Is Smart Pharma Innovative VF

Smart Pharma Consulting
Is Smart Pharma
Innovative?
“Creativity is thinking up new things.
15 Years Innovation is doing new things”
(Theodore Levitt)
in Search of
Innovative Position Paper
Solutions
June 2016
Smart Pharma
Consulting
1, rue Houdart de Lamotte – 75015 Paris – France
Tel.: +33 6 11 96 33 78 – Fax: +33 1 45 57 46 59
E-mail: jmpeny@smart-pharma.com – Website: www.smart-pharma.com
15 Years in Search of Innovative Solutions

Introduction
Is Smart Pharma (so) Innovative?
 Part 1: Innovative Strategy
 Part 2: Innovative Marketing & Sales
 Part 3: Innovative Medical
Is Smart Pharma Innovative? 15 Years in Search of Innovative Solutions June 2016 2

Introduction
This presentation reviews several innovative concepts, methods, tools and opinions
developed by Smart Pharma Consulting over the last 15 years
Is Smart Pharma Consulting Innovative?
 Smart Pharma Consulting has been founded 15 years ago, with one fundamental goal:
Propose effective and practical solutions to help its clients improve their performance
 For so doing, three essential priorities have been set:

1. Carry out fact-based analyses
2. Develop innovative concepts, methods, tools, and opinions
3. Deliver unmatched quality of services
 The purpose of this position paper is to enable you answer the following question:
Is Smart Pharma innovative?
 Hereafter, we have selected some of the “innovations” we have developed since 2001
“I can’t understand why people are frightened of new ideas. I’m frightened of the old ones.” – John Cage
Sources: Smart Pharma Consulting analysis

Introduction
We have selected four concepts / methods, 12 tools and three opinions to enable you
to evaluate the interest, usefulness and practicality of our “innovative power”
Selection of innovations developed by Smart Pharma Consulting
Concepts / Methods Tools Opinions
 Development Strategy Matrix

 4Ws  Corporate ID Card
Strategy  The mirage of the BRIC1
 Preference-driven Strategy  Advanced SWOT
 Customer Preference Card
 4Ws  Brand Preference Mix Index

 Behavioral Prescriber  Brand Preference supersedes
Brand Satisfaction
 Brand Preference Mix (BPM) Segmentation (BPS)
Marketing & Sales  KEIs2 & KPIs3
 Behavioral Prescriber  Med Reps are Key to drive
 Portfolio Strategic Matrix Physician Preference
Segmentation (BPS)
 High Impact Interactions (H2I)
 KOL ID Card
 4Ws  KOL Partnership Plan (K2P)  NA

Medical
 Integrated Regional Strategic
Plan
1 Brazil, Russia, India, China – 2 Key execution indicators – 3 Key performance indicators

Introduction
Method
The 4 Ws is a general method which contributes to reinforce the relevance and

impact of decisions made by linking them to fact and figures gathering and analysis
The 4Ws
WHAT? WHY? SO WHAT? WHAT TO DO?
 Identify key facts and  Understand the  Analyze the  Based on the three
figures related to the reasons that have implications for the key previous steps
competitive triggered these key stakeholders (WHAT? – WHY? – SO
environment: facts and figures: (authorities, clients and WHAT?) define the
competitors) relevant decisions to
– Opinions and – What are the root be made:
decisions of causes of the  Define if these key
stakeholders opinions and facts and figures – Strategic decisions
(authorities, clients decisions made by represent opportunities
and competitors) these stakeholders or threats for the key – Tactical decisions
(authorities, clients stakeholders…
– Performance of key – Organizational
and competitors)?
players  … and what is the decisions (e.g.
magnitude of their activities, processes,
impact structure, culture)

Part 1: Innovative Strategy
Opinion
BRIC1 countries are likely to keep on driving the growth of the global pharma market
but they are expected to be much less profitable than North America, EU 5 and Japan
The mirage of the BRIC countries
Growth potential per socio-geographical area (2013-2018)

