Pf Magazine September 2018 by E4H Ltd

Sep tem ber 2

018

Brand Planning

CO M I N G U P I N TH E N E X T

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SALES EXCELLENCE Assessing sales effectiveness Selling with emotional intelligence What does sales excellence look like? Selling with digital The importance of CRM in the sales cycle What is the future for selling?

MAKE YOU R VO I CE H E ARD Our Pf Magazine Special Editions cover the issues at the heart of the pharmaceutical sales and marketing environment, including expert intelligence, comment and analysis from industry insiders. Weâ&#x20AC;&#x2122;re looking for key opinion leaders in pharma to provide expert comment for the next Special Edition, covering Sales Excellence. Contact amy@pharmafield.co.uk or call 01462 476119.

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INTRODUCTION

HEAD OF CONTENT

Emma Morriss emma.morriss@pharmafield.co.uk SPECIAL EDITIONS EDITOR

Amy Schofield amy@pharmafield.co.uk C R E AT I V E D I R E C T O R

Emma Warfield emma@pharmafield.co.uk COMMERCIAL DIRECTOR

Hazel Lodge hazel@pharmafield.co.uk D I G I TA L M A R K E T I N G E X E C U T I V E

Emma Hedges emma.hedges@pharmafield.co.uk NEWS DESK

Hannah Alderton newsdesk@pharmafield.co.uk M A R K E T I N G A S S I S TA N T

Adam Fisher adam@pharmafield.co.uk FINANCIAL CONTROLLER

Fiona Beard finance@e4h.co.uk P f AWA R D S

Melanie Hamer melanie@e4h.co.uk PUBLISHER

Karl Hamer karl@e4h.co.uk pharmafield.co.uk | e4h.co.uk @pharmafield | @pharmajobsuk HEAD OFFICE

Spirella Building, Bridge Road Letchworth Garden City, Hertfordshire SG6 4ET United Kingdom The content of and information contained in this magazine are the opinions of the contributors and/or the authors of such content and/or information. Events4Healthcare accepts no responsibility or liability for any loss, cost, claim or expense arising from any reliance on such content or information. Users should independently verify such content or information before relying on it. The Publisher (Events4Healthcare) and its Directors shall not be responsible for any errors, omissions or inaccuracies within the publication, or within other sources that are referred to within the magazine. The Publisher provides the features and advertisements on an ‘as is’ basis, without warranties of any kind, either express or implied, including but not limited to implied warranties of merchantability or fi tness for a particular purpose, other than those warranties that are implied by and capable of exclusion, restriction, or modification under the laws applicable to this agreement. No copying, distribution, adaptation, extraction, reutilisation or other exploitation (whether in electronic or other format and whether for commercial or non-commercial purposes) may take place except with the express permission of the Publisher and the copyright owner (if other than the Publisher). The information contained in this magazine and/or any accompanying brochure is intended for sales and marketing professionals within the healthcare industry, and not the medical profession or the general public.

Demystifying the brand planning process

ou’ve got a new pharmaceutical brand to take to market that you know could make a significant impact. How do you make sure that the product delivers for the person who matters – the patient? It all starts with an effective brand plan. In this Brand Planning Pf Special Edition our experts cover all you need to know to identify what you want your brand to achieve for all stakeholders, how to set your objectives, create your strategy, and establish exactly what you need to do to make it happen. In these pages we cover the WHY, HOW and WHAT of creating a high-impact brand plan, drawing on the expertise, knowledge and insight of pharmaceutical industry thought leaders, including: • How to stand out from your competitors • How to harness the power of data • Tailoring national brand messages to a local level • Meaningful and actionable market segmentation • How to develop a successful multichannel marketing strategy. The expert analysis and advice in this publication will help you to achieve your brand planning goals while operating in an increasingly complex environment. Enjoy this Special Edition, and as ever, let us know your thoughts at hello@pharmafield.co.uk.

Pf Magazine is published monthly. For a free U.K. subscription visit pharmafield.co.uk/subscribe

H AV E A N O P I N I O N O N S O M E T H I N G YO U ' V E R E A D I N P f M A G A Z I N E ? @Pharmafield

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CONTRIBUTORS DAV E C L A R K E

JO SPINK

Dave is a Director of Ethical Reach, a consultancy specialising in multi-channel marketing (MCM) strategy within the life science industry, helping companies understand the challenges of leveraging effective MCM approaches that positively impact the bottom line. Reality check, page 10.

With a background in consumer marketing, Jo has a passion for understanding behaviour triggers and the human psyche and thrives on challenging mainstream thinking in healthcare communications. Changing behaviour, improving lives, page 22.

TO N Y C OX

S T E V E H OW

Steve is Programme Director for Wilmington Healthcare’s Consultancy Division and has more than 20 years of experience working in the healthcare and pharmaceutical industries. He is passionate about partnership and public engagement with the NHS and sits on the board of one of the new Integrated Care Partnerships as Chair of the Citizens Council. Local knowledge, page 15.

Tony is Innovation Director for Wilmington Healthcare and a former Head of Marketing for a pharmaceutical company. He joined NHiS, part of the Wilmington Group in 2013 and uses his wealth of experience to lead the way in innovating Wilmington’s data and insight products. The power of data, page 14.

Paul is Director of Performance Measurement & Analytics at Rubica. He is a specialist in performance measurement and analytics; a specialism that he has applied to the world of organisational change. Who’s at the heart of your brand launch? Page 08.

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Tim is Director at Triducive, a health and payer communications consultancy which understands the concerns and aspirations that drive payer behaviour at every stage of the decision-making process. Triducive engages, educates and empowers healthcare payers to make informed decisions that improve patients’ lives and ensure commercial success. A seat at the table, page 29.

ROGER STURE

CHRIS INGHAM

PAU L F R I T H

T I M WA R R E N

Chris is CCO at CEX Solutions Ltd. Educated at Oxford Business School, with extensive experience in developing the capabilities, operating models and strategies required to be successful in pharma and a keen interest in finding how technology/software can support next level ways of working in commercial effectiveness. Secret source, page 20.

Roger has 35 years’ successful experience in pharma and Commercial Director experience of Cat C branded generic launches. He now runs Visual Numbers, specialising in simplifying prescription data cost-effectively, for pharma to intelligently target. Broad brush, page 26.

NICK WILLIAMS

Nick is Managing Director, OnPoint Strategy Execution, a passionate supporter of crossfunctional teams who deliver healthcare strategy to improve people's lives. Inspiring strategic clarity and integrated leadership to create distinct brand strategy and aligned teams for powerful results. Hope vs expectation, page 04.

MAGA ZINE SPECIAL EDITION

Brand Planning CONTENTS OV E RV I E W

04 Does great brand planning make the difference? | Nick Williams I N T E L L IGE NCE

08 Whoâ&#x20AC;&#x2122;s at the heart of your brand launch? | Paul Frith 10 Reality check: What does multichannel marketing mean? | Dave Clarke 14 The power of data: Creating a robust strategy | Tony Cox 15

Local knowledge: Tailoring national brand messages | Steve How

I NSIGH T

16 Brands by numbers: Launch excellence | IQVIA 20 Segmentation, the hidden source of commercial success? | Chris Ingham 26 Broad brush: Launching a Category C branded generic| Roger Sture F U T U R E

29 A seat at the table: How will the environment unfold? | Tim Warren 32 Directory

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Hope vs Expectation DOES GREAT BRAND PLANNING MAKE THE DIFFERENCE?

WORDS BY

Nick Williams

s the hot summer days begin to fade behind us, thoughts start to turn towards next year. Teams are ramping up their planning activities to agree the focus and investments behind pharmaceutical brands that hope to make an impact on their markets in 2019. ‘Hope to make?’ ‘Intend to?’ Or ‘Expect to?’. In my experience the difference between hope and expectation starts with a high-impact brand plan – but what does this look like, how is one developed, and why does it matter? Let’s start by defining brand planning: ‘Brand planning is the process of allocating resources to a strategy designed to achieve a business objective that drives a brand closer to delivering on a valuable future vision.’ I like this definition because it makes clear there is a decision to be made between the money and time a brand receives and the contribution that it will make. The statement also ties the business objective to a bigger, longer-term ambition, providing context and stretch. Following this definition, a brand plan should simply document and communicate: 1. what a team wants the brand to achieve in future, for patients, customers, the business (the vision) 2. what needs to be achieved in the short-term (objective) to move towards that vision 3. how they aim to achieve it (strategy) 4. what needs to be done to make that happen (tactics) and at what cost. The goal of the brand plan and the brand planning process is to align the cross-functional team and other stakeholders (for example external agencies, partners and so on) behind the business direction and rationale (‘why’), strategy (‘how’) and tactical campaign (‘what’). This alignment is crucial to make powerful strategy execution happen.

