ADKN, Co. Consulting Team Qsymia Strategic Marketing Plan


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ADKN, CO. is a student group in the Strategic Marketing class at Saint Joseph's University. By leveraging a new therapeutic category, Qsymia could ultimately become a market leader.

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  • Approved in July 2012, patent expires in June 2020Retail price of $160 for a 30-day recommended dose, approved by Aetna in November 2012 for overweight or obese patients in its formulary
  • Approved in July 2012, patent expires in June 2020Retail price of $160 for a 30-day recommended dose, approved by Aetna in November 2012 for overweight or obese patients in its formulary
  • Approved in July 2012, patent expires in June 2020Retail price of $160 for a 30-day recommended dose, approved by Aetna in November 2012 for overweight or obese patients in its formulary
  • Approved in July 2012, patent expires in June 2020Retail price of $160 for a 30-day recommended dose, approved by Aetna in November 2012 for overweight or obese patients in its formulary
  • ADKN, Co. Consulting Team Qsymia Strategic Marketing Plan

    1. 1. Qsymia® Strategic Marketing Plan “Weighing in on Healthy Weight Management”Pharmaceutical & Healthcare Marketing Strategy and Planning I Professor Jambulingam December 11th, 2012 11:00AM Presented by ADKN, CO. Consulting Alexa Disco Ken Norcross Christian O’Brien FOR STUDENT/INSTRUCTOR USE ONLY © 1
    2. 2. Value Proposition For cardiometabolic patients seeking to own their healthyweight management while achieving wellness goals, Qsymia®is the only once daily pharmacotherapy that offers weight loss of 10% or greater, providing clinically meaningful results in cardiovascular and metabolic risk factors. Adapted from: VIVUS Q3 Conference Call, Seeking Alpha FOR STUDENT/INSTRUCTOR USE ONLY © 2
    3. 3. Agenda Product Analysis Internal Analysis: Product and Company External Analysis: Market, Customer, Competitor SWOT Analysis, Objectives, Critical Success Factors Strategies, Tactics and Budget Proposition FOR STUDENT/INSTRUCTOR USE ONLY © 3
    4. 4. Product Profile• First once-daily pharmacotherapy withthe proven potential of allowing patientsto achieve and maintain ≥ 10% weightloss• Indicated for: • use as an adjunct to reduce calorie diet and exercise • patients who are overweight (BMI >27 kg/m²) or obese (BMI>30 kg/m²) • with one or more weight related co- Multiple strengths with simple morbidity(ies) once-daily dosing• Common Side Effectsinclude: • Active ingredients include: • Dizziness, insomnia, phentermine & topiramate (fixed dose) constipation and dry • CNS Stimulant/Anorexiant mouth Source: Qsymia Website, Package Insert FOR STUDENT/INSTRUCTOR USE ONLY © 4
    5. 5. REMS Program• Inform prescribers and female patients who are pregnant or may becomepregnant of the potential risk to the unborn fetus• Ensures that HCPs are offered training on Qsymia®• VIVUS will have access to a physician database that will show prescriptionvolume based on prescriber• Mail order prescriptions only • Requires additional training of pharmacy staff on REMS procedures Source: FOR STUDENT/INSTRUCTOR USE ONLY © 5
    6. 6. Obesity Market Analysis Total Size of Market: Source: • 78 million people (one-third U.S. population) • Obesity is directly related to socio-economic status; slightly higher incidence in women (40.6 million) than men (37.5 million)Methods of Treatment: • Diet (Weight Loss Market) • Exercise (Weight Loss Market) • Surgical Intervention (Weight Loss Market) • OTC Pills (Weight Loss/Anti-Obesity Market) • Prescription Medication (Anti-Obesity Market) • Holistic Remedies (Weight Loss/Anti-Obesity Market) FOR STUDENT/INSTRUCTOR USE ONLY © 6
    7. 7. Anti-Obesity Market Dietary • Branded Long Term Anti-Obesity Supplements Drugs included products belonged to three categories: OTC 1. Appetite Suppressants Generic Short 2. Metabolism Accelerators Term Drugs 3. Nutrient Blockers Branded (Malabsorption) Short-term Drugs • Focus: Delivering value through cosmetic (short-term) change Branded • Limited Efficacy Long Term Anti- • Undesirable side effect profile (i.e.: Obesity GI issues) Drugs • Cardiovascular and pulmonary safety issues FOR STUDENT/INSTRUCTOR USE ONLY © 7
