Digital Pharma:

Evolution and
Revolution in
Marketing and Sales
Len Starnes
Head of Global E-Business
Primary Care, Bayer Schering pharma
Agenda

 A decade of digital pharma

 Targeting doctors

 Targeting consumers & patients

 Healthcare social networking

A decade of
digital pharma
 Evolution vs revolution
Enlightenment
Productivity
Hype
Realistic expectations
Raising
expectations

Disillusionment Revolution

1996 2006 2007

Evolution

Trough of despair
 Expectations ’96:
The 24 x 7 rep – how wrong!

Branded websites One-size

will be more fits-all portal
effective than will suffice
a rep visit

Doctors will
flock to Sales forces
our sites will be cut
Revenues will soar
HCPs’ media consumption
shifting from off to online
Professional use of digital media by European HCPs*

Send SMS 49 85% of EU HCPs

say the internet
Watch online videos 28
is critical for
22
Use instant messaging
success of their
Read blogs 21 practice*
Download audio files 19

Use chatrooms 18 16% of EU HCPs

Subscribe to RSS feed 6 use a PDA for
professional
Use podcasts 5
purposes*
0 10 20 30 40 50 60

% European HCPs
*Taking the Pulse Europe v6.0;
sample of 1024 doctors from D/F/It/Sp/UK; Manhattan Research, 4Q06
Expectations ’96:
Health information seeker – right!
Internet will become Internet will become
the most preferred a powerful medium
source of health and for patient acquisition
medical information and retention

Quality content yes,

but in an Credibility and trust
appropriate context Patients will be will be crucial
empowered
Consumers’ favoured sources of
health information moving online
Most frequently used sources of health information in Europe*

Internet 74
143 million EU
Doctor 70
consumers have
Print media 49
accessed health
42
TV
information or
Pharmacist 40 health services
Family & friends 40 online during the
Nurses 19 last 12 months*
Radio 16

None 7
0 20 40 60 80
% European consumers
*Cybercitizen Health Europe;
sample of 4302 consumers from 10 EU countries; Manhattan Research, 2Q07
Digital pharma status 06/07

Industry remains a late adopter

Too few digital-visionaries at senior level

Low digital marketing spend 1- 5%

But solid experience and realistic expectations

Moving slowly towards integrated solutions

Targeting
doctors
A major challenge
Doctors’ prime information needs focus on
new research, clinical studies, case studies,
continuing medical educational, networking
with colleagues, cost constraints, running a
surgery as a business,…

Doctors generally prefer authoritative sources

- medical societies, universities, hospitals

Doctors ambivalent towards pharma

The sales force arms race
Result: ever decreasing
detailing time
Number of sales
representatives

Detailing
USA: 1:30 mins time
Europe: 2 - 4 mins

1980 - 2007
E-detailing is becoming
a viable alternative

 Convenient – access
after hours and at weekends

 Complements sales force

 Average session times

8 -12 mins

 Greater reach & better

message retention
 Closed-loop marketing is next
Live detail
with tablet-PC
Multi-channel
CRM application

Iterative detailing process

Interactive details
customized to meet
Electronic details,
doctor’s needs
interactions tracked
and logged by CRM
application
Web-based
e-detail
 Engaging doctors can only be
successful if…

 Real needs and expectations

are met

 Focus is on integrated multi-

channel services
Over half of EU HCPs
expect online service
today*
* Taking the Pulse Europe v6.0;
sample of 1024 doctors from D/ F/ I/ E/ UK; Manhattan Research, 4Q06
Targeting
consumers

& patients
Regulations constrain objectives
DTC Non-DTC
markets markets
Disease & condition
awareness

Treatments
awareness
Brand awareness
& conversion

Drug compliance,
loyalty & retention
 Globally targeting women
Scope

• Focus on contraceptives
• Targets women segmented
by 5 lifestages

• 12 international,
regional sites
28 country,

KPIs

• > 4m visits/year
• contact
> 70 years/year customer
time

Femalelife • Chinese site draws

0.6m visits/year
Compliance is a major issue

30 – 50% of medicines
prescribed for long-term
illnesses are not taken
as directed*
*Adherence to Long-Term Therapies:
Evidence for Action, WHO 2003
Isolated compliance channels
Internet
& email
SMS & Direct
mobile mail

Pack
& devices Patient VAT

Contact Case
centre manager
 International
Denmark
Finland

Germany
Netherlands

Norway
Sweden
UK
Global
online support
for Betaferon patients
Integrated compliance channels
Patient