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TE A M A L I G N M E NT Aligning teams is achieved by sharing the plan with them, right? In reality there are a number of factors that get in the way for colleagues to be clear on the plan (misunderstanding, mis-communication etc.), and have confidence in it (misunderstanding, limited belief in decisions made etc.). Unless this clarity and confidence is high across the cross-functional team then the ability to execute effectively and deliver customer value is highly unlikely. A recent study of 4012 respondents conducted across 124 companies by MIT School of Management found that even the team who were responsible for leading strategy struggled to accurately list their business’s strategic priorities: Figure 1. The percentage of leaders and extended team members able to accurately list strategic priorities Leaders of strategy

51%

Extended team

22%

Only 51% of Leaders of strategy could accurately state their organisation’s strategic priorities. This plummeted to 22% for extended team members (e.g. direct reports).

The key is to involve key colleagues in the process to develop the brand plan in a meaningful way, encourage honesty and healthy debate, ensure that key decisions are clearly explained, and that resultant communication of the plan is kept very simple, very clear and very consistent…repeatedly!

QUESTION FOR CROSS-FUNCTIONAL LEADERS What percentage of your cross-functional and extended team do you believe are fully clear and fully confident on current brand strategy?

OVERVIEW

A brand plan is presented once a year, ‘brand planning’ is continuous Specific timings will vary by organisation, but planning tends to accompany the financial year that the organisation follows – often Jan-Dec. This means the cycle of brand planning will build through the earlier part of the year with activity reaching a peak as the summer does too. While the development, writing and presentation of brand strategy and tactics will be concentrated over a two to three month period, the process of developing brand strategy should be a continuous effort (see Figure 2).

The team gathers relevant data and generates meaningful insight to accurately diagnose the situation of the brand, the market and possible opportunities/challenges to be tackled.

Points 1 to 4 set out the process. Once these have been completed and the plan moves to execution, an emphasis should focus on measuring the outputs of tactical campaign execution via regular review of KPIs. This allows tactical adjustments to be made to close strategy-execution gaps, with any persistent gaps raised in the next cycle of brand planning as part of the diagnosis.

More granular planning of tactical activities and campaigns (grouped activities) should follow with the aim of being relatively few in number but with the power to reach the KPIs, and therefore deliver on the strategy and priorities.

Figure 2. A typical brand planning cycle

This is followed by objective-setting and consideration of strategic factors that could help generate the best way to achieve the objective. Strategy, strategic priorities and key performance indicators (KPIs) are the key outputs here. Together they inform the job of tactical planning.

Finally, the task shifts from writing to aligning the plan consistently and completely across the team to drive effective execution. Clarity and confidence in the brand plan are the goal.

1 . D I AG N O S E TH E S IT UATI O N : Understand • • • •

Where are we winning/losing out? Customer behaviour trends External trends Key issues to be addressed

2 . D E F I N E S TR ATE GY: Establish • • • •

1 4

BRAND PLANNING CYC L E (simplified)

Brand vision Annual business objective* Target customer(s) and value proposition(s) Strategic priorities and KPIs

QUESTION FOR CROSSFUNCTIONAL TEAMS How does your team think about brand planning: an annual event or a continual business activity?

3 . D E V E LO P P OW E R FU L , CO S TE D TAC TI C S : Agree

3 *This may also include a 1 year and 3-5 year sales forecast

• Tactical campaigns to drive strategy and KPIs • Aligned budget and FTE requirements • Responsibilities

4 . A L I G N & E X E C U TE : Drive • • • •

Shared understanding of ‘why’, ‘how’, ‘what’ Aligned individual objectives Continual KPI review Recognition and incentives aligned

“The difference between hope and expectation starts with a high-impact brand plan”

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High-impact brand plans are developed collaboratively but with strong leadership

K E Y I N P U T S W ITH I N TH E B R A N D P L A N N I N G CYC L E A R E :

1. Great market and customer insight and extremely honest internal analysis to diagnose the situation effectively, adjust the vision and business objective accordingly, and start to define/refine strategy.

H I G H - I M PAC T B R A N D P L A N S P U R S U E D I S TI N C TI V E N E S S Strategy speaks to choices made that will help the team to achieve their objective so when these choices are combined it should create a distinctive position in the market for the brand. At the high-level, brand strategy should decide on the combination of critical choices of who to target, what the value proposition made to them is and which capabilities are needed to make this happen. These will ideally be distinct capabilities that only your organisation delivers on and so gives a competitive advantage. The smart question to ask is: “Where do our distinct capabilities and customer (segment) needs overlap in a way that our competitors’ offerings/capabilities don’t/can’t?” This is the ‘strategic sweet-spot’ (illustrated in Figure 3) and requires significant thought and strong creativity, but is where competitive advantage truly lives and ensures a distinctive market position for the brand.

2. Persistent ideation and validation of high-level options to achieve the objective and so develop a strategy to be confident in.

3. Discipline to prioritise and align focus and resources to develop powerful, costed tactics that can drive the strategy.

This all requires a careful balance of wide input from across the organisation and strong, focussed leadership from the brand team. It is critical that expert insight from crossfunctional colleagues is included in the process of developing analyses, distilling/validating insight and considering options for strategy and tactics. It is just as important that this is well co-ordinated and that all decisions made are checked for their complementary effect on each other towards achieving the business objective. The brand team should maintain a broad perspective to ensure decisions are made logically in relation to each other.

QUESTION FOR CROSS-FUNCTIONAL LEADERS How do you ensure the right balance between inclusion and focussed, disciplined decision-making?

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Harder for competitors to copy

Company's capabilities SWEET SPOT

Customer's needs

Expensive or difficult to win

Competitor's offerings

Figure 3. The strategic ‘sweet-spot’. Adapted from Can You Say What Your Strategy Is? Collis & Rukstad, Harvard Business Review, April 2008.

C R E ATI N G D I S TI N C TI V E S TR ATE GY

Think about three things in particular: 1 Are all customers’ needs the same? Can you serve the needs of particular segment(s) of the market better than your competitor can? 2. How does your value proposition align to target customers’ needs? Can this be improved? 3. Which capabilities are/could be distinct to you and how will these support your value proposition?

Hypothetical example: Objective: Achieve 10% market share within 12 months of launch of a new anti-diabetic drug. Strategy: Create exclusive partnerships with the foremost digital health-tech players and be the only organisation to offer innovationminded GPs with valued drug+service combinations for patients who need a more holistic disease management approach at a price that valueoriented payors will support.

OVERVIEW

High-impact brand plans answer critical questions confidently and communicate them clearly

Various templates, processes and frameworks exist to help diagnose the situation, to define strategy and tactics, and have been developed with a heavy bias towards insight-gathering and analysis. This inevitably contributes to the production of a myriad of PowerPoint slides with decision grids and templates and so on. It should be remembered however that the purpose of the process is to align and execute so the outputs should articulate choices and decisions very simply and incredibly clearly. This means that perhaps only five to 10 slides are really required to present the plan clearly and answer critical questions that leave sponsors, supporters and team members in no doubt about what needs to be done, how, and why. See Figure 4 for the key questions that high impact brand plans consistently and confidently answer, suggested presentation sections and the work-flow that precedes this.

P L A N N I N G AC TI V IT Y

Market, customer and internal analysis

Ideate, validate, decide and distil

QUESTION FOR CROSS-FUNCTIONAL LEADERS How distinctive is your current brand strategy? Would anyone reading it be able to distinguish your approach from that of your competitors?

Q U E S TI O N S TO A N S W E R

Mission and vision

Why does the brand matter and what do we want it to be in the next 3–5 years?

Objective

What do we need to achieve by next year on the path to our vision? Which customer segment(s) are we aiming to activate disproportionately? What value will we offer them? How will we gain/maintain competitive advantage?

Strategy and strategic priorities

How will we know if we’re on track, or need to adjust our approach?

Key performance indicators

Figure 4. Critical questions high impact brand plans consistently and confidently answer

Prioritise and align

What do we need to do and how will we allocate resources to hit the KPIs that drive the strategy?

