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New Product Launch 
Adoption Stall Case Study 
(At Least the Kool Aid Tasted Good) 
© Copyright The Customer Management Group 2014
The Case: Pre-launch
The Love Affair Begins 
December 6th 2001 
© Copyright The Customer Management Group 2014 3
Watson Establishes the Revenue Goal 
 The OAB market in the 
United States alone 
grew from just $40 
million in 1997 to 
around $1 billion in 2002 
(2400% growth) 
 $200 million peak 
annual sales 
demonstrates they are 
planning to be a 3rd /4th 
line agent. 
© Copyright The Customer Management Group 2014 4
How Can We Fail? 
“If all we get is a small percentage” 
© Copyright The Customer Management Group 2014 5
Does this not suggest a 
high rate of treatment 
failure? 
Do physicians 
understand this? 
To what degree do they 
care? 
How does persistency 
impact Rx behavior? 
Here’s a Problem 
© Copyright The Customer Management Group 2014 6
Our Solution! 
“We win… at least in a clinical trial” 
© Copyright The Customer Management Group 2014 7
We Win! 
“Or do we?” 
© Copyright The Customer Management Group 2014 8
How does this 
compare to the 
competition? 
Detrol LA = 
80% Reduction 
6.25% worse 
performance versus 
Detrol LA 
But Wait We Work! 
© Copyright The Customer Management Group 2014 9
Position on the Basis of Side Effects 
Oxybutynin is not the 
Gold Standard Detrol 
LA is. 
Let me know when you 
are sure!?!?! 
© Copyright The Customer Management Group 2014 10
Same Old Approach 
Potential vs. 
Probable 
© Copyright The Customer Management Group 2014 11
Same Old Approach 
© Copyright The Customer Management Group 2014 12
Mass Targeting 
Potential versus Probable Targeting 
© Copyright The Customer Management Group 2014 13
The Mass Gets Bigger 
Potential versus Probable Targeting 
© Copyright The Customer Management Group 2014 14
The Case: The Launch
Traditional Approach: 
Pre-launch Promotion 
If we launch it they will come! 
SStrtaratteeggiicc MMaatrtirxix 
Offensive Defensive 
? 
(x-sell) 
Guerilla Flanking 
What problem is Oxytrol Targeting? 
© Copyright The Customer Management Group 2014 16
Communication to Physicians 
Positioned as a First Line Therapy 
Metric Placebo (n=114) Uni-Det (n=125) Oxytrol (n=122) 
Mean incontinence episodes / day 5.0 to 2.9 -(42%) 5.0 to 1. (-80%) 4.7 to 1.9 (-60%) 
Complete continence 22% 39% 38% 
Micturition frequency decrease 1.4 episodes/day 2.2 episodes/day mean of 1.9 episodes/day 
Average void volume increase 32 mL/void 29 mL/void 
Quality-of-life scores significantly improved significantly improved 
systemic adverse events 15 29 (23.2%) 23 (18.8%) 
Anticholinergic adverse effects 7.30% 4.10% 
Constipation 5.70% 3.30% 
Localized Skin Reactions 7 7 32 (26%) 
Treatment Discontinuation 2 (1.6%) 13 (10.7%) 
12 (10%) due to skin 
2% typical with Estraderm 
HHoowweevveerr…… 
$$220000 mmiilllliioonn ppeeaakk aannnnuuaall ssaalleess ddeemmoonnssttrraatteess tthheeyy aarree 
ppllaannnniinngg ttoo bbee aa 33rrdd // 44tthh lliinnee aaggeenntt.. 
© Copyright The Customer Management Group 2014 17
Communication to Salesforce vs. 
Communication to Physicians 
© Copyright The Customer Management Group 2014 18
First Month 
Oxytrol Promotion initiated in 
May 2003. 
Good initial uptake!? 
© Copyright The Customer Management Group 2014 19
EEaarrllyy WWaarrnniinngg SSiiggnn ooff TTrroouubbllee 
Seven weeks Post Launch (Mid June 2003) 
Source: Watson Pharma 
2,299 Rxs 
1% NRx share 
Friedman, Billings, Ramsey  Co - 10 July 2003 
….the key catalyst for Watson`s upcoming quarterly results remains the Oxytrol launch (May 19) and 
overall earnings execution. Script numbers indicate that Oxytrol has achieved about 2.1% market share as 
of last week. This is a decent achievement, but sales (even including inventory build) likely won`t hit our 
estimate of $9M for Q2, part of which will be shifted to Q3. 
