A review of a decade of European pharmaceuticals online marketing and sales. Presented at EyeforPharma's first European Online Marketing and E-Detailing conference, Berlin, May, 2006

1. A Decade of European Pharma E-Business Less Hype, More Realism, but Good Reasons to be Optimistic Len Starnes Head of European E-Business Schering Germany

3. Happy birthday European pharma e-business is 10 years old this month

4. 1996 2006 Hype Raising expectations Early adopters Disillusionment Trough of despair Enlightenment Productivity Realistic expectations Pharma e-business hype cycle Then

5. The 24 x 7 rep A branded website will be more effective than a rep visit Sales forces will be cut Revenues will soar Doctors will flock to our sites A one-size fits all branded website will suffice

6. Prime motivator to visit a pharma website will be quality content Credibility and trust will be crucial The health information seeker Internet will become the most preferred source of medical Information Internet will become a powerful medium for patient acquisition

7. Connected & empowered customers Metcalfe’s Law Value of a network equals approximately the square of the number of users

9. 1996 2006 Hype Raising expectations Early adopters Disillusionment Trough of despair Enlightenment Productivity Realistic expectations Now Pharma e-business hype cycle

10. The organizational roller coaster

11. Large centralized e-business departments Disappeared

12. Smaller centralized e-business groups Emerging BU or brand team e-business function BU or brand team e-business function BU or brand team e-business function BU or brand team e-business function

13. Country e-business LA e-business Asia e-business USA e-business EMEA e-business E-business infrastructure & processes group Country e-business Country e-business Country e-business Country e-business Country e-business Country e-business Country e-business Country e-business BU or BT e-business BU or BT e-business BU or BT e-business Or?

14. E-business must be closely aligned with integrated relationship marketing teams E-business Skill sets evolution Integrated relationship marketing specialist E-business specialist CRM/SFE PRM

15. Execution and KPIs

16. ‘ The difference between good e-business and poor e-business is how well the initiative is executed’ European managing director, Schering AG

17. Mundane things matter Initiating SEM Addressing credibility, trust & privacy Providing high-quality content Ensuring design is simple and intuitive

19. 23% Consumer, patient & HCP relationship building 40% Disease awareness & treatment awareness 18% Brand conversion 1% Brand retention Disease awareness dominates % business models of all European initiatives 2% Brand conversion & retention 16% Corporate relationship building

20. Yes, but difficult Yes Yes Yes Yes Yes Retention on brand (Compliance) Yes, but difficult Yes Yes Yes Most Yes Conversion to brand No Yes Yes Yes Most Yes Disease awareness & treatment awareness No Yes Yes Yes Most Yes Consumer/patient relationship building No Yes Yes Yes Yes Yes HCP relationship building (R-C)/C Cost/customer Cost/visit Cost/min visit Satisfaction surveys Email feedback Email requests Hotline enquiries Referrals Print-offs Find a doctor Most accessed Most accessed by segment Frequency Duration Attrition/churn % total acquired % total online acquired KPIs ROI Cost Customer satisfaction Outcomes proxies Engagement Target audience KPI category

21. Where the future is brightest

22. E-business Patient relationship marketing Closed-loop marketing Integrated relationship marketing CRM/SFE E-business E-business E-business

23. Customer value High Medium Low Service bundles Channels offered Costs D Sales rep Phone Mail Internet A B C D B C D Phone Mail Internet Internet €€€ €€ € E-business in CRM context

24. E-detailing will be a viable alternative to the sales force arms race

25. 55% Agree 25% Strongly agree 15% Neural 5% Disagree Marketing professionals agree Eyeforpharma Survey December 2005 Based on 722 responses from European marketing professionals E-detailing will become more popular in future

27. 14% Disagree 51% Neutral 26% Agree 9% Strongly agree Unproven ROI Eyeforpharma Survey December 2005 Based on 722 responses from European marketing professionals E-detailing has a proven ROI in key therapeutic areas

28. Live detail E-detail Multi-channel CRM application Closed-loop sales & marketing Electronic details Interactive details, tracked and fed back to CRM application Enter the digitally-enabled rep

29. HCPs’ relationship portals will deliver significant business value

31. Portals delivering value Key value drivers Initiative specifics KPIs Country A Country C Country B Access to KOLs 20% of speciality enrolled Customized & personalized newsletter First mover SF promotion Segmentation 50% of speciality enrolled Streaming video CME CME credits First mover SF promotion CRM integration SF promotion Alliance with leading teaching hospital 80% of speciality enrolled 60% active

32. More online patient support programmes will emerge - and regulations will be revised to enable

34. DTP is not DTC DTC An offence to issue an advertisement likely to lead to NRx DTP Restricted provision of information and support services to patients already on drug. Will not result in NRx, but RRx

35. 1 = Low 5 = High Adapted from: Improving Patient Compliance Datamonitor July 2003 Efficacy of e-channel compliance 5 5 4 3 2 1 1 Personalized interventions 4 4 3 4 1 4 1 Patient information 4 4 4 4 3 1 1 Tracking health indicators 4 4 4 4 4 3 2 Refill reminders 4 4 3 3 3 1 1 Appointment reminders 3 3 3 2 4 1 5 Medication reminders Contact centre Nurse support Voice automation technology Internet & email SMS messaging Direct mail Pack & devices

36. Germany Netherlands UK Pan-European online support for Betaferon patients Denmark Norway Sweden International Finland

37. Web Nurse Direct mail CC or VAT Pack or device Patient Database and patient relationship management application Next generation

38. More two-way dialogue and more community building will significantly increase the value of consumer & patient-directed initiatives - and help engender trust in pharma

40. First movers GSK France Corporate blog Abbott Global customer inquiry/response system

41. The end of business as usual Boundaries between e-business, marketing and sales are disappearing Think integrated relationship marketing