Tactical plan and budget

M A J O R B R A N D P L A N TH E M E S

QUESTION FOR CROSS-FUNCTIONAL LEADERS How simply and clearly does your current brand plan answer these questions? Would all cross-functional team members give similar responses?

The future of brand planning: Expectation raised We continue to wrestle with NHS value and affordability challenges, growth in health technologies encroaching on spaces traditionally ‘owned’ by pharma, and an increasingly demanding set of digitally savvy healthcare stakeholders (patients, providers and payors). All of these challenges are accelerating pace. Brand planning teams will need to recognise this accelerating nature of their markets and resist the temptation to throw more and more tactical activities to address a wider range of growing challenges. Instead, we need to raise

expectation of clarity and confidence. In a time of growing complexity planning teams will need to work harder to distil insight and bring simplicity of focus, will need to strive for ever-more distinctive market positions and will expertly instil this clarity and confidence amongst those vying to help deliver on it. Nick Williams is Managing Director, OnPoint Strategy Execution. Go to onpoint.partners

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WORDS BY

Who’s at. the heart of. your brand. launch?. Launching a new pharma product in the UK can be a brutal process. It’s expensive, time-consuming and highly competitive. How do you maximise the success of your brand launch?

Paul Frith

very year, numerous new brands and indications enter the marketplace, from biosimilars and generics to innovative medicines. Meanwhile, the medicine purchasing process has become increasingly complex, with decisions often involving a mix of people with different needs and priorities. Each launch clamours for the attention of healthcare professionals (HCPs), payors and commissioners. Some organisations have sought a more customer-centric way of working – pursuing excellence in Key Account Management to get closer to customers. However, even when this is the case, the traditional organisational set-up often gets in the way. Everything is filtered through the lens of the brand and the realities of customer needs are drowned out by a product-based sell. The majority of pharma companies continue to rely on tactical, transactional ‘launch excellence’ approaches to promote individual products. This generates huge duplication of effort for the organisation and creates information overload for customers.

“ Challenge yourself to hang out in the ‘customer need space’ for longer than you usually would!”

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INTELLIGENCE

A C U S TO M E R- C E NTR I C . A P P R OAC H . At Rubica, we’ve spent two decades helping pharmaceutical companies to evolve new ways of working with their customers. Along the way, we’ve learned a huge amount about how organisations can take a more holistic and integrated organisational-wide approach to being customer-centric, and thereby maximise the success of brand plans and launches. We call this approach the Key Account Organisation. It’s about moving beyond an individual product focus, regardless of the role you have in the organisation. Instead, it mobilises the whole organisation to understand customers’ needs and priorities within its most important accounts and links this to how the portfolio of products available can best address those accounts’ needs. It means building value-added relationships with strategic customers to create a readymade environment for portfolio planning and launching aligned brands. Both the customer and the pharma organisation start to understand where their interests can align, leading to a winwin situation. The new brand can launch faster into an account where there is already a trusted relationship, and there’s a commitment from both sides to improve the quality of care. Equally, it’s easier to spot where not to focus as much resource. Becoming a Key Account Organisation can produce dramatic results. One pharma company experienced a sales uplift of 25% in prioritised brands. Another witnessed a 600% increase in the number of procedures in a single key account. Meanwhile, by changing focus, another organisation collaboratively unblocked a customer’s pathway – delivering a 300% increase in scripts.

TH E K E Y ACCO U NT. O R G A N I S ATI O N A P P R OAC H . Here’s a quick outline of the main stages of the Key Account Organisation approach and how it impacts brand launches:

Develop relationships first; keep specific brands out of the equation for now. Identify the key customers who have most to gain from a more in-depth strategic relationship with you. Prioritise accounts and use archetypes to target the customers who have the greatest need for your therapy areas and who have the relevant organisational behaviours for the types of innovation you have to offer.

Challenge yourself to hang out in the ‘customer need space’ for longer than you usually would! Ensure you truly understand your customer’s needs, motivations, priorities and pathway blockages. Make sure that your objectives are aligned and offer genuine benefits to both sides. And, critically, establish that the customer is open to change.

Design an overall strategy for each strategic account based on their individual needs and how you can support them over time.

Mobilise your entire organisation to support the strategy. This goes far beyond a traditional sales, medical or marketing relationship. It means using all the resources at your disposal to get the best possible result for your customer, from setting up strategic conversations between leaders in your organisation and your customer’s organisation, and connecting appropriate

“ Prioritise accounts and use archetypes to target the customers who have the greatest need for your therapy areas”

intelligence from R&D, to ensuring that your supply chain can meet demand. All organisations think that they understand their customers’ needs. However, the reality is that insufficiently specific insights can lead to a generic ‘one size fits all’ approach. Very few pharma companies have genuinely embraced the Key Account Organisation approach. Therefore, those that take this idea seriously have an opportunity to gain a clear advantage. We’ve found that pharma organisations can take their brand launches and brand planning to a new level by following the steps outlined here. The whole organisation now has a fundamental reason to work cross-functionally with colleagues in a meaningful way to support the customer’s priorities. Market access is no longer a constrained support function, but plays an intrinsic role in long-term customer satisfaction. And, crucially, your customers find innovative solutions that deliver better patient care and a more sustainable treatment journey for their healthcare economy. Paul Frith is Co-Founder and Director of Performance Measurement & Analytics at Rubica. Go to rubica.co.uk

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INTELLIGENCE

How do we develop a multichannel go-to-market plan and move from marketing speak to effective marketing deployment?

k c e h c y t i l Rea N.

WORDS BY

Dave Clarke I L L U S T R AT I O N B Y

Alex Buccheri

ultichannel marketing in the pharmaceutical commercial mix is now well established, with no selfrespecting marketer daring to deny that it’s the most effective way to communicate the key elements of a product’s efficacy for a patient. However, what it means in reality will alter from therapy area to therapy area and from market to market, as the blend of channels will need to be adjusted depending on the dynamics of the environment into which the drug is launched. It would be easy if we had a magic formula we could deploy, inputting elements from each of the channels we have in the marketing arsenal and from which a wonderful, optimum result would emanate. But the marketing world is not that simple and utopia is a far-off land. How do we develop a multichannel marketing strategy that doesn’t just tick boxes, but translates to successful marketing deployment?

A R E YO U P R E PA R E D? Let’s first take a step back and ask whether the organisation is prepared in terms of its commercial organisation. Does it have key platforms in place to move to a full multichannel position? Full multichannel approaches combine an internal cultural readiness and skillset with a number of technology platforms that can be orchestrated to best effect. An organisation may not have ‘every’ piece of the jigsaw in position when it embarks on multichannel marketing, but it should have a clear roadmap and an understanding of where it is now and the route it is taking. The multichannel strategy and approach is resilient enough and capable of growing in its sophistication over time. New elements or market capabilities can be added as skills develop, technology platforms are acquired and introduced or indeed the marketing adapts, as was the case with the growth of social media and new mechanisms for information sharing. Multichannel will not look the same in 10 years as it does now.

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INTELLIGENCE

M A R K E T I N S I G HT The multichannel approach is a distillation of many functions: medical affairs, regulatory, sales (including medical science liason (MSL) representation) market access and legal, to mention a few. Meanwhile, the thirst for information from the medical community has never been greater. The healthcare professional (HCP) is also constantly challenged to keep abreast of the changing treatment landscape, with the need to strive to ensure they meet the needs of the patient in the most effective way while also ensuring the best value for money from existing and new treatment approaches. HCPs are challenged daily by digitally-empowered patients who seek information online and present it to physicians for consideration for inclusion in the treatment journey. While this adds complexity to the multichannel approach, at the same time it provides opportunity. Key to it is understanding where physicians look for information; how long they spend in specific channels and how much influence that channel has on their perspective. This insight into the market is essential as a starting point in the multichannel marketing approach, pointing the way to the ‘prime’ channels and those used most often, and signing less influential channels for the market in question.

Channel preferences and their influence levels will differ from a sophisticated Westernised market such as the EU, to a less developed market area such as parts of South America. Indeed differences also occur between disease areas. This understanding of the market is a distillation of the internal organisation’s understanding of its present target physicians, and either bespoke insight work or market reports from the likes of DRG Digital (formally known as Manhattan Research).

