Oncology Global Strategic Marketing organizations face increasing challenges in a crowded oncology market. This study benchmarked the budget levels, service scope, and activities of GSM organizations from 17 pharmaceutical companies. Key findings include: 1) Large company GSM averages $805,231 per pipeline program and $6.2 million per marketed product. 2) Marketing and market intelligence account for over half of GSM budgets. 3) GSM most often leads in market intelligence activities across development phases. The study provides industry metrics for GSM budgeting and strategic planning.

1. Oncology Global Strategic Marketing:
Benchmarking Budget Levels & Service Scope
Best Practices, LLC
Strategic Benchmarking Research
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2. Research Objective & Study Methodology
Best Practices, LLC conducted this benchmarking study to establish meaningful benchmarks for
the resource levels and the services scope of Global Strategic Marketing (GSM) organizations
supporting Oncology products and programs.
Study Overview Topics Included
 Research Objective: Oncology-Global Strategic  Total investment for Oncology-GSM
Marketing (GSM) organizations today face increasing
 Distribution of budget across 6 key
regulatory, regional and competitive challenges functional areas and across product
in a crowded market. development phases
This study seeks to help Oncology-GSM leaders  Commercial spend - % budget allocated
understand the investment levels, marketing activities, at launch & post-launch phases
timing and structures needed to successfully steer  Total # FTEs supporting GSM functions
products and pipeline programs through the complex
Oncology marketplace.  Distribution of FTEs across 8 major
activity areas
Research findings provide industry metrics that
will serve as a reference point for GSM leaders in  % FTEs dedicated to developing and
“rest of world” markets
budgeting and strategic planning.
 Use of outsourcing and off-shoring
 Methodology: Best Practices, LLC developed  # products, labels & programs
a customized survey tool to capture industry data supported
and deployed it to a representative sample of 17  Key Ratios: GSM investment/Oncology
pharmaceutical companies with Oncology Sales, FTEs/$100M revenue, GSM $/
programs and portfolios. product, & GSM $/pipeline program
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3. Participating Companies & Data Segmentation
Benchmark participants included GSM leaders supporting Oncology organizations at 17 companies.
The study included both large, established and small, emerging Oncology companies to provide
broadest insights. Data is presented for large and emerging company segments throughout the report.
Participating Companies
Large Companies:
• Abbott
• Astellas
• AstraZeneca
• Baxter Oncology GmbH
• Bayer
• Boehringer Ingelheim
• Bristol-Myers Squibb
• Eisai Inc
• Merck Serono
• Onyx Pharmaceuticals
• Sanofi
• Takeda
Emerging Companies:
•Exelixis
•Gilead Sciences, Inc.
•MedImmune
•Monogram Biosciences
•Selvita S.A.
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4. Key Findings 2: Normalized Metrics & Ratios
The following key findings, observations, insights and metrics emerged from this
benchmarking study.
 GSM Spend per Pipeline Program Averages > $800K at Big Companies: Large company GSM
spend per Oncology program in the pre-launch phases ranges from under $100K to $2 million, with
an average of $805,231. The average for emerging companies is $201,894.
 Large Company GSM Supports Average of 16.4 Oncology Pipeline Programs: GSM organizations
in the large company segment support an average of 16.4 pipeline programs, while emerging companies
support an average of 9.4.
 GSM Spend per In-Market Oncology Product Averages $6.2M: GSM spend per in-market Oncology
product ranges from $200,000 to more than $16 million, with an average of $6.2 million.
 Average per-Label GSM Spend Tops $2.8M: GSM spend per Oncology label ranges from $66,667
to $8.3 million across the benchmark class. On average, the GSM investment per label is $2.8 million.
 GSM Supports Average of <2 Oncology Products & <4 Labels: Large company GSM organizations
support an average of 1.75 in-market Oncology products and 3.75 labels. Emerging company GSM
predominantly supports development programs rather than products, and the averages reflect that
position, with 0.8 products and one label supported.
 Total Oncology-GSM Spend Averages Nearly 1% of Sales: GSM investment as a percentage of total
Oncology sales averages just under 1% for the largest companies (over $1 billion Oncology revenue) in
the benchmark class. Their GSM investment ranges from 0.1% to 2.5% of sales.
 Commercial Investment as Percentage of Sales Averages 0.84%: GSM investment for commercial
phases averages 0.84% of total Oncology product sales for the large company segment. The ratio ranges
from 0.03% to 2%.
