
Biologic Drug For Psoriasis Price of One Dosage Findings
Alzumab (Biocon) INR 79506
• Alzumab showed remission only after 24 weeks compared with other drugs
currently in the market which showed remission only after 5-20 weeks6
• Alzumab showed less side effects compared to other drugs6
Enbrel (Pfizer) INR 87007
• Enbrel can lower the ability of your immune system to fight infections8
• Some people had serious infections while taking Enbrel. These infections
include tuberculosis (TB) and infections caused by viruses, fungi, or bacteria
that spread throughout the body8
Breakdown of Pricing Structure Price (INR)
Base Price (Average Competitor’s Price) -
Operational Cost of Money Back Guarantee Program -
Tech Cost of Value Added Services -
Premium Charged -
Final Price -
Pricing Strategy – Premium Pricing
Market Size
Competitors’ Drug’s Price & Findings

9. UNLEASH
APPENDIX – 2 : ROOT CAUSE ANALYSIS
LackofProperDosageCompliance
Choice of Therapy
Lack of Immediate
Benefit
Knowledge
Stress of Healthcare
Visits
Lack of Efficacy
Lack of Awareness
Lack of knowledge of
health related issues
Difficulty in understanding
of prescription instructions
Unstable Living
Conditions
Access To Pharmacy
Financial Problem
Socio-Economic
Conditions
Patients
Healthcare
Team
Lack of measurement
of progress
Improvement in
Previous Symptom
Side Effects
Patients’ Belief
Lack of Proper
Communication
Complexity of
Dosages

10. UNLEASH
APPENDIX – 3: ‘RECME’ FRAMEWORK
DEVISED STRATEGY – ‘RECME’ TO ENSURE PROPER DOSAGE COMPLIANCE AND INCREASE ADHERENCE
• Lack of awareness
• Difficulty in understanding of
prescription instructions
• Stress of healthcare visits
• Lack of measurement of progress
• Improvement in previous
symptoms
• Lack of communication
Causesofnon
adherence
Resources
HealthCareEcosystem
Strategy(RECME)
Outcome
• Websites
• Mobile Application
• Social Media
• QR code
• Content – Article, Blogs, photos, videos
• PASI, DLQI score calculation
• Patients & Physicians community platform
• Dermatologists
• Nurses
• Pharmacy chain
• Key Opinion Leaders
• Caregivers
• Educators
• Supporting Staffs
• Proper Dosage Compliance
• Increased Adherence
• R emind
• E ducate
• C ommunicate
• M easure & Monitor
• E valuate
FEEDBACK

11. UNLEASH
APPENDIX – 4
Money Back Guarantee Program – A Demonstration Model
PASI Score Money back (%)
Week 0-4 - 0%
Week 04 No Improvement/ Deterioration 0%
Week 12 No Improvement/ Deterioration 25%
Week 20 No Improvement/ Deterioration 30%
Week 28 No Improvement/ Deterioration 40%
Week 36
No Improvement/ Deterioration 50%
Less than 5% Improvement 20%
Less than 10% Improvement 10%
Week 44
No Improvement/ Deterioration 80%
Less than 5% Improvement 40%
Less than 10% Improvement 20%
Week 52 No Improvement/ Deterioration 100%
At End of Week 52
DLQI score Money back (%)
0-1 0%
2-5 25%
6-10 50%
11-20 80%
21-30 100%
We constructed a dummy model for the money back guarantee program. It is solely for the purpose of reference and should be
further improved by taking opinions from cross-functional teams.

12. UNLEASH
REFERENCES
1. Verma, S. (2007). Nonclinical challenges of Indian dermatology – cities vs. villages, poverty, and lack of
awareness, International Journal of Dermatology
2. http://www.indiaprwire.com/pressrelease/health-care/2011020877171.htm
3. http://data.worldbank.org/indicator/SP.POP.TOTL
4. http://cdn.intechopen.com/pdfs/32475/InTech-Psoriasis.pdf
5. http://www.censusindia.gov.in/
6. http://www.biospectrumindia.com/biospecindia/news/193275/biocon-s-novel-anti-psoriasis-biotech-drug-
released-india
7. https://apothecurry.wordpress.com/2013/04/18/key-takeaways-from-ciplas-first-biosimilar-launch/
8. https://www.enbrel.com/support/side-effects-safety-information/

13. THANK YOU