Oncology Global Strategic Marketing Report Summary


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Global Strategic Marketing (GSM) organizations in oncology are involved in many of the key activities related to a successful launch. GSM groups face many challenges in properly aligning their staffing with the roles and activities of the group. Different launch activities require varying levels of resources and organizations structure themselves in different ways to adeptly handle these demands. The study, which concentrates on the oncology therapeutic area, provides staffing benchmarks for different GSM roles across the company. In addition, the study presents the structure of GSM groups and identifies GSM leadership role for key launch activities. Executives can use this study to compare their Oncology-GSM staffing and services levels with industry averages.

Best Practices ®, LLC undertook this research to highlight approaches to staffing Oncology-GSM departments to ensure successful product launch. This study can be used by marketing and launch leaders to confirm they are staffing appropriately to adequately support GSM functions and different activity areas.

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Oncology Global Strategic Marketing Report Summary

  1. 1. BEST PRACTICES,®LLCCopyright © Best Practices®, LLC 1Best Practices, LLCStrategic Benchmarking ResearchOncology Global Strategic Marketing:Benchmarking Budget Levels & Service Scope
  2. 2. BEST PRACTICES,®LLCCopyright © Best Practices®, LLC 2Topics IncludedResearch Objective & Study MethodologyStudy OverviewBest Practices, LLC conducted this benchmarking study to establish meaningful benchmarks forthe resource levels and the services scope of Global Strategic Marketing (GSM) organizationssupporting Oncology products and programs. Total investment for Oncology-GSM Distribution of budget across 6 keyfunctional areas and across productdevelopment phases Commercial spend - % budget allocatedat launch & post-launch phases Total # FTEs supporting GSM functions Distribution of FTEs across 8 majoractivity areas % FTEs dedicated to developing and“rest of world” markets Use of outsourcing and off-shoring # products, labels & programssupported Key Ratios: GSM investment/OncologySales, FTEs/$100M revenue, GSM $/product, & GSM $/pipeline programResearch Objective: Oncology-Global StrategicMarketing (GSM) organizations today face increasingregulatory, regional and competitive challengesin a crowded market.This study seeks to help Oncology-GSM leadersunderstand the investment levels, marketingactivities, timing and structures needed tosuccessfully steer products and pipeline programsthrough the complex Oncology marketplace.Research findings provide industry metrics thatwill serve as a reference point for GSM leaders inbudgeting and strategic planning. Methodology: Best Practices, LLC developeda customized survey tool to capture industry dataand deployed it to a representative sample of 17pharmaceutical companies with Oncologyprograms and portfolios.
  3. 3. BEST PRACTICES,®LLCCopyright © Best Practices®, LLC 3Participating Companies & Data SegmentationLarge Companies:• Abbott• Astellas• AstraZeneca• Baxter Oncology GmbH• Bayer• Boehringer Ingelheim• Bristol-Myers Squibb• Eisai Inc• Merck Serono• Onyx Pharmaceuticals• Sanofi• TakedaEmerging Companies:•Exelixis•Gilead Sciences, Inc.•MedImmune•Monogram Biosciences•Selvita S.A.Benchmark participants included GSM leaders supporting Oncology organizations at 17 companies.The study included both large, established and small, emerging Oncology companies to providebroadest insights. Data is presented for large and emerging company segments throughout the report.Participating Companies
