™ DECEMBER 2016/JANUARY 2017
the publication for healthcare sales & marketing leaders™
IN THIS ISSUE
TAMING THE TECH BEAST
Be a Partner of Choice: Partnering Advice from Bayer, Lilly and Boehringer Execs Taming the Tech Beast Cleveland Clinic’s Top Ten The Office of the Future In the Mind of the Millennial Doc Getting Analytics to Pay Off HCP: How to Connect with Professionals And more!
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TABLE OF CONTENTS Publisher’s Letter..............................................................................................................................................4 Editor’s Letter.....................................................................................................................................................5 Editorial Board....................................................................................................................................................7
ARTICLES Be a Partner of Choice: Partnering Advice from Bayer, Lilly and Boehringer Execs...................9 Roundtable: Taming the Tech Beast......................................................................................................... 15 Cleveland Clinic’s Top Ten Advances for 2017..................................................................................... 25 The Office of the Future................................................................................................................................ 31 Great Minds: Mel Robbins on..................................................................................................................... 37 By The Numbers.............................................................................................................................................. 39 Millennial Doctors Want More Contact...................................................................................................41 Motivideos........................................................................................................................................................ 45 HCP: How to Connect with Professionals...............................................................................................49 Broken Links: How to Get Analytics to Pay Off..................................................................................... 51
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Publisher’s Letter
Looking Forward In this issue, we once again feature the Cleveland Clinic’s choices for the top ten most important advances for 2017. Some are already at work, others in development.
CARI KRAFT
This magazine is published for the education and advancement of executives in sales and marketing, across the pharma, bio, device and other sectors of healthcare. This is the rare article that does not apply directly to either sales or marketing. What can those people learn from scientific and technical innovations that they are not involved in creating?
What they can learn is where this industry is going, which is what informs and enhances the careers of everyone. Where will your next position be? What issues will you wrestle with and need to be informed about? What conversations will you engage in—at the office, events or even in casual contact—that might hinge on your understanding of the latest and greatest? All of us depend not only on knowing the details of our current assignment, but on a broader knowledge of how this industry is changing. The microbiome breakthroughs—discovering how bacterial communities in our bodies work—could affect the activities of numerous clinicians and surgeons you’ll be in touch with. Liquid biopsies and leukemia advances have implications across a wide swath of oncological expertise. Certainly the refinements in interoperability, particularly FHIR standards, will have an impact on every doctor, hospital, payor and healthcare company—to our great benefit. What a relief that will be. And along the way, you may find that information about diabetic treatments, depression remedies, and augmented reality for surgeons liven up your conversations and polish your image. Most of all, though, this list is a gift to everyone in the industry: a way of seeing our mission as being fulfilled day by day, discovery by discovery, patient by patient. Even in my sectors, recruitment and publishing, I take pride in disseminating this cheering news. We are all linked to it. Here’s to 2017, and all the change it will bring with it. And always, please keep the feedback coming. It all goes to making the magazine better for all of us.
Cari Kraft, Publisher
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HS&M DECEMBER 2016/JANUARY 2017 | 4
Letter from the Editor
New Directions I am confounded by the reactions of my fellow citizens to the results of changes, whether those changes are in their own industries, their communities or in the country at large. I’m not saying changes aren’t important, just that we tend to react in an emotional rather than a logical way. Okay, we can’t all be Mr. Spock. NEIL GREENBERG
But consider the angst over such events as the patent cliff, the ACA, the move from traditional to biopharmaceutical products, the shift in access to HCPs, and other upheavals in our industry.
Did you think everything would always stay the same? Then you weren’t paying attention. Didn’t you enter this industry hoping that we would continue to get better at what we do, providing improved outcomes and promoting a greater focus on the patient? Well, those things demand change, and change is never exactly what you expect it to be. It also demands adaptation. The same is true of events in our political realm. The recent election produced a great deal of excitement and dismay—as it would have if it had turned out differently. But people are both excited and dismayed for many of the wrong reasons. We don’t yet know what the future holds. Let’s reserve our opinions and actions for the real results—the policies put in place, the laws proposed and passed, the facts rather than the expectations. What we try to do in every issue of Healthcare Sales & Marketing is put a lens to some of these changes in our industry. We want you to learn from the experts we recruit how to handle the scientific, regulatory and cultural restructuring of our landscape. With a logical eye and mind rather than trepidation or confusion. We hope that you approach each issue with the anticipation of more education, and finish each one with greater strength and inner peace. No, we can’t all be Mr. Spock. But we can borrow a little of his logic, captain. As always, we continue to look for the value of your contributions. Let us know if you have an idea for an article—the people we write for are the people who write for us.
Neil Greenberg, Editor To become an HS&M contributing author or provide feedback, please email me at ngreenberg@hsandm.com.
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Editorial Board
the publication for healthcare sales & marketing leaders™
Publisher Cari Kraft Editor Neil Greenberg Creative Director Hedy Sirico Digital News Rick Cataldo Digital News Chris Manning Sales Director Andrew McSherry EDITORIAL BOARD: Kristen Sharron-Albright Head of Marketing at Noven Pharmaceuticals Chris Bergstrom Associate Director, Digital Health Expert at Boston Consulting Group Sebastian “Sebby” Borriello Vice President, Chief Commercial Officer SK Life Science Lewis Chapman Vice President, Global Commercial Operations AllCells, LLC Maria Finlay, MBA Associate Director of Oncology Marketing, Teva Oncology Nick Gurreri Vice President New Products at Alexion Pharmaceuticals, Inc. Bob Roda VP and General Manager at BD © 2016 CL Media Inc., Philadelphia, PA CL Media is not responsible for any unsolicited contributions of any type. Unless otherwise agreed in writing, CL Media retains all rights on material published in HS&M for a period of one year after publication and reprint rights after that period expires. Email ckraft@hsandm.com.
To advertise in HS&M, please contact Andrew McSherry at amcsherry@hsandm.com
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Chris Bergstrom Associate Director, Digital Health Expert at Boston Consulting Group Chris brings almost two decades of commercial expertise as an entrepreneurial executive at large medical device and high-growth digital health companies, and he provides “on the ground” advice for implementing digital health solutions. He currently serves as the expert on digital health at The Boston Consulting Group (BCG). Before joining BCG, Chris was the chief commercial officer (CCO) at WellDoc, a pioneer in digital health. He also held progressive roles at P&G, Roche, and Becton Dickinson. Chris was a senior advisor to several digital health innovators, including MyOwnMed, LiftOff Health, HelpAround, Heart Beam, iSageRx, and Alere Home Monitoring. He also advised the Leona Helmsley Charitable Trust and the Saatchi & Saatchi Wellness Board. Chris holds two digital health patents and has won multiple awards.. Chris holds a Bachelor of Science degree from the Kelley School of Business at Indiana University and earned his MBA from Columbia University.
Sebastian “Sebby” Borriello Vice President, Chief Commercial Officer SK Life Science Sebby is currently service as the Vice President, Chief Commercial Officer at SK Life Science. Sebby’s career has included executive sales and marketing positions at Cempra, Mentor Worldwide LLC, Johnson & Johnson Healthcare Systems Inc., Ethicon, Inc. and OrthoMcNeil Pharmaceuticals, Inc. Sebby received his B.A. in Public Administration from St. John’s University in ‘81, and received his M.S. in Organizational Dynamics from the University of Pennsylvania in 2001.
Maria Finlay, MBA Associate Director of Oncology Marketing, Teva Oncology Maria has over 20 years of commercial marketing, sales leadership and operations experience. She has led multiple sales, women’s leadership, and cross-functional teams at Johnson and Johnson, AstraZeneca, and Teva Oncology. Maria has experience collaborating to launch and grow small and large molecule products across seven different specialty therapeutic areas.
Bob Roda
Editorial Board
VP and General Manager at BD Bob Roda is a Senior Commercial executive with extensive experience in delivering business growth and profit in the Medical Tech and Diagnostics Industries. He currently serves as VP and General Manager at Becton Dickinson where he is responsible for the global infusion therapy business. Prior to his role at BD, Bob held a variety of roles of increasing commercial responsibility within the MD&D sector at Johnson & Johnson. His diverse background included positions in Sales and Marketing at Johnson & Johnson Medical, Inc, Ethicon, Inc and Ortho-Clinical Diagnostics. While at J&J, Bob also served as the Executive Sponsor of the Commercial Leadership Development Program as well as the Chair of the VP Marketing Council for all of MD&D. He has a proven track record of delivering results and leading teams in competitive and diverse business environments. Bob is a highly respected and successful global leader. Bob holds a Bachelor of Arts degree in Economics from the University of Rhode Island.
Lewis Chapman Vice President, Global Commercial Operations, AllCells, LLC Lewis Chapman is currently the Vice President, Global Operations at AllCells, LLC. He has spent over thirty years in health care management. He served as VP of Global Strategic Marketing at BioMarin Pharmaceutical from 2007 to 2012, where he was responsible for strategic marketing and product portfolio analyses, and implemented medical education, brand enhancement and sales support programs on a worldwide basis. He oversaw the global launch of Kuvan, which in the U.S. was 112% to budget in 2008, the first year on the market. Previously, he worked with Alpha Inntech Corporation as Vice President Global Sales and Marketing, where global sales grew 26% in 2004 and 22% in 2005 under his leadership. Lewis started his career with Eli Lilly & Company, with roles at Syntex and Genentech, where he was responsible for the global commercial launch of Activase (t-PA), the largest biopharm product launch in the history of the industry up to that time (first year sales $187 million).
Nick Gurreri Vice President New Products, Alexion Pharmaceuticals, Inc. Nick Gurreri is a business leader and General Manager with over 25 years of consistently achievinghigh performance and profitability through strong leadership and cohesive team building in the biopharmaceutical and medical device industries. Nick has held executive positions at Medgenics, Insmed, Pfizer, Pharmacia and Bristol-Myers Squibb. Nick received a BS in Mechanical Engineeringfrom the University of Delaware, and also acquired a Master of Science in Information Assurance at Carnegie Mellon University.
Kristen Sharron-Albright Head of Marketing, Noven Pharmaceuticals Kristen Sharron-Albright, the current Head of Marketing at Noven Pharmaceuticals, was until recently VP Sales and Marketing, Anti-Infective Marketing and Institutional Sales Specialty Care Business Unit at Pfizer. She is an experienced business leader with 20 years of experience in the pharmaceutical and biotechnology industries. She has a strong track record of delivering results in highly competitive and complex markets. Starting her career in sales at Eli Lilly, she then held positions of increasing responsibility at Lilly, Neurogen, and Pfizer, where she was responsible for sales and marketing in a franchise business model. In her spare time she volunteers, serves on the leadership committee for her church, and enjoys hiking.
HS&M DECEMBER 2016/JANUARY 2017 | 8
PHARMACEUTICAL
How to Become a “Partner of Choice” Advice from execs with experience at Bayer, Lilly and Boehringer Ingleheim Adapted from an eyeforpharma interview
There was a time when pharma did everything in-house, particularly R&D. These days outsourcing is well established and collaboration among organizations is becoming the norm. Companies are essentially agnostic about the source of their innovation: a typical large pharma may find itself collaborating with smaller biotechs, a hi-tech giant, universities or major consultancies—and perhaps with all four across different projects. KEMAL MALIK Head of Innovation Bayer
ANGEL PÉREZ AGENJO Senior Marketing Director Lilly
STEPHAN KLASCHKA Innovation Consultant Former Director, Global Innovation Management and Strategy Boehringer Ingelheim
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Such collaborations may, of course, address any part of the value chain. Angel Pérez Agenjo, a senior marketing director at Lilly, is focused on innovating through collaboration within the marketing space. “The way that start-ups think and execute, how lean, how nimble and how flexible they are can provide very valuable opportunities or add-ons to the current way we try to execute our marketing tactics.” Whatever the focus, the process needs careful management. All too often alliances can run less than smoothly as partners with different cultures and varying strategic objectives seek ways of working closely together and end up testing established processes to breaking point. This is particularly true at the cutting edge of innovation, where organizations are looking beyond iterative change towards deeper transformation. How then do we get the best from collaborating with external partners to drive successful innovation across our organizations?