19% for total sales of pharma companies
2018 total pharma

BRIC
250 marketing size:
+8-10% (21%) USD 1,186 B
2013-2018 sales growth (CAGR2)
+7-8%
Japan
102 415 North +3% CAGR of the
+3-6% (9%) (35%) America5 total pharma market
265 ROW 154

+0-2%% (22%) EU 54
(13%)
<15% 16-20% 21-25% 26-30% 2018 estimated

2018 estimated EBITDA3 sales level in USD B3
1 Brazil, Russia, India, China – 2 Compounded annual growth rate – 3 Earnings before interests,
Sources: Smart Pharma Consulting analysis taxes, depreciation and amortizations – 4 France, Germany, Italy, Spain, UK – 5 USA and Canada

Tool
Focused strategies have shown to generate the highest profitability ratios, whereas
portfolio and geographical expansion strategies provide the highest profit growth
Development Strategy Matrix – Principles
Strategic segments
 Activities concentrated in the Focused Diversified  Activities concentrated in the

USA, EU51 and Japan USA, EU51 and Japan
 Portfolio mainly centers on the  Broad portfolio including:
innovative branded ethical generics, OTCs, food
Focused
segment supplements, medical devices,
Amgen Daiichi Sankyo
vaccines, services, etc.
Geographical coverage
High profitability Gilead Mylan

Low growth perspectives Moderate profitability
Moderate growth perspectives
 Strong presence, incl. in Latin

 Strong presence, incl. in Latin America, Africa and Asia2
America, Africa and Asia2
Diversified
 Broad portfolio including:

 Portfolio mainly centered on the generics, OTCs, food
AstraZeneca Novartis
innovative branded ethical supplements, medical devices,
segment Novo Nordisk Otsuka
vaccines, services, etc.
Moderate profitability Low profitability
High growth perspectives High growth perspectives
1 France, Germany, Italy, Spain, UK

Sources: Smart Pharma Consulting analysis – 2 Including segments of the population with lower income and/or from rural areas

Tool
Even if there is no one-size-fits-all winning strategy, a “global healthcare” strategy

seems to be a reasonable long-term default option for Big Pharma companies
Development Strategy Matrix – Features
Strategic Sales Profitability Profit

Recommendations
development directions evolution* evolution* evolution*
 Strategy showing highest return on investment
Local  High risk strategy due to price pressure from payers and
ethicals + -- + scarcity of breakthrough innovations
 Reservoir of growth on the low priced me-too market1
 Diversification in new strategic segments should be
Local carried out preferably through acquisitions to save time,
healthcare ++ -- ++ take advantage of brand equity (especially in the OTC
market), know-how, and access to clients
 Portfolio diversification is best implemented through the

Global acquisition of global players (e.g. Novartis and Chiron)
healthcare +++ --- +++  Geographical diversification is preferable through the
acquisition of local leaders (e.g. Abbott and Piramal)
 Geographical diversification implies an “aggressive”

Global direct or indirect presence (through licensing-out deals)
ethicals ++ --- ++  Social diversification requires a tiered pricing policy or
low-priced products to access low-income patients
*+ + + Highly positive ++ Moderately positive + Slightly positive - - - Highly negative - - Moderately negative - Slightly negative
1 The primary care market which accounts for 60% of the total pharma market offers opportunities for
me-too products priced at a small premium to branded generics or unbranded generics

Tool
Corporate ID cards have shown to be very useful to review the activity, the strategic
decisions and priorities, as well as the performance of companies in one page
Corporate ID Card – Illustration
Key Financial Data Revenues by Key Segments Strategic Priorities