  4. 4. BEST PRACTICES,®LLCCopyright © Best Practices®, LLC 4Key Findings 2: Normalized Metrics & Ratios GSM Spend per Pipeline Program Averages > $800K at Big Companies: Large company GSMspend per Oncology program in the pre-launch phases ranges from under $100K to $2 million, withan average of $805,231. The average for emerging companies is $201,894. Large Company GSM Supports Average of 16.4 Oncology Pipeline Programs: GSM organizationsin the large company segment support an average of 16.4 pipeline programs, while emerging companiessupport an average of 9.4. GSM Spend per In-Market Oncology Product Averages $6.2M: GSM spend per in-market Oncologyproduct ranges from $200,000 to more than $16 million, with an average of $6.2 million. Average per-Label GSM Spend Tops $2.8M: GSM spend per Oncology label ranges from $66,667to $8.3 million across the benchmark class. On average, the GSM investment per label is $2.8 million. GSM Supports Average of <2 Oncology Products & <4 Labels: Large company GSM organizationssupport an average of 1.75 in-market Oncology products and 3.75 labels. Emerging company GSMpredominantly supports development programs rather than products, and the averages reflect thatposition, with 0.8 products and one label supported. Total Oncology-GSM Spend Averages Nearly 1% of Sales: GSM investment as a percentage of totalOncology sales averages just under 1% for the largest companies (over $1 billion Oncology revenue) inthe benchmark class. Their GSM investment ranges from 0.1% to 2.5% of sales. Commercial Investment as Percentage of Sales Averages 0.84%: GSM investment for commercialphases averages 0.84% of total Oncology product sales for the large company segment. The ratio rangesfrom 0.03% to 2%.The following key findings, observations, insights and metrics emerged from thisbenchmarking study.
  5. 5. BEST PRACTICES,®LLCCopyright © Best Practices®, LLC 5Key Findings 5: GSM Leadership & Future Investment TrendsONCOLOGY-GSM LEADERSHP GSM Often Has Full Lifecycle Involvement: A majority of Oncology-GSM groups maintain aleadership role in the Launch and Post-Launch phases of product development. GSM Key Leadership Areas Are Market Intelligence & Marketing: In the early phases of productdevelopment, Oncology-GSM most often takes a lead role in Market Intelligence activities. AfterPhase II, Marketing is the area where GSM most frequently leads.INVESTMENT TRENDS Up to 73% Expect Increased GSM Funds for Pipeline Marketing: Budget increases areanticipated by as many as 73% of benchmark participants for activities supporting the Oncologypipeline. Activities most often expected to gain are ad boards, marketing and market intelligence.Few project any decreases. Up to 42% Expect GSM Increases for In-Line Product Marketing: More benchmark participantsanticipate GSM investment level decreases and fewer anticipate increases for in-line products thanfor pipeline products. Marketing is projected to as the top area for funding increases, and the toparea for cuts is Congresses. Interestingly, companies are evenly split at 33% on whether funding forAd Boards will go up, down or remain unchanged.The following key findings, observations, insights and metrics emerged from thisbenchmarking study.
  6. 6. BEST PRACTICES,®LLCCopyright © Best Practices®, LLC 6Marketing Activities Take Biggest Share of Total GSM SpendAt large companies, the top two activity areas—Marketing and Market Intelligence—accountfor 51% of the total Oncology-GSM budget. Emerging companies focus even more on thosetwo key areas, with a combined 68% of total funds channeled there.N=12Percentage of GSM Investment Allocated to Key Activity AreasQ. What percentage of the total Oncology-GSM investment was allocated to each activitycategory during the last fiscal year?Large CompaniesN=5Emerging CompaniesOTHER:Websites,Training,StrategicCouncilTraining,E-mediaPersonalizedHealthcareMarketing31%MarketIntelligence20%GlobalCongresses/ConventionManagement20%ThoughtLeaders/KOLs11%AdvisoryBoards9%Advocacy5%Other4%ThoughtLeaders/KOLs10%MarketIntelligence31%Ad Boards11%Marketing37%Congresses/Conventions13%
