WE Studio D APAC Baxter Healthcare China Communications Analysis Report sm

Baxter Ch i na

M edia Coverag e Analysis on Bran ds an d Th erapi es

CONTENT SECTION 1 | Narrative N etwork

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SECTION 2 | Proj ect Backg rou n d

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SECTION 3 | Analysis of Fi n di ngs

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SECTION 4 | Corporates I n Depth

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SECTION 5 | Th erapi es I n Depth

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SECTION 6 | I nsig hts & Recomm en dations

34

SECTION 7 | References

42

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Charts & Figu res

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Figu re 1 . Top keywords fou n d i n coverag e

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Figu re 2. Narrative N etwork Map

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Figu re 3. Word clou d for th e th em e “ R&D”

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Figu re 4. Word clou d for th e th em e “acqu isition ”

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Figu re 5. Word clou d for th e th em e “comm u n ity welfare”

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Figu re 6. Keywords ti e-strength with b ran ds

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Figu re 7. Keywords ti e-strength with “ IV Solutions”

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Figu re 8. Keywords ti e-strength with “ PD”

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Figu re 9. Keywords ti e-strength with “ h emoph i lia”

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Th e Narrative N etwork™ SECTION 1

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1.1 Th e Narrative N etwork™ What is it?

How WE does it?

The Narrative Network is a proprietary insights methodology that analyzes traditional media coverage (e.g. news articles) around a corporate brand or brand category - as a means to understand and create insights about a corporate communications landscape.

Our Insight & Analytics team analyzes articles and owned content to evaluate messaging patterns around narrative, themes, competitive perceptions in media and industry landscape media trends.

Methodology • In media coverage, or large bodies of text, all the words are ranked in terms of frequency of mention • The words with the highest frequency of mention are collected to build a keyword matrix to determine which pairs of keywords often appear together in the text

• Network analysis software is used to create a social network of the keywords: • The size of the links and nodes represent the salience of the keywords in the text. The bigger the node, the more connections a word has to other words in the text

• Keywords in the same color form a main concept/theme that consistently appears together in coverage

Plan

Identify brand or category relevant keywords

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COLLECT

Collect media coverage using media monitoring tool

MAP

Generate the map using the collected media coverage

ANALYZE

Analyze outcomes to determine overarching narrative themes

How to read the Narrative Network Map? Map Legend

Node Color

Node Size

Distance From Center

Used to group related keywords into overarching narrative themes that consistently appear together in coverage.

The size of the nodes represent the salience of the keywords in the text. The bigger the node, the more connections it has to other words in the text.

Shows significance of narrative theme relevant to other themes.

Core themes are located at the center, while less significant themes are located further away.

Terms Term

Definition

Node

Represents a salient keyword in coverage

Keyword

A word or topic of significance that appears in coverage

Narrative Theme

An overarching theme defined by a cluster (e.g. collection) of keywords and their relationships (i.e. tie strength)

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Proj ect Backg rou n d SECTION 2

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2.1 PROJECT BACKGROUND

Analysis Objectives Identify the mainstream topics within the China healthcare industry and corporate message gaps between Baxter and those of key competitors.

CATEGORY SUBJECT

Corporate Behaviors

--

Identify primary messaging that competitors have applied to enhance the awareness of their therapies or brands.

Apply analysis to recommend how to optimize Baxter China’s communication strategies and differentiate Baxter in media from the perspectives of brand and product attributes

Fluid System

Therapies

Project Scope

Peritoneal Dialysis

Time range: July 2012 - June 2013 Hemophilia

Total number of articles in analysis: 397 Market: Mainland China

Total

BRANDS/ COMPETITORS

VOLUME

Baxter

18

Pfizer

75

Bayer

50

Roche

42

Johnson & Johnson

47

Boehringer Ingelheim

25

Baxter

4

Koren

44

HuaRen

10

ShuangeHe

23

Otsuka

3

Baxter

6

HuaRen

32

Koren

1

Fresenius

1

Baxter

5

Bayer

9

Pfizer

2

Johnson & Johnson

0 397

*Articles were provided by third-party monitoring vendor – Meihua.net. Only original articles (no reposts) were captured. *Stories on the GSK’s economic crime issue after June 2013 and hemodialysis relevant stories were excluded in this project.

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ANALYSIS of Fi n di ngs SECTION 3

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ANALYSIS OF Fi n di n gs

3.1 Top Keywords Figure 1 shows a ranking of the most frequently mentioned keywords in the overall coverage set.

Top Business Keywords Aside from general category (i.e. medical) relevant keywords, such as drug, treatment, and patients, Research & Development (R&D), Sales, Manufacturing, Partnership and Investment were some of the top business themes.

Top Brand Keywords Koren and Pfizer were the most frequently mentioned brand names respectively, followed by Bayer, JNJ and Roche.

Koren generated the highest volume of media stories in relation to intravenous (IV) solutions.