USD million 2013 2012 2011 Other  Continued progression of the product pipeline
Revenues 11,202 9,703 8,384 8%  Continued uptake of commercial products
Net Sales 10,804 9,398 8,102
US$  Build-out and expansion of international commercial infrastructure,
Operating Profit 4,524 4,010 3,790 Europe 11,2 Bn
Operating profit margin 40.4% 41.3% 45.2% 32% USA particularly in Europe and Asia, to support the Sovaldi launches and
R&D expenses 2,120 1,760 1,229 60% increase marketing and sales efforts related to the anticipated
% of revenues 18.9% 18.1% 14.7% launch of Gilead’s first oncology product, idelalisib
Rx branded drugs 96%
Key Products Deal Strategy
Generics & Biosimilars
Sales YoY Share of  In 2012:
(USD million) % Change revenues
Other Segments 4% − Following Pharmasset acquisition, Gilead moved quickly to
1. ATRIPLA 3,648 2% 33% expand clinical testing of hepatitis C therapies and establish a
Antiretroviral agent (VIH)
leadership position in the drug development for chronic hepatitis
-1% 28% Pipeline (as of October 2014)
2. TRUVADA 3,136 C virus (HCV) infection
Antiretroviral agent (VIH) Number of compounds Phase I Phase II Phase III Filing  In 2013:
3. VIREAD 959 13% 9% at each stage
Antiretroviral agent Oncology 1 4 3 − With the recent completion of the YM BioSciences acquisition
(VIH and Hepatitis B) (for USD 510 M), the selective JAK inhibitor momelotinib (GS-
236% 7% Virology 0387/CYT-387) was added to a growing oncology and
4. COMPLERA/EVIPLERA 809 3 6 2 1
Antiretroviral agent (VIH) Mostly HBV and HCV
inflammation pipeline
5. STRIBILD 539 937% 5% HIV/AIDS 1 1 2
Antiretroviral agent (VIH)
− Momelotinib is an investigational JAK inhibitor that has shown
Cardiovascular 5 1 1 promise for the treatment of myelofibrosis, a blood disorder.
6. LETAIRIS 520 27% 5% This molecule was added to Gilead’s development pipeline
Antihypertensive agent Respiratory 2
(pulmonary arterial hypertension)
through the acquisition of YM BioSciences
Sources: 2013 Annual report, Smart Pharma Consulting analysis

Method
Each pharma company must differentiate from competitors by offering its customers,
products and services that are superior than competitors ones
Preference-driven Strategy – Principles
Competitive environment A – Situation analysis Pharmaceutical companies

Policy makers
Opportunities Strengths Corporate
reputation
Pharma competitors
Physicians Pharma Pharmacists Current / future SWOT Current / future Brand

company
Preference
Mix
Patients & PAGs Threats Weaknesses Portfolio Service
attributes quality
Payers
B – Strategy formulation
Market attractiveness Competitive position

and key success factors and critical issues
Pharmaceutical companies’ ambition

growth levers and challenges
C – Performance optimization
Business levers Organizational levers
Corporate Portfolio Service
reputation Activity Structure Processes Culture
attributes quality
1 France, Germany, Italy, Spain, UK

Sources: Smart Pharma Consulting analysis – 2 Including segments of the population with lower income and/or from rural areas

Tool
The “Advanced SWOT” helps marketers carry out a more specific and relevant
assessment of the market situation and of the brand competitive position
Advanced SWOT
Relative Relative
Opportunities importance¹ Threats importance¹
What might positively impact market dynamics? What might negatively impact market dynamics?
 Authorities: new indications, guidelines…  Authorities: tightened guidelines, usage restriction,
 Clients: prescriptions behaviors (e.g. off-label), price cut, delisting, market withdrawals…
emergence of new prescribers, improvement of patients’  Clients: prescriptions behaviors (e.g. preference for
adherence… generics)…
 Competition: withdrawal of some competitors,  Competition: generic threat, new entrants,
reduction of promotional investments, patent expiry… increase in promotional investments…
Relative Relative
Strengths importance¹ Weaknesses importance¹
What are / will be the brand advantages? What are / will be the brand disadvantages?
 Corporate reputation: size, reactivity, efficiency,  Corporate reputation: size, reactivity, efficiency,
skills, expertise, innovation, access to medicine… skills, expertise, innovation, access to medicine…
 Service quality: value of services, usefulness,  Service quality: value of services, usefulness,
quantity, quality of execution… quantity, quality of execution…
 Brand perception:  Brand perception:
– Attributes: indications, formulations, patent… – Attributes: indications, formulations, patent…
– Price: price level, reimbursement status… – Price: price level, reimbursement status…
– Distribution: direct / indirect, rebating strategy… – Distribution: direct / indirect, rebating strategy…
– Promotion: marketing / medical investment… – Promotion: marketing / medical investment
Sources: Smart Pharma Consulting analysis ¹ Rating from 5: very high importance to 1: very limited importance