“ It is crucial that the target HCP is exposed to as many of the messages as possible”

S TA R T P L A N N I N G Taking the insight stage knowledge into a planning phase we can start to look at how we weave together a plan for communication to the target audience, determining touch points where, as an organisation, we will have direct contact with them. Touch points might be, for example, medical congresses or when a field sales representative meets with them face-to-face. We might enhance this exposure by injecting into the plan additions such as email or invitations to an e-detailing call. The HCP might also be exposed to a myriad of other channels such as peer-to-peer opinion within closed medical communities, pharma websites (product or disease awareness), journals, or social media. Obviously diverse and sophisticated markets will have a wide range of HCPs, all at different levels of their exposure to the data and medical evidence and opinion on a treatment type and product. It may therefore be appropriate to organise the target stakeholders into different types, sometimes called archetypes or personas. This allows for the creation of order of the complex target universe.

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ADVERTORIAL

M E S S AG E R E C E I V E D? The key is to pull the potential touch points together into an ideal or optimum journey exposing the target stakeholder into the most key message elements possible, moving them along the journey we wish them to have to become informed about the product or treatment regime. Some of this journey we will have partial control over, such as a face-to-face representative meeting (with or without e-detailing) and some we will not, such as peer-to-peer discussion. It is crucial that the target HCP is exposed to as many of the messages as possible. Key is the analysis of the effectiveness of our plan and the elements it contains. In the age of agile marketing we no longer launch an initiative and sit back and hope that it delivers a mindset change in those stakeholders that consume it. We are now in the digital age. We have the ability to test content and approaches to the market on a small ‘test’ scale, benchmarking it against alternative approaches, and thus identifying the approach with the most positive impact before launching it to the whole target audience. Target impact should be developed towards the start of the planning process with each channel having target KPIs set and those KPIs monitored through the channel analytics gathered on an ongoing basis. In this way we can have knowledge of whether the overall campaign is delivering and take action if its positive impact is falling short.

“ For multichannel to be effective it needs to feed from an equally world class content strategy” WO R D O F C AU TI O N The overarching imperative for an organisation is the development of a marketing infrastructure and cultural skillset underpinned by the appropriate technology platforms ready to effectively deploy multichannel. However, that itself should not exist in a ‘bubble’; for multichannel to be effective it needs to feed from an equally world class content strategy. The creation of content is essential for a multichannel system to leverage. A multichannel approach, no matter how well developed and defined, will be impotent without quality messages to use as ammunition. The provision of this content is a task that the whole pharmaceutical organisation should confront in order to meet a very different challenge. Dave Clarke is Managing Director & Principal Consultant, Ethical Reach. Go to ethicalreach.com

TO PERFORM YOU MUST BE OPEN TO CHANGE Words by Simon Toy, Director

In an ever-changing environment, businesses have to remain agile and quickly respond to market forces. With niche brands replacing mega brands, key stakeholders are becoming harder to see. With the need to gain an accurate insight into those individuals, it is imperative that every customer interaction is maximised. Our research clearly indicates that Emotional Intelligence (EI) plays a critical role in customer engagement and needs to be developed in sales teams. When supported by EI sales managers and EI coaching, organisations can increase sales, growth and profit. Emotionally Intelligent Leadership should underpin both of these Initiatives to maximise results: • Emotionally Intelligent leaders can increase growth by 7% and profit by 29% • Emotionally Intelligent sales coaching can increase sales by 8-10% annually • Emotional Intelligence is critical in over 70% of the factors responsible for sales success. Performance Associates have a team of specialised Emotional Intelligence Selling Coaches, located across the UK and Ireland. Their in-call interventions have a proven track record of significantly impacting sales performance and turn-over. Contact Performance Associates at: info@performanceassociates.co.uk to find out how your business can benefit.

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INTELLIGENCE

THE POWER OF DATA WORDS BY

Tony Cox

Getting general biological brands established in a fast changing and cash-strapped NHS requires deep customer insight and a strong evidencebased strategy that will stand up to economic as well as therapeutic scrutiny.

efore developing its strategic imperatives, pharma must create a solid narrative built on robust data to fully understand the market. This involves amassing health economic evidence that will stand up to commissionerlevel discussions, as well as clinical evidence. Using data to map the route a patient must take to access a medicine is also crucial. For example, if a 12-hour drip is needed once a month, do hospitals have the funds and the capacity to administer the drug? There are numerous datasets available that can provide valuable insights for brand planning and inform strategic direction. However, identifying these sources can be challenging for pharma and care must be taken to ascertain which data can be used for marketing purposes. K E Y DATA One key data source is Hospital Episodes Statistics (HES) which contains records of all patients admitted to NHS hospitals in England. This targeted and granular data can be cross-referenced from multiple health and social care sources. It can also define and track patient cohorts, providing balanced, objective and outcomes focussed insights. However, pharma may only use this data for the planning process to demonstrate where there is benefit for patient care, if it is published under Open Government Licence (OGL). Other useful real-world data includes diagnostic imaging datasets and prescribing data from NHS Digital, which delves down to GP surgery level. Pharma should also consult data sources such as NHS RightCare, which has defined optimal patient journeys for various conditions. Getting It Right First Time (GIRFT) – a national programme, led by frontline clinicians to help improve the quality of medical and clinical care within the NHS by identifying and reducing unwarranted variations in service and practice – is key too.

“ Pharma must create a solid narrative built on robust data to fully understand the market” TA R G E T YO U R AC TI V ITI E S There are also many privately-owned data sources, including, for example, Wilmington Healthcare’s Specialist Share Data (SSD) for high cost drugs, which shows the share of patients by drug and indication at NHS trust level, enabling pharma to determine where to best target its efforts. By exploring the many and varied national data sources that are available, pharma can ensure that it understands the patient journey and where the touch points are and can show how its products can help to improve patient outcomes in line with NHS guidance on best practice. Tony Cox is Innovation Director for healthcare intelligence provider, Wilmington Healthcare. Go to wilmingtonhealthcare.com

1 4 | PH A R M A FI E LD.CO.U K

INTELLIGENCE

“ Pharma sales teams need to start seeing joint working and service implementation as a ‘to-market’ channel” WORDS BY

Steve How

Local knowledge National brand messages for general biological medicines must be tailored to patients and clinicians at a local level, and dovetailed with the needs, priorities and challenges of England’s 44 local healthcare economies, all of which work differently.

n order to implement a national brand strategy locally, pharma salesforces need access to robust customer data to identify key stakeholders and understand the widening roles and responsibilities that many of them hold. This is particularly important with regards to Sustainability and Transformation Partnerships (STPs) and Integrated Care Systems (ICSs) as these are not legislated NHS bodies. Sometimes the only way to identify STP/ICS staff is via the ‘attendance and apologies’ section in minutes and strategy documents embedded in member organisation board papers. Pharma also needs to dovetail its national market access strategy with the needs, challenges and priorities of the individual STPs. To achieve this, sales teams must be familiar with the individual plans of STPs and keep abreast of the latest developments via sources such as board meeting minutes and operational plans.

TH E LO N G V I E W Sales teams must also be mindful that some parts of the local health economy are integrating and may be moving away from traditional payment by results systems. This can affect the types of drugs used, particularly if there are associated administration requirements, such as infusion. With longer service contracts, these ICSs are also looking at longer term budgeting and the subsequent value that drugs could deliver over longer periods of time. For example, a pharma company might be able to prove that the high cost of more aggressive biologic therapy earlier on in the patient pathway, for conditions such as Irritable Bowel Syndrome and Crohn’s disease, could outweigh the long-term cost implicated with less aggressive therapy leading to earlier surgery. This is because less aggressive treatments can lead to a build-up of scar tissue within the intestines, which can, in turn, lead to treatment failures and a need for expensive and ongoing hospital treatment. TH E R I G HT F IT To work with the NHS in this way, pharma sales teams need to start seeing joint working and service implementation as a ‘to-market’ channel and be equipped to help re-design services and patient pathways. This is a macro-sell that takes account of all the factors in the NHS decision-making process. It requires an in-depth knowledge of the local health economy and a strategic understanding of where a product fits into the overall care pathway and how it could bring cost savings and improve patient outcomes in the long-run. Steve How is Director for Wilmington Healthcare. Go to wilmingtonhealthcare.com

M AG A ZI N E S PECI A L ED IT I O N | S EPT EM B ER 2018 | 15

INSIGHT

B R AN DS BY N U M B E RS

Launch excellence As the focus turns to specialist therapy areas and competition increases, achieving a successful launch is becoming even more challenging. IQVIA’s white paper, ‘Launch Excellence V – Surviving and thriving when launching in an increasingly specialised world’, delved into a decade of insight to understand today’s launch environment drivers, and how quality of preparation, not just quantity, lays the foundations of an excellent launch.