Product/ therapy innovation was emphasized by competitors like Bayer, as a foundational theme, supporting its business strategy in terms of production capacity and the enhancement of its brand reputation.

0 drug products R&D market medical patients Koren treatment Pfizer increase sales Bayer JNJ manufacturing global Roche partnership intravenous acquisition drug maker business technology investment PD innovation

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1200

1500

Figure 1. Top keywords found in coverage

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ANALYSIS OF Fi n d i n gs

3.2 Narrative N etwork Map

Figure 2. Narrative Network Map – Baxter China

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ANALYSIS OF Fi n di n gs

Narrative Categories Business Strategies Red nodes display core narratives within media coverage. Business strategies ranging from R&D, partnerships and acquisitions made up the core narrative category.

Product Crisis Purple nodes display negative narratives including news articles about failed clinical testing and product recall incidents.

PD Solutions Pink nodes display a narrative category on Chinese producers’ movements in the PD solutions industry. Competitor acquisitions were heavily reported. PD solutions were also compared to HD as more convenient, affordable and cost saving.

Patent Issue Green nodes display stories on patent expiration issues and drug makers’ investment in the generic drug market.

Business Restructuring Blue nodes form a narrative category around business restructuring of their secondary departments like animal healthcare and supplements.

Philanthropy & Market Access CSR, philanthropy and market access initiatives such as donation and volunteering projects as well as the professional education series formed a narrative category represented by yellow nodes.

Packaging – IV Solutions Grey nodes were mainly themes related to the packaging of IV solutions, Highlights were given to high-tech packaging products like the rigid and the non-PVC softbag. Safety was one of the hottest issues within packaging.

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ANALYSIS OF Fi n d i n gs

3.3 Overvi ew Hot Topics The core messaging category, represented by red nodes, show the most frequently recurring topics.

Stories around multinational pharmaceutical companies’ business strategies saw wide media exposure.

R&D Stories about the R&D efforts of pharmaceutical companies were common. A large volume of these stories originated out of global outlets and were subsequently translated and republished in China. Stories about partnerships with regards to R&D in China and the global markets were published on trade media like Bioon.com. There were also news articles focusing on corporate investment to establish R&D centers.

Acquisitions Stories about company acquisitions in media coverage reporting on business expansion strategies were common.

This narrative was represented in approximately 15% of all media stories under the corporate coverage set. As with R&D, many of these stories were translated articles from global outlets which were republished in China (i.e. international media being the source of origin for these stories).

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ANALYSIS OF Fi n di n gs

Stories around market access and philanthropy also formed an important narrative, represented in the Narrative Network map by yellow nodes. Baxter and JNJ were strongly tied to these topics.

• Baxter was positioned closely with market access and philanthropy narratives such as patient care and

community welfare. JNJ also positively talked about these narratives to enhance brand awareness and improve brand image.

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ANALYSIS OF Fi n d i n gs

3.3 Overvi ew Research & Development (R&D)

3. Word cloud for the theme “R&D” FigureFigure 4. Word cloud for the theme “R&D”

18% of media articles under the corporate category were related to R&D. Media coverage about R&D efforts was positive with companies emphasizing their commitments to bringing better pharmaceutical technologies and products.

Figure 4 shows the association between companies and the topic “R&D”. The larger the size of the company name, the more frequently it was mentioned alongside the term ‘R&D’. In the total coverage set, Pfizer had the closest proximity to R&D conversations, followed by Bayer and Roche.

• Most Pfizer, Bayer and Boehringer Ingelheim

stories were primarily translated and syndicated global media stories about their R&D partnerships to develop new drugs to cure cancers and diabetes [10] [11].

• Roche’s media exposure focused on its partnership with Chinese local drug maker in the area of Hepatitis C [12].

• JNJ’s media exposure focused on the company’s

global investment in new drug creation, exampled by the establishment of R&D center in London [13].

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“

Roche is seeking more R&D partnerships with local Chinese companies, especially in the creation of innovative drugs.

Lu Ke, President of Roche Asia Pacific [9]

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ANALYSIS OF Fi n di n gs

3.3 Overvi ew Acquisitions (Business Expansion)

Figure 4. Word cloud for the theme “acquisition”

Acquisition is one of the primary narratives in the context of companies’ business strategies. Most media coverage in China was sourced from translated global news reporting about business expansion in the foreign markets.

Figure 5 shows how brands were positioned in association with “acquisition”. The larger the company name, the more frequently it was mentioned alongside the term ‘acquisition’.

• Bayer topped in frequency of mentions, followed by Pfizer and Roche.

• Globally translated stories about Bayer’s purchase of

producers in areas of Chinese herbal [14], Vitamin [15] and contraceptive [16] led to the brand’s strong tie-strength with “acquisition”.

• Media reported heavily on Pfizer’s expansion into the

Attention Deficit Hyperactivity Disorder (ADHD) market via the buyout of NextWave in the US [17].