Tool
The Customer Preference Card is a useful tool to align the brand ambition, the
strategic preference drivers by customer segment and the corresponding tactics¹
Customer Preference Card
Brand Ambition
Qualitative Quantitative
Customer segment #1 Customer segment #2 Customer segment #3

Strategic preference drivers Strategic preference drivers Strategic preference drivers
Brand perception Brand perception Brand perception
Service quality Service quality Service quality
Corporate reputation Corporate reputation Corporate reputation
Key tactics Key tactics Key tactics
Market access Market access Market access
Medical Medical Medical
Marketing & Sales Marketing & Sales Marketing & Sales
1 Strategic preference drivers will be defined by customer segment and supported

by a combination of coordinated tactics

Part 2: Innovative Marketing & Sales
Opinion
Customer preference is a much more relevant and powerful strategic driver to gain
market share, at the expense of competitors
Brand Preference supersedes Brand Satisfaction
Customer Satisfaction Customer Preference
 Results from the fulfillment of one or Definition  Results from a superior solution to
several expectations existing alternatives
 Secures loyalty and enables to

 Secures customer loyalty Impact
conquer new customers
 Identification of expectations
 Identification of expectations
 Assessment of superiority level to
 Offering solutions to fulfill these induce customer preference
expectations Implementation  Offering of unique & preferential
 Assessment of customer solutions
satisfaction (e.g. customer
satisfaction survey)  Measurement of the preference
level with tools (e.g. BPM Index1)
Sources: Smart Pharma Consulting analysis 1 Brand Preference Mix index

Concept
To boost the preference of physicians for their marketed brands, pharmaceutical

companies can leverage the three components of their Brand Preference Mix (BPM)
Brand Preference Mix – Key levers
 Convey an appealing corporate  Deliver unique

identity services…
 Maintain a corporate reputation  … that are highly valued
that induces preference Corporate [Interest – Utility –
reputation
Practicality – Quality of
execution]
 Highlight attributes in a
way that generates Brand  Select and design
preference Preference services that will lead to
Mix corporate and / or brand
 Create a perception of
preference
uniqueness Brand Service
attributes quality  Make sure services are
 Leverage corporate
related to the company
reputation & service
and / or the brand
offering

Tool
The Brand Preference Mix Index (BPMI) enables to evaluate the brand performance
on each of its preference components, over time and compared to its competitors
Brand Preference Mix Index
Service  The Brand Preference Mix Index (BPMI) is a

quality measurement tool that takes into account:
20%
– The relative importance of the BPM components (i.e.
corporate reputation, brand attributes and associated
Corporate service quality) per brand
Brand 9% reputation
attributes – The score of the brand, on a 10-point scale, for each of
its preference components
71%
 The BPMI can be defined per customer1, per
indication, per form, etc.
Visual Analog Scale  The BPMI scores the customer perception at a

given point in time, making possible to track the
0 5 7.8 10 evolution of this perception over time and to
x xx compare it to competitors, considering:
7.5 7.9
– External events (i.e. related to health authorities,
competitors and customers’ behaviors)
BPMI
(71% x 7.8) + (20% x 7.9) + (9% x 7.5) = 7.8 – Internal events (i.e. related to promotional activities,
calculation quality of services offered, communication strategy, etc.)
Sources: Smart Pharma Consulting analysis 1 Physicians, patients, pharmacists, nurses, payers, health authorities, etc.