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PHARMACEUTICAL Bayer’s head of innovation, Kemal Malik, explains: “One thing we’re very conscious of is we’re really part of an ecosystem. When I first entered the pharmaceutical industry, the company did all its research internally; there were a few collaborations but those were usually with academia.”
You have to be someone who other people want to partner with, because there are other options—particularly if they have something especially exciting. Kemal Malik, Head of Innovation, Bayer
Back then, relationships between organizations tended not to be well spelled-out. Today, successful partnerships are all about understanding the needs of each stakeholder and their differences—essentially what each is seeking to gain from the relationship. At the same time, there can be significant competition for the best ideas within the innovation ecosystem. So any pharma seeking to maximize competitive advantage from open innovation and collaboration should strive to position itself as a partner of choice in order to benefit from the first pick of cutting-edge technology. “You have to be someone who other people want to partner with because there are other options—
particularly if they have something especially exciting,” Malik says. “For me, being partner of choice is really trying to understand the stakeholders involved and what’s in it for them—why they want to partner with Bayer. It’s not just about money; it’s about the proposition that Bayer provides.” For instance, Bayer’s partners tell Malik that the organization is reliable, consistent and respectful, that it seeks to understand its partners’ perspective. FINDING THE RIGHT PARTNER While positioning the company as a partner of choice can successfully differentiate an organization within the competitive innovation ecosystem, some seek to be more proactive in their search for the right collaborator. Stephan Klaschka, former Director, Global Innovation Management and Strategy at Boehringer Ingelheim and now a freelance innovation consultant, says: “It’s not just a case of relying on people coming to you, you need to search the market for solutions.
Part of the challenge is to find the right partner for your problem. At Boehringer Ingelheim, we were working with incubators, accelerators and innovation forums in order to be seen… as an organization having problems to solve, as one actively look-
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ing for specific opportunities and solutions which may even come from an entirely different industry. Stephan Klaschka, Innovation Consultant
Moreover, while there are established platforms and routes to collaboration—for instance, working with VCs, initiating a start-up competition designed to solve a specific challenge or perhaps working with a consultancy or tech specialist –serendipity is invariably involved. “There might be a better opportunity somewhere else, so you have to look for it. That’s part of the challenge; to find the right partner for your problem. At Boehringer Ingelheim, we were working with incubators, accelerators and innovation forums in order to be seen and to be able to be found as an organization having problems to solve, as one actively looking for specific opportunities and solutions which may even come from an entirely different industry.” Indeed, finding the right partner may involve looking in spaces where these innovators operate. “Sometimes you stumble upon a company that has a good angle on a problem. It might not be a big company, it might be a small one with something specific that is helpful for what you’re doing.”
CREATING SHARED VALUE
KEYS TO SUCCESS
With a whole spectrum of choice for pharma to collaborate with, how do you go about selecting the right partner and building the relationship? “Who you want to work with depends on the type of problem you have, the kind of tools you are using or that they’re offering, as well as the type of process—so you don’t waste time and resources,” says Klaschka.
So, what are the key elements that drive a successful collaboration and build your reputation as a partner of choice? For Pérez Agenjo, clarity around objectives is vital. “We need to have a clear objective of what we want to do and achieve by partnering with the start-ups. It is important to have clarity inside the company around what you want to achieve from the engagement. Unless you have alignment on objectives, you will not be perceived as consistent by the start-ups out there.
Creating shared value for both parties is essential in any collaboration, although what that looks like depends on the problem, and the size and maturity of each partner. Pérez Agenjo explains: “Start-ups need an element of support instead of bringing greater complexity and uncertainty. They are there to get knowledge, expertise, processes from us, as that is what they are lacking. In the end, this has to be a win-win opportunity and if you don’t deliver those things, you will not get the right equity the next time you try to engage outside. An element of consistency and taking it seriously from our side is key.” In return, the pharma company gains in any number of ways, both externally and inside the organization: for instance, alongside customer-facing benefits such as acquiring the rights to market new intellectual property or the capability to assemble innovative solutions, there can be organizational advantages as well, including finding new approaches to internal operating problems or learning how to foster a more innovative and entrepreneurial environment.
“The element of trust is relevant. It has to be at least a mid-term objective. This cannot be a one-off event, because the minute you let down or miss on the expectations from start-ups that will be your equity next time you try to engage within the start-up ecosystem. “The other one is to understand that many start-ups especially at the earlier stages do fail on their first objective, so we need to be ready for failure. Investing some of the company resources to get some return on investment within our current or traditional business plan periods, I think that is not the way. You cannot look at a start-up engagement with traditional business filters.” Klaschka concurs with several of these points. “There has to be some volume of business but it is also about confidentiality and trust. Then it’s about finding the right partner for the problem you want to solve.” This latter point depends on the length of the relationship and the kind of problem space you’re in, as well as the specific area you want the partnership in—how broad—especially if you want to solve problems for a range
of business units. This involves finding the right partner with a breadth of capability. Especially in the context of consultancy engagements, Klaschka flags up the ability to deliver quality results. Particularly important is help screening and managing the full process of dealing with the crowd. Speaking from experience, he says: “As a pharma company, you don’t want to see all the people on the street; you want to have an intermediary. The project needs to be managed and you want to keep your resources focused on the three or five solution candidates that come back, and not waste your time on 5,000 submissions that are not anywhere close to what you’re looking for.”
We need to have a clear objective of what we want to do and achieve by partnering with the start-ups. It is important to have clarity inside the company around what you want to achieve from the engagement. Unless you have alignment on objectives, you will not be perceived as consistent by the startups out there. Angel Pérez Agenjo, Senior Marketing Director, Lilly
HS&M DECEMBER 2016/JANUARY 2017 | 12
PHARMACEUTICAL Klaschka also includes consulting creativity—especially the ability to frame the problem—“knowing what you’re aiming at, knowing where the highest chance is of getting some quality results back.” For instance, if you put out a problem, do you want just a white paper back? There’s a very wide range of variety and granularity. “You need some help in framing the right question so you get back the most powerful answer or most useful answer for your organization—and it might be a test-tube or it might be a white paper.” Further useful advice includes starting small and scaling up, and, perhaps most importantly, ensuring you not only have senior buy-in (any transformation project is a non-starter without it) but also have agreed metrics on how to measure the impact of a project. IMPACT “This is the acid test, right? This is when you see whether there is real senior endorsement or not,” Agenjo declares. For Lilly in Spain, the partnerships are aimed at making the organization more open-minded, curious and innovative. “I wouldn’t say the metrics are soft but they are different from the traditional ones.” Klaschka adds: “If you’re wasting money on open innovation stuff everybody is scared of what might come back. How do you define success in your own organization in order not to be shot down after the first job? The type of metric depends on what the leadership is buying into. “For instance, does senior management just want to see profits or make something 10% or 20% faster, or 100 times cheaper? Or are they going for how many ideas are being presented? How many people are engaged? It depends what you can convince your leadership of—what they are buying into. It’s usually just one number that’s important or one parameter. Try to get rid of the rest,” he concludes. •
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Kemal Malik Responsible for Innovation and the Latin American region Bayer After graduating in surgery at the University of London, Kemal spent several years in clinical medicine at the Northwick Park Clinical Research Centre and at Hammersmith Hospital, London. He then held various positions in medical affairs and clinical development at Bristol-Myers Squibb in the United Kingdom. Malik joined Bayer in 1995 as Head of Metabolism and Oncology Europe in the then Pharmaceuticals Business Group. He then served as Head of Global Medical Development before being appointed Head of Global Development. Kemal was a member of the Executive Committee of Bayer HealthCare AG from July 1, 2007 until his appointment to the Board of Management of Bayer AG. He was also Head of Global Development and Chief Medical Officer in the Pharmaceuticals Division.
Angel Pérez Agenjo Senior Marketing Director Eli Lilly and Company Angel has served at Lilly since 2008 as Managing Director, Denmark; Marketing Director European Mid-Size Affiliates EMS; and now Senior Director, Marketing, Capabilities, Commercial Operations & LSS. He headed the Marketing Automation Utilization project for the company, streamlining marketing agency services for Europe to create closer collaborations with startups and public bodies. Angel was named one of the 2015 Internationalists of the Year by The Internationalist. Stephan Klaschka Innovation Consultant, Stephan Klaschka Consulting Former Director, Global Innovation Management and Strategy Boehringer Ingelheim Stephan is a healthcare and intrapreneurship consultant, investor and keynote speaker on innovation and transformation. He has special expertise in digital and social product adjacencies, new revenue models, artificial intelligence and predictive analytics, emerging technologies, and other business growth areas. He was previously CEO of the German Institute for Telemedicine and Health Promotion, Co-Founder/Partner at iQuit! Productions and Director of Global Innovation Management and Strategy at Boehringer Ingelheim.
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HS&M DECEMBER 2016/JANUARY 2017 | 14
ROUNDTABLE
Taming the Technology Beast How to use the benefits and solve the challenges technology presents us with.
With moderator NEIL GREENBERG,
And Lead Panelist TIM WHITE
Editor, Healthcare Sales & Marketing
Head of Customer Experience Teva Specialty Medicines
Our panel of experts: PAUL SHAWAH JOSHUA GREENBERG Director, CapTech Consulting
DAVID REIM Chief Product Officer DMD
15 | HS&M DECEMBER 2016/JANUARY 2017
Vice President of Commercial Cloud Strategy Veeva Systems
JIAN YANG IT Director for Emerging Markets Business Unit Eli Lilly and Company
WHY GIVE LESS THAN 100%? You could hire a separate digital agency to build your website. Maybe another to manage your social media. But multiple agencies struggling to keep content aligned while also trying to pilfer each other’s work is a recipe for inefficiency. And disaster. Why not give 100% to an agency that’s successfully incorporated digital media into its clients’ branding mix for more than 15 years? One whose only agenda is delivering the right content, through the right channel, to the right audience. Who’s 100% committed 100% of the time.
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ROUNDTABLE We are on the cusp of a change. Oh, really? Obviously, we have been for a while, and the changes just keep coming. Technology is behind, or at least part of, most of the major issues facing the healthcare industry. Patient empowerment? Fueled by the availability of an avalanche of information and greater access to HCPs. Coordination of care? Largely a matter of being able to connect all providers. The ACA? Driven by, among other things, a desire to achieve greater efficiency, which depends largely on EMR implementation. Increasing adherence? Subject to a lot of new tactics, almost all of them digital. Amassing and analyzing data? All technological. What do we know? How much can we share? With whom? How safe is it? If you had one of Dr. Who’s tardis devices, basically a time machine, and you transported a physician from 2000 to 2016, you’d have to have a supply of Xanax as well. She wouldn’t recognize her own profession. Capturing Big Data, making sense of it, using it in clinical, organizational, sales and marketing areas, has been somewhat of a blessing, and somewhat of a major conundrum. What’s the temperature of the industry now? To assess that, we invited this panel of commentators, who wrestle with these ideas on a daily basis. Let’s see what they make of this Rubik’s cube of programs and apps, possibilities and challenges.