• Roche’s efforts in bidding for gene sequencing companies like Illumina [18] and Life Tech [19] were also translated by trade media.

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ANALYSIS OF Fi n d i n gs

3.3 Overvi ew CSR, Philanthropy & Market Access

Figure 5. Word cloud for the theme “community welfare”

Benefiting society is one of JNJ’s business creeds.

This corporate culture is consistently cascaded from JNJ global to JNJ China, and we are executing community welfare campaigns to fulfill our commitment to China’s long-term and sustainable development.

• JNJ in China has the strongest association in

its narrative network landscape with “community welfare” (Figure 6), with over one third of its stories mentioning the company’s winning of philanthropy awards [21] [22] and market access projects like the free medical education courses for doctors [7] [23].

• Baxter’s connection with community welfare

was mainly reflected in articles about its market access campaigns for renal disease and hemophilia patients [24] [25]. There were also stories reporting on Baxter’s pure philanthropic efforts such as the book donation project for students in poor areas of China [26].

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Benefiting society is one of JNJ’s business creeds. This corporate culture is consistently cascaded from JNJ global to JNJ China, and we are executing community welfare campaigns to fulfill our commitment to China’s long-term and sustainable development.

”

Xiaoming Fu, President of JNJ (China) CSR Committee, VP of JNJ (China) Medical Companies [20]

Corporates I n Depth SECTION 4

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CORPORATES IN DEPTH

4.1 Su mmary

Figure 6. Keywords tie-strength with brands * Data labeled on the chart indicates the frequency of mentions the keyword showed up together with each brand within the same paragraph.

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CORPORATES IN DEPTH

Summary Figure 7 shows Baxter and its competitors tiestrength with business strategies. The larger segments in each bar indicate dominance in that conversation.

Bayer’s proximity to “innovation” could be explained by stories mentioning their efforts in tech innovation over its 150 year history as part of their 150th celebrations.

Topics related to “R&D” and “partnership[s]” were the most frequent across all brands.

JNJ owned the “training”/“education” narrative, reflected in stories like “JNJ Cordis College in support of China’s health reform” [23]. News of JNJ winning awards, such as the “most charitable enterprise” contributed to JNJ’s close association with “CSR” and “community welfare” narratives.

Pfizer dominated stories related to “R&D”, with media coverage focusing on the company’s new drug development activities. In terms of retail and generic drug creation, Pfizer’s China localization strategy lead to dominance in topics related to “sales” and “partnership”. Bayer also generated a significant volume of coverage around its R&D efforts.

Due to the volume of stories about Bayer’s purchase of producers in areas of Chinese herbal, Vitamin and contraceptives, the brand was observed as having the strongest tiestrength with “acquisition”. It is worth noting that a large volume of this coverage originated out of global news outlets and was subsequently translated and republished in China.

Roche, captured a large share of voice for its business partnerships with local Chinese companies for drug R&D and also had the highest volume in the “talent” narrative. Featured stories on Roche’s talent caring and management strategies were widely covered by local Chinese media.

Baxter owned the “philanthropy” and “sustainability” narratives. This could be due to media stories about the company’s achievement of awards like the Dow Jones Sustainability Index (DJSI) [29] as well as coverage of their market access campaigns.

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CORPORATES IN DEPTH

4.2 Baxter

CSR, Philanthropy & Market Access One-third of Baxter media stories in China were about the company’s market access campaigns such as the “Orange Ribbon 橙心关爱” and “Walking across China 走透中国” patient caring series [24] [27]. These campaign stories, together with several media stories about Baxter’s winning of awards for CSR and philanthropy programs created narratives around “patient caring” and “community welfare”.

Media stories reporting Baxter’s joint effort with medical experts to promote the establishment of a comprehensive hemophilia disease management system [28] contributed to the brands’ proximity to narratives related to the disease.

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“

Baxter is adhering to the spirit of ‘making a meaningful difference’. The Baxter – Walking Across China campaign was created to help ESRD patients realize their dream of living a wonderful and confident life.

Sanjay Prabhakaran, President of Baxter Greater China [24]

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CORPORATES IN DEPTH

4.3 Pfizer

Business Restructuring Leading in total media coverage volume, Pfizer generated stories about its business restructuring efforts, which included stories about acquisitions or spin-offs in the US market.

Localization 15% of the Pfizer stories were related to the multinational company’s localization strategy in China, which ranges from drug manufacturing, retail channels and talent management [4] [5]. Topics around Pfizer’s investments in retailer training and supplements manufacturing in China have been widely picked up.

Stories about localization were also closely associated with R&D, as this coverage highlighted their partnerships to develop new drugs to cure cancers and diabetes.

“

It’s healthy for international drug makers to cooperate with local companies in generic drug manufacturing.

Cooperation will not only improve the manufacturing standards for generic drugs in China but will also make local company’s more competitive.