A D E VE LO PE D MARK ETS G AM E

86% of the first five years’ sales of New Chemical Entities launches since 2005 came from just seven countries: the US, Japan, Germany, France, UK, Spain and Italy.

14% OTH E R

86% F R O M 7 CO U NTR I E S

IQVIA’s first Launch Excellence white paper analysed launches back to 1995, an almost Jurassic era when the big beasts of the pharmaceutical launch world were primary care, mass market products. All of these products were blockbusters in the billion dollars/year sense of the term but were very different to today’s tranche of launches, whether excellent or not, as Figure ‘Launches by company’, on the facing page, outlines.

16 | PH A R M A FI EL D.CO.U K

L AU N CH E S BY CO M PANY H I G H CO S T

Multiple myeloma

Hepatitis C

Multiple sclerosis Idiopathic pulmonary fibrosis

Type 2 diabetes

LOW P R E VA L E N C E

H I G H P R E VA L E N C E

 Launch Excellence I  Launch Excellence V

Osteoporosis

Asthma Erectile dysfunction

LE 1 drugs were without exception lower cost products for higher prevalence conditions. LE1 drugs were launched between 1995-2001 and LEV drugs were launched 2011-2015.

Arthritis

Depression LOW CO S T

L AU N CH E S BY TH E R APY ARE A 120

120

More launches in a therapy area does not correlate with increased excellence – with the exception of oncology. Excellent launches are those achieving excellent in >1 country; Respiratory includes all other respiratory; CNS includes all other CNS and nervous system disorders.

115

 Excellent launches

 Other launches

114

35 30

13 1

9 1

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ts gu la n M

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GI O

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ol ab et M

at rm

ic og ol

ns te er yp

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s ic

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9 4

23 1

Number of launches

M AG A ZI N E S PECI A L ED IT I O N | S EPT EM B ER 2018 | 17

AVE R AG E YE AR O N E PRO DUC T SALE S BY TH E R APY ARE A Promotional spending does not correlate with higher average first year sales. All launches within the period are covered, including excellent and non-excellent.  Average first year sales

 Average first year spending on promotion

820 90

Average first year sales (LC US $ Mn)

80 70 60 50 40 30 20 10

VI RO NM EN

• Value growth is highly concentrated into specialty TAs and developed country markets • Players starting to consider budget caps for new launches alongside existing restrictions • Stakeholder complexity grows, channels proliferate

Y AN MP CO 18 | PH A R M A FI EL D.CO.U K

n gu oa

dc Bl

ir a sp Re

EN The launch environment has changed, and rapidly – companies must change too.

lat

en ag ry to

2016

THE CHANG ING L AUNCH ENVIRONMENT

ts lan gu

tic

rm De

at ol

ia b M

ist

l th

s ic

s tid

ol nc O

sis

V st

m im

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ld Au

h, ug Co

si t

S M O

ti t

• Challenge to bring multichannel marketing to maturity across the key developed markets • New roles to adapt to growing stakeholders complexity and proliferation of channels • Stakeholder complexity grows, channels proliferate

INSIGHT

WHAT D O CO M PAN I E S N E E D FO R AN E XCE LLE NT CO M M E RCIAL M O D E L FO R S PECIALT Y L AU N CH? Promotional spending does not correlate with higher average first year sales. All launches within the period are covered, including excellent and non-excellent.

D I G ITA L marketing maturity across multiple stakeholders

Full spectrum multichannel marketing approach

H I G H LY E F F E C TI V E patient segmentation, identification, targeting

BEST IN CLASS S PEC IALT Y CO M M E RC IAL MODEL

M U LTI F U N C TI O N A L teams of multi-skilled individuals

N E X T 5 YE ARS

Intense patient focus and RWE

A full spectrum approach to multichannel marketing, with digital at its core, essential when: • Specialists become harder to reach in an increasingly competitive environment • Digital contact becomes mainstream Intense patient focus based on real world evidence (RWE) will be necessary when: • Payers expect a defined benefit (outcome) for a defined patient population • Successful uptake means supporting healthcare systems to identify patients

O U TCO M E S RWE defence and opportunity

N E X T 10 YE ARS

• Genetic profiling and biomarkers create new payer propositions and different measures for launch success • Patients increasingly activist and – beyond US – aware of international information and launches

• New payment models for highly expensive new launches: payment by use in multi-indicational products, payment by outcome increasingly demanded • Markets radically re-defined by genotype, biomarker and other patient specific characteristics

• Fully orchestrated customer engagement will be essential – full spectrum of channels to address all stakeholder with a message that is aligned and coordinated

• Companies will be addressing unique value propositions by patient – the ‘patient as CEO’ • Launch success will be dependent on a highly personalised value proposition

Data reproduced with kind permission of IQVIA.

M AG A ZI N E S PECI A L ED IT I O N | S EPT EM B ER 2018 | 19

SECRET SOURCE

Segmentation – is it the hidden source of success in a multichannel world?

M I N D TH E G A P Bogdan Paraipan, Pharma Commercial Excellence Executive, says: “In my recent experience I have seen three practical gaps when it comes to customer segmentation: 1. Sales and marketing teams do their own segmentation. They use the same words but have different understanding, so there is no consistent story/approach. 2. Significant efforts are invested in sophisticated segmentations (account/contextual), but not leading to sufficiently differentiated actions or messages. 3. Customer segmentations were not updated for years even though the market and brand situations had changed dramatically.” If you can relate to these, consider a refreshed look at segmentation, the beating heart of multichannel marketing. To close these gaps, we found a three pronged approach to drive effective segmentation practices useful: ALIGN, VALIDATE, ITERATE.

WORDS BY

Chris Ingham

2 0 | PH A R M A FI EL D.CO.U K

Clarifying and aligning the understanding of the ‘why’ and ‘how’ of segmentation for everybody in the organisation.

Company perspective

S TA RT W ITH ‘ TH E W H Y ’ A simple way to view segmentation is as a confluence of three perspectives: What the company wants; What the customers want (including patients), and How they want it:

Customer perspective

ultichannel has been a hot topic in pharma for many years, specifically the quest for the right integrated customer engagement model. The focus has been to implement sophisticated orchestration models with CLM and standardise approaches for each personal/non-personal archetype (i.e. to use ‘pure digital’ for mature products, for all customers in all markets, or use hybrid key account managers (KAMs) to orchestrate all key local customer engagement) leaving some of the critical processes to take a back seat. Which brings us to segmentation in a multichannel world. The hidden source to creating the right engagement decisions is to use meaningful and actionable market segmentation and place it at the centre of all things multichannel. Getting this ‘right’ and systematic delivers the Holy Grail of the right customer, through the right channel, with the right content and importantly, a step change in results. This may sound obvious, as segmentation has been the core of pharma marketing for decades. The big question is whether the practical use of segmentation throughout the organisation is as effective as it should be, and whether current approaches are fit for a multichannel world.

ALIGN

W H AT WE CAN

Sales/resource view Look at potential and cost to serve etc to decide which customers to target and how much to invest.

W H AT TH E Y WA NT/ NEED

Marketing view Look at behaviours, attitudes etc to define differentiated objectives, messages and actions.

H OW TH E Y WA NT IT

Channel view Look at access and channel affinity to decide which channels to use.

Right customer, right message, right channel This is applicable for segmenting any type of stakeholders: HCPs, payers, or patients. It is also very important to acknowledge that a natural segmentation, i.e. HCP specialty or HCP role in the patient journey, may already exist. Any further segmentation should build on this natural first level.

VALIDATE

The next important discipline is to run ‘sanity checks’ both after the design phase and once the tactical plan is defined. CO N S I D E R : 1. Is every dimension helping answer the three questions from above ‘The Why’? 2. Do we have differentiated business objectives for each segment? Are we covering all brand objectives? 3. Are the tactics, channels and content different enough between the segments defined? 4. How are the defined segmentation rules reflecting the brand life stage and strategic imperatives?