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5. Key Findings 5: GSM Leadership & Future Investment Trends
The following key findings, observations, insights and metrics emerged from this
benchmarking study.
ONCOLOGY-GSM LEADERSHP
 GSM Often Has Full Lifecycle Involvement: A majority of Oncology-GSM groups maintain a
leadership role in the Launch and Post-Launch phases of product development.
 GSM Key Leadership Areas Are Market Intelligence & Marketing: In the early phases of product
development, Oncology-GSM most often takes a lead role in Market Intelligence activities. After
Phase II, Marketing is the area where GSM most frequently leads.
INVESTMENT TRENDS
 Up to 73% Expect Increased GSM Funds for Pipeline Marketing: Budget increases are
anticipated by as many as 73% of benchmark participants for activities supporting the Oncology
pipeline. Activities most often expected to gain are ad boards, marketing and market intelligence.
Few project any decreases.
 Up to 42% Expect GSM Increases for In-Line Product Marketing: More benchmark participants
anticipate GSM investment level decreases and fewer anticipate increases for in-line products than
for pipeline products. Marketing is projected to as the top area for funding increases, and the top
area for cuts is Congresses. Interestingly, companies are evenly split at 33% on whether funding for
Ad Boards will go up, down or remain unchanged.
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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.
Percentage of GSM Investment Allocated to Key Activity Areas
Large Companies Emerging Companies
Advocacy OTHER:
Other Thought Websites, Thought
5% 4% Leaders Training, Leaders/
Strategic KOLs
/KOLs
Council Market
11% Global Training, 10% Congresses/
Market Congresses
Intelligence
E-media Conventions
Intelligence /Convention Personalized 31%
13%
20% Management Healthcare
20% Ad Boards
11%
Advisory
Boards Marketing
Marketing
9% 37%
31%
N=12 N=5
Q. What percentage of the total Oncology-GSM investment was allocated to each activity
category during the last fiscal year?
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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%.
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.
Marketing Activities: Investment Allocation Breakout
Large Companies Emerging Companies
Websites Other Speaker
Market Access/
3% PR, Speaker PR, Training
Reimbursement
Training Media 1%
Media
9% 5% 9%
Publications
Product Pubs 21%
Strategy 12% Product
Product Strategy
70%
includes branding,
Strategy
product campaigning 72%
& strategic marketing
planning.
N=11 N=4
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8. Market Intel Activities Most Often Involve GSM Leadership
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.
Role in Market Intelligence Activities by Development Phase
Lead Support None
77% 15% 8% Market
Pre-Clinical
Intelligence
Activities
Phase I 77% 8% 15%
Activities
included in
Phase II 85% 8% 8% survey definition:
Pricing, Health
Phase III 79% 14% 7%
Economics,
Market Access,
Launch 71% 21% 7% Market Research,
Forecasting, &
Post-Launch 71% 14% 14% Business/
Competitive
Intelligence
N=14 % Responses
Q. For Market Intelligence activities, please indicate the type of role that Oncology Global
Strategic Marketing plays in at each development phase.
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9. Additional Activities Led or Supported by Oncology-GSM
Benchmarked GSM-Organizations lead or support a variety of additional activities not included in
the survey. These range from developing e-media to developing payer information around
personalized healthcare.
Additional GSM Activity Involvement by Phase
Pre- Post-
Phase I: Phase II: Phase III: Launch:
Clinical: Launch
Personalized Healthcare /
x
Payer evidence
Forecasting x x x x
M&S cost planning x x x x
Training x x
Educational programs x
E-media x
Q. In the past fiscal year, what other important activities (not listed in survey) were led or
supported by Oncology GSM? (List additional GSM activities conducted at each phase.)
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10. Voices from the Field: Key Success Factors in Oncology-GSM
Verbatim Responses from Benchmark Partners
“Close co-operation between global, regions and countries – ‘common language’ &
Global Issues 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).”
Collaboration
“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.”
New
Technology, “Understanding the impact of biomarkers and diagnostic capabilities.”
Markets, “Personalized medicine, cost of therapy.”
Stakeholders
“Define the right target audience, including new stakeholders (e.g., on biomarkers).”
“Patient segmentation, efficacy and safety requirements, personalized care, payer &
Market market access requirements.”
Access
“Market access is becoming more and more critical.”
Other “Segment the market so positioning is performed for all market segments.”
Success “Accelerate uptake through EAP at launch.”
Factors “Strategic planning is vital.”
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?
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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
919-767-9257
rratcliffe@best-in-class.com
www.best-in-class.com
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