Patient signs-up Patient calls asking Patient downloads

for ‘daily tips’ on for advice about a PDF on SEs
coping with SEs a severe SE management

Application software Case manager alerted

accessed by to SEs issue and makes
a case manager appropriate interventions

Secure patient All patient interactions

database and interventions logged
Multi-channel integration
plus behavioural modelling
Smarter systems through
incorporation of
constructs from
behavioural models

Identify a patient’s
risk level and propose
appropriate interventions
Healthcare
social networking
Web 2.0 is radically changing
medicine and healthcare
‘An expert moderated
repository of the knowledge
base, in the form of a
medical wiki, may be the
answer to the world’s
inequalities of information
access in medicine…’*

Dean Giustini, How web 2.0 is changing medicine,

BMJ, 23 December 2006
But pharma is still debating
‘Is pharma ready for social networking?’

‘… it appears that the forces of change would

come from the consumers’

‘Are social media dulling pharma’s marketing

knife?’

‘…it won’t be long before pharma realizes that it

isn’t in control anymore…’

Source: www.forums.pharma-mkting.com
Web 2.0 is a disruptive
technology
Pharma values Web 2.0 values

Risk averse Risk taking

Information from Crowd wisdom

authoritative sources
Privacy & security are Anyone can join
regulated

Long lead times Rapid deployment

Controlling access to data Information contributed by

and information and distributed to all
Intellectual property Open Source
closely guarded

Adapted from: Web 2.0 in Healthcare, John Sharp, Cleveland Clinic, USA
Disruption at all levels

Consumers
HCPs & patients

Public Pharma Internally:

relations web 2.0 Enterprise 2.0

Sales forces
Collaborating with online
HCPs’ communities
Captures bedside and
www.sermo.com hallway conversations

Helps ‘lonely’ doctors

Aims are to discuss new

clinical findings and to
‘work together to
dramatically impact
patient care’
Sermo’s secret sauce
 35,000 registered members

 Posts comprise 2 elements

- Post itself as a discussion thread
Plus
- Multiple choice poll which asks
‘What do you think?’
Adds a quantitative dimension
to qualitative postings – in real time
 Pharma may now mine the
wisdom of the Sermo crowd
‘Observe’ - Alpha MD
View community via a customized list
of subjects based on keyword tags

‘Action’ – Hot Spots ‘Insight’

Icons next to targeted Post questions directly
conversations allowing to community
access to relevant pharma and take polls
information and services
Responses to date

 Pfizer signed-up October 15th 2007

 6 more pharmas about to sign-up

 US$ 26m VC injection

 Launching in Europe & Asia-Pacific 2008

Paradigm shift

Doctors can now dictate the

terms of engagement to the
pharma industry

The doctor-industry relationship

has the opportunity to become
a true partnership based on
mutual respect and collaboration
Conversations are raging:
patients are learning from
one another
1/3 of consumers in USA
consult a health SN site
before visiting a doctor*

UGC from health mavens

can profoundly influence
consumer and patient
preferences

www.revolutionhealth.com
*Manhattan Research, 2007
Health SN sites allow patients
to rank treatments, doctors,
hospitals & payers
Revolution Health
136 Betaseron ratings

Effectiveness: 6.2/10
Lack of SEs: 5.3/10
Ease of use: 6.2/10

> 2500 ratings of all MS treatments

Health warning to pharma marketeers

Don’t fake it
Paradigm shift

Consumers and patients are

taking ownership of brands,
diseases and conditions

The industry must decide whether

it wants to actively participate in the
conversations or remain an outsider
Managing UGC on pharma sites
is a major issue… but possible
 Regulators mandate www.ms-gateway.com
pharmas to report ADs 3rd generation community area for
MS patients, carers, family & friends
 Regulators forbid
off-label discussions

Open discussion areas in

14 countries:

D: 6,000 members, 25,000 posts

S: 1,500 members, 9,000 posts
TR: 1,400 members, 19,000 posts
JP: 900 members, 1,200 posts
Pharma corporate blogs are
emerging
‘Everyone else is
talking about our
company, so
why can’t we?’
J&J BTW blog

J&J blogger
Marc Monseau
Pharma sales reps are the most
visible active bloggers
Rants & raves,
corporate
grapevines,
jobs

5,000 threads
60,000 posts
The pharma marketing
and sales revolution
has begun
 Len Starnes

 Head of Global E-Business

Primary care
Bayer Schering Pharma

 E: leonard.starnes@bayerhealthcare.com
T: + 49 30 4681 4877
M: + 49 175 438 4521
I: www.bayerhealthcare.com