Tool
Such a tool will help evaluate if a service is likely to reinforce the preference of
customers (physicians, pharmacists, patients, etc.) for the associated brand
Brand Preference Mix – Pre-assessment of services
Description Objective Target

(HCPs, patients, etc.)
Perceived value by the target Exclusivity Link to the Product

Evaluation* Rationale Evaluation Rationale Evaluation Rationale
Interest 1 2 3 4 5
Total  Magnitude
Usefulness 1 2 3 4 5
Convenience 1 2 3 4 5 Partial 
Execution 1 2 3 4 5
Sustainability
Total 1 2 3 4 5
None 
KPIs ABIs
Barrières Rationale (Key performance (Activity-based Decision
indicators) indicators)
Technical • Implementation
GO
Regulatory • Compliance
No GO
Economic • Estimated cost and return
Sources: Smart Pharma Consulting analysis High Medium Low * 1 & 2 below competitors – 3 as competitors – 4 & 5 above competitors

Method
By adopting a dynamic profiling of customers, it is possible to capture more relevant

and accurate insights regarding the prescribing potential of physicians
Behavioral Prescriber Segmentation – Dynamic segmentation
2-D Static physician segmentation 3-D Dynamic physician segmentation
General environment
Personality of physicians
Conditions of practices
High
MARKET POTENTIAL
High
EVOLUTION OF MARKET
Moderate
PRESCRIPTION
Moderate
Low
Low
Low Moderate High
PRODUCT POTENTIAL
Low Moderate High
EVOLUTION OF PRODUCT PRESCRIPTION

Method
Promotional investment should not only be allocated based on physician prescribing

potential, but also on his likelihood to be influenced and to modify his behavior
Behavioral Prescriber Segmentation – Sensitivity-based targeting
3-D Dynamic physician segmentation Targeting and sub-segmentation
General environment Scientific style

Personality of physicians Economical style
Conditions of practices Relational style
High
High
EVOLUTION OF MARKET
SENSITIVITY TO CALLS
PRESCRIPTION
Moderate
Moderate
Low
Low
Low Moderate High Meetings Studies Mailings
EVOLUTION OF PRODUCT PRESCRIPTION SENSITIVY TO NON-CALL PROMOTION

Tool
To optimize the efficiency of medico-marketing investment, pharma companies must

move from mass segmentation to an individualized segmentation of physicians
Behavioral Prescriber Segmentation – Individualized marketing activities
Dynamic profiling Quantitative and qualitative adjustment
Physicians
Evol. of Market/ Sensitivity to Leading Rx # of # of # of # of Communication
Products Rx calls/marketing drivers Calls Meetings Studies Mailings styles
Dialogue /
Clarke High / Moderate High / Mailings Emotional 12 2 0 4 Services
Dylan Moderate / High High / Meetings Medical 8 5 0 0 Scientific only
Lopez High / High Low / Studies Medical 6 1 2 0 Scientific only
Moderate / Scientific /
Martin High / Meetings Economic 6 2 1 1 Services
Moderate
Dialogue /
Taylor Low / Low High / Meetings Emotional 4 1 0 0 Services

Tool
Before making the decision to invest in promotion, targeted customers and expected
impact should be clearly defined, as well as performance and execution indicators
Key Execution & Key Performance Indicators – Monitoring tools
Check-list to support promotional investment decisions
What is the targeted What is the objective

What are the KEIs1? What are the KPIs2?
population? of the action?
 Physicians  Create / reinforce  % of the target covered  Brand Preference Mix

(e.g. KOLs, specialists, GPs) awareness by the action index
 Pharmacists  Generate interest  % of the target exposed  Preference Ladder step
(e.g. retail or hospital)
 Develop brand
to the action  Key message
preference  % of the target impacted memorization rate
 Patients
by the action  Share of prescription
 Increase share of
 Nurses  % of the target having a  Sales evolution
prescription
 Influencers positive opinion of the  Variation in the number
 Increase compliance action (interest,
(e.g. health authorities, of treatment initiations
“politics”, patients advocacy  Limit substitution rate organization, convenience)
 Profit evolution in €
group, public health
 Get the brand listed  Implementation time
insurance, private health  % of hospitals having
required vs. planned
insurance, professional  Fine tune the profile of listed the brand
associations…)  Actual vs. budgeted cost  Return on investment
the customer
Sources: Smart Pharma Consulting analysis 1 Key execution indicators – 2 Key performance indicators

