survey results of a 2008 online market research with senior pharma professionals on the current status and future priorities in the new landscape

5. Sales and Drug development will undergo most of the change by 2010. Interestingly, manufacturing (and less so, marketing) are not seen as areas that will see major changes.

7. 41% of respondents see mergers happen more frequently than in the past – only 26% see a decline. Despite the absence of big mergers (and the absence of tangible merger benefits) in recent years, the current pressures on pharma are seen to lead to a new wave of big mergers and consolidation. The trends are very similar for the segments; however, Finance/L&A and individual contributors see even more consolidation going forward.

8. Health economics/market access is the key area where significant investments will be made. Pharma is putting its bets on health economics and R&D. The more traditional units that have delivered success of the past will face a disinvestment strategy. Average growth rate in %

10. Summary Results by segment Average growth rate in % expected in next 5 years Red Nbrs = Avg growth rate deviating >30% from the Overall average growth rate Except for the functional level (see previous slide), most other segmentations yield similar outcomes; another noticeable exception is low-growth companies, which are divesting more across the board with the exception of HE/market access.

11. Improving relationships is key for S&M Delta % from average score of Account management, customer centricity and new services are seen as key levers for success. Somewhat surprisingly, digital marketing is not among the key trends and also the new stakeholders score below the “noise level” they are generating. The same goes for contract salesforces, which is a big trend in the real world – perhaps less well known by our sample?

12. Summary S&M focus areas by segment Rank nbr. - Lowest 3 ranking vs Top 3 rank

14. R&D: efforts are focused around building economical relevant medicine and developing niche markets Average weight Health Economics is once again a clear winner, followed by the human genome. Inlicensing is expected to decrease, while the probability of running more trials in emerging markets is seen is very remote. Delta % from average score

15. Summary R&D focus areas by segment Rank nbr. - Lowest 2 ranking vs Top 2 rank

17. Manufacturing: efforts are focused around plant consolidation and offshoring to low-cost countries Average weight Delta % from average score Consolidation of pharmaceutical plants is the clear winner; at the other extreme, most respondents believe chemical plants have been optimized already. Outsourcing & offshoring is seen as less important.

19. Most respondents expect little if any change going forward…and find it difficult to relate to other-industry models Average weight Delta % from average Delta % from average score

21. Despite the fact most see limited change, most participants feel the company should reinvent itself.

23. Most organizations have a programme in place – but it often fails to fully engage the employees Companies clearly invest in communicating the change but are not always specific enough.

26. The adoption of the new way of working is mixed and requires an acute boost.