Ian Read, CEO of Pfizer [30]

”

Generic Drugs Pfizer was also the only brand that received heavy exposure on patent and generic drug issues. The brand was reported as entering in China’s high-end generic drug market to address the possible revenue decrease due to the expiration of patents for flagship products like Viagra and Lipitor.

An interview with Pfizer CEO Ian Read was done by Xinmin Weekly (a Shanghai weekly magazine), in which the CEO mentioned Pfizer’s goal of producing high quality drugs, both patented and generic, for the Chinese market [30].

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CORPORATES IN DEPTH

4.4 Bayer

Acquisition 24% of Bayer media coverage were stories about the brand’s recent acquisition activities.

This also included stories about Bayer’s investments in local companies that manufacture Chinese herbal medicines, vitamin supplements and contraceptives.

Research and Development In a People’s Daily story entitled “Bayer supports China’s sustainable development” [3], Johannes M. Dietsch, President of Bayer Greater China emphasized the benefits of product innovation for both the company and the patients, which in turn explains the close association between Bayer and innovation and technology in the narrative network map.

To increase awareness and impact of its 150-year anniversary ceremony, Bayer consolidated its media presence around a historical narrative (i.e. long history in innovation). A featured interview with Alok Kanti, CEO of Bayer Healthcare China (also made by People’s Daily) indicated that “innovation is the key leading Bayer to success” [31].

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Bayer believes that ‘technology brings a better life…’ In the past 150 years, Bayer has continued to invest in technological innovations that improve the quality of peoples lives.

Johannes M. Dietsch, President of Bayer Great China [3]

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CORPORATES IN DEPTH

4.5 Roch e

Business Partnership Roche earned a strong tie-strength with “partnership”.

This could be attributed to the large number of stories about Roche’s business partnerships with Hangzhou based Ascletis and Guangzhou based TechPool, to expand its market share of hepatitis C and anti-cancer drugs in the Chinese market.

Employee Development One important point generated from Roche’s media reports is that Roche is the only company proactively engaging with media to illustrate its responsibility on talent management. Long featured stories with Penny Wan, General Manager of Roche China were made by Jiefang Daily [32] and Xinhuanet.com [2], in which the message that “Roche is always putting the benefits of the talents and patients first” was strongly called out.

“

Employees are the driving force behind Roche’s fast development.

Our corporate culture of efficient working is enabled through Roche’s commitment to fairness and justice.

Penny Wan, GM of Roche China [32]

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CORPORATES IN DEPTH

4.6 Joh nson & Joh nson 33% of JNJ media coverage were stories about the company’s corporate market access and philanthropy efforts. Media reporting on JNJ product recall incidents (which occurred abroad) generated coverage within China and carried a negative tone about the company [33].

Market Access JNJ generated a high volume of strong coverage about its market access initiatives. Education and training were narratives that highlighted JNJ’s efforts in providing professional education for healthcare professionals. Media stories such as “JNJ Cordis College in support of China’s health reform [23]” and “JNJ professional education develops together with China’s medical industry [7]” were reported by local media like ycwb.com (Guangzhou) and Chongqing Evening News (Chongqing).

Philanthropy Reposts of press release stories on JNJ’s winning of awards like the “most charitable enterprise [21]” and the “best community welfare team [22]” created a positive brand image. An in-depth interview with Xiaoming Fu, President of JNJ (China) CSR Committee was published by China Charity News to demonstrate the company’s philanthropic efforts.

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“

To be a respectable corporate citizen, JNJ is making efforts to improve doctors’ medical capabilities and to improve patients’ quality of life. Our community welfare campaigns range from corporate donations and philanthropic projects to employee volunteering programs.

”

Xiaoming Fu, President of JNJ (China) CSR Committee, VP of JNJ (China) Medical Companies [20]

THERAPIES i n Depth SECTION 5

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THERAPIES IN DEPTH

5.1 Flu i d System Most stories within the product/therapy coverage set focused on fluid system were made by business media and by business channels in web portals. Figure 8 shows that topics were mainly about competitors’ sales revenue performance, manufacturing prospect and business expansion narratives.

Notably, there was less coverage on specific IV solutions.

Sichuan-based Koren was the most prolific company in terms of media volume generation within the product/therapy coverage set with a share of voice of 52%. Branded media stories about the company’s investment in packaging innovation as well as its leading sales and manufacturing performance were reported.

There were also featured interviews with highlevel Koren executives, by ifeng Finance with Wei Juncai, VP at Koren [34].

Packaging products including Koren’s rigid soft-bag and HuaRen’s non-PVC products were frequently mentioned.

Safety in IV infusion proved a sensitive topic among Chinese patients/customers. Koren’s soda-lime glass bottle incident and Shuanghe’s hydroxyethyl starch (HES) issue resulted in negative stories for both the companies involved.