Tool
Most companies currently limit strategic thinking on mature products to brands with
limited local potential, with a special focus on corporate non-core brands
Portfolio Strategic Matrix
National situation
QUESTION MARKS NON-STRATEGIC STRATEGIC GLOBAL STARS
 Newly launched global brands  Newly launched global brands
 Established global brands  Established global brands
with high potential for with high global and local
development at global level potential for development
CORE
and low/no potential for

QUESTION MARKS GLOBAL STARS
development at local level
Global situation
LOCAL STARS
 Established local/global brands
NON-CORE
 Newly launched local brands

NON-PRIORITY BRANDS NON-PRIORITY LOCAL STARS
 Established global/local brands BRANDS with high potential for
development at local level and
with low global and local low/no potential for development
potential for development at global level
Mature products scope

Opinion
When brand attributes are not significantly differentiated from competitors’ ones,
physicians’ preference may be influenced by their interactions with Med Reps
Med Reps are Key to drive Physicians Preference
Physicians
“Looking for useful and/or
interesting interactions”
External factors Face-to-face Internal factors

Policy makers Detailings
Corporate
reputation
Pharma competitors
Interactions
Physicians Pharma Pharmacists Brand
company
Preference
Local Medical Congresses & Mix
Patients & PAGs Meetings Symposiums
Brand Service
attributes quality
Payers
“Expecting to strengthen physicians’

preference in favor of their brands”
Medical Representatives

Method
The H2I Program follows a straightforward approach but each of the three steps
should be well understood by the Med Reps and perfectly carried out
High Impact Interactions (H2I) Program
Step 1 Step 2 Step 3

Physicians Profiling High Impact Factors Identification H2I Program Design
Type of events Speakers

& Topics (for symposiums)
Information Service Congresses /
Hierarchy of Expectations
Symposiums
Seeker Seeker Invitees
Information Logistics
Management
Physicians (medical / non-medical)
Speaker
Expectations Medical
Meetings
Meeting
Information Logistics
Management Med Rep
(medical / non-medical)
Emotion Medical
Seeker Calls
Call
Service
Management
Pyramid of Expectations
 While interacting with Med Reps,  Creating High Impact Interactions  Med Reps should not just try to
physicians expectations will requires from Med Reps to identify fulfill physicians expectations while
depend primarily on their each physician expectations interacting with them
personality… regarding the four determinants of  They should go the extra mile to
 … but also on their past each type of interactions (i.e. medical surpass their competitors and
interactions with each Med Rep calls, medical meetings, congresses / induce physicians preference for
symposiums their brand

Part 3: Innovative Medical
Tool
The KOL ID card is a practical tool which contains in one single page the most
important information required to qualify and then recruit pre-selected KOLs
KOL ID Card
Medical MD – head of medical department –

KOL name (First name – surname) Location Address & City
status professor of medicine, etc.
Medical Private hospital – public hospital –
Specialty (Oncology – cardiology, etc.) Country
setting teaching hospital – private office
Specific objectives for the pharma company •

Specific benefits for the KOL •
Items Assessment1 Facts / Rationale Source
Field of expertise/interest International -
in the therapeutic area National - Local •
KOL Level of reputation Low -Medium-High •

Profile
Scope of influence Low -Medium-High •
Advocacy potential Low -Medium-High •
Recommendations Priority1 Rationale

Low -Medium-High
Medical department •
Final decision
Selection: YES - NO Rationale:
1 Circle your answer


Tool
The “KOL Partnership Plan” should include key information extracted from the KOL
ID card, specify the objectives of the partnership, its scope and duration
KOL Partnership Plan (K2P) – Model
Medical MD – head of medical department – Medical Private clinic – private hospital –

KOL name (First name – surname)
status professor of medicine, etc. setting public hospital – teaching hospital
Interest/ Reputation/ Private hospital – public hospital – Advocacy

(e.g. Pulmonology, cardiology, etc.) Address & City & Country
Expertise Influence teaching hospital – private office potential
KOL Customer (First name – surname – position (Describe briefly his role vis-à-vis Coordination (Indicates the other collaborators
Role
Manager in the company) the KOL) with… whom to coordinate)
Objectives of the
•
partnership
Specific scope
• • • •
of the partnership1
Starting date Ending date

Duration of the
partnership • •
1 Examples: Development of a digital tool to improve patients adherence, Coordination of a multi-

Sources: Smart Pharma Consulting analysis centric study, Expert support to estimate the medico-economic value of a new product, Lectures
during medical meetings organized with peers, etc.