What have been the major effects on healthcare since the digital revolution over the past five years? Jian Yang: A new eco-system that connects patients, caregivers, HCPs and healthcare companies is emerging through technologies such as website, mobile app, the cloud and internet of things. David Reim: One change that I have observed from a frontrow seat is the democratization of healthcare information. Prior to the open Internet, healthcare information was relegated to what you learned in high school, what your crazy aunt thought she knew,
and low-literacy pamphlets from a doctor’s office. With the advent of WebMD and Wikipedia, among others, a consumer can pretty much get any information they want—from a simple list of symptoms to detailed clinical trial results. The effect of this has been the creation of “partnered” healthcare, where many times the physician, either happily or unhappily, has to view the patient as an informed agent. This democratization has affected physicians too. Josh Greenberg: Two areas that specifically stand out are the prevalent adoption of mobile, both at the consumer and enterprise
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levels, and the massive amounts of data readily available for analysis to glean new and actionable insights. These two technologies have provided pharma with a mechanism to more directly engage with patients and target engagement on a much more personal level. Paul Shawah: Commercial pharma hasn’t truly been disrupted yet. In 2015, the FDA approved 51 drugs, the highest count since 1950. Pressure is mounting for life sciences companies to get more specialized products to market faster, on a much larger, global scale. And, with the increased focus on such targeted and personalized therapies, comes a greater urgency to get the right information to a more diverse set of stakeholders fast. The demand for digital information tailored to all the stakeholders’ needs is growing exponentially. And expectations are for information to be available anytime and anywhere. The processes and systems put in place for more traditional commercial models are now barriers to meeting the volume, speed, and diversity of information required by today’s stakeholders. This has led to significant needs for and rapid developments of new digital technologies. These dynamics are forcing life sciences organizations to reevaluate many of their existing business processes and adopt new practices to drive operational excellence. Much of the focus is on creating more efficient and agile operations to move with speed in the digital age. Things as basic as online interactions and collabora-
GLUT OF INFORMATION
DISRUPTION “PUSH” MODEL SOCIAL MEDIA THREATS
tion between providers and pharma companies are finally coming of age. For life sciences firms, legacy software systems can’t keep up. Digital has given rise to the cloud, as more firms commonly turn to cloud-based services to meet many of their software needs. Tim White: I see digital disruption in healthcare across three areas. First, advances in machine learning, big data, and real-world evidence generation through social and digital channels have provided new opportunities in the research and development of new treatment options. Second, the rapid development of wearable technology and more advanced mobile applications have caused us to rethink what exactly treatment of a disease
or condition means (i.e. looking beyond pure pharmacological treatment). Finally, where I spend most of my time, the digital world has had a massive impact on the ways in which we communicate in or around health. Patients, payers, caregivers, healthcare professionals all have new, digital expectations for the way information is delivered. All three of these digitally driven changes will eventually converge to empower personalized medicine and lead to a far higher level of patient self-management. What are the most positive changes, and the ones that have created the most difficulty or havoc? Jian Yang: Professionals and patients are increasingly looking
for information online and there are established online sources. However, because of the complex nature of heath care, professional intervention is needed to help all parties to properly interpret and digest the professional information. Tim White: The most positive changes are the advancements in actual treatment options for patients. From mobile health solutions to connected devices, I see the treatment of so many different diseases being rethought and the impact that this will have on overall healthcare over the next five to ten years will be immense. These technologies will undoubtedly have a positive impact on both the quality of life and overall life
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ROUNDTABLE expectancy as time goes on. But, like most things, these new technologies come with new challenges—specifically, in terms how they should be regulated. Think about Apple—since the company can accept or reject certain applications on their devices, it is acting as a de facto regulator of mobile health solutions. On the other hand the FDA, EMA, and others now need to consider regulating things like algorithms and regular software updates, which is an entirely new world for them. Jian Yang: Most positive changes are all players in the healthcare value chain—patients, caregivers, HCPs and healthcare companies— are very aware the potential of the digital revolution that started with consumer areas. Many players have started their own journey with various levels of success. The difficulty lies in the complexity of healthcare system, and navigating through various legal, privacy and regulatory bodies also takes significant amount of time. Josh Greenberg: Again, I would say that both mobile and data have created positive changes by affording people with real-time access to the most critical information needed while similarly providing companies with a more astute picture of usage, effectiveness, and intention. Similarly, these changes create a broader need for stewardship that is not readily apparent in most organizations What are your views on the glut of information, and both professionals’ and patients’ ability to sift through it? Tim White: A Google search
about any health topic will deliver millions of results, yet quite often the entries close to the top of the list aren’t always the most accurate or relevant. This is particularly worrisome when it comes to patients who are sometimes trying to self-diagnose, but it also impacts HCPs. Therefore, it’s of utmost importance that the trusted life sciences companies which are creating the most factual and relevant information take seriously the user experience of their own websites. We need to band together to make it easier for both patients and HCPs to get the reliable treatment information. Further, we should also take greater advantage of new commercial strategies like search engine optimization and social media marketing to ensure that essentially the best content makes its way to the right individuals. Paul Shawah: The real issue here is not as much about the “glut of information” as it is about the accessibility of it. Life sciences companies have a wealth of drug product information—arguably, more than any other entity on the planet with swaths of research and clinical data. However, accessing it is not always easy—and even cumbersome in some cases—for healthcare professionals or patients. For example, healthcare professionals typically go through multiple steps to access product information, even though most of it is digitized. Even for a single pharmaceutical company, HCPs may have to keep track of multiple user IDs and passwords across various product portals, websites, and apps. Multiply that by the dozen or more companies an HCP works with and the complexity starts to become a barrier. It takes too long, so busy HCPs go elsewhere, where
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information is easier to access even if it is not as reliable. In fact, one study reports that Wikipedia is the single leading source of drug information for providers and patients, with 50% of physicians saying they consult the community-edited site. If life sciences companies globally start to view HCPs as a shared customer, they can come together to establish new standards that will make it markedly easier to deliver relevant information to HCPs. Physicians won’t be overwhelmed by a “glut” of information, but rather be enriched by the “right” information at the right time to improve outcomes. Josh Greenberg: Successful organizations of the future will find ways to operationalize their authenticity to foster a trust in the information they push onto the markets. David Reim: It is incumbent upon us to learn how to process content on the Internet and how to seek quality information. I believe that the way to process the glut of information on the Internet is to use filtering tools that know something about you and can help you find what you are looking for. Think of Amazon’s recommendation engine: when information providers can identify the health care provider on their website and use this information to serve them relevant and targeted content, it ensures the perfect “fit.” What kinds of developments are happening now that will move things forward? David Reim: We need to rely on automated processes to filter the information for us. In the near term, there are new screening technologies that deliver the information that is the most ap-
plicable. A little further down the road is machine learning, which is the ability of computers to mine very large piles of data, such as search history, to find patterns that can be applied to future information searches. Some people find the prospect of being guided by a computer as potentially limiting, but it will be the only way that the majority of us will be able to efficiently and effectively find what we are looking for. Jian Yang: The marriage of digital technology and healthcare is happening now and will have major impact around the world. The most significant positive impact may be happening in developing countries first, such as remote healthcare. Paul Shawah: As I mentioned
earlier, the good news is that industry leaders are starting to embrace the concept of HCPs as a shared customer. Life sciences companies have a new willingness to collaborate to remove barriers and develop novel, more efficient ways to make it easier for HCPs to access valuable information. Align Biopharma is a good example. It’s a new industry standards group of leading life sciences companies focused on making it easier for HCPs to get the information they need. One way is to create a single, common identifier for every HCP that is recognized across all life sciences companies globally. With that, a physician would need to manage only a single user name/ password to log in to every pharmaceutical website, portal, or app. Simple! Additionally, this common
HCP identifier could map to information about each HCP’s channel preferences so if a physician makes a request for, say, information about a new indication, the manufacturer knows exactly how to deliver it. Going one step further, I can envision the traditional push communications model being reversed whereby HCPs will be able to request the information they want on demand from the industry, regardless of who markets the drug. Josh Greenberg: The advent of wearable technology will push personal engagement further by creating a level of interaction that surpasses the need for overt transactions. Patients will be able to leverage wearables to get real time feedback on the effectiveness of
Moving Forward STEWARDSHIP
SHARED CUSTOMERS
TRANSPARENCY
“PULL” MODEL
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ROUNDTABLE their health solutions while companies will have access to a granularity of information never before experienced. Tim White: True. I’m fascinated by Moore’s Law, which states that computing power doubles every two years. This means that, while we’re seeing some very impressive things now, what’s around the corner is even more inspiring. This multiplying computing power will impact—if not enable—predictive medicine, where both wearable sensors as well as the use of the mobile phone will be able to be tracked. Through these predictive algorithms, very early warning signals will be detected to prevent a critical situation. At a previous company, we were working on this very thing to actively predict when a patient with schizophrenia or bipolar disorder was at risk of relapse strictly based on the usage of their mobile phone. As computing power gets stronger, and sensors become more capable, the ability to predict diseases before they show any outward symptoms will have a massive impact on healthcare. What are the challenges at the moment—what needs the most dedicated attention? Jian Yang: The establishment of relevant legal/regulatory frame work around digital healthcare. Josh Greenberg: Data stewardship and governance. Currently there is a mindset to build the tools to help patients and professionals actively engage with their
healthcare decisions. By their nature, these tools aggressively capture information that overwhelm existing databases and have the potential to provide personal intelligence people are unaware they’re sharing. Companies will need to embrace new technologies that provide the capacity for enormous amounts of information and the firewalls to ensure privacy. Where do you see tech taking the industry? David Reim: Healthcare, more than most markets, is reliant on technology to move the discipline forward. I am particularly interested to see where genetic-based personalized medicine will take us in the next 20 years. This will involve whole new branches of emerging technologies to sample and assess an individual’s genetic makeup and then use big data approaches to develop treatments that are tailored for optimal success with that individual. Josh Greenberg: Machine learning and artificial intelligence are beginning to become readily accessible. I see the industry taking an aggressive move towards a more analytically-driven culture where decisions are made not from past successes but from what insights the data can offer. Tim White: There are many discussions about the threat of Google, Apple, Facebook and others to the traditional life sciences industry. I tend to look at it from a different angle, which is that through partnership with these companies we, together, can revolutionize healthcare. The competencies that technology firms like Apple or Veeva Systems—with
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its modern industry-specific cloud software—can offer are impressive, but the industry also brings some impressive competencies to the table. Therefore, it’s likely to see key partnerships between the sectors where both of our strengths can be best utilized continue to evolve. A good example where this is working at Teva is in our relationship with IBM. We have entered into a three-year research collaboration that integrates with the Watson Health Cloud. The project builds on an existing alliance and will focus on two key areas in healthcare: developing a systematic approach to discovering new uses for existing drugs and improving chronic disease management. Using our therapeutic technologies and Watson’s cognitive computing, we are working to help doctors, patients, and payers better manage chronic conditions like asthma, plus track treatments. Jian Yang: Tech companies will play a significant role in helping evolve the industry and improve healthcare quality. Two sectors have opportunities to join hands and create win-win situation. Neither will be able to take over the other side’s business. Paul Shawah: Cloud technology will allow new industry standards groups like Align Biopharma to turn the traditional “push” model for information access upside down, for the better. It will enable a true customer-centric pull model where customers drive the interaction—what information they need, how they need it, and when they need it. In this way, technology will help break down the barriers to fast communications, like having to manage two dozen username and password combinations,
and put the power in the hands of the HCP. And, when life sciences companies are ready to “push” product information to HCPs, it will be smarter—driven by actual customer data and behaviors so the information will be highly relevant and delivered how the customer prefers. How does technology help address patient centricity? Jian Yang: The expectation from patients towards healthcare is changing due to the “instant-on” services they receive through some technology offerings. Waiting for five minutes for the PC to boot up has changed to instant-on with their smart phones. Their expectation towards receiving faster responses on their health-related matters are higher and higher. Understanding this and putting the patient in the center of everything we do is a critical success factor for everyone in the healthcare ecosystem. David Reim: We are far from having the patient in the “center,” as centricity would imply, but the patient is increasingly involved in their own care via the democratization of health information. The Internet has also provided the opportunity for patients to band together to learn from each other and to even affect policy and research. Josh Greenberg: Technology provides for companies to create a very intimate experience with their patients to help manage and improve their care in near real time. Patients have the benefit of deep analytical insights into their personal performance at that moment to quickly gauge effectiveness.