INSIGHT

TH E H OW This is aligning roles and responsibilities of the different contributors into an efficient process. The process can be organised in four step iterations:

R E FI N E

DESIGN

Dimensions/attributes to segment by. Business rules defining each segment as a combination of attributes

PRO FI LE

Updated information at an individual level for each dimension

Differentiating each step is important for clarity and to assign to the right person. Segmentation is not assigning labels to customers in the CRM, it’s a strategic decision aligning how ‘we’ view and engage their world with our product priorities and lifecycle stage. For example, an ‘innovator’ customer may be high priority at launch but less so when the product is mature. The customer profile has not changed, but how we view the customer has.

ITERATE

Segmentation should be reviewed regularly; it’s both an art and a science to update and fine tune because the customers and the competitive context change; a change in a customer profile provides insights on how the customer reacts to your actions; and your original assumptions may no longer be relevant or valid. It is highly unlikely that you will design the perfect segmentation. The right approach is based on systematic test and refine loops connecting segmentation effectiveness to measurable improvements in the impact of your multichannel engagements and subsequent business results.

PL AN & VALI DATE

MAP

Segment assigned to individuals as a function of their individual profile and the defined business rules

There are other ways to define the process but it is always important to: • Differentiate between data gathering (profiling) and the decisions on grouping customers into prioritised segments (segments design) • Tightly integrate segmentation into planning decisions and make sure it drives differentiated engagements (including messaging) • Discuss how granular you need it – if it doesn’t create differentiated actions you’ve gone too far!

P R AC TI C A L CO N S I D E R ATI O N S Conceptually, it sounds clear and simple, but in practice it’s not as easy as it appears. Segmentation, like many other critical processes, needs to be integrated across functions cycle by cycle to become truly embedded as a way of working. Traditional approaches of rolling out new frameworks and ways of working as one-time training is not enough. Software technology can provide a more practical and sustainable approach. That is why we have created a software solution called CEX. It has segmentation as its heart to manage the complexity of

Differentiated actions, channels, content for each segment defined

“ Segmentation is not about assigning labels to customers in the CRM, it is about a strategic decision aligning how ‘we’ view and engage their world with our product priorities and its lifecycle stage”

translating brand strategy, to effective integrated customer engagement actions – delivering optimal and consistent multichannel customer actions. We think it really helps get back to the Holy Grail: ‘The right customer, through the right channel, with the right content’! Segmentation is THE critical gate and hidden source of effective multichannel marketing. To achieve the required rigour and consistency on a wide scale, a software solution is a compelling option. Chris Ingham is Chief Commercial Officer, CEX Solutions. Go to cex-solutions.com

M AG A ZI N E S PECI A L ED IT I O N | S EPT EM B ER 2018 | 2 1

CHANGING BEHAVIOUR, IMPROVING LIVES WORDS BY

Jo Spink

ehaviour change is a concept that takes place in our everyday lives, but only recently have we begun to understand the power of it and how it can change people’s lives for the better. Whether we are influenced by the adverts we see or the conversations we have, our behaviours and attitude are constantly being shifted, which can cause a butterfly effect, where a small change can result in a much bigger outcome. This is why, more than ever before, pharma companies are looking for guidance on executing behaviour change campaigns that can play a significant part in improving people’s health and overall wellbeing.

“Behaviour change can’t happen overnight, but with the right strategy in place, it’s possible to make a difference”

2 2 | PH A R M A FI EL D.CO.U K

ADVERTORIAL

B E H AV I O U R C H A N G E I N P R AC TI C E The Global Hygiene Council launched the ‘Small Steps for Big Change’ campaign, which identified five steps where small changes in hygiene can make a big difference to help reduce preventable infections in children. This behaviour change campaign was led with the intervention to educate healthcare professionals and parents of the changes that can be applied to their day-to-day routine and reduce the risk of infectious diseases. As a result of the campaign, over 350 health and hygiene organisations including leading non-governmental organisations (NGOs), the World Health Organization and the International Scientific Forum on Home Hygiene, engaged with the campaign. TH E S C I E N C E B E H I N D C H A N G E Recently, experts at University College London (UCL) have investigated the science and complexity of behaviour change. Their findings have been simplified using their COM-B model which is derived from the ‘Behaviour Change Wheel’; a synthesis of 19 frameworks of behaviour change found in research literature. COM-B stands for Capability, Opportunity, Motivation and Behaviour. In simple terms, to achieve your outcome you need to investigate whether your audience are Capable, whether they have the Opportunity and are Motivated enough to change their behaviour. Once the most significant barrier is highlighted through this process, the decision can be made on what intervention can then be applied to encourage the desired Behaviour change. This is one of the reasons why it’s an exciting time for those looking to shift behaviour in healthcare, because we are starting to see significant outcomes when the framework is used correctly.

I NTE R R U P TI V E I NTE RV E NTI O N Sometimes, it requires a much more interruptive intervention to make a change. It is estimated that up to 50% of patients taking medicines for chronic conditions do not take their medicines as prescribed. Wasted medicines are thought to cost the NHS around £300 million per year. Although experts have been trying to tackle the issue for a considerable amount of time, the rates of nonadherence have not changed in the past three decades. Behaviour change can’t happen overnight, but with the right strategy in place and applying the right variation of interventions, it’s possible to make a difference, whether that is helping someone to stop smoking, encouraging a patient to attend a check-up or educating parents to provide healthier food options for their children. TH E I M P O RTA N C E O F I N S I G HT Before you begin the COM-B process, you need to gather insight that is relevant to your product, service or company. This is typically broken down in to three areas. Who are the competition? What are they doing? How do they compare? This will determine the areas you need to address first; do you have a USP? Are they doing something that you can do better? If you can’t compete with their levels of investment, do you need to do something different? M A R K E T:

What is your offering? What is your mission? What is your personality? This is what differentiates you from the competition and underpins everything you do. Remind yourself of this during the planning phases. P R O D U C T/S E RV I C E :

Who are you targeting? What are their habits? What do they think? AU D I E N C E :

We encourage clients to review their audience as often as possible to ensure that the communication strategy is still relevant and reaching the right audience. It’s not uncommon for new audiences to develop, especially following a trend or social shift. We’ve seen dermatological brands who target 40+ women see a spike in the summer period from a much younger audience looking to achieve better skin health results. We’ve also seen a more image conscious audience begin to adopt probiotics to help their skin, rather than those who suffer with Irritable Bowel Syndrome, as is more common. It can be complicated to keep up to speed with how an audience is behaving, so investing in audience research every few years is key. M O R E I M P O RTA NT TH A N E V E R Every day, incredible breakthroughs in healthcare, revolutionary drugs and state of the art therapies are made available. It is, therefore, more important than ever that we ensure patients are getting the treatment they need, by influencing them to make informed decisions through the power of effective communications. Jo Spink, Founder and Creative Strategist at Spink. Go to spinkhealth.com R EF ER EN C E S : Michie et al (2011) Implementation Science Executive Summary; Evaluation of the Scale, Causes and Costs of Waste Medicines. York Health Economics Consortium and School of Pharmacy University of London, 2010. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1681370/

M AG A ZI N E S PECI A L ED IT I O N | S EPT EM B ER 2018 | 2 3

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What are the keys to success when launching a Category C branded generic? WORDS BY

Roger Sture

Launching a Category C branded generic requires thorough research and preparation; in particular, intelligent use of NHS prescription and dispensing data can help best position branded generics for launch. Five inherent areas should be addressed.

hen branded medicines (brand originators) go ‘off patent’, they are listed in Category C of the drug tariff (usually as they are sustained release medicines with delivery systems which are difficult to manufacture). An opportunity then arises for branded generic medicines to be launched into sizeable markets which remain set at the Category C drug tariff price for many years. It is crucial for GPs to prescribe lower priced Category C branded generics by brand name so that the NHS wins by saving on drugs costs and the branded generic company gains prescriptions. Unbranded, i.e. generic prescriptions, are

Identifying opportunity using NHS prescription data (ePACT) and NHS dispensing data (PCA).

Figure 1.

