Center for Business Intelligence

Pharmaceutical Relaunch Product Conference

May 23, 2006

Chauncey Smith

CBI Pharmaceutical

Product Relaunch Conference

• Introductions and acknowledgements

• 2003 Relaunch Situation Analysis

• Evolution of market and brand positioning

• Program and training results

• Summary

• Question & Answer

Introductions and Acknowledgements

• Presenter: Chauncey Smith, currently area vice president for Medsn and former Senior Medical Brand Manger with Glaxo SmithKline Consumer Healthcare (GSKCH)

• proud to provide this case study experience as a peer to peer exchange with the permission of GSKCH professional sales\marketing leadership and CBI.

• product portfolio discussed in this discussion was sold by GSKCH to Altana\Pharma Derm in late 2005

• Acknowledgements for indirect and indirect contributions: Alan Schaefer, Doug Kaufman, Jean Pachuta, Cameron Poluszek, Kent Roman, Science Media and the Medical Marketing Association

Situation analysis

• In late 2003 GSK Consumer Healthcare repatriated a dermatology portfolio that was out-licensed 2-3 years prior

• Initial sales force training was quickly assembled and focused largely on the topical steroid products because of the size and strategic importance (1-2 OTC switch candidates)

• The very short lead-time preparing for the sales force launch (6-8 total weeks) required the marketing team to rely on trusting an unvalidated communication and brand positioning to be correct… it wasn’t

Situation analysis

• By 2Q 2004, Oxistat was missing its monthly forecasts and quickly became a concern for the business unit team

• The debate between sales and marketing about the necessity to re-train the sales team after only 6 months became intense. The decision was made.

• The team immediately set out to re-establish the brand positioning as part of its annual planning process

• After some initial debate with the sales team, it was agreed that Oxistat would be relaunched with the new positioning and a training curriculum in the 4th Quarter

If your business plan is tied to sales force productivity, you need to make sure “the engine is hitting on all cylinders”

+ $0.52$0.25$0.19DTC

N\AN\A$3.56Medical Ed

+ $0.88$2.22$5.00Journal Ad

+ $0.19$1.45$1.72Detailing

Margin of error 95%

confidence

1997 – 1999 launches

(Brand sales of $25-50MM)

ROI per Dollar spent

(1991 – 99 launches with

Brand sales of $25-200MM)

Source - ROI Analysis of Pharmaceutical Promotion Study – Association of Medical Publications - 2002

Source: Access to high prescribers: The World of Doorknob details, 1999; Scott-Levin; associate ride-alongs and interviews; financial press articles; MD interviews

Limited physician access has meant fewer opportunities for representative led product differentiation… for years

• Only 12 out of 300 (4%) possible details are recalled by physicians

87% of calls last less than

2 minutes

• Drop samples off at receptionist’s desk

• Leave before receptionist’s desk (i.e., other waiting reps, restricted access signs)

• No physician recall

• Drop samples off at sample closet

85 reps

100 reps(300 details)

57

reps

20 reps = 20

calls

8 calls

? 12

recalled details**

15 28 37 12

Traditional selling model

Evolution of the selling model

New promotional model

Shout your way to the top!

“Share of Voice” Reigns King Biggest sales force reaches most

doc, wins “top of mind” Maximize message frequency

through mirrored sales forces “Managed care” impact is felt Explore technology driven

communication channels New product launch is anchor to

promotional spending plans

“Transition & Transformation”

Offices saturated by sales reps, look for alternate sources for info\service

Develop more functional 1:1 communication capabilities, e.g.CRM

Sales forces still dominate “SOV” Product reimbursement is the great

equalizer Technology driven models begin to

support meaningful HCP interaction

“Interactive and Remote Professional Promotion”

All HCP information is easily accessible (eg PI, Instructions For Use)

Micro-segmentation, tailored messages and benefits

Modular solution across networks of physicians and patients

Maybe there is more than one way to communicate

Give them what they want… when they

want it!

This evolution of the traditional Pharma Selling Model has been going on since the late 90’s

Strategic marketers have evolved with the market to address the new model’s realities

Consider: building an eLearning based training platform to support your product launch because…

Reusable Digital

Training Objects*Could comprise 80% of content and

cost for these activities

Promotional

Physician

Education

Internet

Marketing

Convention

&

Symposia

eDetail test* MiniCD announcement for website* Mode of action animation*

It enables costs effective promotion

through other channels

2004

Self-Service and self-selected for lower tier ($)

Repurposing reusable objects into webenabled promotion can help communicateeffectively with a diverse target audience

Personal Selling Integrated Marketing (1:1)

Optimal experiences with heavy recruiting for top prescribers ($$$)

Mass-Customized approach with moderate recruiting for mid-tier prescribers ($$)

“Model allows you to spend effectively in proportion to HCP value, consistently and in alignment with individual preferences”

Decile 8-10 Specialists

Decile 4 -7 SpecialistsDecile 7-10 PCPNP/PAs in Specialty

Decile 1-3 SpecialistsDecile 1-6 PCPNP/PAsPharmacists

$$$

$$$

$$$

$$

$

And has utility throughout the Product Life Cycle

Launch / Growth

MatureDecline / Harvest

Accelerate awareness, advocacy and adoption

* Add frequency & choice to Relaunch info \ resources

Complementary resource for Rep interaction with HCPs

Customize offering through sharper segmentation of customer base…defend market share

Efficient vehicle for reach

Alternative for high value, no-see physicians

Cushion Erosion

Marginal cost to maintain interaction with prescribing loyalists

Oxistat Relaunch: Getting started – looking for the right strategy!