How does technology impact on the responsibility of companies to be good stewards? Paul Shawah: With more targeted treatments aimed at more specific diseases, the access to drug information and services are now as important as access to the drugs themselves. By coupling cloud technology with common ways of doing things, the industry ensures reliable information gets to the right HCPs and, ultimately, patients much faster. In this way, modern technology eliminates barriers and provides a mechanism for open communication, helping life sciences companies ensure that product information is accurate, up-to-date, and easily accessible. Tim White: In almost every sector, technology has opened doors and, in doing so, placed the burden on companies to be more transparent, responsive, and service-oriented to their customers. Healthcare is no different. For example, now there are websites like treato.com, where patients literally “rate” treatments similar to the way consumers assess a product on Trip Advisor or Amazon, giving it multiple stars. There are similar sites for hospitals and even individual practitioners. As the world becomes even more connected, social and transparent, people can’t just talk about patient-centricity but they must put talk into action. For me, this involves ensuring that we as a company provide a valuable experience in every single interaction. In embracing this, as well the many other opportunities that technology allows, I do believe it will make healthcare better for all and improve the overall reputation of our sector.
David Reim: Although I would like to think that companies are intrinsically motivated to be good stewards, many are not. In those cases, the Internet provides a global fact-checking and community platform that enables all stakeholders to ensure that companies act in the best interest of the people they serve and not just themselves. An excellent example of this is the lawsuit brought by the state of New York against a Top Five pharmaceutical company. This company, like others, was funding many clinical trials but only reporting the results of those trials that were beneficial to their products (or stopping trials that looked like they would be negative). The resolution of this lawsuit resulted in a precedent for pharmaceutical companies to post all results of clinical trials, partial or otherwise, on the Internet for the public to review. Josh Greenberg: As consumers more broadly embrace technology through mobile and wearable technology, the current implicit acceptance of data usage will no longer be sufficient. Companies will begin to be held accountable for how they use data and how they not only share data but the insights that can be generated with partner organizations. •
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ROUNDTABLE
MEET OUR PANEL OF EXPERTS
JOSHUA GREENBERG Director, CapTech Consulting
Josh is a proven business leader with over 20 years of experience in delivering transformative solutions for Customer Engagement and Data Intelligence throughout a number of industries. Josh has consulted to large pharmaceutical organizations on Salesforce effectiveness, Master Data Management, Operational process improvement, and Organizational Change Management to both craft business strategy and deliver sustainable improvement. JGreenberg@captechconsulting.com CapTech Consulting (www.captechconsulting.com) is a national management consulting firm that bridges the gap between business and technology. CapTech delivers transformation, customer engagement, data & analytics, and custom IT solutions for private companies, public companies, and government agencies. The company’s collaborative approach helps organizations grow their business, engage with customers, and turn data into powerful insights.
PAUL SHAWAH Vice President of Commercial Cloud Strategy Veeva Systems
Paul is shaping advances in cloudbased software to enable modern multichannel communications between life sciences companies 23 | HS&M DECEMBER 2016/JANUARY 2017
and healthcare providers. He has been driving digital innovation in the life sciences industry for decades, named one of PharmaVOICE’s Top 100 Industry Innovators in 2012. Shawah is also published in dozens of respected life sciences trade publications and journals and is a regular speaker at industry conferences. At Siebel, Shawah pushed the envelope to incorporate mobile technology in the company’s CRM product that would enable feedback directly from the field during a physician call. He quickly became an evangelist for what is today known as closed loop marketing or CLM, igniting a movement in the life sciences industry as he set out to change the mindset of pharmaceutical marketers and sales operations. paul.shawah@veeva.com Veeva Systems is a leading provider of industry cloud solutions for the life sciences industry. Our products are designed to help life sciences companies with some of their most critical functions—from R&D to commercial—in bringing products to market faster and more efficiently, marketing and selling them more effectively, and maintaining compliance with government regulations. Its industry-cloud solutions provide data, software, and services that address a broad range of areas, including multichannel customer relationship management, content management, master data management, and customer data.
DAVID REIM Chief Product Officer DMD
A pioneer in applying digital marketing to pharma and healthcare, David Reim is chief product officer at DMD. Prior to DMD, Reim was
the president of FanHealth Network, a mobile-app driven health and wellness company. Prior to that, he was president of SimStar, one of the first digital marketing agencies in healthcare. Subsequently, he ran the U.S. business unit for TNS Healthcare, one of the largest healthcare market research providers. dreim@dmdconnects.com DMD provides the next generation in digital engagement with healthcare professionals. DMD clients have access to the only authenticated database available that can reach, track, and respond to the dynamic digital behavior of fully opted-in physicians and NP/ PA prescribers. Through this database, pharmaceutical marketers, medical marketing agencies, publishers, hospitals, CME organizations, and healthcare recruiters have digital access to more than 90% of physicians with email addresses and real-time data that unlocks precision targeting and engagement capabilities across the most influential healthcare audiences.
TIM WHITE Head of Customer Experience Teva Specialty Medicines
Tim is regarded as one of the foremost thought leaders in customer and patient experience within the pharmaceutical sector with deep expertise in digital and social communications/marketing, mobile health, commercial excellence, and digital brand strategy development. Prior to Teva, White has held senior executive positions at Lundbeck, Novartis, and MSD. White is an active thought leader inside and outside of pharmaceuticals, having delivered over 50 key-note lectures globally on eHealth/Mobile Health, Digital Marketing, Commercial Innovation, and the future of technology in healthcare. He was recently featured in PM360 Magazine as one of the foremost trendsetters in pharmaceuticals today. In 2015, White was named as one of the “Top 100 Talents in Denmark” by Berlingske, the leading Danish business magazine and, most recently, as the youngest ever recipient of the prestigious Emerging Pharma Leader Award given by Pharmaceutical Executive. Timothy.White@tevaeu.com. Teva is committed to increasing access to high-quality healthcare for people across the globe, at every stage of life, by developing, producing and marketing
affordable generic drugs as well as innovative and specialty pharmaceuticals and active pharmaceutical ingredients. The company’s line of generic and specialty treatments is backed by global development and manufacturing capabilities. Teva’s participation in a wide range of therapeutic areas and dosage forms is empowered by a unique integration of innovative specialty and generic research.
JIAN YANG IT Director for Emerging Markets Business Unit Eli Lilly and Company
A physician by training with extensive experience in R&D, Medical and Commercial areas, Dr. Yang has keen understanding of the issues, challenges and opportunities in healthcare and pharmaceutical industry. Dr. Yang is passionate about leveraging technology to drive business transformation. He is a result driven leader with global vision and career footprints in the U.S., China, Japan and Singapore. At Lilly, he is responsible for delivering commercial transformation for Emerging Markets Business Unit through a holistic digital strategy and technology innovation. He previously led a high-performance Lilly IT department to provide infrastructure, data, application, research support as well as innovative IT solutions for Lilly Research Labs. He has led the effort to establish Integrated Genomics Platform for Cancer Research and Translational Medicine platforms.Before joining Lilly, Dr. Yang led the effort in designing and managing HIPAA-compliant medical informatics system for medical and epidemiological researches in collaboration with United Nations and US Centers for Disease Control and Prevention. yang_jian_jy@lilly.com Lilly, founded in 1876 by Colonel Eli Lilly, works to discover and bring life-changing medicines to those who need them, improve the understanding and management of disease, and give back to communities through philanthropy and volunteerism. It makes medicines that help people live longer, healthier, more active lives. Its vision is to make a significant contribution to humanity by improving global health in the 21st century.
COMMENT HS&M DECEMBER 2016/JANUARY 2017 | 24
INNOVATION
Cleveland Clinic Top 10 Medical Innovations of 2017 As we have done before, we are proud to feature the medical advances deemed by the Cleveland Clinic to be the most important upcoming ones in 2017. In a field as broad, diverse, active and complex as healthcare, these are just a handful among many great and promising achievements for us to look forward to. And you may know of others you think equally important. When there is great concern about what the future holds for our industry, it’s nice to take a glance at the good news, and see how much we’re delivering on the promise to provide better patient care. Your end-of-year gift from Cleveland:
Strange as it seems, the gut is a gold mine. Trillions of bacteria making up communities in our body—the microbiome—are unlocking mysteries at a rapid pace. The crux of the discovery is that our microbes have a mind of their own. The chemicals they emit interfere with the way food is digested, medicine is deployed, and even how a disease progresses. Biotech companies once focused on the genomic market are pivoting to the potential of the microbiome to develop new diagnostics, new therapies, and “probiotic” products to prevent dangerous microbe imbalances. With the National Microbiome Initiative accelerating research and development, experts believe 2017 is the year the microbiome cements itself as the healthcare industry’s most promising and lucrative frontier. 25 | HS&M DECEMBER 2016/JANUARY 2017
PARTICIPATE AND GET THE FULL RESULTS!
HOW ARE YOU DOING $ALARY-WISE? We know this is a question most people ask themselves all the time, and we’re happy to provide you an answer by participating in our 2016 Compensation and Hiring Survey. PARTICIPATE IN OUR 2016 COMPENSATION AND HIRING SURVEY HERE We are pleased to open our yearly survey where we poll key people in the medical device, pharmaceutical, and biotech sectors of the industry to determine compensation trends. The survey is completed in conjunction with Jacobs Management Group, Inc., a leader in executive search for the healthcare industry and all participants receive a survey summary so that you can see how you compare. Please click here to be taken directly to the five-minute survey. The 2016 Compensation and Hiring Survey builds on the feedback from 2015 Survey, highlights of which were published in the JANUARY/FEBRUARY 2016
issue of HS&M. Companies ranged in size from over $100B to over $10M, and over 80% of the respondents had titles of manager or above. “We continue to receive accolades for this targeted industry report” says Jacobs Management Group, Inc. President, Cari Kraft. “Our results have become one of the key inputs into compensation benchmarks.” All specific survey information and your contact information will be held in strictest confidence. We will email you with the results as soon as they are published.
COMPANY SIZE
For assistance building your team, please reach out to Cari Kraft ckraft@jacobsmgt.com or call Cari at (215) 383-3001.