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100

150

products

Koren

manufacturing

business

market

increase

soft bag

treatment

packaging

non-IV business

sales

revenue

Lijun International

plastic bottle glass bottle technology

acquisition

Figure 7. Keywords tie-strength with “IV Solutions”

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Koren’s patented rigid soft-bag has gradually claimed a greater market share from plastic bottle and traditional softbag makers. Koren will continue investing in R&D to create advanced packaging Wei Juncai, VP of Koren [34]

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200

”

250

THERAPIES IN DEPTH

5.1 Flu i d System Competitor Messaging Analysis Key Messages

Key Messages

Key Messages

Koren maintains its leadership in China’s fluid system industry, in terms of sales revenue and productivity; (3)

HuaRen enhances its market competitiveness via business acquisition; (3)

Koren expands its market share via acquisitions and partnerships; (3)

HuaRen offers the high-end non-PVC packaging products to promise IV infusion safety; (2)

ShuangHe expects a sound momentum of its 817 soft-bag, the 3-in-1 products and the therapeutic infusion business; (3)

Koren

Koren makes continuous investment in the R&D of packaging products; (3)

HuaRen

ShuangHe

ShuangHe increases its investment in R&D and manufacturing process; (2)

Koren is committed to offer safe and high quality packaging products; (2) Koren has the most comprehensive fluid solutions lineup and the most updated packaging technologies; (2) Koren owns the patent of rigid soft-bag that enjoys a bright sales prospect; (2) Koren puts high value on talent management and sees this as the soft power supporting its development; (1) Koren fulfills its CSR by proactively engaging in philanthropic campaigns. (1)

* Scores after each key message (KM) represent the salience of the KM. It is measured on a scale of 1-3, with 3 being an most important piece and 1 being a brief mention.

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THERAPIES IN DEPTH

5.2 Periton eal Dialysis HuaRen dominated coverage focused on PD as the company appeared in 80% of the PD relevant stories. Most media stories were broad overviews of HuaRen’s business strategy and productivity forecast.

Two advantages of PD treatments have been emphasized by Huaren throughout the PD media coverage set: • supportive healthcare policies; • affordable price and usage convenience compared to hemodialysis (HD); Supportive healthcare policies that include PD solutions in the National Essential Drug List [35] and efforts to increase the reimbursement ratio for renal diseases from 70% to 90% [36] have been identified by HuaRen as the main stimulus that can enhance the prosperity of the PD industry.

Baxter’s association with PD was mainly reflected in its market access campaigns like “Flying Angel 天使展翼 [38]” and “Orange Ribbon 橙心关爱 [27]”. However, these campaigns did not generate enough frequency of mentions throughout the Baxter stories to appear in the network map.

0!

60!

120!

market! treatment! products! patients!

HuaRen! partnership!

HD! increase!

Baxter! government policy! sales!

Ministry of Health! training!

R&D! uremia! business! medical insurance! non-pvc! expansion!

Figure 8. Keywords tie-strength with “PD”

“

Different from HD, PD treatment can be operated at home by the patients themselves. It’s much cheaper and more humanized.

Liang Youfu, HuaRen CEO [37]

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180!

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THERAPIES IN DEPTH

5.2 Periton eal Dialysis Competitor Messaging Analysis Key Messages

Key Messages

HuaRen believes in the prosperity of its PD business due to the support of healthcare policies; (3)

Koren steps into PD solutions industry via fund raising in smaller companies; (1)

Huaren

Koren

HuaRen keeps its R&D effort to create better PD products; (2) PD is more cost-efficient and convenient than HD; (2) HuaRen is providing PD training for both healthcare professionals and the sales team to promote sales revenue; (2) HuaRen is the only provider of non-PVC PD solutions that has been appointed by the Ministry of Health; (1) HuaRen is trying to capture greater market share from Baxter as its PD solutions are much cheaper; (1)

* Scores after each key message (KM) represent the salience of the KM. It is measured on a scale of 1-3, with 3 being an most important piece and 1 being a brief mention.

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THERAPIES IN DEPTH

5.3 H emoph i lia Bayer generated the most media coverage for articles related to hemophilia. Approximately 50% of Bayer’s media stories were focused on its market access initiatives such as the donation of Kogenate FS to earthquake victims in Sichuan, China, and the community welfare campaign before the World Hemophilia Day 2013 [39] [40].

Similar to Bayer, media coverage for Baxter was mostly focused on the company’s efforts to arouse the public’s attention to hemophilia patients (i.e. market access).

Notably, both Baxter and competitors have engaged with authoritative professors and doctors who were quoted throughout hemophilia relevant media stories to highlight the importance of prophylactic treatments.

With the release of new hemophilia drugs in China, Pfizer emphasized the efficacy and safety of its products.

“ 32

Prophylactic treatment is the key for hemophilia patients to reduce bleeding frequency.

