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Digital Pharma:  Evolution and Revolution in Marketing and Sales Len Starnes Head of Global E-Business  Primary Care, Bayer Schering pharma
[object Object],[object Object],[object Object],[object Object],Agenda
A decade of  digital pharma
1996 2007 Hype Raising expectations Disillusionment Trough of despair Enlightenment Productivity Realistic expectations Evolution vs revolution Evolution 2006 Revolution
Expectations ’96:  The 24 x 7 rep – how wrong! Branded websites  will be more  effective than  a rep visit  Sales forces will be cut Revenues will soar Doctors will  flock to  our sites  One-size  fits-all portal  will suffice
HCPs ’  media consumption  shifting from off to online 85% of EU HCPs  say the internet  is critical for  success of their practice* 16% of EU HCPs  use a PDA for  professional  purposes* Professional use of digital media by European HCPs* % European HCPs *Taking the Pulse Europe v6.0;  sample of 1024 doctors from D/F/It/Sp/UK; Manhattan Research, 4Q06
Quality content yes, but in an  appropriate context  Credibility and trust will be crucial  Expectations ’96:   Health information seeker – right! Internet will become the most preferred source of health and medical information Internet will become a powerful medium for patient acquisition and retention Patients will be empowered
Consumers ’  favoured sources of health information moving online 143 million EU consumers have  accessed health information or health services online during the last 12 months* Most frequently used sources of health information in Europe* % European consumers *Cybercitizen Health Europe;  sample of 4302 consumers from 10 EU countries; Manhattan Research, 2Q07
Low digital marketing spend 1- 5%  Digital pharma status 06/07 Industry remains a late adopter But solid experience and realistic expectations  Too few digital-visionaries at senior level Moving slowly towards integrated solutions
Targeting doctors
Doctors generally prefer authoritative sources  - medical societies, universities, hospitals  A major challenge Doctors ambivalent towards pharma Doctors’ prime information needs focus on  new research, clinical studies, case studies, continuing medical educational, networking with colleagues, cost constraints, running a surgery as a business,…
The sales force arms race
Result: ever decreasing detailing time USA:  1:30 mins Europe:  2 - 4 mins Number of sales representatives Detailing  time 1980 - 2007
E-detailing is becoming  a viable alternative ,[object Object],[object Object],[object Object],[object Object],[object Object]
Live detail  with tablet-PC Web-based e-detail Multi-channel CRM application Electronic details, interactions tracked and logged by CRM  application Closed-loop marketing is next Interactive details customized to meet doctor’s needs Iterative detailing process
Engaging doctors can only be successful if… ,[object Object],[object Object],* Taking the Pulse Europe v6.0;  sample of 1024 doctors from D/ F/ I/ E/ UK; Manhattan Research, 4Q06 Over half of EU HCPs  expect online service  today*
Targeting  consumers  & patients
Regulations constrain objectives DTC  markets Disease & condition  awareness Non-DTC markets Treatments  awareness Brand awareness & conversion Drug compliance,  loyalty & retention
Globally targeting women ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Femalelife
30 – 50% of medicines prescribed for long-term illnesses are not taken as directed* Compliance is a major issue *Adherence to Long-Term Therapies:   Evidence for Action, WHO 2003
Isolated compliance channels SMS &  mobile Pack  & devices Contact centre Case manager VAT Internet  & email Direct  mail Patient
Germany Netherlands UK Global online support for Betaferon patients Denmark Norway Sweden International Finland
Integrated compliance channels Patient signs-up for ‘daily tips’ on  coping with SEs Patient calls asking  for advice about  a severe SE Patient downloads a PDF on SEs  management Application software accessed by a case manager All patient interactions and interventions logged Case manager alerted to SEs issue and makes appropriate interventions Secure patient  database Patient
Multi-channel integration  plus  behavioural modelling Smarter systems through incorporation of  constructs from  behavioural models    Identify a patient ’ s  risk level and propose appropriate interventions
Healthcare  social networking
‘ An expert moderated repository of the knowledge base, in the form of a  medical wiki,  may be the answer to the world’s inequalities of information access in medicine …’* Web 2.0 is radically changing medicine and healthcare Dean Giustini, How web 2.0 is changing medicine, BMJ, 23 December 2006
‘ Is pharma ready for social networking?’ ‘… it appears that the forces of change would come from the consumers’  ‘ Are social media dulling pharma’s marketing knife?’ ‘…it won’t be long before pharma realizes that it isn’t in control anymore…’ But pharma is still debating Source: www.forums.pharma-mkting.com
Web 2.0 is a disruptive technology  Adapted from: Web 2.0 in Healthcare, John Sharp, Cleveland Clinic, USA Pharma values Web 2.0 values Risk averse Information from  authoritative sources Privacy & security are  regulated Long lead times Controlling access to data and information  Intellectual property  closely guarded  Risk taking Crowd wisdom Anyone can join Rapid deployment Information contributed by  and distributed to all Open Source