CO M PAR I N G e PAC T R x (PR E S C R I B I N G DATA ) v P CA (D I S PE N S I N G DATA )

£NIC

List/tariff price Product A Product B Product C Product D Brand originator Generic

Product A Product B Product C Product D Brand originator Generic

PCA dispensing including proportion dispensed against generic (Class 2)

ePACT prescribing

£18.50 £18.50 £26.25 £26.25 £35.00 £35.00

£560 £20,630

£1,050 £26,680

£10,550,630

£15,340,030

£0

£70 £23,066,810 £17,288,710

£34,078,210 £0

£50,927,340

TOTAL

Quantity

dispensed at retail chemists’ discretion with any brand, but reimbursement is still at full drug tariff price, thereby costing the NHS more. Figure 1 shows a Category C market whereby the brand originator prescriptions (ePACT) total £23m, but £34m is dispensed (PCA), revealing a further £11m of the brand originator product dispensed against generic prescriptions at full tariff price. Product C is the leading branded generic medicine with a lower price of £26.25 (25% less than tariff) saving the NHS approximately £3.5m on £10.5m prescriptions which would have otherwise been £14m at tariff price.

£18.50 £18.50 £26.25 £26.25 £35.00 £35.00

TOTAL

£49,446,040 38 1,097

24 878

566,196

401,929 2

943,278

659,052 493,965

0 1,555,848

1,510,611

£540 £8,140 £5,092,400 £70 £11,380,200 £0 £16,481,350 16 308 175,810 2 294,763 0 470,899

Source data: Total 12 months ePACT Rx data for England (NHS Digital) and Prescription Cost Analysis (PCA) data for England (NHS BSA) for an example market; List/tariff prices from NHS BSA DM&D. Data has been dummied for illustrative purposes. Data: © 2018 Visual Numbers Limited

2 6 | PH A R M A FI EL D.CO.U K

INSIGHT

Pricing of branded generics is pivotal as Clinical Commissioning Groups (CCGs) and Health Boards need to see tangible potential savings to even consider reviewing a branded generic, but there is more to it than just price alone.

urely setting the lowest price is not a shortcut to success; a good sales team using intelligent targeting and strong promotional marketing is also required to gain necessary traction. As an example, in the venlafaxine modified release market, Efexor XL was the original brand going off patent in 2008. Venlalic XL successfully launched as a branded generic at c50% tariff price, and with additional product features and strong selling, has saved the NHS millions. ePACT data can be used historically to assess companies’ pricing strategies with branded generics across all four UK nations to assist price positioning and launch tactics. Decisions regarding Clinical Commissioning Group (CCG) rebate and Manufacturer Discount Schemes (MDS) etc also need consideration.

Figure 2. ANALYS I N G

Calculating potential costs savings figures at a national, CCG and GP practice level with prescribing branded generics can be tricky.

randed generic companies must be responsible for total accuracy with such figures. The main costs savings will be calculated against the brand originator / open generic scripts which cost the full tariff price; where there are a number of branded generics at varying prices, then good maths needs to be applied to ensure that correct potential savings figures are described. Once this potential savings information becomes available it should be effectively used to empower sales teams to gain maximum impact with CCG Heads of Medicines Optimisation and GPs / practice managers. Figure 2 shows potential savings at CCG level and for the top 10 GP practices within that particular CCG – information which can be used to supplement marketing and sales team materials – for example excellent aids at exhibitions to gain real interest with GPs and other healthcare professionals keen to learn what savings their GP practice can make.

MAR K E T, P OTE NTIAL SAVI N G S & TO P PR AC TI C E S FO R A S I N G LE CCG US I N G e PAC T R x (PR E SC R I B I N G DATA )

 Your product  Product A  Product B  Product C  Product D  Product E  Generic TOTAL NIC £613K

£193K

£332K

£523K

TOTAL QUANTITY

£388K

£108K

CCG total: £2,157K

POTENTIAL SAVINGS WITH FULL SWITCH TO YOUR PRODUCT £166K

£517K

TOP 10 GP PRACTICES IN THE CCG BY TOTAL NIC (AND SHOWING POTENTIAL SAVINGS WITH FULL SWITCH TO YOUR PRODUCT) 1 2 3 4 5 6 7 8 9 10

£73,900 £69,900 £61,000 £57,600 £50,000 £49,100 £43,700 £42,800 £40,600 £38,700

1 2 3 4 5 6 7 8 9 10

£9,660 £16,470 £16,910 £11,660 £11,980 £11,620 £8,160 £9,690 £9,090 £10,820

Source data: Latest 12 months ePACT Rx Net Ingredient Cost (NIC) data for England (NHS Digital), Scotland (ISD Scotland), Wales (NHS Wales Shared Services Partnership) and Northern Ireland (HSC BSO). Data has been dummied for illustrative purposes. Data: © 2018 Visual Numbers Limited

M AG A ZI N E S PECI A L ED IT I O N | S EPT EM B ER 2018 | 2 7

INSIGHT

E X AM PLE C HART O F CCG SWITC H TO PRO D U C T E I N PL AC E O F G E N E R I C S C R I P TS AN D PRO D U C T A

Figure 3.

£800K

 Product A  Product B  Product C  Product D  Product E  Generic

Max quantity = 735,400

£700K £600K £500K £400K £300K £200K £100K

TOTAL QUANTITY

Product A 3,510,100

Product B 305,800

Product C 659,400

Product D 5,500,100

Product E 1,428,700

May 2018

Apr 2018

Mar 2018

Feb 2018

Jan 2018

Dec 2017

Nov 2017

Oct 2017

Sept 2017

Aug 2017

July 2017

June 2017

May 2017

Apr 2017

Mar 2017

Feb 2017

Jan 2017

Dec 2016

Nov 2016

Oct 2016

Sept 2016

Aug 2016

July 2016

June 2016

May 2016

£0K

Generic 4,919,600

Identifying and intelligently targeting CCGs is crucial.

ertain CCGs historically lead the way in switching to branded generics. The ePACT prescription data contains all the costs and quantities backdated to 2010 at GP practice level for every product prescribed. This data can be analysed at CCG level to show which CCGs are highest priority in terms of potential, early changers and greatest opportunity. Intelligently target such CCGs. Certain CCGs may historically stick longer to generic prescribing for their own reasons and may take longer to win over to branded generics, but perseverance and intelligent targeting remains key.

2 8 | PH A R M A FI EL D.CO.U K

Key messages to include in marketing branded generics at launch:

• COSTS SAVINGS at National, CCG and GP practice levels • Patient compliance • Bio-equivalence of the branded generic with the original brand • Safety of moving to the new product (for example adequate stock levels / Brexit?) • Full range of strengths • Company track record

• Price guarantees • CCG rebates • MDS • Listing on GP prescribing systems • Wholesaler availability • Recognised endorsement (for example PrescQIPP assessed) • Unique product features.

nce the branded generic is launched there is continued need to monitor the impact of sales representatives and additional CSO sales force call and meeting activities, marketing and activities such as e-detailing on a GP practice-by-practice basis. Demographic data can also be included in such analyses. The keys to success in launching any Category C branded generic are having the right product with good pricing and positioning, intelligent targeting and accurate visible cost savings information, for promotion by a proactive sales team. Roger Sture is Owner, Founder and Company Director at Visual Numbers Ltd. Go to visualnumbers.co.uk

FUTURE

A SEAT at the TABLE

“ The role of branding has its place, but differentiating HOW you engage with Integrated Care Systems will help to drive brand access.”

Triducive’s Tim Warren explores how pharma can succeed within the newly emerging integrated commissioning landscape.

A WORDS BY

Tim Warren

s Prime Minister Theresa May promises £20 billion more funding each year for the NHS for the next five years, Sustainability and Transformation Partnerships (STPs) morph into Integrated Care systems (ICSs) and healthcare commissioning becomes more strategic – how can pharma ensure the successful marketing of its brands? The Prime Minister’s June funding announcement, which was partly paid for by a ‘Brexit dividend’, was branded a 70th “birthday present” by ministers. It didn’t, however, go unnoticed by think tanks and senior NHS managers that this beautifully wrapped and headline-grabbing birthday gift could impact spending elsewhere – for example squeezing public health and social care budgets. And with recent cuts to public health budgets, and social care funding still unconfirmed, early warning signs suggest this may be true.