”

Ruan Changgeng, Chairman of Blood Research Institute of Jiangsu Province [40] - quoted by Bayer

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120

160

patients! treatment! drug! manufacturing! medical!

Bayer! effective! professional!

Baxter! clotting factor! prevention! sales! improve!

R&D! rFVIII ! partnership! children!

Pfizer! quality!

Figure 9. Keywords tie-strength with “hemophilia”

“

Appropriate treatments can effectively reduce the frequency of bleeding and the chances of being disabled.

Yang Renchi, medical director of the Institute of Hematology & Blood Diseases [28] - quoted by Baxter

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THERAPIES IN DEPTH

5.3 H emoph i lia Competitor Messaging Analysis Key Messages

Key Messages

Bayer is well engaged in community welfare projects to help Chinese hemophilia patients; (3)

Pfizer’s treatment solutions for hemophilia diseases are safe and effective; (2)

Bayer maintains the creation of new hemophilia products; (2)

Pfizer is aiming at benefiting more Chinese hemophilia patients; (1)

Bayer

Pfizer

Bayer’s Kogenate FS has good curative effects in reducing bleeding episodes; (1)

* Scores after each key message (KM) represent the salience of the KM. It is measured on a scale of 1-3, with 3 being an most important piece and 1 being a brief mention.

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Recomm en dations SECTION 6

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RECO M M ENDATIONS

6.1 DOM INATING THE R&D NARRATIVE RECOMMENDATION

• As R&D is a top narrative in China Healthcare coverage,

Baxter should look to actively increase its media share of voice (SOV) in this category for both its product development and innovation activities.

Pfizer and Bayer dominated R&Drelated coverage.

While Pfizer’s stories tend to center on new drug development efforts through partnerships, Bayer coverage tends to emphasize the importance of product innovation for longstanding development.

Overall, R&D stories represented a dominant narrative across the coverage set.

SEE PAGE 16, 23-24

• In addition to increasing SOV, Baxter should also identify

media outlets that are best suited to deliver the narrative and when. Both Pfizer and Bayer coverage have shown that Business News Media as well as Healthcare portals (e.g. bioon.com) are well suited for this.

• Given Bayer’s success with the coverage around their

150 year anniversary, Baxter should plan similar large scale consolidated media events around major company milestones, such as the upcoming 25th year anniversary in China. These types of media engagements can help contribute to building positive media perceptions around Baxter’s long history and heritage in developing innovative products. Major milestones could include:

• Baxter market anniversary (e.g. X years in Asia, Y years in China, etc)

• Drug development or milestone anniversary (e.g. X years of improving people’s lives with Y drug, etc)

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RECO M M ENDATIONS

6.2 EXECUTIVE INTERVIEWS RECOMMENDATION A number of competitors featured interviews with high-level executives as part of their external corporate communications. This included C-level executives in China. This has proven an effective strategy for competitors to generate significant coverage around their brand and market-specific business stories.

Most competitors have worked with either popular local or national media outlets to create access for high-level China executives to speak about business strategies to media.

SEE PAGE 23-24

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• Frequent in-depth interviews with in-market company

leadership is a strategy Baxter should pursue as this can generate favorable media coverage for the company. This can serve to build or reinforce confidence both among healthcare practitioners as well as business stakeholders.

• Public media can be engaged for narratives like talent care and market access.

• Business and medical media outlets can be engaged for

business performance (investment). Focus could be on talent management, history of innovation, corporate culture, sustainability efforts, etc.

RECO M M ENDATIONS

6.3 UNIFIED BRAND STORYTELLING RECOMMENDATION

• Baxter has generated some coverage around its market Baxter maintained strong ties with philanthropy themes like community welfare and patient caring. Branded stories were mainly about Baxter winning CSR awards or market access campaigns. However, the connections between Baxter and these campaigns have not been strongly called out in news articles.

SEE SLIDE 20

Johnson & Johnson (JNJ)’s market access initiatives such as its nation-wide medical education projects for healthcare professionals were widely reported in China media. It is worth noting that JNJ did not create specific campaign names, and appeared to generate a strong tie-strength between its campaign activities and brand name.

access initiatives. However PD and hemophilia campaigns have not been strongly connected with the Baxter brand (e.g. weak tie strength). This has resulted in weak associations in media between Baxter and these products/therapies.

• As noted with JNJ, their success with generating strong

media coverage can be attributed to strong ties between the campaign activities/outcomes and the brand name.

• Sub-branding of Baxter campaigns (i.e. Orange Ribbon 橙 心关爱” and “Walking across China 走透中国) may have resulted in fragmentation and weak tie strength.

• We recommend developing a unified brand approach

for future market access campaigns that make clear associations between the Baxter brand and values with the campaign goals/outcomes rather than creating campaign specific branding and marketing elements. JNJ has done this particularly well and it has generated favorable media coverage for them which resulted in strong associations between the brand and their company’s impact.