Prescription Data for Specialty Companies: Week Ended Aug. 1 
Source: Raymond James 
Total prescriptions for Watson’s branded patch for incontinence, Oxytrol, were 2,791 in the week ended 
August 1, up from 2,605 the prior week. Watson launched Oxytrol in April and began promoting it in May. 
We project $35 million in 2003 Oxytrol sales this year, within a range of $25 million to $40 million the 
company is targeting. 
+21%, but… 
Re-fill Rate 
Is low 
Experience 
Trial Issue 
© Copyright The Customer Management Group 2014 20
2nd Month 
Evidence of Adoption Stall 
exists 
Source: Goldman Sachs Annual Healthcare Conference June 2003 
© Copyright The Customer Management Group 2014 21
FY 2003 Results 
Oxytrol brought in $23 million in revenues 
in 2003, which was well short of original 
expectations of $50 million…. 
The already-crowded market will become 
more so as two additional companies enter 
the fray later this year, which may well mean 
Watson won't sell $50 million worth of the 
drug this year either. 
© Copyright The Customer Management Group 2014 22
Week ending March 15 2004 
7.1% 
8.9% 
3.8% 
Under performing 
3rd Month 
This Data suggest growth is due to category growth not organic growth 
© Copyright The Customer Management Group 2014 23
7.1% 
8.9% 
3.8% 
Week ending 
April 15 2004 
(3.4%) Growth 
1.4% Growth 
4th Month 
© Copyright The Customer Management Group 2014 24
The Hole Get Deeper 
Early 2004 
© Copyright The Customer Management Group 2014 25
This is Success? 
June 28th, 2004 
As a result of this refocusing effort, the Company intends to terminate its 
contract sales force agreement with Ventiv Health, Inc. in the primary care area. 
As we approached the one year anniversary of the launch of OXYTROL(R), it 
was appropriate that we evaluate our efforts and assess the current competitive 
environment, continued Dr. Chao. While we have had success with 
OXYTROL(R) in the specialty urology and OB/GYN markets, we have faced 
challenges in the primary care market. 
Specialty TRx TRx Growth 
March April 
URO 18,792 18,881 0.47% 
OB/GYN 7,866 7,800 (0.83%) 
PCP 17,043 17,639 3.49% 
?? 
© Copyright The Customer Management Group 2014 26
Still Drinking the Kool Aid 
June 28th, 2004 
2004 Sales Tracking 
Q1 = $8.0 million 
Q2 = $8.7 million 
Q3 = Sales force reductions = sales probable revenue drop 
2004 Sales 
Company Projection = $55 million 
Our Projection = ~$33 million 
Revised Company Projection = $47 million 
which requires 
81% growth rest of year !?!?! 
© Copyright The Customer Management Group 2014 27
News 
August 3rd, 2004 
© Copyright The Customer Management Group 2014 28
Since April 2004 
2% Growth 
14% Growth 
Share Growth FLAT 
Category Growth 
Sales Curve Dips After 17 Months 
September 16th, 2004 
© Copyright The Customer Management Group 2014 29
Salesforce De-motivated 
October 10th, 2004 
© Copyright The Customer Management Group 2014 30
News 
October 27th, 2004 
Oxytrol(R) sales of $9.8 million for the three months 
and $24.3 million for nine months ended September 
30, 2004 
© Copyright The Customer Management Group 2014 31
JP Morgan Conference 
January 11th, 2005 
0% Growth 
© Copyright The Customer Management Group 2014 32
FY 2004 Results 
Sales of Watson's OXYTROL(R) product increased $4.2 
million to $13.8 million for the fourth quarter of 2004, 
compared to $9.6 million in the prior year period. 
$23 million 2003 sales - $50 million target 
$38.1 million 2004 sales - $1.4 billion US market 2004 
(3% share of revenue) 
© Copyright The Customer Management Group 2014 33
FY 2004 Results 
No Growth 
© Copyright The Customer Management Group 2014 34
FY 2005 Results 
Share Shrinks / Growth from re-fills 
Also in urology, our OXYTROL® product 
achieved $43 million in sales, a 13% increase from 2004. 
2005 OAB Mkt Stats 
Market Size = $2.5 billion 
Growth = 10.8% 
2.2% Share 2.2% Organic 
Growth 
© Copyright The Customer Management Group 2014 35
FY 2006 / 2007 / Results 
No Reported Sales 
Brand segment selling and marketing expenses 
decreased during the year ended December 31, 
2006 as compared to the prior year due to lower 
product spending for Oxytrol® during the current 
year. 