INNOVATION
Nearly a decade ago, a wave of new diabetes drugs hit the market with promises of lowering blood sugar. They fell far short of blunting the scariest statistics for type 2 diabetes patients: half will die from complications from cardiovascular disease. In 2016, new medications began dropping the mortality rates considerably. Empaglifozin proved to modify the progression of heart disease by working with the kidney while liraglutide has a comprehensive effect on many organs. Experts predict 2017 will mark a complete shift in the lineup of medicines prescribed for diabetes patients, as well as a new wave of research into new avenues to target type 2 diabetes and its co-morbidities.
In 2016, nearly 16,000 children and adolescents will be diagnosed with cancer, more than a quarter of them with leukemia. Yet there is good news coming in the battle against leukemia as well as against Non-Hodgkin lymphomas. One of the first cellular immunotherapies is about to hit the market, and early results suggest these diseases, even in advanced stages, may be curable. Chimeric antigen receptor (CAR) T-cell therapies represent a type of immunotherapy where a patient’s immune system T-cells are removed and genetically reprogrammed to seek and destroy tumor cells. They seek out antigens, multiply, and attack and kill the foreign cancer cells, then often stick around to minimize chances of relapse. Results of these cellular immunotherapies have been impressive. Some studies focusing on acute lymphoblastic leukemia (ALL) have reported a remission rate of 90 percent. Cellular immunotherapy could one day replace chemotherapy and its lifetime of side effects.
Oncologists have long dreamed of avoiding the subjective nature of reported signs and the hit-or-miss nature of biopsies. Their dreams may be coming true. Tests known as “liquid biopsies” uncover signs of actual DNA, or cell-free circulating tumor DNA (ctDNA), which is shed from a tumor into the bloodstream. The advantage is that ctDNA is more than 100 times more abundant in the blood than tumor cells. The market is adjusting to make way for this revolutionary cancer test. Annual sales are forecast to be $10 billion, and several companies are developing testing kits to hit the market this year. Liquid biopsy is being hailed as a flagship technology of the federal government’s Cancer Moonshot Initiative. Experts believe it’s only a matter of time before catching and treating cancer is as routine as your annual checkup. 27 | HS&M DECEMBER 2016/JANUARY 2017
With 38,300 fatal car crashes in 2015, automobile accidents remain a leading cause of death and disability, with medical costs totaling nearly $23 billion nationwide. Innovators believe these types of numbers can be wiped off the books for good. New, automatic safety features promise to make a dent in dangerous car accidents. These range from collision warning systems to drowsiness alerts to adaptive cruise control. Safety technology is expected to surge in 2017, a year before the Department of Transportation mandates the inclusion of backup cameras in all cars. Meanwhile, there is a grander notion to remove all human error from vehicle transportation. The nation’s biggest software, private transportation, and auto manufacturing companies are making huge investments into driverless cars. Safety and legal questions remain, but 2017 is expected to be the year that driverless cars take a spin into the mainstream.
The inefficiencies of doctors’ appointments and hospital stays have been the butt of jokes for decades. While sorting through bills or waiting on hold with insurance companies, patients are likely to ask, “Why can’t these offices talk with each other?” or “Why can’t the machines in the same hospital talk to each other?” Digital interoperability is complex in healthcare, which must weigh privacy, security and accuracy concerns. But 2017 marks the year we finally make sense of the tangled web. FHIR (Fast Healthcare Interoperability Resources) is a new tool soon to be released by an international committee called HL7. It will essentially function as an interpreter between two healthcare systems or offices that have developed their own languages. The first release will focus on clinical data, like images and medications, while the second will focus on administrative data, like billing and demographics. There are huge implications for healthcare. Innovators and entrepreneurs everywhere can finally take a crack at building smart, data-driven technologies that can be built to a FHIR standard, allowing new technologies to be adopted anywhere. FHIR not only marks a potential end of the frustration, it paves the way for a surge of lifesaving health information technology.
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INNOVATION
A loss of hope is a classic symptom of depression. Drugs and therapies have been developed to help balance or trigger serotonin, norepinephrine and other neurotransmitters. But for one-third of depressed patients, the medications don’t really work. Alternatives include electroconvulsive therapy or other intensive treatment options. Too often, the last resort is suicide. In 2013, ketamine, a drug commonly used for anesthesia was studied for its ability to target and inhibit the action of N-Methyl-D-aspartate (“NMDA”) receptors of nerve cells. The results were overwhelmingly favorable. Initial studies indicated that 70 percent of Treatment-Resistant-Depression (“TRD”) patients saw an improvement in symptoms within 24 hours of being injected with a low dose of ketamine. For the first time, there was a fast treatment for the severely depressed. The studies triggered the FDA to grant Fast Track Status to the development of a new NMDA-receptor-targeting medications based on the ketamine profile. Some, like esketamine, received breakthrough status from the FDA, enhancing the probability that these new drugs will be available to patients in 2017. With nearly 43,000 suicides a year in the U.S., the need for effective treatment looms large. In the medical community, hope has never been higher.
For years, surgeons have relied on microscope oculars or other camera systems to operate. Even so, they typically depend on their own eyes and interpretations to execute the most precise of tasks with their heads down, peripheral vision limited, back and neck muscles strained. This past year, two of the most intricate surgical practices, ophthalmology and neurology, began experimenting with technology that keeps surgeons’ heads up while immersing them in a high resolution, 3D visual representations of their subject. These stereoscopic systems also use data to generate visual templates for surgeons to execute certain tasks within a surgery. Experts and surgeons who have piloted the technology say the added comfort and visual information allow surgeons to operate more efficiently and effectively. Plus, medical residents have a clearer picture of what the surgeon is seeing and doing. Along the same lines, software companies are building augmented reality glasses that display holographic images of human anatomy. Medical schools see the end of cadaver labs. While the market is still growing and imaginations running wild, several hospitals will be adopting virtual reality tools in 2017, pushing the boundaries of surgical reality.
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In the mountains of Ecuador, over the rough terrain of Tanzania, or even in the rural communities in the US, there are women at significant risk of dying of cervical cancer and have no idea. Most sexually active woman contract the Human Papilloma Virus (HPV). Certain strains of HPV are responsible for 99 percent of cases of cervical cancer, the most common malignancy in women 35 years and younger. Despite great strides in HPV prevention and treatment, the benefits are restricted to a narrow population—-women with access to HPV tests and vaccines. In 2017, an ambitious approach to expand the care will be launched. Scientists have developed self-administered HPV test kits that include a test tube, a swab, and a mail-in box. Women can administer their own test, mail a sample back to a lab and be alerted to dangerous strains of HPV. Cervical cancer prevention is a “Millennium Development Goal” of the United Nations. 2017 could be the year these tests are deployed on a large scale, representing the greatest prevention strategy for cervical cancer to date.
Every year, 600,000 people have metal coronary stents put into their chests to treat coronary artery blockage. Most of the time, that stent stays there forever, long after its mission is complete. The stents may inhibit natural blood flow and cause other complications, like blood clots. What if they could just disappear? That is a long-sought goal researchers have finally met. This past July, the first bioabsorbable stent was approved in the United States. Made of a naturally dissolving polymer, the stent widens the clogged artery for two years before it is absorbed into the body in a manner similar to dissolvable sutures. The disappearing stent leaves behind a healthy natural artery. The patient is free to go off blood clotting medication and qualifies for a broader range of medical treatments. Only one version of an absorbable stent has been FDA approved but more are coming. Experts believe the market potential will approach $2 billion in six years. While the full impact of vanishing stents is yet to be seen, 2017 is the year the technology becomes a game changer.
FOR MORE INFORMATION AND FOR INTERVIEWS WITH EXPERTS ON SPECIFIC INNOVATIONS, CONTACT ROBERT SMITH: 216-445-1991, SMITHR5@CCF.ORG
HS&M DECEMBER 2016/JANUARY 2017 | 30
INDUSTRY
The Office of the Future An interview with Ashik Desai, Executive Vice President of Business Growth & Analytics, ContextMedia:Health We have all heard the statistic: 17.5% of U.S. GDP is currently spent on healthcare, and 80% of these costs are attributable to chronic condition treatments, according to the CDC. One of the key remedies to this trend is improving comprehension, conversion and compliance of chronic disease treatments and lifestyle choices. ContextMedia, having recently acquired AccentHealth, is the leading healthcare decision platform at the point of care in the U.S. Because their combined technologies are now a major influence on the struc31 | HS&M DECEMBER 2016/JANUARY 2017
ture, efficiency, information delivery and physician/ patient interaction in offices across the U.S., we interviewed EVP Ashik Desai to get a picture of what the office of the future will look like. Where will this sector of healthcare be in a few years? In speaking about the point-of-care sector, all signs indicate that we will continue to see a level of growth in market size that exceeds growth of other DTC
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INDUSTRY
Source: ZS AccessMonitorTM and AffinityMonitor TM 2016 Executive Summary channels year over year. That said, I encourage those that work in healthcare sales and marketing to avoid bucketing these technologies into “point-of-care,” as the value proposition transcends the traditional scope of that sector. We have improved the metrics of success for life sciences marketers in the pursuit of helping patients live healthier. We have a vision of how the actual consultation and decision-making process between the patient and physician will continue to improve significantly over the next few years.
