Creating and capturing value beyond the pill: why it's a necessity, how to do it right and key success factors

1. How to Create and Capture
Value Beyond the Pill
“Big Pharma has to move beyond just „selling the pill„ ”
Joseph Jimenez, Novartis CEO

2. Beyond-the-pill is a logical and inevitable
path forward for all
PAYERS
Rising costs of chronic
disease management –
focus on outcome vs
cost
UNMET NEEDS
Opportunities for improved care
NEW TECHNOLOGIES
New service possibilities
PHARMAS
Increasingly difficult to
differentiate through
pills alone
PATIENTS
Demanding more
support on managing
chronic conditions
Creating value by embedding products into a holistic
offering with the aim to improve patient outcomes and
provide tangible competitive advantages
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3. Leading pharma companies have started to experiment
with services beyond-the-pill
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Innovative solutions that
facilitate shared decision
making between patients and
physicians
„Proteus ingestible sensor for
tracking medication intake
receives FDA clearance“
Integrated care model for
schizophrenia patients in
Germany
 In-house Care Mgt. Subsidiaries:
 Partnerships & Alliances:  Healthcare Stakeholder Collaborations:
 Patient Support Programs:
&
For example:

4. Done right, significant impacts can be achieved with
services beyond the pill
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Better Health Outcomes
In outpatient settings, patient assistance program enrolment plus
additional medication services (e.g., counseling, reminders) is
associated with improved disease indicators for patients.
(Tisha Moniek Felder, Jan. 2010,
http://digitalcommons.library.tmc.edu/dissertations/AAI3398971)
Easier Access to Therapy
Especially for newly launched products with delays in coverage
decisions by PBMs, health plans and government payers.
(Suzanne Shelley, Pharmaceutical Commerce, February 26, 2013)
Increased Brand Loyalty
Through the “Lipitor For You” program Pfizer
maintained three times the normal market share
for Lipitor after the first generic hit.
(http://beyondthepill.medivo.com/2012/08/coupons-and-
co-pays-how-a-few-brands-are-battling-generics/)

5. 5
Adding standard off-the-shelf services to a product
is the fast & easy tactical approach
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Patient website...
An app... A reminder...
A brochure ...

6. But these services are often disconnected and
fail to truly address stakeholder needs
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Awareness
Diagnosis
Monitoring
Fear & anxietyPoor physician-patient
communication
Diagnostics not part
of all check-ups or
not reimbursed
Can a simple brochure deal
with emotional & inter-
personal challenges?
Early symptoms
not recognized
Is an awareness
campaign sufficient?
Therapy
Challenges along a patient‘s journey
Complex
medication for
co-morbid
patients
Side effects and drug-
drug interactions
Is a simple product
information enough?
Can a reminder address
intentional non-adherence?
Intentional & non-
intentional non-
adherence
Social withdrawal,
avoidance, isolation
What about the patient‘s
overall well-being?

7. Our beyond-the-pill excellence method
ensures a strategic approach
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Diagnose Define Design Implement
Nature of disease: e.g. no
symptoms / difficult
diagnosis etc.?
Stakeholders: Needs
along the patient journey?
Competition: Minimum
services required to match
offerings?
Brand: Specific
requirement e.g. injection
or first dose monitoring?
Goal of the overall service
strategy?
Fit with product portfolio?
Key components (breadth
& depth of offerings) of
service strategy?
How success is to be
measured?
Priority steps & needs to
be addressed with
services?
How to co-create services
with customers to ensure
relevance and
acceptance?
How to include internal
cross-functional
knowledge and input?
Priority steps & needs to
be addressed with
services?
How to co-create services
with customers to ensure
relevance and
acceptance?
How to include internal
cross-functional
knowledge and input?
What factors drive
the service model?
Which service
strategy?
What services
to offer?
How to implement
the services?

8. Diagnose: Full understanding of disease, competition
and stakeholder landscape service implications
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Example of Structured Analyis:
Competition Baseline to match services currently
offered by competitors? Areas of differentiation?
Disease & Brand Nature of the disease &
implication on service? Product fit with the current
disease and therapy settings? Any product features
presenting a need or an opportunity for service
offerings (eg. injection, first dose monitoring)?
Stakeholders Physical, emotional & financial
journey of patient – unmet needs & decision points?
Diagnostic
To understand the implications of the disease,
brand, competition and stakeholder needs for the
service model strategy.

9. Define: A strategy and service model that best fits you
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Limited Offering
Generic services targeting one or
few steps in the patient pathway
(e.g. benefits investigation)
LevelofCustomization
Low
High
Breadth of OfferingFew Many
Focused Offering
Highly customized services targeting
one or few steps in the patient
pathway (e.g. emergency on-site
diagnosis for acute indications)
Broad Offering
Bundle of generic services targeting
most steps of the patient pathway
(e.g. blockbuster offering for primary
care indication)
Relationship Offering
Complete solutions that are highly
customized and cover the entire
patient pathway (e.g. complex chronic
specialty indications)
Executive Insight Service Models:

10. Design: Services that are truly relevant with ownership
and commitment from your customers
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Collaborate with
stakeholders
along patient journey to fully
understand needs and opportunities
Executive Insight‘s inclusive and collaborative
Deep Dive Methodology
Co-create innovative
solutions with you
by harnessing collective
imaginative power
Process OptimizationDiagnosis Education/Training
Adherence / ComplianceLifestyle/Peer-to-Peer
MonitoringTreatment DecisionAwareness
Access
Tpyes of services created e.g.:

11. Winning
Beyond-the-Pill
Service Strategy
Implement: Driven towards meeting key success factors
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Take a needs-based
approach
Patient/stakeholder’s (not the
brand) perspective to address
needs along the patient journey
Consider ALL
stakeholder groups
Other key players beyond
HCP & patients e.g. care-
givers, pharmacists
Co-develop solutions
with customers
Higher relevance and adoption
of service solutions
Clarify ownership &
resourcing
Allocation of funding and
resources pre-launch as well
as early affiliate involvement
Start early
Sufficient lead time for piloting &
implementation with roadmap of
comprehensive service solution
well before launch
Leverage external
partners
Multiple areas of expertise and
multi-country execution

12. Our experience is already helping to shape
beyond-the-pill thinking in the market
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Thought-leading publications: Founders of the beyond-the-pill
group on LinkedIn:
http://www.executiveinsight.ch/publications http://www.linkedin.com/groups?gid=4383768&trk=myg_ugrp_ovr
Track record:
Beyond-the-pill projects with
leading global pharma companies

13. Call us to discuss how you can also develop &
implement a winning beyond-the-pill strategy
Company address
Contacts
Meike Wenzel
Mobile: +41 79 322 12 39
m.wenzel@executiveinsight.ch
Executive Insight AG
Metallstrasse 9
CH-6304 Zug
Tel. +41 (0)41 710 71 63
www.executiveinsight.ch
info@executiveinsight.ch
Marc Pesse
Mobile: +41 78 639 52 43
m.pesse@executiveinsight.ch
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