© Copyright The Customer Management Group 2014 36
2008 Results 
Oxytrol (oxybutynin transdermal system) had 
annual sales of approximately $39 million in the 
U.S., based on IMS sales data ending August 2008 5 
years post launch! 
© Copyright The Customer Management Group 2014 37
© Copyright The Customer Management Group 2014 38

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Pharma launch adoption stall case - At Least the Kool Aid Tasted Good

  • 1. New Product Launch Adoption Stall Case Study (At Least the Kool Aid Tasted Good) © Copyright The Customer Management Group 2014
  • 3. The Love Affair Begins December 6th 2001 © Copyright The Customer Management Group 2014 3
  • 4. Watson Establishes the Revenue Goal The OAB market in the United States alone grew from just $40 million in 1997 to around $1 billion in 2002 (2400% growth) $200 million peak annual sales demonstrates they are planning to be a 3rd /4th line agent. © Copyright The Customer Management Group 2014 4
  • 5. How Can We Fail? “If all we get is a small percentage” © Copyright The Customer Management Group 2014 5
  • 6. Does this not suggest a high rate of treatment failure? Do physicians understand this? To what degree do they care? How does persistency impact Rx behavior? Here’s a Problem © Copyright The Customer Management Group 2014 6
  • 7. Our Solution! “We win… at least in a clinical trial” © Copyright The Customer Management Group 2014 7
  • 8. We Win! “Or do we?” © Copyright The Customer Management Group 2014 8
  • 9. How does this compare to the competition? Detrol LA = 80% Reduction 6.25% worse performance versus Detrol LA But Wait We Work! © Copyright The Customer Management Group 2014 9
  • 10. Position on the Basis of Side Effects Oxybutynin is not the Gold Standard Detrol LA is. Let me know when you are sure!?!?! © Copyright The Customer Management Group 2014 10
  • 11. Same Old Approach Potential vs. Probable © Copyright The Customer Management Group 2014 11
  • 12. Same Old Approach © Copyright The Customer Management Group 2014 12
  • 13. Mass Targeting Potential versus Probable Targeting © Copyright The Customer Management Group 2014 13
  • 14. The Mass Gets Bigger Potential versus Probable Targeting © Copyright The Customer Management Group 2014 14
  • 15. The Case: The Launch
  • 16. Traditional Approach: Pre-launch Promotion If we launch it they will come! SStrtaratteeggiicc MMaatrtirxix Offensive Defensive ? (x-sell) Guerilla Flanking What problem is Oxytrol Targeting? © Copyright The Customer Management Group 2014 16
  • 17. Communication to Physicians Positioned as a First Line Therapy Metric Placebo (n=114) Uni-Det (n=125) Oxytrol (n=122) Mean incontinence episodes / day 5.0 to 2.9 -(42%) 5.0 to 1. (-80%) 4.7 to 1.9 (-60%) Complete continence 22% 39% 38% Micturition frequency decrease 1.4 episodes/day 2.2 episodes/day mean of 1.9 episodes/day Average void volume increase 32 mL/void 29 mL/void Quality-of-life scores significantly improved significantly improved systemic adverse events 15 29 (23.2%) 23 (18.8%) Anticholinergic adverse effects 7.30% 4.10% Constipation 5.70% 3.30% Localized Skin Reactions 7 7 32 (26%) Treatment Discontinuation 2 (1.6%) 13 (10.7%) 12 (10%) due to skin 2% typical with Estraderm HHoowweevveerr…… $$220000 mmiilllliioonn ppeeaakk aannnnuuaall ssaalleess ddeemmoonnssttrraatteess tthheeyy aarree ppllaannnniinngg ttoo bbee aa 33rrdd // 44tthh lliinnee aaggeenntt.. © Copyright The Customer Management Group 2014 17
  • 18. Communication to Salesforce vs. Communication to Physicians © Copyright The Customer Management Group 2014 18
  • 19. First Month Oxytrol Promotion initiated in May 2003. Good initial uptake!? © Copyright The Customer Management Group 2014 19
  • 20. EEaarrllyy WWaarrnniinngg SSiiggnn ooff TTrroouubbllee Seven weeks Post Launch (Mid June 2003) Source: Watson Pharma 2,299 Rxs 1% NRx share Friedman, Billings, Ramsey Co - 10 July 2003 ….the key catalyst for Watson`s upcoming quarterly results remains the Oxytrol launch (May 19) and overall earnings execution. Script numbers indicate that Oxytrol has achieved about 2.1% market share as of last week. This is a decent achievement, but sales (even including inventory build) likely won`t hit our estimate of $9M for Q2, part of which will be shifted to Q3. Prescription Data for Specialty Companies: Week Ended Aug. 1 Source: Raymond James Total prescriptions for Watson’s branded patch for incontinence, Oxytrol, were 2,791 in the week ended August 1, up from 2,605 the prior week. Watson launched Oxytrol in April and began promoting it in May. We project $35 million in 2003 Oxytrol sales this year, within a range of $25 million to $40 million the company is targeting. +21%, but… Re-fill Rate Is low Experience Trial Issue © Copyright The Customer Management Group 2014 20
