Pharma Insights Survey Whitepaper June 2010

8/6/2019 Pharma Insights Survey Whitepaper June 2010

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2010 Pharma Insights

A White Paper on CurrentTrends & Challenges o thePharmaceutical Industry

Published by Cegedim Relationship ManagementAuthors: Angela Miccoli & Drew Bustos

June 2010

Results o an Industry Survey


2/19www.cegedim.com/rm..............................................................................................................................

2

Table of Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Detailed Summary o Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Top Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Primary and Secondary Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Drivers o Technology and Business Model Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Changes to Business Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Social Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

What is Keeping You Up at Night? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Future Issues o Importance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

SaaS / Cloud Computing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Vendor Selection Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Most Strategically Important BRIC Country . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Emerging Market Strategy Direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Sample Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Recommended Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19



3

Introduction

Cegedem Relationship Management recently conducted an opinion survey among decision makers

in the pharmaceutical industry in the Americas regarding current trends and issues. The surveycovered the ollowing topics:

Corporate Objectives or 2010

Prioritization o Customers and Markets

Drivers o Business Model Changes and Technology

Anticipated Changes to Current Business Models

Usage o Social Media

Areas o Concern

Methodology

The study was conducted via an online survey sent to pharmaceutical executives in North andSouth America. Respondents completed a web-based questionnaire and submitted their responsesto Cegedim Relationship Management in May 2010. A total o 211 completed questionnaires werereceived.

Responses were analyzed by GreyHome Marketing and Research Consulting. Percentages aresubject to a 6.7 point margin o error and were tested or signicance at the proven 95%condence level using Decision Analysts STATS tool.

Signicant dierences between attributes are indicated in almost all instances by changes in coloron the bar charts presented in this report. Bars o the same color in the charts represent responselevels which are not statistically dierent rom each other.



4

Executive Summary

The Lie Sciences business model is rapidly evolving, driven by extreme competitive pressures as

well as economic and political trends. Doctors are less receptive to sales calls; costs associatedwith a traditional large primary-care sales orce are skyrocketing; new regulations requiremeticulous tracking o marketing spend; and securing global market access requires buy-in roma complex matrix o stakeholders ranging rom prescribers to managed care organizations togovernment ocials.

As such, it comes as little surprise that the No. 1 most pressing issue keeping pharmaceuticalexecutives up at night is the changing commercial business model, according to CegedimRelationship Managements 2010 Pharma Insights survey. In May 2010, 211 executives romleading pharmaceutical companies completed Cegedim Relationship Managements online surveyto provide a glimpse into the evolution o todays Lie Sciences companies and the uture o global

pharma. Here are some highlights o the results:

New product innovation and protability growth are the most important businessobjectives or respondents in 2010.

Most respondents view prescribers and patients as their most important primaryand secondary customer groups.

Executive management is the key driver o technology decision-making.

The strategic/business planning team is the most common driver o businessmodel and process change.

The three biggest changes to the current business model that respondentsreported seeing are increased ocus in market access strategies, primary salesorce realignment and increased ocus on managed care.

Respondents are aware o and use social media, but it generally does not receivea large appropriation o their marketing budgets.

Social media is primarily used or external applications like marketing and PR, butis also used to a lesser extent or internal communications and human resources.

Changing business models, pipeline growth and the consequences o governmentregulation are key matters o concern.

SaaS/cloud computing only seems to be relevant to a relatively small number orespondents, and many respondents do not appear to understand the topic.

When selecting vendors, experience trumps all other actors, including price,customer service and technological fexibility.



5

Detailed Summary of Findings

Top Objectives

Respondents were rst asked to select their top three business objectives or 2010.

Two-thirds (67%) o the respondents chose New Product Innovation as one otheir top three objectives.

One-hal o the respondents (51%) selected protability growth as a topobjective.

Growth in expanding markets, market share and shareholder value arerelatively even (and relatively even in importance) at 38%, 29% and 25%selection respectively.

It is clear rom these results that pharmaceutical company executives remain ocused on researchand development with a critical investment in how the products are brought to market andadvertised therein.

New product innovation and successful launch

Profitability growth

Operations excellence

Growth in emerging markets

Market share against competitors

Shareholder value

Ability to produce life-saving and affordable medicines and therapies

Positive public perception and reputation for ethical operations

Other

67%

51%

44%

38%

29%

25%

16%

11%

5%

Top 3 Objectives for 2010



6

Primary and Secondary Customers

Respondents were asked to select which two groups they consider to be primary customers, and

two groups they consider to be secondary customers.

Most respondents are in agreement that prescribers are their most important customer group.