What is the office of the future going to look like? What advantages will it provide? As we continue to integrate into the consultation, marketers will receive a solution for one of the most pressing issues: a lack of access to physicians that is being experienced by those that work in life science sales. A well-circulated study by ZS Associates points out that in 2008, 80% of physicians were considered accessible by healthcare sales reps, while today, that number has dropped to 44%. An estimated $1B is spent on sales
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efforts that never actually result in a meeting with a physician. Faced with this decreased access, health marketers can still drive impact by delivering information that would be most helpful to providers during consultations and time of prescription, from Patient Savings Programs to MOA’s to new sideeffect management guides. With the right messaging, marketers can deliver the information that target physicians want and need to deliver to patients. While it is fun to speculate about what these technologies will look
like, what we can count on is a further integration into the consultations. We are continuing to find new and exciting approaches to messaging through platform that can drive impact and returns. How powerful would it be to use this as a portal to initiate rep activity for samples, or even enable the platform for brand rep use when on site to better explain treatment and disease information? No one wants to be sold—especially at the physician practice—but we have the opportunity to deliver the urgent intelligence and information that consumers and providers actively seek about conditions and treatment options. What progress have we made so far in achieving the office of the future? We are making tremendous inroads today. To give you a glimpse into the rate at which we are building these technologies, one of our most popular products, the Digital Exam Room Wallboard, which provides 3D anatomical diagrams of the human anatomy and condition states, went from idea to product launch in a period of just over four months. Through a partnership with BioDigital, we recently started deploying enhanced 3D images and video of even more parts of the anatomy and condition states. In addition, we have enhanced the user interface to better serve the needs of all of providers to make it easier for them to use the information and intelligence they need the most. We’ve also worked with some of our strategic partners to develop and deploy early detection selfassessment technology, and have some groundbreaking innovations
that will make a brand’s information more accessible to consumers not only during, but in the time after consultation. Is it all dependent on technology, or do physicians also have to adapt in the way they interact with patients? The physician interaction is the most important part of the dialogue—it is the human element, and it’s what makes this type of technology so powerful. I’d also like to dispel the idea that technology creates a distance between the provider and their patient. In our experience, we’ve found that physicians are actually more engaged than ever, and are trying to be more impactful with the short time that they have with patients. We want to help them do their jobs even better. As a result, response from physicians has been overwhelmingly positive. The communication of conditions and treatments can be complex, and there is no reason why patients should still be learning this information on the back of a photocopy, or using a plastic model. The growth in scale is explosive, with a recent uptick in demand from larger health systems. How will these changes improve the quality of education of patients, and reduce the amount of misinformation we are now awash in? There is a lot of information out there—which is a good thing—but we seek to improve the quality of content available. We work with some of the top associations and healthcare organizations in the industry, from the American Lung Association to the American Heart Association, to help curate the best content available. This ensures that
the millions of patients that we impact get access to top tier content. Taking a step back, we can leverage this information, scale and technology to tackle the biggest issues facing healthcare, including comprehension, conversion, and compliance of chronic disease treatments. What is happening outside the waiting room and exam room that is helping patients? Today, we’re seeing greater overall patient advocacy and access to information. Patients are more engaged and have more resources than they ever have, so if we, as healthcare marketers, can continue to provide life-saving information in a compelling and meaningful way, our best work is still ahead of us. What were the opportunities you saw that provided the fuel for your growth? Ten years ago, ContextMedia saw an opportunity to use technology to deliver actionable information at the time and place where providers and consumers made healthcare decisions: the point of care. We have consistently and proactively listened to the needs of life science brands, healthcare providers and consumers in order to drive better outcomes for all. With improved outcomes as our North Star, our growth has been fueled by a commitment to developing technology innovation and scale to deliver those results. It isn’t true that healthcare is resistant to innovation—it’s just that some of the biggest issues in healthcare are ambitious, and it takes a combination of empathy, execution and ambitiousness to tackle these problems. Ten years ago, ContextMedia initially started out with a
HS&M DECEMBER 2016/JANUARY 2017 | 34
INDUSTRY pure focus in media, but in the past few years, our technology has become increasingly interactive. Today, we delivering information and intelligence during the actual consultation. What significant successes have your clients had that show the benefits of adopting the new technology? What benefits overall has the industry experienced? I’ll use our Digital Exam Room Wallboard as a case study. From an engagement standpoint, usage on the wallboard has been impressive. As an example, in the third quarter of 2016, over 1 million anatomy models were used by physicians. The wallboards give providers the ability to digitally annotate the diagrams, and 65% of all consultations with patients involved annotations to the wallboard. Meanwhile, brand messages were shown over 282 million times during patient showcase. There is tangible utility for providers and patients in driving a more robust dialogue. With our third party analytics partners, we are measuring results for brands that see patients living with chronic conditions get onto treatments sooner and stay on them longer. In one recent Quality Resource Use Report conducted by the Centers of Medicare & Medicaid Services, a medical group utilizing the ContextMedia decision platform saw a 10% incremental cost savings per Medicare patient after incorporating our technologies, in addition to reporting a 58% lower hospitalization rate for patients with diabetes against the national average. If you think about the fact that we are in 20% of all offices in the country, the positive impact that we can have on economic and social outcomes is significant. •
Ashik Desai EVP of Business Growth & Analytics ContextMedia:Health Ashik leads ContextMedia’s many growth initiatives with a strong focus on measured, data-supported execution and success. Ashik attended Northwestern University where he completed the Honors Program in Medical Education at the Feinberg School of Medicine and earned a Finance Certificate from the Kellogg School of Management. While there, he served as the Vice-President of the Institute for Student Business Education, Northwestern’s largest undergraduate business organization. He now sits on the organization’s Board of Directors. ContextMedia develops healthcare technologies to deliver better health outcomes and impact the human condition positively. Founded in 2006 by Rishi Shah and Shradha Agarwal, the company has doubled each year in its scale of technology implementation at outpatient health care facilities, business partnerships with global life sciences and medical device companies, product innovation and team growth. Decision platforms such as digital anatomy boards, interactive educational tablets and mobile connectivity in consultation rooms deliver measurable patient outcomes through actionable intelligence on conditions, treatments and lifestyle changes to improve the quality of life. In 2016, ContextMedia has been adding nearly one percent of all practices in the country each month. www.contextmediainc.com AccentHealth, LLC is a leading patient-education media company at the point of care, with a mission to inspire patients to live healthier lives. AccentHealth’s Patient Engagement Platform combines innovative digital products including the waiting room television network, interactive tablets for the exam room and mobile touchpoints. Its content is produced by CNN’s Medical Unit, hosted by Dr. Sanjay Gupta, and by Harvard Medical School. www.accenthealth.com
COMMENT 35 | HS&M DECEMBER 2016/JANUARY 2017
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PHARMACEUTICAL
Great Advice from Great Minds Featuring Mel Robbins Advice from the keynote speaker at the 2016 Life Sciences Trainers and Educators’ annual conference With Jill Donahue
The Life Sciences Trainers and Educators’ (LTEN) annual conference is the largest of its kind in the world, covering all aspects of learning and development, leadership, instructional design and facilitation. So it’s significant that this gathering invited Mel Robbins to be its keynote speaker last June. went on to launch and sell a retail and internet technology company. We were thrilled to chat with her at the LTEN conference. And you can be a fly on the wall and watch our conversation. Why did we want to talk with her? She’s studied how to move from idea to action. And that’s exactly what we need in pharma.
Mel is one of CNN’s most popular on-air commentators and opinion writers; her articles drive tens of millions of page views for CNN. com. Mel has an extensive television resumé as an expert on human behavior and motivation for Good Morning America, Dr. Phil, Dr. Oz, Oprah, The Today Show and Fox News. She was named America’s Outstanding News Talk Show Host at the 2014 Gracie Awards. As a popular motivational speaker, she is trusted by global brands
to design and deliver business expanding, life-changing, interactive keynotes that inspire change, challenge thinking and accelerate personal and professional growth. Her TEDx Talk on “How To Stop Screwing Yourself Over” has over 10 million views across 37 countries, and her book on the brain and productivity, “Stop Saying You’re Fine,” is a business bestseller that has been translated into four languages. She started her career as a criminal defense attorney and
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Our industry is on a movement to patient centricity. But have we moved from idea to action yet? After the 2016 eyeforpharma Barcelona conference, Paul Simms, the program chair, and I decided to figure it out. We conducted a survey with over 2,300 pharma leaders across the world. Ninetythree percent of them said they think patient centricity is key to our future. But only 21% rated their confidence that they can achieve their patient-centric goals as > 8/10. Thirty-nine percent of them believe that we are training people to know how to do it. So we have this gap between what we
know we need to do and what we’re doing.
Mel explains that there are two kinds of changing. How we think, and how we behave. It’s changing how we behave that takes courage. She says people are worried about making the wrong decisions, and their feelings drive how they behave. Mel’s solution is to teach two things: what you need to know, and how you have to act, the behavior change. Everybody misses the fact that your feelings precede and determine what you do. So you have to win the battle with your feelings, by basically ignoring them. The only thing that matters is what you do. Your brain beats you and limits your ability to heal by trapping you upstairs. So how do we get beyond this? Mel shares her self-proclaimed “stupidly simple” idea; “The Five-Second Rule.” She believes that by learning a little trick to push yourself forward, you unlock the secret to achieving what you want in life and in work. Think of the last time you had an impulse to do something you KNOW you should do - but didn’t. For example, get up earlier to exercise or read. Did you hesitate? If you did, your brain took over and killed the impulse within five seconds. You know you need to pick up the phone to bring a patient to the next meeting. But you delay. It’s not what you’ve done before. You know you should start the meeting with a story about the patient and the difference your product has made in his/her life, but you hesitate and instead do the same old market share presentation. Of course, it applies to your personal life as well. You know you should get up off the couch. But you binge-watch one more episode. The trick is to prevent your brain from sabotaging your intention. The moment you have an impulse, count backward from five. This will awaken your prefrontal cortex and take control away from the basal ganglia (the automatic default settings in our brain responsible for habits, resistance) so you can focus on doing the new and different thing that you know you should do.
Mel teaches us that it takes five seconds to change your life, because in five seconds you can let your doubts, fears and hesitations take hold, or you can push yourself past them. She helps us learn how to give ourselves that little push. And if we all give ourselves a push in the direction of patient centricity, together we can take huge leaps. Let’s act on our patient-focused intentions! I also asked for her advice for women on leadership. She said there are two things every woman needs to understand to increase her success: 1. Never take notes in a meeting. Because if you’re taking notes you’re focused on transcribing. You’re sending a signal, hey look at me I’m the secretary. You’re not focused on what someone who is a leader does, which is contribute. If you’ve got to get down a detail, write a detail. If you need the entire meeting hit voice memo on your phone and record it. 2. Use the words “strategy” and “strategic.” She actually hates this piece of advice but there’s research out there that says that women that use the word “strategic” see a significant increase, upwards of 30% increase, in their annual reviews of being a strategic thinker by simply using the darn word. And as a bonus tip she explains why you should get a male mentor. Listen to her intriguing explanations for this in the video. •
Jill Donahue, HBa, MAdEd is on a mission to lift our industry, building purpose-driven, influential people. Through her keynote talks, workshops and award-winning mobile-learning programs, she is helping teams build trust, open doors and make a bigger impact. As the co-founder of the nonprofit group The Aurora Project, she is helping to illuminate our path to patient centricity.
COMMENT HS&M DECEMBER 2016/JANUARY 2017 | 38
BY THE NUMBERS Compiled by Cari Kraft, Jacobs Management Group, Inc.
Sales of in vitro diagnostics top device sector The leading device sector for the next several years will continue to be in vitro diagnostics, with projected sales of $70.8B remain in 2022, more than 13% of the industry’s total sales. Roche is the leading company in this segment, with its 2022 test sales forecast to reach $12.8 billion. Source: EvaluateMedTech® World Preview 2016, Outlook to 2022
4.5T
$5.2B
Number of doses of medicines worldwide by 2020 The global use of medicines is expected to reach 4.5 trillion doses by 2020, costing $1.4 trillion. The largest pharmaceutical-using countries will be the pharmerging markets, accounting for two-thirds of the global medicine usage, mostly generic medicines. This dramatic uptick is largely due to broad-based health system expansions. Source: IMS Institute for Healthcare Informatics, “Global Medicines Use in 2020: Outlook and Implications”
$32M
Drug advertising budgets reach new high Nielson estimated that $5.2 billion was spent on prescription drug advertising in 2015. Even as social media reaches more people (see our last issue), the largest chunk of that amount was for television advertising. Two drugs in particular were promoted on TV the most. AbbVie spent $357 million in 2015 in TV ads for Humira, and Pfizer followed, with $328 million on commercials for Lyrica. Source: STAT, April 2016, based on market reports from Kantar Media, Nielsen, and iSpot.tv.