  7. 7. BEST PRACTICES,®LLCCopyright © Best Practices®, LLC 7Product Strategy Has Biggest Share of GSM Marketing SpendSpending patterns are similar for the large and emerging company segments, with productstrategy consuming more than 70% of total GSM budgets and speaker training taking the smallestshare at only 4%.N=11Marketing Activities: Investment Allocation BreakoutQ. Estimate the percentage of the Marketing Activities budget category that was allocated toeach of the following activity sub-categories during the last fiscal year.Large Companies Emerging CompaniesN=4WebsitesMarket Access/ReimbursementPublications21%PR,Media9%SpeakerTraining1%ProductStrategy72%Product Strategyincludes branding,product campaigning& strategic marketingplanning.Other3%ProductStrategy70%PR,Media9%Pubs12%SpeakerTraining5%
  8. 8. BEST PRACTICES,®LLCCopyright © Best Practices®, LLC 877%77%85%79%71%71%15%8%8%14%21%14%8%15%8%7%7%14%Pre-ClinicalPhase IPhase IIPhase IIILaunchPost-LaunchLead Support NoneN=14Role in Market Intelligence Activities by Development Phase% ResponsesQ. For Market Intelligence activities, please indicate the type of role that Oncology GlobalStrategic Marketing plays in at each development phase.Market Intel Activities Most Often Involve GSM LeadershipMarketIntelligenceActivitiesActivitiesincluded insurvey definition:Pricing, HealthEconomics,Market Access,Market Research,Forecasting, &Business/CompetitiveIntelligenceMarket Intelligence is the area where GSM organizations most frequently take on a lead role, witha large majority leading at all product development phases. At Phase II, 85% of participating GSMorganizations take the lead for Marketing Intelligence activities.
  9. 9. BEST PRACTICES,®LLCCopyright © Best Practices®, LLC 9Additional Activities Led or Supported by Oncology-GSMQ. In the past fiscal year, what other important activities (not listed in survey) were led orsupported by Oncology GSM? (List additional GSM activities conducted at each phase.)Pre-Clinical:Phase I: Phase II: Phase III: Launch:Post-LaunchPersonalized Healthcare /Payer evidencexForecasting x x x xM&S cost planning x x x xTraining x xEducational programs xE-media xBenchmarked GSM-Organizations lead or support a variety of additional activities not includedin the survey. These range from developing e-media to developing payer information aroundpersonalized healthcare.Additional GSM Activity Involvement by Phase
  10. 10. BEST PRACTICES,®LLCCopyright © Best Practices®, LLC 10Voices from the Field: Key Success Factors in Oncology-GSMVerbatim Responses from Benchmark PartnersQ. What issues will be critical for Oncology Global Strategic Marketing to address in the next24-36 months to ensure the success of products your organization hopes to bring to market?Global IssuesCollaborationNewTechnology,Markets,StakeholdersMarketAccessOtherSuccessFactors“Close co-operation between global, regions and countries – ‘common language’ &common targets.”“Ensure development of global brand and quick execution globally.”“Proper leadership in building the oncology organization (including other functionalareas, such as Medical Affairs).”“Develop a strong global Medical Affairs organization.”“Seek appropriate Commercial input on clinical development plans.”“Gain KOL support earlier than launch phase-- especially if new technology is involved.”“Understanding the impact of biomarkers and diagnostic capabilities.”“Personalized medicine, cost of therapy.”“Define the right target audience, including new stakeholders (e.g., on biomarkers).”“Patient segmentation, efficacy and safety requirements, personalized care, payer &market access requirements.”“Market access is becoming more and more critical.”“Segment the market so positioning is performed for all market segments.”“Accelerate uptake through EAP at launch.”“Strategic planning is vital.”
  11. 11. BEST PRACTICES,®LLCCopyright © Best Practices®, LLC 11About Best Practices, LLCBest Practices, LLC is a research and consulting firm that conductswork based on the simple yet profound principle that organizationscan chart a course to superior economic performance by studyingthe best business practices, operating tactics and winningstrategies of world-class companies.Best Practices, LLC6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517919-403-0251bestpractices@best-in-class.comwww.best-in-class.comLink for Report: Benchmarking Budget Levels & Service Scope