    8. 8. Healthy Weight ManagementMarket • Two new weight management drugs approved during summer 2012: Belviq (ARENA) & Qsymia (VIVUS) • Focus: Delivering value by improving weight-related co- morbidities; chronic disease management • Improved Efficacy (weight loss >5%) • Improved Side Effect Profile • Improvement in concomitant weight related diseases FOR STUDENT/INSTRUCTOR USE ONLY © 8
    9. 9. Product Performance Analysis Qsymia Rx Sales Volume • Less than 5,000 patients prescribed Qsymia since launch Q3 2012 • Generates lots of interest among6000 prescribers • Sales force effective (25,000 targeted)4000 MDs 28,000 details (1-2 details per MD Rx Sales…2000 since launch) • 30% drop off rate in filling 0 prescriptions 1,000 patients Sep-12 Oct-12 • Formulary status achieved in November 2012 (Aetna) • Price for 1 30-day supply is $160, avg. co-pay is $62 • Strong PBM partnerships through REMS program • Currently in the trial phase as VIVUS has achieved awareness goals through PR an detailing (A-T-U) Source: VIVUS Q3 Conference Call, Seeking Alpha FOR STUDENT/INSTRUCTOR USE ONLY © 9
    10. 10. Company Analysis • Qsymia only drug in disease category • Qsymia is currently in clinical trials to address sleep apnea and Diabetes • VIVUS lacks diverse product offerings (only 2 products) • Contract sales force for Qsymia • Clear messaging of Qsymia to physicians • Positive relationships with physicians in disease state • Operating at a loss due to Qsymia commercialization expenses • Strategic partnerships with contract suppliers to encourage steady product of API • Lacking comprehensive complementary service for Qsymia • Weak company recognition/reputationSource: VIVUS Website FOR STUDENT/INSTRUCTOR USE ONLY © 10
    11. 11. Overall Internal Analysis Strengths Weaknesses• REMS program • 30% Patient Drop off rate• AETNA formulary coverage due to priceachieved • Less than 5,000 patients• Already in trial phase since prescribed Qsymia sincelaunching in September 2012 launch• Strategic partnerships with • Operating at a loss due tosuppliers commercialization• Clear messaging with • Qsymia is only drug inQsymia disease state• Strong operations and • Lacking diverse productinfrastructure portfolio FOR STUDENT/INSTRUCTOR USE ONLY © 11
    12. 12. Customer Analysis Payer - Outcomes oriented, rewards efficacy - Progressive and seeks innovation - Likely to provide formulary coverage based due to trend in weight management Prescriber Patient- Outcomes oriented physicians withhigh influencing potential - Cardiometabolic patients seeking healthy weight management- Treat weight related cardiovascularand metabolic co-morbidities - Chronic weight issues- High anti obesity prescribers and high - Non-cosmetic orientatedco- morbid prescribers - Need resources, support and lifestyle(hypertension, high cholesterol and modification in order to be successfuldiabetes)-Early adopters of innovative products FOR STUDENT/INSTRUCTOR USE ONLY © 12
    13. 13. Competitor AnalysisMarket Share as of 9/2012 Competitor Analysis Anti-Obesity Risk/Benefit Comparison Profile Alli Direct Alli Xenical Belviq Competitor: Xenical Brand Name Indication Obesity Obesity Healthy Adipex Management Management Weight Management Phentermine compounds Safety Profile Good Good Good Diethylpropion Efficacy High High Low Profile Dosing 60mg 120mg 10mg • Major Threats include: • Generic Competiton • Overall sales in category declining • OTC indirect competitors erode sales FOR STUDENT/INSTRUCTOR USE ONLY © 13
    14. 14. Environmental Analysis Threat of New Product Entry - Strong anti-obesity pipelines in pharmaceutical companies Overall industry rating: - More dual combination therapies LOW RATING: MEDIUM Degree of Competitive Rivalry - Competes directly with newly approved Threat of Substitution Belviq- No substitute product in - Competes directly against Alli (largestweight management market share)category RATING: LOW RATING: LOW Buyer Power - Mail-order pharmacies allow Supplier Power consumers to choose to fill the script - Few suppliers of API - Price is fixed at $160 for 30-day RATING: HIGH supply -Cannot bargain low cost until formulary coverage is gained RATING: LOW FOR STUDENT/INSTRUCTOR USE ONLY © 14