Disruption at all levels  Pharma web 2.0 Public  relations Consumers & patients Sales forces Internally: Enterprise 2.0 HCPs
Collaborating with online HCPs’ communities www.sermo.com Captures bedside and  hallway conversations Helps ‘lonely’ doctors Aims are to discuss new  clinical findings and to  ‘work together to  dramatically impact  patient care’
[object Object],[object Object],Sermo’s secret sauce Adds a quantitative dimension  to qualitative postings – in real time
Pharma may now mine the  wisdom of the Sermo crowd ‘ Observe’ -  Alpha MD View community via a customized list  of subjects based on keyword tags ‘ Insight’   Post questions directly to community and take polls ‘ Action’ – Hot Spots Icons next to targeted  conversations allowing  access to relevant pharma  information and services
[object Object],[object Object],[object Object],[object Object],Responses to date
Paradigm shift The doctor-industry relationship    has the opportunity to become    a true partnership based on  mutual respect and collaboration Doctors can now dictate the    terms of engagement to the    pharma industry
1/3 of consumers in USA consult a health SN site  before visiting a doctor*   UGC from health mavens   can profoundly influence   consumer and patient   preferences Conversations are raging:  patients are learning from  one another  www.revolutionhealth.com *Manhattan Research, 2007
  Revolution Health  136 Betaseron ratings    Effectiveness:  6.2/10  Lack of SEs:  5.3/10  Ease of use:  6.2/10 Health SN sites allow patients to rank treatments, doctors, hospitals & payers > 2500 ratings of all MS treatments
Health warning to pharma marketeers   Don’t fake it
Paradigm shift   The industry must decide whether    it wants to actively participate in the    conversations or remain an outsider Consumers and patients are    taking ownership of brands,    diseases and conditions
Managing UGC on pharma sites is a major issue… but possible ,[object Object],[object Object],Open discussion areas in  14 countries: D:  6,000 members, 25,000 posts S:  1,500 members, 9,000 posts TR: 1,400 members, 19,000 posts JP:  900 members, 1,200 posts www.ms-gateway.com 3rd generation community area for MS patients, carers, family & friends
Pharma corporate blogs are  emerging J&J BTW blog J&J blogger Marc Monseau ‘ Everyone else is talking about our company, so why can’t we?’
Pharma sales reps are the most visible active bloggers 5,000 threads 60,000 posts Rants & raves, corporate grapevines, jobs
The pharma marketing  and sales revolution  has begun
[object Object],[object Object],Len Starnes

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Digital Pharma: Evolution and Revolution in Marketing & Sales

  • 1. Digital Pharma: Evolution and Revolution in Marketing and Sales Len Starnes Head of Global E-Business Primary Care, Bayer Schering pharma
  • 2.
  • 3. A decade of digital pharma
  • 4. 1996 2007 Hype Raising expectations Disillusionment Trough of despair Enlightenment Productivity Realistic expectations Evolution vs revolution Evolution 2006 Revolution
  • 5. Expectations ’96: The 24 x 7 rep – how wrong! Branded websites will be more effective than a rep visit Sales forces will be cut Revenues will soar Doctors will flock to our sites One-size fits-all portal will suffice
  • 6. HCPs ’ media consumption shifting from off to online 85% of EU HCPs say the internet is critical for success of their practice* 16% of EU HCPs use a PDA for professional purposes* Professional use of digital media by European HCPs* % European HCPs *Taking the Pulse Europe v6.0; sample of 1024 doctors from D/F/It/Sp/UK; Manhattan Research, 4Q06
  • 7. Quality content yes, but in an appropriate context Credibility and trust will be crucial Expectations ’96: Health information seeker – right! Internet will become the most preferred source of health and medical information Internet will become a powerful medium for patient acquisition and retention Patients will be empowered
  • 8. Consumers ’ favoured sources of health information moving online 143 million EU consumers have accessed health information or health services online during the last 12 months* Most frequently used sources of health information in Europe* % European consumers *Cybercitizen Health Europe; sample of 4302 consumers from 10 EU countries; Manhattan Research, 2Q07
  • 9. Low digital marketing spend 1- 5% Digital pharma status 06/07 Industry remains a late adopter But solid experience and realistic expectations Too few digital-visionaries at senior level Moving slowly towards integrated solutions
  • 11. Doctors generally prefer authoritative sources - medical societies, universities, hospitals A major challenge Doctors ambivalent towards pharma Doctors’ prime information needs focus on new research, clinical studies, case studies, continuing medical educational, networking with colleagues, cost constraints, running a surgery as a business,…
  • 12. The sales force arms race
  • 13. Result: ever decreasing detailing time USA: 1:30 mins Europe: 2 - 4 mins Number of sales representatives Detailing time 1980 - 2007
  • 14.
