Pivoting for SuccessEvolving with the Healthcare Market

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SoMe

2006 - Facebook opened to >13 yr olds

Healthcare

Doctor autonomy coming to an end

Economic Factors

# pharma reps plummeting during ‘08/09 economic crisis

Sermo: The Early DaysMarket Environment

3

Founding Vision

“Safe haven” for verified, licensed physicians

Value Prop

Secure, private online/virtual destination to discuss any

medical topic, or simply engage in peer-to-peer dialogue

Approach

Grow fast, industry/pharma will pay to access

Sermo: The Early DaysStrategy

Take Your Vitals…Often

Mid 2011 Checkpoint

5*Source: Manhattan Research, Taking the Pulse® v11.0, 2011 |

Strengths

Market Leader - 125K physician members (20% penetration)

SoMe proven business models (MR and sponsorship/promotion)

Weaknesses

High churn

Loose value prop (discussion forum)

Weak cash position and high burn

Addressable market only 1 in 4 doctors

Membership flat lined

Mid 2011 CheckpointContinued

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Opportunities

Positive trends in engagement

Continued decline in pharma reps

Health tech gaining momentum

Threats

Viable competitors (e.g. Doximity)

Sermo’s Founder & CEO on his way out

“Second Screen”

Don’t Be in Denial

2012 Pivot

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Strategy

Get to critical mass

Provide clinical value

Collaboration is a key pillar

Solution

Productize into concrete clinical tools and resources, to offer

doctors crowdourced insights and expertise

Can You Own It?

10Source: Oxford Dictionary |

Communitynoun (com mu ni ty)

1. Definition

a feeling of fellowship with

others, as a result of sharing

common attitudes, interests, and

goals

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Community 1. Definition

a feeling of fellowship with

others, as a result of sharing

common attitudes, interests, and

goals

noun (com mu ni ty)

Source: Oxford Dictionary |

12

Community

1. Definition

a feeling of fellowship with

others, as a result of sharing

common attitudes, interests, and

goals

2. High Functioning Communities

trust, respect, collaboration, sense

of purposenoun (com mu ni ty)

Source: Oxford Dictionary |

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Community

1. Definition

a feeling of fellowship with

others, as a result of sharing

common attitudes, interests, and

goals

2. High Functioning Communities

trust, respect, collaboration, sense

of purpose

3. Result

ownership + accountability =

high levels of engagement

noun (com mu ni ty)

Source: Oxford Dictionary |

Is There a Dire Need?

1

5

Concrete thinkers, resistant to change

Black-and-white, ingrained beliefs and behaviors.

Data-centric, evidence-based decision-makers

Adapt treatment protocols in response to repeatable

substantiated peer-reviewed research and experience.

Stressed but bound to their calling

Despite frustrations, helping patients still drives them.

Common bond – “we are in this together.”

Inherently distrusting, conspiracy theorists

Privacy, security and MD license verification

are paramount.

Competitive, Type A+

High sense of self, driven for recognition/status.

Obsess Over Your Target Persona

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Consultation

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Consultation

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Consultation

Testing

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Consultation

Diagnosis

Testing

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Consultation

Diagnosis

Testing

Treatment

Execute!

23Source: Sermo |

Make it Tangible

Q2 2014 Checkpoint

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Achievements

280K members (40% penetration)

2.5X engagement rate

True differentiation

Community with a Purpose

Up Next?

Questions?

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