  • 21. 2nd Month Evidence of Adoption Stall exists Source: Goldman Sachs Annual Healthcare Conference June 2003 © Copyright The Customer Management Group 2014 21
  • 22. FY 2003 Results Oxytrol brought in $23 million in revenues in 2003, which was well short of original expectations of $50 million…. The already-crowded market will become more so as two additional companies enter the fray later this year, which may well mean Watson won't sell $50 million worth of the drug this year either. © Copyright The Customer Management Group 2014 22
  • 23. Week ending March 15 2004 7.1% 8.9% 3.8% Under performing 3rd Month This Data suggest growth is due to category growth not organic growth © Copyright The Customer Management Group 2014 23
  • 24. 7.1% 8.9% 3.8% Week ending April 15 2004 (3.4%) Growth 1.4% Growth 4th Month © Copyright The Customer Management Group 2014 24
  • 25. The Hole Get Deeper Early 2004 © Copyright The Customer Management Group 2014 25
  • 26. This is Success? June 28th, 2004 As a result of this refocusing effort, the Company intends to terminate its contract sales force agreement with Ventiv Health, Inc. in the primary care area. As we approached the one year anniversary of the launch of OXYTROL(R), it was appropriate that we evaluate our efforts and assess the current competitive environment, continued Dr. Chao. While we have had success with OXYTROL(R) in the specialty urology and OB/GYN markets, we have faced challenges in the primary care market. Specialty TRx TRx Growth March April URO 18,792 18,881 0.47% OB/GYN 7,866 7,800 (0.83%) PCP 17,043 17,639 3.49% ?? © Copyright The Customer Management Group 2014 26
  • 27. Still Drinking the Kool Aid June 28th, 2004 2004 Sales Tracking Q1 = $8.0 million Q2 = $8.7 million Q3 = Sales force reductions = sales probable revenue drop 2004 Sales Company Projection = $55 million Our Projection = ~$33 million Revised Company Projection = $47 million which requires 81% growth rest of year !?!?! © Copyright The Customer Management Group 2014 27
  • 28. News August 3rd, 2004 © Copyright The Customer Management Group 2014 28
  • 29. Since April 2004 2% Growth 14% Growth Share Growth FLAT Category Growth Sales Curve Dips After 17 Months September 16th, 2004 © Copyright The Customer Management Group 2014 29
  • 30. Salesforce De-motivated October 10th, 2004 © Copyright The Customer Management Group 2014 30
  • 31. News October 27th, 2004 Oxytrol(R) sales of $9.8 million for the three months and $24.3 million for nine months ended September 30, 2004 © Copyright The Customer Management Group 2014 31
  • 32. JP Morgan Conference January 11th, 2005 0% Growth © Copyright The Customer Management Group 2014 32
  • 33. FY 2004 Results Sales of Watson's OXYTROL(R) product increased $4.2 million to $13.8 million for the fourth quarter of 2004, compared to $9.6 million in the prior year period. $23 million 2003 sales - $50 million target $38.1 million 2004 sales - $1.4 billion US market 2004 (3% share of revenue) © Copyright The Customer Management Group 2014 33
  • 34. FY 2004 Results No Growth © Copyright The Customer Management Group 2014 34
  • 35. FY 2005 Results Share Shrinks / Growth from re-fills Also in urology, our OXYTROL® product achieved $43 million in sales, a 13% increase from 2004. 2005 OAB Mkt Stats Market Size = $2.5 billion Growth = 10.8% 2.2% Share 2.2% Organic Growth © Copyright The Customer Management Group 2014 35
  • 36. FY 2006 / 2007 / Results No Reported Sales Brand segment selling and marketing expenses decreased during the year ended December 31, 2006 as compared to the prior year due to lower product spending for Oxytrol® during the current year. © Copyright The Customer Management Group 2014 36
  • 37. 2008 Results Oxytrol (oxybutynin transdermal system) had annual sales of approximately $39 million in the U.S., based on IMS sales data ending August 2008 5 years post launch! © Copyright The Customer Management Group 2014 37
  • 38. © Copyright The Customer Management Group 2014 38