• The starting point for our effort began with analysis of syndicated and primary market research

• Quickly confirmed that our customers were looking for very different benefits than we were providing in our promotion

• There was no new clinical data to support the revised positioning, so the team built supportable claims as closely aligned with the desired position as possible

• At this time, we started thinking about the need for an experienced partner to help develop a distance based training program.

Selecting a training partner was helped by developing a clear project brief

• There was no in house experience creating a distance based learning program, networking proved to be key

• We required content and technical expertise our in house staff did not have (R&D, training, medical writers were generalists, allocated across large portfolios)

• We also had an intense sense of urgency and needed someone to help us quickly deliver a big change in strategy

• Needed to demonstrate ability to work through our approval timelines and participants

We chose ScienceMedia as our training partner

• Collaborated to produce a 6 unit (approx. 3 hours) learning module that encompassed revised brand positions, competitive set descriptions and assessments.

• Demonstrated an understanding of what would be required to get project completed during selection process

• Focused content development throughout the process, led by Julie Gegner, PhD

• Previewed at National Meeting in November 2004 and launched in February 2005

After all of the analysis and research a winning strategy emerges for Oxistat

• Being unfamiliar with the topical anti-fungal category initially, we falsely believed the physicians were “sold” on competitive claims concerning efficacy

• Competitive “fungicidal” modes of action being superior to “fungistatic”

• To our surprise, prescribers were most interested in a once daily formulation their patients could deal with; MOA was irrelevant

Result: investment in “training” drove TRx growth inside and outside sales force alignment by forcing us to sharpen our message

Oxistat YTD TRx Index vs. YAGO

112

118

119

0 20 40 60 80 100 120 140

Derm/Ped Outside All Derm/Ped Derm/Ped Inside

Data on file

Another example of how this concept was utilized for relaunch is what we did for the steroid products

Reusable Digital

Training Objects*Could comprise 80% of content and

cost for these activities

Promotional

Physician

Education

Internet

Marketing

Convention

&

Symposia

eDetail test* MiniCD announcement of website* Mode of action animation*

eDetail test and website resource Reusable Asset - Extensions 1 & 2

• Program Overview

• A 1-wave; 7-minute interactive multi-media program

• Includes comprehension and profile questions to keep participants engaged in (and to measure) the program

• No honoraria in a channel where pharma companies are offering up to $25 worth of medically relevant gifts

• Launched August 26, 2004

• GSK owned all assets which have been redeployed on www.dermprofessional.com

The Number of eDetail Pilot Program Participants Met our Expectations

• Cumulative results through March 9th, 2005

Average time spent in iDetail: 7 minutesTotal Time spent in iDetail: 31,620 minutes

2000

28862590

2106

296

0

500

1000

1500

2000

2500

3000

3500

Program StatisticsSummary

2000 2886 2590 2106 296

Enter GoalTotal

Details

Unique

Participant

Unique

Completion

Repeat

Participant

Data on file

Participants by Specialty Met our Criteria

PD

70%

Family

13%

Other

6%

Internal

11%

Breakdown of Participants by Specialty

0

200

400

600

800

1000

1200

1400

1600

1800

2000

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

Entered 1826 333 278 153

% of Specialty 14.20% 2.10% 1.60% 0.30%

PD Family Internal Other

Data on file

Satisfactory Distribution of Participants by Segment

Breakdown of participants by Decile*

27%

12%

4% 1%

56%

6

7

8

9

10

0

50

100

150

200

250

300

350

400

450

0%

1%

2%

3%

4%

5%

6%

7%

8%

Entered 400 187 81 30 5

% of Specialty Entered (ofTotal on Target List)

4% 4% 6% 7% 5%

6 7 8 9 10

*Data on file - As of 9 March, Does not include Physicians for which Decile information was not provided

Post test analysis shows an increase of +25% in the test cell, while the total low potency segment was +3% for the same period

11451441

11519 11924

0

2000

4000

6000

8000

10000

12000

Pre eDetail Aclovate TRx 5/04-07/04

Post eDetail Aclovate TRx1/05-03/05

Pre eDetail LPTRx 5/04-07/04 Post eDetail LP TRx 1/05-03/05

Aclovate TRx Analysis on All Docs Receiving eDetail

Pre Post Pre Post

Data on file

Oxistat RelaunchCase Study Conclusions for Pharmaceutical Marketers

• Take the time to do the right blend of research to help you define the need and re-establish brand based on fact

• Trust in your training company’s ability to manage timeline and deliverables once the plan is established

• Think of the consumption volume beyond your sales force’s reach, consider alternative channel communication

• Technology should be utilized to help enable as much access as possible or reasonable; plan accordingly

• Test emerging techniques, if it fits your demographic and may help to solve your re-launch challenge… try it!

Thank you

Center for Business Intelligence

Pharmaceutical Product Relaunch Conference