Eight out o ten respondents (78%) chose prescribers as one o the two topprimary customer groups.

This is more than double the number who chose patients, the next mostrequently picked choice.

Virtually all respondents (96%) chose prescribers as either their primary orsecondary customer group.

Patients was the next most requently cited group with a combined primary/secondary choice score o 81%.

Managed care organizations and government are equal with a combined primary/secondary choice score o 71% and 70%.

Primary & Secondary Customers

SecondaryPrimary

Prescribers

Patients

Managed Care Organizations

Government

Other

78% 18%

36% 45%

27% 44%

24% 46%

11% 14%



7

Drivers of Technology and Business Model Change

Executive management is the primary driver o technological decisions at the respondents companies,

ollowed by IT.

The scores o 40% and 32% may seem relatively close, but the percentage o respondents who choseExecutive Management is still signicantly higher than those who chose IT.

It is interesting to note the 12% signicance o who is making the technology purchasing decisions.This indicates that IT is researching and providing insight to executive management, but the purchasingdecisions are made urther up the chain o command, adding a layer o review.

The strategic/business planning group, as might be expected, is the primary driver o business model andprocess change, ollowed by the marketing/brand and commercial operations teams.

Primary Drivers of Technology

Who primarily drives technology decisions at your company?

Executive Management

IT

Business (Sales or Marketing)

Regulatory / Compliance

Other

40%

32%

23%

3%

2%

Strategic / Business Planning

Marketing / Brand Teams

Commercial Operations

Sales


Executive Management / Team

40%

21%

18%

10%

5%

5%

Drivers of Business Model and Process Change

What team primarily drives your companys main business model and process changes?



8

Changes to Business Model

In assessing the biggest change to the current business model, respondents were most likely to indicate

increased ocus in market access strategies, ollowed by primary sales orce realignment andincreased ocus on managed care.

As Cegedim Relationship Management has learned in Europe, Market Access has become a critical issueor success in the EU. However, rom this survey, it is shown that Market Access is becoming more o anissue or the Americas as well.

Increased focus in market access strategies

Primary sales force re-alignment

Increased focus on managed care

Increased focus on key opinion leaders (KOLs)

Increased use of e-detailing channels

Other

40%

20%

17%

11%

6%

6%

Biggest Change to Business ModelWhat is the biggest change to your companys commercial business model that is currently being implemented?



9

Social Media

Respondents personal involvement in social media sites is high.

Virtually all respondents (97%) indicate that they use at least one social mediasite on a daily basis, although it is not clear whether they are using the sites orpersonal and/or proessional purposes or both.

One-hal o respondents (53%) indicate that they use LinkedIn, which is notsurprising given the proessional nature o the sample.

One in our respondents (39%) use Facebook.

Social media is becoming an important communication tool or pharmaceutical companies. It is unclear;however, how many resources companies are willing to dedicate to make this a real tool or vitalmarketing communication purposes.

LinkedIn

Facebook

Twitter

MySpace

Other

None

53%

39%

11%

1%

4%

3%

Daily Personal Usage of Social Media Sites

Which social medium do you personally use on a daily basis?



10

Marketing

PR

Internal Communications

CRM

Human Resources

Other

Not Using

59%

34%

27%

14%

11%

2%

3%

Usage of Social Media

How is your company using social media to its advantage?

While social media use at respondent companies is high, the percentage o companies sales/marketingbudget devoted to social media is small.

Less than 5%

5% - 10%

11% - 20%

More than 20%

Dont Know

51%

22%

9%

2%

16%

Investment in Social Media

What percentage of the sales/marketing budget is your company investing in social media channels to

reach your target audience (e.g., patients, prescribers, managed care, decision makers)?

Social Media (continued)

Virtually all respondents companies (97%) are using social media to some extent.

The most common uses o social media are directed externally; marketing (59%) and public relations

(34%); but there are also some internal uses, such as internal communications (27%) and human

resources (11%).



11

What is Keeping You Up at Night?

Issues such as changing business models, pipeline growth, regulatory reorm and generic

competition dominate respondents concerns.

Cost/capital/unding issues and patient involvement are low concerns at 3% and 2%.

The ever-changing commercial business model is the biggest pain point.

Because pharmaceutical companies have to remain fexible regarding sales orces and changingbusiness models, they have sought help rom outside vendors to help manage data, sales orcesupport, compliance and customer relationship management. The pain point rom changing businessmodels can be seen in how companies are operating today and what they are looking or in partnercompanies. Without a successul business model, pharmaceutical sales orces are let conused and

unocused.