    15. 15. Environmental AnalysisCategory TrendCustomer • Wellness orientedEconomic • Rising medical costs associated with obesityGovernment • Providing grants to support preventionPolitical • Changing subsidized meals for obese childrenRegulatory • US and EU taking anti- obesity drugs off market for safety reasonTechnological • Increase in technology leads to increasing sedentary lifestyle FOR STUDENT/INSTRUCTOR USE ONLY © 15
    16. 16. Overall External Analysis Key Opportunities Key Threats• Emphasis on outcomes • Increasing innovation leads• Weight management, not to obsolescencecosmetic • Competing messages• Emphasis on addressing co- • Strong pipelines for anti-morbidities obesity medications• Overall message: wellness • Economies of Scale• Prevention is rewarded • Rising costs of healthcare• Healthcare Reform • EU and US heavily scrutinizingencourages pharmaceutical anti-obesity products and withintervention in guidelines drawing some from market FOR STUDENT/INSTRUCTOR USE ONLY © 16
    17. 17. SWOT Analysis Strengths Weaknesses • Clear messaging of • Lacking diverse brand Qsymia to physicians portfolio (high risk) • REMS program • 30% drop off rate in • Already in trial phase patients filling Rx • Qsymia is only drug in disease state Opportunities Threats • Emphasis on addressing • Generic competition co-morbidities and declining sales • Wellness orientation growth in anti obesity • Encouragement of market pharmaceutical • Antiquated perception intervention in guidelines (“cosmetic”) for treatment • Economies of Scale FOR STUDENT/INSTRUCTOR USE ONLY © 17
    18. 18. Critical Success Factors1. Improving Payer (Formulary) Coverage2. Improving drop-off rate3. Shift perception of anti-obesity drugs4. Efficacy Profile5. Support Programs FOR STUDENT/INSTRUCTOR USE ONLY © 18
    19. 19. Strategic Objectives Creating comprehensive Improving drop-off rate Shift perception of Anti- support program that from patients not filling their obesity drugs encourages compliance and patient success prescription for QsymiaQsymia is an adjunct to diet Patients need support in order to Expanding Trial so that it will and exercise and for reach weight loss goals become usagemaintaining a healthy weight New 30 day trial pack of “Be Well” Public Service “Qsymia Full Circle” Qsymia and Rewards Campaign Program Market Customer Environment FOR STUDENT/INSTRUCTOR USE ONLY © 19
    20. 20. Strategic Initiative 1 “Be Well” Public Service Campaign• Overwhelming perception thatpharmaceutical drugs in this disease are“quick-fixes”, “miracle workers”, and forcosmetic purposes only• Trend is that consumers are becomingmore health conscious and wellnessconcerned• This will result in patients utilizingpharmacotherapy as an adjunct tomaintaining healthy weight FOR STUDENT/INSTRUCTOR USE ONLY © 20
    21. 21. Strategic Initiative 1 “Be Well” ObjectiveIncrease awareness by 15% to those whowould be willing to try a weight loss pill by2016. Those who want to use a pill: 15% of totalobesity population (4,105,500 people) FOR STUDENT/INSTRUCTOR USE ONLY © 21
    22. 22. Strategic Initiative 1 “Be Well” Public Service Campaign FOR STUDENT/INSTRUCTOR USE ONLY © 22
    23. 23. Strategic Initiative 1 Additional Tactics to Leverage Healthy Weight Management Market definitionDigital Marketing• Unbranded website roll-out• Unbranded banner advertising• Unbranded online video advertising• Health site (WebMd) partnershipsPublic Relations• Publishing behavioral studies/market research attitudes surveys of patients taking Qsymia for healthy weight management FOR STUDENT/INSTRUCTOR USE ONLY © 23
    24. 24. Strategic Initiative 2 “Qsymia Full Circle”• The Q&Me® Program already offered by Qsymia lacks someimportant features including: • access on smart phones • entertainment, interaction • monitoring metrics and rewards • social networking • food recommendations• Deploy a mobile application“Qsymia Full Circle” at point of Q…Full Circleprescription being written using iPhone appScanCode Technology located onpatient brochures FOR STUDENT/INSTRUCTOR USE ONLY © 24