Concept
MSLs’ activities should be integrated in a Regional Strategic Plan to ensure synergies

with marketing, sales, market access and patient adherence departments’ activities1
Integrated Regional Strategic Plan
Integrated Integrated
National Strategic Plan Regional Strategic Plan
Men
“ differ less in their abilities… Men
“ differ less in their abilities…
than
… the degree to which they use them” than
… the degree to which they use them”
December 2015 December 2015
Smart PharmaConsulting Smart PharmaConsulting

1, rue Houdart de Lamotte– 75015 Paris– France 1, rue Houdart de Lamotte– 75015 Paris– France
Tel.: +33 6 11 96 33 78– Fax : +33 1 45 57 46 59 Tel.: +33 6 11 96 33 78– Fax : +33 1 45 57 46 59
E - mail: jmpeny@smart - pharma.com E - mail: jmpeny@smart - pharma.com
Website : www.smart
- pharma.com Website : www.smart
- pharma.com
Medical Section Marketing & Sales Section Access & Adherence Section
 Collaborators: MSLs  Collaborators: brand managers, area managers, medical  Collaborators: Key Account Managers
 Key clients: national and regional KOLs representatives (KAMs) and Key Institutional Managers (KIMs)
 Key objectives: build strong and sustainable  Key clients: physicians, retail and hospital pharmacists  Key clients: regional health authorities,
relationships with KOLs to develop advocacy regional payers, hospital directors, hospital
 Key objectives: strengthen brand preference
purchase managers, PAGs2, etc.
 Key activities: regular interactions with  Key activities:
KOLs, scientific lectures at congresses,  Key objectives: facilitate the hospital listing,
– Marketers: crafting of a brand preference strategy and improve patient adherence
symposia, staff meetings, support of research
leveraging: brand attributes, perceived quality of
clinical trials, training of speakers and  Key activities: development of medico-
associated services and corporate reputation
collaborators from marketing and sales teams, economic studies to facilitate the market
support of Key Institutional Managers (KIM) – Sales forces: medical calls, invitations to medical access of brands and support of projects to
while meeting their clients, competitive meetings, congresses and proposal for services likely to improve patients adherence, to promote the
intelligence initiatives strengthen brand preference proper use of drugs
Sources: Smart Pharma Consulting analysis 1 In compliance with the national regulation and the companies’ policies – 2 Patient Advocacy groups

Conclusions
“Innovation distinguishes between a leader and a follower”… – Steve Jobs
 For 15 years, developing innovative concepts, methods, tools, and opinions has been our
utmost priority
 Actually, our search for innovation is driven by three specific traits of our corporate personality:
1. Our willingness to do different things and things differently
2. Our desire to get preferred by our customers
3. Our pleasure to exceed our customer expectations
 During the next 15 years, or so, we commit to keep on searching for new ways to develop more
and more effective and efficient solutions for our customers
….“ So innovation is our obsession” – Smart Pharma Consulting

Smart Pharma Consulting 15 Years in Search of Innovative Solutions
Confidential
Consulting company dedicated to the pharmaceutical sector operating in the complementary domains of strategy, management and organization
Core capabilities
1 Strategy 2 Management
 Assessing the attractiveness of markets (Hospital  Facilitation and structuring of strategic

/ retail innovative products - Vaccines - OTC - Generics) thinking for multidisciplinary product teams
 Growth strategy  Key challenges identification
 Optimization of marketing / sales investments  Strategic options formalization
 Development of a company in the hospital market  Resource allocation optimization program
Business  Training of marketing and market research
 Valuation for acquisition teams to sales forecast techniques (modeling
 Portfolio / franchise assessment and scenarios development)
 Extension of product life cycle performance  Development and implementation of a "coaching
 Improvement mature products performance program" for area managers
 Adaptation of price strategy  Sales reps coaching
 Defense strategies vs. new entrants  Regional action plans roll-out
 Competitive strategies in the hospital market  Development and implementation of a "sales

techniques program" for sales forces (STAR1)
 Strategic partnerships companies / pharmacies 1 Sales Techniques Application for Results (training courser
Organization
3 Organization
 Rethink of operational units organization