Pain Points

What is the one big issue keeping you up at night?

Changing Commercial Business Model

Pipeline Growth

Impact of Impending Regulatory Reform

Generic Competition

Cost / Capital / Funding Issues

Patient Involvement

Other

35%

24%

16%

16%

3%

2%

4%



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Future Issues of Importance

About one-hal o the respondents answered an open-ended question regarding the most

important issue acing the pharmaceutical industry in the next ve years. Responses ranged romGovernment/Regulatory issues to Cost-Cutting with no clear consensus o importance.

Clearly, pharmaceutical companies around the globe are watching government change. Withreorm in the UK, China and the U.S. respectively, companies must begin to immediately adapt toregulatory changes.

Future Issues of Importance

What do you see as the one most important issue facing pharmaceutical companies in the next five years?

Government / Regulatory

Changing Market

Generics / Patent Expiration

New Products

Pipeline

Cost-Cutting

Other

13%

11%

8%

7%

4%

3%

5%



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About twenty percent o respondents are not considering SaaS/Cloud Computing at this time.Among those who have been implementing or considering SaaS, data security is the biggestconcern.

Data Security

Learning Curve

Regulatory Uncertainty

Existing Vendor Agreements

Other

Dont Know

My company is not considering SaaS or cloud computing at this time

15%

7%

5%

1%

3%

49%

20%

Concerns about SaaS / Cloud Computing

What is your companys biggest concern about implementing SaaS or cloud computing in your sales or marketing initiatives?

SaaS / Cloud Computing

SaaS or Cloud Computing seems relatively unimportant to the respondents.

Less than one in ten respondents (7%) indicated that it was very important.

Less than one-quarter o those surveyed (22%) indicated that it was either veryimportant or important.

Almost one-hal o respondents (45%) couldnt rate the importance o SaaS/Cloud Computing.

Importance of SaaS / Cloud Computing

How important is SaaS or cloud computing in your sales and marketing initiatives?

Very Important

Important

Marginally Important

Not Important

Dont Know

7%

15%

14%

19%

45%



14

Vendor Selection Criteria

Experience trumps all as a criterion or selecting a vendor in the eyes o the respondents.

Four out o ten respondents (41%) selected experience as the top criterion when selectingan external sales, marketing or regulatory compliance vendor. Price, customer service andtechnological fexibility were ranked roughly evenly as the second-most common vendor criterion.

Experience

Price

Customer Service

Technological Flexibility

Value

Other

41%

20%

18%

14%

1%

5%

Vendor Selection Criteria

What is your companys top criterion for selecting external sales, marketing or regulatory vendors?

Most Strategically Important BRIC Country

China is, according to the respondents, the most strategically important BRIC country.

Three in ten respondents (30%) chose China.

About three in ten respondents (27%) said they did not know which country wasmost strategically important or their company.

With current health care reorm in China, the market or Multinational Companies is expected togrow exponentially as the government begins to review and choose drugs or the Essential DrugList. Furthermore, even though China has a renewed dedication to developing drugs locally, Western

medicine is still considered superior regarding proven research and development.



15

China

India

Brazil

Russia

N/A/None

Other

Dont Know

30%

14%

12%

8%

2%

7%

27%

Most Important BRIC CountryWhich BRIC country is the most strategic for your company?

Emerging Market Strategy Direction

Strategic execution is most commonly handled led rom corporate headquarters (43%) or a mix olocations (30%). A smaller percentage o respondents (17%) handle strategic execution locally.

Emerging Market Strategic Direction

From where is your emerging market strategy being executed?

Headquarters

Mix of Locations

Locally

Dont Know

Other

43%

30%

17%

9%

2%

Most Strategically Important BRIC Country (continued)



16

Sample Demographics

Respondents were airly evenly divided by company size, with approximately one-third (35%)

coming rom companies with ewer than 500 employees, one third (34%) coming rom companieswith 501-10,000 employees and a little less than one-third (30%) coming rom companies with10,000 or more employees.

0-500

501-2,000

2,001-5,000

5,001-10,000

10,001 and above

N/A

35%

16%

9%

9%

30%

1%

Demographics

Size of Company

Six in ten respondents (62%) held positions in either general/executive management or marketing.Two in ten respondents (19%) held sales positions.

General / Executive ManagementMarketing

Sales

IT


Medical

Market Research

Finance

Other

34%28%

19%

4%

3%

3%

1%

1%

7%

Demographics

Job Function

The sample was divided airly evenly in terms o respondents title.

A little more than one-third o those surveyed(36%) were at the C-Level/Executive,VP, or Senior Director level.