    25. 25. Strategic Initiative 21. Scan Barcode on back “Qsymia Full Circle” of patient literature Q-nnect with your Q-mmunity™ Qsymia Full Circle Hey gang! I’m food shopping right now. Any suggestions on which convenience meals I should get? Check the Lean Cuisines that are “Q-Sine” labeled! I like the chicken fettuccine! FOR STUDENT/INSTRUCTOR USE ONLY © 25
    26. 26. Strategic Initiative 2 “Qsymia Full Circle” Terrific! Looks delicious! Thanks again for your help! No prob! Enjoy !Alliance with Nestle’s Lean Cuisine Product Line FOR STUDENT/INSTRUCTOR USE ONLY © 26
    27. 27. Strategic Initiative 3 New Qsymia Trial Pack and Rewards Program• Drop off rate when filling prescriptions for Qsymia is 30%• Price is too high for some patients• Lack of formulary coverage does not enhance the desirability of our pricing strategy• Leveraging existing trial use encouraging switch to usage• Entice patients with chronic weight issues with co- morbidities present• Goal: Decrease drop-off rate by 5% between patients getting script and not filling it, by end of year 1 FOR STUDENT/INSTRUCTOR USE ONLY © 27
    28. 28. Strategic Initiative 3 New Qsymia Trial Pack and Rewards Program • Existing 14-day trial program from Qsymia’s website • New 30 day trial back will demonstrate greater efficacy • Patients will be encouraged to continue to stay on Qsymia after the 30 days to continue seeing positive results FOR STUDENT/INSTRUCTOR USE ONLY © 28
    29. 29. Strategic Initiative 3 Additional Tactics for Improving Compliance • Qsymia Qoins® reward positive behavior when patients are logged into their Full Circle mobile application or desktop online username • Frequency of updating physical activity log • Posting/sharing healthy recipes • Adhering to weight loss goals by completing biometric screenings • Rewards can add up within a range and redeemed for these following prizes: Coupons at Discounted GymQsymia Coupon Wegman’s Memberships Supermarkets FOR STUDENT/INSTRUCTOR USE ONLY © 29
    30. 30. MetricsStrategy #1: • Converting users from cosmetic OTC diet pill use to healthy weight management Qsymia use • Track Amount of Traffic to unbranded websites and how many people registered to receive information about Qsymia • Track impressions on unbranded advertisements for the “Be Well” and healthy weight management campaignsStrategy #2: • Track number of downloads of Full Circle application from App Store and Google Play • Track frequency of users using application • Track effectiveness of POS barcode scanningStrategy #3: • Track number of prescriptions through PBMs and REMS program FOR STUDENT/INSTRUCTOR USE ONLY © 30
    31. 31. Budget Assumptions ongoingOngoing Marketing cost estimates Year 1 Ongoing as % of year 1AdvertisingPush $1,000,000 $1,000,000 100Pull $12,000,000 $6,000,000 50Total advertising $13,000,000 $7,000,000PromotionDevelopmental support program $200,000 $0 0L&L $600,000 $300,000 50Production support $2,000,000 $2,000,000 100Training and promo $500,000 $500,000 100Direct mail $200,000 $200,000 100Total Promotions $3,500,000 $3,000,000PRMedical education $3,500,000 $1,750,000 50Press release $800,000 $800,000 100Total PR $4,300,000 $2,550,000Market Research $600,000 $600,000 100SF allocation $1,491,000 $1,491,000 100Product management $255,000 $255,000 100Total Budget $23,146,000 $14,896,000 FOR STUDENT/INSTRUCTOR USE ONLY © 31
    32. 32. Forecasting Year 1 Year 2 Year 3 Year 4 Year 5Method 1Number of Americans with BMI between25 and 30 78,200,000 78,200,000 78,200,000 78,200,000 78,200,000x 35% actively trying to lose weight 27,370,000 27,370,000 27,370,000 27,370,000 27,370,000x 15% who are comfortable using diet pill 4,105,500 4,105,500 4,105,500 4,105,500 4,105,50010% who might purchase Metabical inYear 1adding 5% each subsequent year 410,550 615,825 821,100 1,026,375 1,231,650plus 60% buy a second package 246,330 369,495 492,660 615,825 738,990plus 20% of these buy a third package 49,266 73,899 98,532 123,165 147,798Sales 706,146 1,059,219 1,412,292 1,765,365 2,118,438 FOR STUDENT/INSTRUCTOR USE ONLY © 32