 Improvement of sales force effectiveness
 Improvement of the distribution channels covering the hospital and retail markets
 Development of a strategic planning process
1, rue Houdart de Lamotte – 75015 Paris – France • Tel.: +33 6 11 96 33 78 • Fax: +33 1 45 57 46 59 • E-mail: jmpeny@smart-pharma.com • Website: www.smart-pharma.com

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Is Smart Pharma Innovative VF

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Smart Pharma Consulting

15 Years in Search of Innovative Solutions

Is Smart Pharma (so) Innovative?

 Part 1: Innovative Strategy

 Part 2: Innovative Marketing & Sales

 Part 3: Innovative Medical

Is Smart Pharma Innovative? 15 Years in Search of Innovative Solutions June 2016 2

 For so doing, three essential priorities have been set:

Sources: Smart Pharma Consulting analysis

Is Smart Pharma Innovative? 15 Years in Search of Innovative Solutions June 2016 3

Concepts / Methods Tools Opinions

 Development Strategy Matrix

 4Ws  Brand Preference Mix Index

 4Ws  KOL Partnership Plan (K2P)  NA

Is Smart Pharma Innovative? 15 Years in Search of Innovative Solutions June 2016 4

The 4 Ws is a general method which contributes to reinforce the relevance and

WHAT? WHY? SO WHAT? WHAT TO DO?

Sources: Smart Pharma Consulting analysis

Is Smart Pharma Innovative? 15 Years in Search of Innovative Solutions June 2016 5

Growth potential per socio-geographical area (2013-2018)

2018 total pharma

265 ROW 154

<15% 16-20% 21-25% 26-30% 2018 estimated

Is Smart Pharma Innovative? 15 Years in Search of Innovative Solutions June 2016 6

 Activities concentrated in the Focused Diversified  Activities concentrated in the

High profitability Gilead Mylan

 Strong presence, incl. in Latin

 Broad portfolio including:

1 France, Germany, Italy, Spain, UK

Is Smart Pharma Innovative? 15 Years in Search of Innovative Solutions June 2016 7

Even if there is no one-size-fits-all winning strategy, a “global healthcare” strategy

Strategic Sales Profitability Profit

 Portfolio diversification is best implemented through the

 Geographical diversification implies an “aggressive”

Is Smart Pharma Innovative? 15 Years in Search of Innovative Solutions June 2016 8

Key Financial Data Revenues by Key Segments Strategic Priorities

Sources: 2013 Annual report, Smart Pharma Consulting analysis

Is Smart Pharma Innovative? 15 Years in Search of Innovative Solutions June 2016 9

Competitive environment A – Situation analysis Pharmaceutical companies

Physicians Pharma Pharmacists Current / future SWOT Current / future Brand

Market attractiveness Competitive position

Pharmaceutical companies’ ambition

1 France, Germany, Italy, Spain, UK

Is Smart Pharma Innovative? 15 Years in Search of Innovative Solutions June 2016 10

Is Smart Pharma Innovative? 15 Years in Search of Innovative Solutions June 2016 11

Customer segment #1 Customer segment #2 Customer segment #3

Key tactics Key tactics Key tactics

Market access Market access Market access

Medical Medical Medical

Marketing & Sales Marketing & Sales Marketing & Sales

1 Strategic preference drivers will be defined by customer segment and supported

Is Smart Pharma Innovative? 15 Years in Search of Innovative Solutions June 2016 12

Customer Satisfaction Customer Preference

 Secures loyalty and enables to

Sources: Smart Pharma Consulting analysis 1 Brand Preference Mix index

Is Smart Pharma Innovative? 15 Years in Search of Innovative Solutions June 2016 13

To boost the preference of physicians for their marketed brands, pharmaceutical

 Convey an appealing corporate  Deliver unique

Sources: Smart Pharma Consulting analysis