Three in ten (30%) were at the Director level.

Three in ten (28%) were at the Manager level.



17

Sample Demographics (continued)

More than one-hal o the respondents (55%) were located in the United States.

Almost three-quarters o those surveyed (73%) were rom North America.

Almost two in ten respondents (17%) were rom South/Central America.

One in ten respondents (11%) were located in countries outside o the Americas(3% rom India, 8% rom Europe).

Director

Manager

Executive Vice President / C-Level

Senior Director

Vice President

Consultant

Other

30%

28%

15%

11%

10%

2%

3%

Demographics

Position

United States

Mexico

Brazil

Canada

Venezuela

India

Columbia

Ecuador

Argentina

Dominican Republic

Other

55%

13%

7%

5%

3%

3%

3%

2%

1%

1%

8%

Demographics

Country Where Respondent is Based



18

Conclusion

To manage big picture issues ranging rom market access to realigning global sales orces, it is

critical that todays pharmaceutical industry executives have access to a fexible solution which canpositively impact their businesses. Experience shows those companies that embrace fexible andinnovative marketing technology solutions will be best equipped to manage the dramatic changes totodays commercial business model.

As the survey indicates, the next six months o 2010 will most likely show pharmaceuticalcompanies remaining ocused on changing business models and product innovations. As marketgrowth in China and the other BRIC countries becomes more impactul on the industry, it is likelywe will see pharmaceutical companies making changes to become more global-minded.

Additionally, we will most likely see an increased impetus and study on market access in the

Americas, while looking to the EU market as a guide. Furthermore, pharmaceutical executivesstated health care reorm and government regulation is a concern or the uture and thereore,pharmaceutical companies are beginning to prepare or more changes regarding reporting andtransparency.

Finally, social media is an enigma at this point or pharmaceutical companies. Although accordingto the survey it is evident that companies see the value in it or marketing purposes, it is clear theyare not willing to make major investments to urther develop this communication tool. The verdict isstill out on how this tool will be developed to greatly benet the industry.

Cegedim Relationship Management helps pharmaceutical companies address the issues identiedin this industry survey. The leading global provider o Pharmaceutical Customer Relationship

Management (CRM) solutions, with a 35% share o the worldwide market, Cegedim RelationshipManagement provides the most comprehensively packaged oering, enabling Lie Sciencescompanies to achieve rewarding and lasting relationships with their customers, and to meet theirpresent and uture business objectives and requirements. Solutions include:

Customer Relationship Management

Global Services

Data Optimization

Marketing Solutions

Regulatory Compliance


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Contact Cegedim Relationship Management today or more inormation on this and other studies.

Cegedim Relationship Management Americas Corporate Headquarters

1405 U.S. Highway 206Bedminster, NJ 07921 USATel: 908.443.4308 OR 888.336.3748Email: [email protected]

Recommended Reading

Trends in Aggregate Spend and Disclosure Reporting Compliance (Feb 2010)

http://crm.cegedim.com/Docs_Whitepaper/Compliance/Aggregate_Spend_Industry_Survey_Whitepaper_Feb2010.pdThe Cegedim Relationship Management Market Access Industry Report (June 2010)http://crm.cegedim.com/Docs_Whitepaper/Data/EU_Market_Access_Survey_Whitepaper_June_2010.pd

2010 Direct-To-Consumer Industry Check-Up (June 2010)http://crm.cegedim.com/Docs_Whitepaper/Marketing/DTC_Survey_Whitepaper_June_2010.pd

Authors

Angela Miccoli Drew Bustos

President, Americas Sr. Director, Global CommunicationsCegedim Relationship Management Cegedim Relationship [email protected] [email protected]
http://crm.cegedim.com/Docs_Whitepaper/Compliance/Aggregate_Spend_Industry_Survey_Whitepaper_Feb2010.pdfhttp://crm.cegedim.com/Docs_Whitepaper/Data/EU_Market_Access_Survey_Whitepaper_June_2010.pdfhttp://crm.cegedim.com/Docs_Whitepaper/Marketing/DTC_Survey_Whitepaper_June_2010.pdfhttp://crm.cegedim.com/Docs_Whitepaper/Marketing/DTC_Survey_Whitepaper_June_2010.pdfhttp://crm.cegedim.com/Docs_Whitepaper/Data/EU_Market_Access_Survey_Whitepaper_June_2010.pdfhttp://crm.cegedim.com/Docs_Whitepaper/Compliance/Aggregate_Spend_Industry_Survey_Whitepaper_Feb2010.pdf

Pharma Insights Survey Whitepaper June 2010

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