Top 10 new molecular entities expected to grow enormously in the next five years Although the top molecular entities reached only $2 million in sales in 2015, they are expected to grow to over $32 million by 2020. These include Pfizer’s Ibrance, Gilead’s Genvoya, Novartis’s Entresto, Vertex’s Orkambi and Amgen’s Repatha. Source: EvaluatePharma World Preview 2016
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49%
Drug companies setting physician compensation caps The percentage of drug companies setting annual compensation caps on physicians continues to increase. In 2009, just 38% of the pharmaceutical firms surveyed reported compensation caps. That number increased to 49% by 2015. For the 2016 data, around 55% of the large companies reported maintaining compensation caps, which are more common in the larger companies. Source: Cutting Edge Information, “Developing and Maintaining Annual Compensation Caps for HCPs”
Doctors Send $1.6M A Year to Hospitals Doctors are sending an increased amount of patients to hospitals. MerrittHawkins new analysis shows that a single doctor on average brings in $1.56 million in direct net inpatient and outpatient revenue to a hospital, an increase of nearly 8% from $1.45 million in 2013. Source: Merit Hawkins, “2016 Physician Inpatient/Outpatient Revenue Survey”
TOP 10
68%
$1.6M
$34B
R&D Spend for Medtech to Grow to $34B by 2022 Medtech R&D is growing at a rate of 4.3% a year, to reach $34B by 2022, up from $20B in 2009. The top 10 companies Medtronic, J&J, Siemens, Roche, Philips, Abbot, Boston Scientific, General Electric, Stryker, St. Jude, Danaher, Becton Dickinson, Baxter, Edwards and 3M will make up $23B of that spend, over 68%. Source: EvaluateMedTech® World Preview 2016, Outlook to 2022
COMMENT HS&M DECEMBER 2016/JANUARY 2017 | 40
MEDICAL DEVICE
Millennials Want More Contact with Medical Devices By Rob Murphy, CMO, MC2
According to management consultants Bain & Company, in the last 60 years, the medical device industry relied on a single, very successful sales and marketing strategy: “sell innovative, clinically beneficial products to surgeons and “pull” these products through [to] the hospitals and other providers that ultimately pay for them”1. Now, decisions that used to be the sole preserve of doctors are also being made by regulators, hospital administrators [and the procurement process] and more formalized committees of non-clinicians. This broader set of influencers comes with different objectives2. Nurses, nurse practitioners, physician assistants and pharmacists are also taking a larger role in influencing patients and physicians. These so-called “extenders” will expand as the U.S. healthcare system absorbs the newly insured, manages the expectation of the millennial
generation, and stretches to care for a cresting wave of aging baby boomers3. VALUE-BASED BUYERS CREATE A SHIFT FOR SALES REPS Hospitals facing increasing pressures to improve financial performance are becoming increasingly sophisticated buyers. The demand for utilization management, quantifiable safety data and better patient outcomes has expanded the medical device customer profile from the individual physician into the C-suite, procurement depart-
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ments or purchasing committees4. Hospital buying behavior has affected the behavior of doctors as well. First of all, we’ve seen a dramatic increase in the number of physician practices that are owned by hospitals. In a survey of 500 physicians across the U.S., spanning a broad range of demographics, including all ages, experiences, specialties and size of institutions, more than 80% of physicians feel like it is part of their responsibility to help reduce the total cost of care delivered to their patients5. These shifts challenge sales reps to access
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MEDICAL DEVICE and establish a relationship with new decision makers and retool sales strategies. EXTENDERS HAVE INCREASING INFLUENCE Whether you call them “allied health providers,” “mid-level practitioners,” or, as the CDC refers to them, “healthcare extenders,” non-MD professionals are on the front lines of healthcare and they are only growing in importance. They’re the nurses, physician assistants, social workers, dietitians, respiratory therapists, and others who translate the “what” of a physician’s orders into the “howto” for patients6. The nation’s 80 million millennials, focused on wellness and prevention, are redefining health and value. With the influence of millennials growing in the healthcare community, medical device sales forces are pushed to learn a whole new language of communication7. Medical device marketers are also recognizing the value of creating patient facing marketing and education materials. Consumers, now paying a greater share of healthcare costs, are demanding more from both pharma and medical device manufacturers. They want outcomes and cost data. They expect unbiased information in order to make value-based treatment decisions. The more avenues that medical technology can use to reach these patient-facing professionals and make it easier for them to collaborate with one another, the more the industry can help create a healthier and more knowledgeable patient.
REACHING MILLENNIAL PHYSICIANS Perhaps one of the most eyeopening statistics affecting medical device marketing is the fact that, throughout the United States, an estimated 340,000 physicians began a large scale retirement in 20108. Attracting and retaining the new millennial doctors (and hospital CEOs) as customers has become critical to medical device marketers. A better understanding of how and why these two groups purchase is paramount for medical device companies. Millennial physicians, in particular, are prepared (and enthusiastic) to see, touch and try out a new product through a variety of channels, be it onsite training on the actual device, through gaming, simulation or virtual reality. These characteristics of the millennial attendee should influence your strategy. • They are motivated by a “cool factor.”9 • They stay connected • They want to download and learn on their own time and after hours • Along with easy access, they want information dominated by the facts, backed by research and delivered with a strong value proposition TIME FOR A NEW SALES AND MARKETING MODEL Time was medical device and diagnostic companies would say that sales reps own the customer experience. But today’s customer
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experience is created by medical programs, websites, traditional and Internet advertising, social media and tradeshows and conventions. All the target audiences now have a much broader interaction with the offerings and budget pressures. A cross-channel customer-centric approach can help medical device companies identify tangible ways to create and direct a customer experience that sets their company apart10. This convergence will likely make marketing directly to mobile devices foundational in the medical device marketing mix, leveraging digital to foster meaningful relationships with the new tech savvy physicians, payers, extenders and patients. Emerging interactive technologies, integrated properly into the customer experience, are powerful tools for engaging and holding the targeted audience. Digital channels are where all the new stakeholders and brands will likely converge. They empower both parties to engage on their own terms. Each technology below is designed to tell the complex story of products in a fun way and create an important communication tool for one-onone interaction. • Virtual reality and augmented reality, and soon to come HoloLens, allow attendees to relate and respond to things they can touch and see. This tactile relationship with our senses has the power to create strong brand affinity. “Immersive technologies are being increasingly used in combination with each other, building off of each other’s capabilities. Gestural technol-
ogy and augmented realities are more commonly blended than in the past, offering greater versatility in user interfaces.” —Jason Latta, Amazing Robot & Sons 13 • Digital games and simulations create engagement and training tools, leveraging assets of the game to create a guided simulation about product use for one-on-one sales presentations • Technology walls have the capability to play movies while multiple windows containing very detailed, complex 3D models are simultaneously popping up and responding to input from the attendee. Ambient interactivity typically refers to interactive forms built into or embedded in physical environments, such as interactive tables, windows, and walls • Mobile technology gives buyers immediate, efficient communications from mobile applications that provide product visualization in a way that’s never been done before • Mobile applications and business related social networks will help differentiate and extend the “e-detailing” process moving forward • 3D Mapping projections use different surfaces for illumination and projection of 3D images. These applications are designed to support the conversations clients expect to have SUMMARY The way customers seek and receive information and how we provide information and monitor results are changing. Changes to the business environment. Changes in buyer expectations. Changes in the opportunities available to communicate with buyers. Weighing the impact all of these changes is essential. Whether from a physician, extender, hospital CEO or sales force perspective, it is clear that the medical device industry must adjust itself to the needs and wants of younger generations. Marketers must become as technologically enabled as their customers. • Creating a new Commercial Model for the Changing Medtech Market. Bain Industry Brief. Feb. 2011 1
Chris Llewellyn, Dmitry Podpolny, and Christian Zerbi. Capturing the new ‘value’ segment in medical devices. www.mckinsey. com. 2
The New Cost-Conscious Doctor: Changing America’s Healthcare Landscape. Bain Industry Brief. March 2014. 5
7 Reasons You Need to Get Closer to Healthcare Extenders. Healthed.com 6
MC2 Exhibits, Events, Environments www.mc-2.com
7
The Millennial Effect: A Generation Changing Healthcare Technology. Kristin Hambelton. www.evariant.com. August 2015 8
Why Medical Device Companies Need a Digital Marketing Strategy. C-Suite Resources. Feb, 2014. 9
ZS Interview: Why Medical Products Companies Should Experience the Customer Experience. ZS Associates. 10
Rob Murphy Chief Marketing Officer, MC2 Rob Murphy has been a vital member of the MC2 leadership team since the company’s inception in 1999. With a background in advertising as well as marketing expertise for a variety of industry verticals including healthcare, automotive and consumer electronics, Rob is able to apply his deep understanding of face-to-face marketing to the challenges these markets represent. rmurphy@mc-2.com MC2 (“MC-squared”) is a leader in the exhibit and event marketing industry. The company designs, builds and manages integrated marketing programs for events, exhibits, and brand environments for the world’s best brands. MC2 can number many of its staffers as members of the Healthcare Convention and Exhibitor’s Association. The company brings clients to more than 80 healthcare exhibitions each year. www.mc-2.com
COMMENT
The Changing Landscape of Healthcare Events: New Audiences. New Opportunities. HCEA. Jan. 2016. 3
Marketing To Physicians: A Physician’s Perspective. devicepharm.com, Jul. 13, 2015 4
HS&M DECEMBER 2016/JANUARY 2017 | 44
MOTIVATION
MOTIVIDEOS By Cari Kraft, Jacobs Management Group How do you start the day on an up note? Here are four more ways to kick off your own motivation or your morning meeting with humor, wisdom, inspiration and some thoughtful ideas. Take just a few minutes to see how they can work for you and what develops! Can you make your presentations an idea worth sharing?
Simon Sinek on why, how and what of leadership
Egghunt: Overcoming problems and competition
TED’s Secret to Great Public Speaking: Ted Curator Chris Andersons shares this secret—along with four ways to make it work for you. A compelling set of insights to pump up the power of your sales and marketing presentations.
The Why of Great Leaders: Simon Sinek had a revelation about the differences that make great leaders: why, how and what? It profoundly changed his life. Listen to him break it down for us and see how it might impact your leadership style.
Egghunt: A great kick-off for a team meeting where people with competing interests need to work together. Solving tough problems, and turning competition into cooperation. Without words, this piece shows us a lovely piece of wisdom. Validation: Make a customer smile today
Submissions are welcome. If you have one you like, email a link to me at ckraft@jacobsmgt.com.
Validation: An interesting short to get your team focused on more effective person-to-person communication in customer situations. An inspiration, a romance, a lesson in how to improve interactions, one smile at a time. Try it out yourself!
Cari Kraft leads a team of master level recruiters at Jacobs Management Group, celebrating 20+ years of executive recruiting in the healthcare (pharmaceutical, medical device, biotechnology) and high-tech industries, nationally. Prior to joining Jacobs Management Group, Ms. Kraft has held positions as a Senior Sales Executive, Director of Business Development and Director of Marketing. She also has deep knowledge of the technology/startup fields, having been in the industry through the rise of the Internet. Ms. Kraft is a University of Pennsylvania/Wharton alumnus holding a degree in economics and decision sciences. Cari can be reached at ckraft@jacobsmgt.com.
COMMENT 45 | HS&M DECEMBER 2016/JANUARY 2017
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Egghunt: Overcoming problems and competition
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HS&M DECEMBER 2016/JANUARY 2017 | 48
PHARMACEUTICAL
HCP: How to Connect with Professionals By Ara Dikranian, MD, Rheumatologist, Cabrillo Center for Rheumatic Disease, San Diego
I know a lot of sales professionals in this industry are frustrated by the diminishing access to healthcare professionals. But consider our side of things: with increasing demands on our time for paperwork, research and especially patient consultation—in person and digitally—we have trouble finding the time to devote to sessions with you. Trust developed through a longterm relationship is key. The big challenge here is obviously the lack of physician time and the relatively rapid turnover of marketing reps. But the good news is that we appreciate what you offer. In my experience as a rheumatologist, here are a few things that make me more likely to interact with a pharmaceutical company. 1 Bring the right kind of value for the doctor. Some physicians may see value only in providing samples. Others may want help with providing patient education material specific to the drug you are marketing or to the disease state in general. Others may want updates and education about your therapy, some in detail, and some in thumbnail summary. Customize the message to be personalized to the physician’s needs. The necessity of a “canned presentation” especially with an “ask” (“Can I count
on you to prescribe drug X to your next 10 patients with XYZ?”) is often a dis-invitation for future visits. 2 Know my practice well by knowing my staff very well. This is a subset of #1, and equally important. I maintain good internal communication: trust that what you say to them will get to me. 3 Promotional dinner programs are great potential venues to learn about a therapy in detail and a chance to interact with colleagues on a deeper level. Although I’m aware of the challenges in attendance at these meetings, and the amount of hard work that goes into their planning and execution, even a small attendance can make a major impression. Digital extensions of sales details, promotional slide decks, or conference/symposia summaries may be valuable.