S H I F T I N FO C U S One way that the NHS is planning on balancing growing clinical demand, rising costs, a retiring workforce and finite budgets, is the establishment of ICSs, previously known as accountable care systems (ACSs). How commissioning will change in the wake of ICSs remains to be clearly seen, but commissioners will undoubtedly need to take a more strategic role and a longerterm view – with their focus shifting to defining and measuring outcomes, establishing capitated budgets, and using longer-term contracts and more stringent service level agreements. What is sure is that pharmaceutical companies have a critical and unique role to play in the development of ICSs, with the new value-based environment calling for a greater emphasis on pharmaceutical management. Formularies may be ICS-wide with one committee making the decisions for the whole territory and powerful NHS Trusts will become key organisations for market access. Whilst opportunities for larger scale deals may result from this larger footprint, the flip side is that pharma also risks a rapid reduction in market share if unsuccessful. Either way, the changes required by ICSs will go ‘beyond the pill’, with pharma needing to show healthcare payers how their brand adds value to patients – through wider packages of care that the market perceives as having value and is willing to pay a premium for.

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KN OWLE DG E I S POWE R 10 top tips from Triducive on how pharma can maximise opportunities and succeed within this new integrated commissioning landscape.

CONSUMABLES (including drug budgets)

EASIER WIN

Find out who is driving the changes in your area Clinicians are not in the driving seat regarding ICSs; it’s senior managers that have the best overview of what the future will look like. Find out who is driving the change in your area and secure meetings – make sure they are structured, relevant and wellprepared. This will help to gather insight on trends, gaps or inefficiencies in patient care in a variety of priority and non-priority disease areas. Having an early seat at the table with these decision-makers will help establish beneficial relationships going forward.

Develop integrated care pathways to reflect the new structure The NHS will be looking to develop new care pathways to reflect its new structure and make the most of integrated resources. A survey carried out by the European Pathway Association found that integrated care pathways are being used in two ways: as a multi-disciplinary tool to improve the quality and efficiency of evidence-based care, and as a communication tool between professionals to manage and standardise outcome-oriented care.1 Providing care in the lowest intensity setting to reduce costs will be a priority, as will developing the pathways alongside patients. Understand where, why and how your brand fits in the local care pathway.

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HA R D E R W I N

ALIGN YOUR BRAND PROPOSITION TO RESOURCE ALLOCATION

4. BE FLEXIBLE

LOCATION COSTS

PEOPLE COSTS

(outpatient & inpatient facilities & services)

(consultations & staff)

With the ICS model resulting in new people, roles and patient pathways, the narrative in your value propositions needs to be tailored to a new audience and reflect their rapidly changing priorities and how they best allocate finite NHS resources. Medicine management tends to just look at intervention (consumable) costs whereas commissioning (and custodians of the System Control Budget) see the costs of care as falling into three categories: consumables, location costs and people costs. Pharma has the opportunity to support the ICS to define the optimum patient journey that ensures all appropriate steps (such as resource allocation modelling) are taken and effectively implemented, while reducing unnecessary staff or location costs objectively and defensibly.

There will be huge variation across different ICSs, and the pace of change is rapid. Market access teams will be working within a landscape filled with great uncertainty, and information may initially be sparse. Make sure you’re the first ones to see the information – websites, meetings and documents – that will gradually become available. Knowledge is power, and this information will help inform your payer education initiatives. Be ready to respond rapidly and ensure teams are well supported and given flexibility to tailor for their locality.

Show how resources can be used more effectively While it is hoped that the ICS model will save the NHS money, the rhetoric focuses on enabling resources to be used more effectively, so make sure your narrative matches this.

Don’t see social prescribing as competition ICSs will deliver on wider health benefits for patients. Social prescribing is part of this package and the benefits are clear. Ensure your value propositions complement this wider package of care.

Don’t just focus on cost-effectiveness

TAKE A PREVENTATIVE APPROACH

ICS metrics will have a heavier focus on prevention. Emphasise the preventative elements of therapies in business cases and if possible show how they can support people to live healthier lives. Providing data is key to this more preventative approach and an area where pharma can assist.

FUTURE

D I F F E R E N T I AT E

Meaningful clinical and budget impact differential is difficult for pharmaceutical manufacturers to achieve quickly. The role of branding has its place, but differentiating HOW you engage with ICSs will help to drive brand access. Being expert, relevant and appropriate can be a huge differentiator compared to competitors who place a superficial emphasis on ICS engagement. Extensive joint working initiatives may be ambitious in the short-term with many ICSs in very early stages of development, however positioning your brand as a credible solution in your given therapy area is vital for developing strong relationships for the future.

10.

Communicate simple and coherent value

While ICSs will continue to look for cost-effectiveness, they will not be led by health economists. Instead, ICSs will have a heavier focus on quality and resource allocation because their financial rewards (and future sustainability) will depend on their ability to meet certain quality metrics.

E XPE RI M E NT TO I N N OVATE

There is an opportunity to align brand messages in a simple and clear way, and a deep, confident understanding of the audience will help achieve this. Communication should not solely be about being understood, but rather avoiding being misunderstood. Align your brand messages across clinical and non-clinical audiences and have a clear and specific call-to-action.

Integrated care reforms are in their infancy, and they involve a wide range of healthcare organisations, populations, and starting points. The lack of a blueprint for integrated care means that systems are able to experiment with new ways of working to deliver care, allowing them the freedom and flexibility to innovate. While this change in structural status quo creates a level of uncertainty for pharma, proactive companies are riding the changes and moving beyond being just a supplier of products and shifting into the role of partner, sharing risk and data to drive successful health outcomes. Communicating to newly emerging stakeholders in an authentic way will drive trust, affinity and loyalty, both throughout this time of change, and into the future. Tim Warren is Director at Triducive Ltd, a health and payer communications consultancy. Go to triducive.co.uk 1. Kris Vanhaecht et al., Prevalence and use of clinical pathways in 23 countries – an international survey by the European Pathway Association (www.E-P-A.org), 2006, Journal of Integrated Care Pathways, 10, 28-34

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BRAND PLANNING DIRECTORY

CEX SOLUTIONS

Commercial Excellence Expert (CEX) Taking pharma commercial effectiveness to the next level through innovative software solutions. SIMPLIFY-ALIGN-IMPACT. cex-solutions.com Chris.Ingham@cex-solutions.com 07557015604

CWC CONSULTANCY LTD

Experienced Business and Management Consultant supporting the Pharmaceutical, Healthcare and Contract Services sector. Specific expertise in Vaccines, Pharmaceuticals and Launch Excellence. cwcconsultancyltd.co.uk colinwatson2003@yahoo.co.uk 07525 046644 IQVIA

IQVIA provides information, technology solutions and contract research services dedicated to using analytics and science to help healthcare stakeholders find better solutions for their patients. iqvia.com ONPOINT STRATEGY EXECUTION

Marketing Excellence Consultants. onpoint.partners nick@onpoint.partners 07590 042598 PERFORMANCE ASSOCIATES

Performance Associates design and deliver training programmes that are aimed at companies, organisations and individuals who are committed to maximising their potential. performanceassociates.co.uk info@performanceassociates.co.uk

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PHARMABILITY CONSULTING LTD

SPINK HEALTH COMMUNICATIONS

Specialising in building Customer Excellence through insight driven solutions and support. Passionate about First Line Manager capability including optimising the coaching of in-call performance. ian@pharmability.co.uk 07801 857169

Spink is an original thinking integrated healthcare communication agency with over 30 yearsâ&#x20AC;&#x2122; experience. Spink has extensive knowledge of consumer and public health, pharmaceuticals and health services spinkhealth.com jo@spinkhealth.com 01444 811099

RUBICA CHANGE & ANALYTICS

Working across the pharmaceuticals sector, specialising in the delivery of change programmes that build long term relationships throughout the value chain. rubica.co.uk hello@rubica.co.uk 0333 241 3008

TRIDUCIVE

Health and Payer Communication Experts. triducive.co.uk tim.warren@triducive.co.uk 07947 130425

VISUAL NUMBERS LTD

SALES ACCELERANT (HEALTHCARE TELEMARKETING & BUSINESS SUPPORT)

Working in partnership with pharma and med device clients we provide industry specialist telemarketing and business support services to extend reach and maximise salesforce effectiveness. salesaccelerant.co.uk duane.lacey@ salesaccelerant.co.uk 01273 358170

Flexible Business Intelligence services, specialising in simplifying multiple datasets cost effectively, to provide highly visual reports with added intelligence to enhance sales excellence. visualnumbers.co.uk consult@visualnumbers.co.uk 01765 711105 WILMINGTON HEALTHCARE

Providing data, insight and intelligence across the healthcare community. wilmingtonhealthcare.com info@wilmingtonhealthcare.com 01268 495600

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