SEE PAGE 22, 26

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RECO M M ENDATIONS

6.4 DOM INATING DISEASE & THERAPY CATEGORY NARRATIVES

Most media stories that were focused on therapies, such as fluid system (FS) and peritoneal analysis (PD), were published by either business media or the business channels of news portals.

The segment of Chinese media tend to report from the manufacturing and sales point of view, with local competitors like Koren, emphasizing its leading role in China’s fluid system industry.

Few stories carried messages about the advantages and curative effects of specific therapies and packaging products. Overall, no competitor made significant efforts to discuss or own narratives around disease or therapy issues in-depth from a category perspective.

SEE PAGE 28-31

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RECOMMENDATION

• Coverage around diseases and therapies such as FS and

PD are highly relevant to patients/customers in China and there is the opportunity for Baxter to own narratives related to category coverage around different therapies.

• Owning this narrative could include generating media stories about:

• Therapy innovation and developments • Therapy milestones • Education & Awareness issues for therapy (e.g.

requirements for training of new practitioner on therapy)

• Drug developments in relation to therapy • Product packaging developments, challenges or issues • Mentions of Baxter related products should be kept to a

minimum for these types of stories, as the focus should remain on the therapy. However, Baxter can use these stories to highlight the advantages or benefits of their product(s) as long as the overall focus remains on the disease or therapy.

RECO M M ENDATIONS

6.5 EM PHASIZING PRODUCT SAFETY AND PREPARING FOR A CRISIS

RECOMMENDATION Intravenous (IV) infusion safety is a highly sensitive issue that has been proactively driven by the media. Koren’s packaging quality crisis resulted in a considerable volume of negative stories, which serves as a valuable lesson for the importance of proactively crisis response and dealing with issues of product safety quickly and efficiently.

Given Koren’s product media crisis emphasized the importance of communicating a clear and effective message around safety in relation to products/therapies.

SEE PAGE 28-29

• Safety is a highly sensitive issue both for patients/customers and the media, and potential safety concerns can generate large a volume of negative coverage fast.

• Reaffirming Baxter’s track record for product quality and

commitment to safety on a regular basis can help to not only establish Baxter as a ‘safety’ brand in health care (evidenced by a strong tie strength between the brand and safety relevant keywords), but could also help mitigate the impact of a potential crisis if/when it breaks. Safety stories can include:

• Baxter’s commitment to manufacturing safety • Specific track records for product quality • Packaging developments or innovations that enhance safety

• Baxter could also consider creating a crisis management

framework that includes planning around any potential highrisk narratives for Baxter (e.g. product safety issues, etc).

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RECO M M ENDATIONS

6.6 TELLING BAXTER ’S TALENT STORY RECOMMENDATION

• Although talent management did not emerge as a dominant Corporate media coverage for Roche focused primarily on it’s own talent management efforts.

Several interviews featuring Roche leadership discussing their talent management strategy generated broad exposure, particularly on outlets such as Shanghai based Jiefang Daily and the national xinhuanet.com.

Although talent was not a particularly prominent narrative in the corporate coverage set, Roche has successfully tapped into this narrative to generate positive coverage and media perceptions.

SEE PAGE 25

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narrative, these types of stories have generated positive coverage for Roche. The talent management narrative can help to create confidence in a product, enhance brand perceptions of the company as a great place to work from both customers and media, as well as reinforce other narratives such company innovation and improved business performance (as a result of great talent).

• Baxter should be engaging with select China media such as

Jiefang Daily and xinhuanet.com to tell its talent management story around acquiring and maintaining talent.

RECO M M ENDATIONS

6.7 AM PLIFYING THE STORY Although social media was not the focus of this study, a number of Baxter’s competitors are using social channels to amplify their news stories and narratives.

Roche, for example, operates a careers LinkedIn Group to share information about working at Roche, job opportunities and corporate’s accomplishment (http:// lnkd.in/bUCbEze). Notably, Pfizer is also using LinkedIn to amplify it’s talent narratives and to find new talent in the region (http://linkd. in/1bdqWOJ).

RECOMMENDATION

• LinkedIn is a rapidly growing social network in China and the Baxter corporate LinkedIn page could be used effectively to amplify news stories which originate from external news outlets or Baxter’s own website.

• Baxter should also explore using LinkedIn Group Pages

(note: different from company page) which target healthcare practitioners for driving discussion related to different therapies. As noted in Recommendation #4, Baxter can benefit by owning narratives around therapy category discussions, and LinkedIn can serve as a valuable platform for driving this message.

On a difference note, Bayer has an official Sina Weibo account with almost 20,000 followers. This was used recently during their 150 year anniversary to amplify stories and to generate discussion and buzz. (See http://e.weibo.com/ bayerchina) Overall, social channels in China such as LinkedIn and Weibo are excellent platforms amplifying a narrative.