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4 Consistency and internal communication. A great example of sighs and frustration is a new rep who has recently taken over for an established rep on the same product. The new rep asks “So tell me how you see drug X fit into your treatment algorithm.” Makes me want to pull out my hair. I’ve already gone through this countless times with previous reps. It is important to know me well, especially using notes and observations from colleagues who have established a good relationship with me previously. 5 R.E.S.P.E.C.T. Unfortunately, we all know reps who are overly aggressive in trying to get face to face time with physicians to meet quotas. A very patient and pleasant colleague of mine has disallowed certain reps from future calls because a few have cornered him by waiting in areas of the office where they are bound to run into
See further comments from Dr. Dikranian in this video.
each other. Please don’t invite us into your quota game. We know you have sales targets, but it is not ethical nor should it be my responsibility to find five more patients to put on your drug by the end of the month. 6 Medical science liaisons are helpful. They’re able to provide significantly more information and background than many reps. That’s a summary, but those few things will vastly improve our communication, long-term relationship, and your effectiveness in my practice. •
Ara Dikranian, MD Rheumatologist Cabrillo Center for Rheumatic Disease, San Diego Dr. Dikranian works closely with the medical research community, regularly participating in clinical research, and has served as principal investigator in over 60 studies dealing with various rheumatologic conditions. Dr. Dikranian is an active contributor to and member of Healthcasts, the leading educational resource for physicians that has revolutionized the way doctors learn. He is also a speaker and advisor to various pharmaceutical companies. He received his Bachelor of Science degree in psychobiology in 1991 and his Doctor of Medicine in 1995, both from the University of Southern California. Between 1995 and 2000, he completed his internship and residency in internal medicine, and fellowship in rheumatology, at the University of California, San Diego, where he received his rheumatology board certification.
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TECHNOLOGY
Broken Links Why analytics investments have yet to pay off in pharma With Dan Wetherill, Associate Principal, ZS
Companies have overwhelmingly recognized the importance of sales and marketing analytics as a means to understand customers, engage them intelligently, and identify new markets and growth opportunities. But while investments in data analytics are on the rise, many in the pharma industry are finding that their initial investments will take time to realize their full promise. ZS partnered with The Economist Intelligence Unit on a study with 110 U.S-based pharma senior executives. The study results draw on survey findings, interviews with senior corporate executives and desk research to explore the current state of sales and marketing on the analytics maturity curve. The study found that most business and analytics leaders (69 percent) view sales and marketing analytics as “very” or “extremely” important to gain competitive ad-
vantage. Most (85 percent) report that their organizations have a “specific plan” to upgrade their capabilities in the near future or are already investing in doing so, but say they have not yet achieved broad, positive impact across their organizations thus far. Clearly, this transformation remains a work in progress. Why have analytics investments yet to pay off? The study found three “broken links” to realize the potential of data analytics invest-
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ments. Pharmaceutical firms will need to focus on three sets of priorities to upgrade their analytics: their analytics processes, platforms and their organization. ANALYTICS PROCESSES— REPAIRING BROKEN LINKS IN THE ANALYTICS VALUE CHAIN The first priority is to improve analytics processes. A key finding from our research is that analytics execution, itself, usually isn’t the
THERE ARE SOME THINGS PEOPLE JUST WON’T TELL YOU BUT THEY’LL TELL US IN CONFIDENCE. AND WE’LL TELL YOU. There are a lot of opinions people never offer you about your company. What the pain is. What you could be doing better. What they think of your competition. How to talk to them effectively. Big corporations get these answers through expensive research. Small to medium-sized companies don’t have that luxury. That’s why we created the Private Process . It’s a quick, cost-effective way of compiling information that people will offer us in complete confidence. Then we assess the results and give you the insight you need to adapt your sales and marketing messages accordingly. ©
For details on how the Private Process works, and the kinds of answers you can get, contact us now at ngreenberg@hsandm.com.
TECHNOLOGY main problem. The real issues are in how organizations connect the parts of the analytics system, both at the front end (where companies define the problem and design the solution approach) and the back end (where they translate results into meaningful actions that change the customer experience in some way). In fact, nearly half of analytics and business leaders define the front end (problem definition: 50 percent) and back end (action/change management: 45 percent) as the best opportunities to improve the analytics value chain in the next 12 months. For example, consider a company facing an unexpected decline in sales for a mature product. To understand what’s really going on, the business leader needs to first figure out where the losses are the most dramatic. It is a business problem, but it needs to be translated into analytics requirements. Essentially, the problem needs to be framed the right way so that the analytics team can probe for answers and generate solutions based on its findings. After the analysis is completed, the insights must be translated into meaningful, datadriven actions that close the gap in performance. Moreover, once the company develops an analytics-based solution, that solution needs to be contextualized into meaningful actions that change something about the “last mile”: the actual experience that the company delivers to its customers. This is where many companies fall short. Even if they have a strong in-house analytics function that can generate clear insights about the market, they need
to apply those insights to improve the customer experience. BIG DATA ANALYTICS PLATFORMS—CONNECTING DATA AND ANALYTICS CAPABILITIES The second priority is analytics platforms. Even though most of the companies in our research study are investing in both analytics functions and cloud-based big data infrastructure, only 8 percent have linked the two. That is an astonishingly low number. Part of the challenge is that implementing big data infrastructure is a major project that takes years to complete. During that time, the company’s priorities can shift dramatically, new data sets can emerge and the overall healthcare environment can evolve. To more effectively link big data infrastructure to the analytics function—in a world of rapidlychanging data—companies need to create more flexible data infrastructures that can respond with greater agility. As the healthcare ecosystem continues to shift, new data sources are emerging, making it harder for companies to predict how to leverage these sources to best analyze the new industry structure. As a result, companies need to plan for this with the one element that they can control: the structure of their big data platform. ORGANIZATIONAL ENABLEMENT— COLLABORATION ACROSS BUSINESS AND ANALYTICS LEADERS Currently too many firms have advanced analytics or data science
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teams that operate in silos—almost as a back-office function—and thus develop answers and insights that are out of sync with the company’s real problems and realistic solutions. When that happens and business leaders get analytics results that don’t really help them, they lose faith and revert to making decisions the old way—based on gut instinct. To solve this at an organizational level, companies need to break down those silos and foster more direct collaboration between the data scientists (who understand the numbers) and business line executives (who understand what really happens with the end customer). Those are different functions—they have different skills, strengths and objectives—and their leaders often speak different languages. Success will come when analytics and business leaders meet as peers, identify a specific problem and work together to solve it. To see what improvements in these three elements—processes, platforms and organization—can lead to in the real world, consider an example from the hospitality industry. Through its customer research, Starwood Hotels found that negative experiences had twice the impact of positive experiences in shaping overall guest loyalty. The company redesigned its loyalty program to links social media posts and online reviews from customers to its end-of-stay surveys, and uses analytics algorithms to flag areas that require the company to follow up. For example, if someone posts a negative tweet about his stay, the staff
VIDEO: ZS DATA ANALYTICS For further insights, see this video about the study
at that hotel gets an alert with any relevant information about the customer so that they can fix it before that person checks out. Within a year of adopting analytics across the company, Starwood doubled incremental revenue from targeted guests. The good news for pharmaceutical companies is that this kind of improvement does not require massive investments. Instead, it requires working smart. That means making necessary changes to processes to frame business problems in analytics terms, design solutions, and translate them into actions that improve the customer experience in some meaning-
ful way. Working smart requires linking big data infrastructure and analytics platforms in ways that allow firms to stay on top of changes in the industry and emerging data sets. Lastly, it requires that organizations put data scientists and business leaders together to collaboratively solve problems. For pharmaceutical companies seeking to build up their analytics capabilities, these steps can help them capitalize on the potential impact of the technology and start using it to improve their performance today. To provide an example for one sector of the industry, drawing from
the results of the report and from his significant experience, here are some insights from my colleague at ZS, Ganesh Vedarajan, about where medtech needs to go. THE WIN Provided that companies can overcome a bit of organizational inertia, they will start making investments that pay off over time. The value is there, and it’s only going to grow for companies that start building the foundation. In the future, it will be impossible to survive in medtech without a strong analytics capability.
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TECHNOLOGY WHY ANALYTICS SHOULD BE A CORE BUSINESS CAPABILITY IN MEDTECH Ganesh Vedarajan, ZS Managing Principal Data-driven decision-making is fast becoming the norm for most industries, in an effort to drive efficiencies, reduce costs, assess and predict customer behavior, improve customer service, increase personalization and accurately plan for the future. For medical device manufacturers, that analytics-led evolution now has yet another impetus, thanks to the Affordable Care Act’s charge to accelerate hospitals’ focus on improving patient outcomes. Medtech firms need data-driven insights to better position themselves as hospitals’ partners in that effort— and to sell and cross-sell more effectively via compellingly bundled product and service offerings. THREE BARRIERS There are three main barriers that these companies need to overcome. The first is that the value of analytics has to become clear in the organization, and proving that ROI to senior management is a challenge. There’s still resistance and skepticism among some executives that analytics can create value. They continue to try to operate in a world where sales reps have a lot of power, and think that they can win through one-to-one selling. The second barrier is related to change management and embedding analytics systematically into the existing business model, in areas such as customer profiling and targeting, sales force design and marketing effectiveness. Once leadership buys in, the rest of the company must buy in, as well. There is a lot of inertia to continue with the status quo. We must be clever in how we embed analytics into the business model and force analytics into the existing processes, involving stakeholders as early in the process as possible to garner their buy-in. The third barrier is to build a world-class analytics capability, one that achieves scale efficiencies and allows companies to use the latest data sources available. The good news is that many medtech companies have already made some good investments in technology, so they’re in a better place to add to the IT stack than they were just a few years ago. Back then, they didn’t have a good understanding of many customer-facing activities because they didn’t have a solid CRM system. Now they do. Some companies have been frustrated that these investments haven’t paid off, but using analytics to improve customer intelligence is one way to increase the ROI. 55 | HS&M DECEMBER 2016/JANUARY 2017
Dan Wetherill Associate Principal ZS Dan is a leader in global sales and marketing firm ZS’s analytics services group. He has more than 15 years of experience helping clients in the pharmaceutical and healthcare industries develop their marketing and sales analytics capabilities to drive cost efficiency and commercial effectiveness. Ganesh Vedarajan Managing Principal ZS Ganesh Vedarajan is a managing principal on ZS’s executive team and the leader of the firm’s global medical products and services practice. Ganesh advises clients across a range of issues, including brand marketing, marketing execution effectiveness, managed care marketing and contracting, sales strategy and commercial analytics and operations.
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TOP LISTS the publication for healthcare sales & marketing leaders™ HS&M’s series of Top Company lists is increasingly one of our most awaited and valued features. The Top 50 Pharmaceutical, Medical Device and Biotech Companies are followed by the Top 100 Healthcare Companies of the year. Because of the demand, here are our previous lists.
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