Best Practices, LLC conducted a benchmarking study of global strategic marketing organizations supporting oncology products and programs. The study found that large companies spend on average $805,000 per pipeline program and $6.2 million per in-market product. Marketing and market intelligence activities receive over half of strategic marketing budgets on average. Ensuring collaboration and understanding new technologies, markets, and stakeholders will be critical to strategic marketing success in the next 2-3 years.

1. Best Practices, LLC Strategic Benchmarking Research Oncology Global Strategic Marketing: Benchmarking Budget Levels & Service Scope

6. Marketing Activities Take Biggest Share of Total GSM Spend At large companies, the top two activity areas—Marketing and Market Intelligence—account for 51% of the total Oncology-GSM budget. Emerging companies focus even more on those two key areas, with a combined 68% of total funds channeled there. N=12 Percentage of GSM Investment Allocated to Key Activity Areas Q. What percentage of the total Oncology-GSM investment was allocated to each activity category during the last fiscal year? Large Companies N=5 Emerging Companies OTHER: Websites, Training, Strategic Council Training, E-media Personalized Healthcare Marketing 31% Market Intelligence 20% Global Congresses /Convention Management 20% Thought Leaders /KOLs 11% Advisory Boards 9% Advocacy 5% Other 4% Thought Leaders/ KOLs 10% Market Intelligence 31% Ad Boards 11% Marketing 37% Congresses/ Conventions 13%

7. Product Strategy Has Biggest Share of GSM Marketing Spend Spending patterns are similar for the large and emerging company segments, with product strategy consuming more than 70% of total GSM budgets and speaker training taking the smallest share at only 4%. N=11 Marketing Activities: Investment Allocation Breakout Q. Estimate the percentage of the Marketing Activities budget category that was allocated to each of the following activity sub-categories during the last fiscal year. Large Companies Emerging Companies N=4 Websites Market Access/ Reimbursement Publications 21% PR, Media 9% Speaker Training 1% Product Strategy 72% Other 3% Product Strategy 70% PR, Media 9% Pubs 12% Speaker Training 5% Product Strategy includes branding, product campaigning & strategic marketing planning.

8. N=14 Role in Market Intelligence Activities by Development Phase % Responses Q. For Market Intelligence activities, please indicate the type of role that Oncology Global Strategic Marketing plays in at each development phase. Market Intel Activities Most Often Involve GSM Leadership Market Intelligence Activities Activities included in survey definition: Pricing, Health Economics, Market Access, Market Research, Forecasting, & Business/ Competitive Intelligence Market Intelligence is the area where GSM organizations most frequently take on a lead role, with a large majority leading at all product development phases. At Phase II, 85% of participating GSM organizations take the lead for Marketing Intelligence activities.

10. Voices from the Field: Key Success Factors in Oncology-GSM Verbatim Responses from Benchmark Partners Q. What issues will be critical for Oncology Global Strategic Marketing to address in the next 24-36 months to ensure the success of products your organization hopes to bring to market? Global Issues Collaboration New Technology, Markets, Stakeholders Market Access Other Success Factors “ Close co-operation between global, regions and countries – ‘common language’ & common targets.” “ Ensure development of global brand and quick execution globally.” “ Proper leadership in building the oncology organization (including other functional areas, such as Medical Affairs).” “ Develop a strong global Medical Affairs organization.” “ Seek appropriate Commercial input on clinical development plans.” “ Gain KOL support earlier than launch phase-- especially if new technology is involved.” “ Understanding the impact of biomarkers and diagnostic capabilities.” “ Personalized medicine, cost of therapy.” “ Define the right target audience, including new stakeholders (e.g., on biomarkers).” “ Patient segmentation, efficacy and safety requirements, personalized care, payer & market access requirements.” “ Market access is becoming more and more critical.” “ Segment the market so positioning is performed for all market segments.” “ Accelerate uptake through EAP at launch.” “ Strategic planning is vital.”

11. About Best Practices, LLC Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics and winning strategies of world-class companies. Best Practices, LLC 6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517 919-403-0251 [email_address] www.best-in-class.com