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REFERENCES SECTION 7

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7.1 References [1] “全球最大医药商辉瑞在中国寻求合作伙伴”, Sina.com, 25 February 2013 [2] “罗氏：因责任而腾飞”, xinhuanet.com, 6 May 2013 [3] “拜耳大中华区总裁：全力支持中国的可持续发展”, People Daily, 6 June 2013 [4] “辉瑞抢挖万亿保健品金矿 渠道生产”本土化””, Nanfang Daily, 5 February 2013 [5] “跨国药企深耕零售市场 辉瑞首提处方药大零售”, ifeng.com, 8 November 2012 [6] “辉瑞在中国寻求合作伙伴”, Sina.com, 27 February 2013 [7] “强生专业教育与中国医疗事业共同发展” Chongqing Evening News, 29 November 2012 [8] “药企多元化新方向，罗氏率先切入中国癌症保险市场”, Bioon.com, 10 December 2012 [9] “罗氏携手杭州歌礼开发新药”, 21 Century Business Herald, April 2013 [10] “辉瑞领衔掀起业内抗癌药物研发热潮”, 51emo.com, 6 December 2012 [11] “默沙东辉瑞联合研发2型糖尿病药物ertugliflozin”, Bioon.com, 30 April 2013 [12] “罗氏与国内企业联合研发治疗丙肝新药”, Pudong Times, 14 May 2013 [13] “强生：伦敦研发中心正式开张 将加速其创新的进程”, Bioon.com, 29 March 2013 [14] “拜耳宣布收购德国中草药商Steigerwald”, Bioon.com, 17 May 2013 [15] “拜耳以11亿收购美国维生素巨头希夫”, hc360.com, 9 November 2012 [16] “拜耳将以11亿美元收购美避孕药具生产商Conceptus”, Sina.com, 6 June 2013 [17] “辉瑞耗资6.8亿美元完成对NextWave的收购”, Bioon.com, 29 November 2012 [18] “罗氏三顾illumina的背后”, Bioon.com, 24 November 2012 [19] “罗氏加入Life Tech的竞购”, ebiotrade.com, 22 March 2013 [20] “强生公司：因爱而生，外资企业公益典范”, China Charity News, 13 May 2013 [21] Johnson & Johnson Medical Companies Inc., Press Release, 10 May 2013 [Online]. Available: http://www.jjmc. com.cn/news/detail.aspx?id=10456 [22] Johnson & Johnson Medical Companies Inc., Press Release, 30 November 2012 [Online]. Available: http://www. jjmc.com.cn/news/detail.aspx?id=10411 [23] “强生Cordis学院迎合中国基层新医改”, ycwb.com, 5 December 2012 [24] “走透中国 帮一批尿毒症患者圆旅行梦”, Yangtse Evening, 28 April 2013 [25] “系统防治可保血友病患者零出血”, Jinghua Times, 16 April 2013 [26] “希望小学开学季 百特临溪赠书助成才”, Xinhua.net, 21 September 2012 [27] “百特：启动慢性肾衰患者教育”, Health Times, 3 April 2013 [28] “血友病预防治疗亟须重视”, Workers Daily, 5 May 2013 [29] “百特获道琼斯可持续发展指数医疗行业医药产品领导者称号”, qianlong.com, 18 October, 2012 [30] “辉瑞CEO：希望中国成为创新型大国”, Xinmin Weekly, 1 October 2012 [31] “Alok Kanti：创新是保持企业核心竞争力的秘诀”, People’s Daily, 8 March 2013 [32] “罗氏的员工“呵护”之道”, Jiefang Daily, 27 May 2013 [33] “强生51次召回皆因质量问题 质控被指已瘫痪” Chinese Business News, 23 June 2013 [34] “科伦药业：寻求持续的新产品上市和技术革新”, ifeng.com, 21 September 2012 [35] “HuaRen: 新基药+大病险 腹膜透析双驱动”, CFI.net, 19 March 2013 [36] “HuaRen: 大病医保下,腹膜透析成长无忧”, huagu.com, 7 February 2013 [37] “华仁药业营收净利双增长 腹膜透析制品后劲十足”, Securities Daily, 23 April 2013 [38] “百特助力扩大腹透获取途径”, Zhengzhou Evening News, 19 November 2012 [39] “拜耳向雅安灾区血友病患儿捐赠VIII因子”, People Daily, 16 May 2013 [40] “2013年世界血友病日大型公益活动在京召开”, ifeng.com, 16 April 2013

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Questions about this report please email: Sandy Shen, China Insight & Analytics Stephen Tracy, APAC Insight & Analytics Lead Zaheer Nooruddin, APAC Vice President Digital

sshen@waggeneredstrom.com stracy@waggeneredstrom.com znooruddin@waggeneredstrom.com

Waggener Edstrom Worldwide in Asia Pacific accelerates corporate and brand influence by integrating communications measurement and data-driven insight with multi-media storytelling to create real-time business impact. www.accelerateinfluence.com