  • 15. Live detail with tablet-PC Web-based e-detail Multi-channel CRM application Electronic details, interactions tracked and logged by CRM application Closed-loop marketing is next Interactive details customized to meet doctor’s needs Iterative detailing process
  • 16.
  • 17. Targeting consumers & patients
  • 18. Regulations constrain objectives DTC markets Disease & condition awareness Non-DTC markets Treatments awareness Brand awareness & conversion Drug compliance, loyalty & retention
  • 19.
  • 20. 30 – 50% of medicines prescribed for long-term illnesses are not taken as directed* Compliance is a major issue *Adherence to Long-Term Therapies: Evidence for Action, WHO 2003
  • 21. Isolated compliance channels SMS & mobile Pack & devices Contact centre Case manager VAT Internet & email Direct mail Patient
  • 22. Germany Netherlands UK Global online support for Betaferon patients Denmark Norway Sweden International Finland
  • 23. Integrated compliance channels Patient signs-up for ‘daily tips’ on coping with SEs Patient calls asking for advice about a severe SE Patient downloads a PDF on SEs management Application software accessed by a case manager All patient interactions and interventions logged Case manager alerted to SEs issue and makes appropriate interventions Secure patient database Patient
  • 24. Multi-channel integration plus behavioural modelling Smarter systems through incorporation of constructs from behavioural models Identify a patient ’ s risk level and propose appropriate interventions
  • 25. Healthcare social networking
  • 26. ‘ An expert moderated repository of the knowledge base, in the form of a medical wiki, may be the answer to the world’s inequalities of information access in medicine …’* Web 2.0 is radically changing medicine and healthcare Dean Giustini, How web 2.0 is changing medicine, BMJ, 23 December 2006
  • 27. ‘ Is pharma ready for social networking?’ ‘… it appears that the forces of change would come from the consumers’ ‘ Are social media dulling pharma’s marketing knife?’ ‘…it won’t be long before pharma realizes that it isn’t in control anymore…’ But pharma is still debating Source: www.forums.pharma-mkting.com
  • 28. Web 2.0 is a disruptive technology Adapted from: Web 2.0 in Healthcare, John Sharp, Cleveland Clinic, USA Pharma values Web 2.0 values Risk averse Information from authoritative sources Privacy & security are regulated Long lead times Controlling access to data and information Intellectual property closely guarded Risk taking Crowd wisdom Anyone can join Rapid deployment Information contributed by and distributed to all Open Source
  • 29. Disruption at all levels Pharma web 2.0 Public relations Consumers & patients Sales forces Internally: Enterprise 2.0 HCPs
  • 30. Collaborating with online HCPs’ communities www.sermo.com Captures bedside and hallway conversations Helps ‘lonely’ doctors Aims are to discuss new clinical findings and to ‘work together to dramatically impact patient care’
  • 31.
  • 32. Pharma may now mine the wisdom of the Sermo crowd ‘ Observe’ - Alpha MD View community via a customized list of subjects based on keyword tags ‘ Insight’ Post questions directly to community and take polls ‘ Action’ – Hot Spots Icons next to targeted conversations allowing access to relevant pharma information and services
  • 33.
  • 34. Paradigm shift The doctor-industry relationship has the opportunity to become a true partnership based on mutual respect and collaboration Doctors can now dictate the terms of engagement to the pharma industry
  • 35. 1/3 of consumers in USA consult a health SN site before visiting a doctor* UGC from health mavens can profoundly influence consumer and patient preferences Conversations are raging: patients are learning from one another www.revolutionhealth.com *Manhattan Research, 2007
  • 36. Revolution Health 136 Betaseron ratings Effectiveness: 6.2/10 Lack of SEs: 5.3/10 Ease of use: 6.2/10 Health SN sites allow patients to rank treatments, doctors, hospitals & payers > 2500 ratings of all MS treatments
  • 37. Health warning to pharma marketeers Don’t fake it
  • 38. Paradigm shift The industry must decide whether it wants to actively participate in the conversations or remain an outsider Consumers and patients are taking ownership of brands, diseases and conditions
  • 39.
  • 40. Pharma corporate blogs are emerging J&J BTW blog J&J blogger Marc Monseau ‘ Everyone else is talking about our company, so why can’t we?’
  • 41. Pharma sales reps are the most visible active bloggers 5,000 threads 60,000 posts Rants & raves, corporate grapevines, jobs
  • 42. The pharma marketing and sales revolution has begun
  • 43.