Transcript HealthTechnet-MobilePharmav.3

Pharmaceutical Industry
Emerging Opportunities for Mobile
Health TechNet Meeting
June 2005
Agenda
1. Introduction & Background
2. Emerging Trends
3. Opportunities for Mobile
4. Summary
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Introduction
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Introduction
• Vianetix is an independent consulting firm that
specializes in technology-based solutions for the
pharmaceutical industry.
• Primary focus is on emerging technologies that
support marketing and sales force automation.
• The company was founded to leverage expertise in
field force automation and enterprise mobile specific
to the pharmaceutical industry.
• Clients include major/mid-market pharmaceutical
companies and venture capital firms that have funded
solutions targeted at the pharmaceutical vertical.
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Introduction
• Mobile Applications:
– No compelling business need: In the past, very
difficult to prove business case in the pharma market.
– Device Limitations: Technology limited the
usefulness of mobile in the marketplace.
– Low adoption rates: Underlying problems caused
poor adoption rates, particularly sales/marketing.
– Few success stories: Very few successes early on,
mostly contact management, sample inventory, SFA
and medical instrumentation diagnostics.
• Market Dynamics:
– New conditions: Key market conditions have
changed the need for mobile technology and other
alternate channels in the pharmaceutical market.
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Background
• Market Dynamics:
– Legislation: Changes in legislation have created
increased price pressures, shortened patent life,
increased generic use, patient privacy issues and
direct to consumer advertising.
– Managed Care: Payers and group purchasing agents
have become more efficient in measuring and
influencing physician prescribing practices.
– Sales and Marketing: Increased pressure on
physicians has resulted in less face time between the
doctor and the pharmaceutical sales representative.
“Estimates indicate that only 43% of sales calls
result in face-to-face contact with the physician
lasting less than 2 minutes.”
- EYEFORPHARMA
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Background
• Market Dynamics:
– Product Management: companies have had difficulty
with marketing brands distinctly, overlapping
development/marketing efforts, phasing-out mature
products and the proliferation of sub-brands and line
extensions.
– Channel Management: pharmaceutical companies
have been heavily dependent on a single channel to
deliver their products and services.
– Lobbying: Powerful groups (e.g. AARP) continue to
support legislation and alternate sources for medicine.
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Background
“Pharmaceutical companies have lost their
informational edge. As a result, return on
sales and marketing investment has gone
down (average 24%) over the last five years.”
- MEDADNEWS
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Background
“U.S. pharmaceutical companies have for decades relied
on the “pinball wizard” sales model: sales
representatives bounce from one doctors office to
another in hopes of catching a few moments with
physicians and influencing which drugs they prescribe.”
“In recent years, the changing dynamics of the
business have prompted a massive expansion of
sales forces. The resulting system is costly,
inefficient, and rife with dissatisfaction.”
- MCKINSEY
“Industry average for field force budgets is nearly
$875 million with top spending organizations
committing more than $1billion”
– Cutting Edge
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Emerging Trends
“In the past, companies focused on geographic
segmentation to sell their products. More recently, account
level segmentation with more emphasis on clinical
knowledge by the sales representative has shown some
success”
“However, market dynamics and the complexity of
clinical differences between specialized medicines
is driving the need for collaborative interactions
between sales professionals and the physician in
ways never seen before.”
Safety
Dosing
“Pharmaceutical companies are
looking at new technologies such as
mobile to add value and optimize
the interaction between the rep and
the physician.”
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Side Effects
Convenience
Reimbursement
Efficacy
Emerging Trends
• Market Intelligence
– The clinical complexity of drugs has made the need
for market intelligence more important that ever as
companies look to new ways to differentiate their
product from the competition.
– Increased intelligence is driving new forms of market
segmentation based upon prescribing practices and
targeting physician’s in specific market segments
– Sales strategies are shifting toward targeting the
“right” physicians at the “right” time based upon
prescribing behavior and practice settings.
“About 38% of physicians have consciously decided to
make less time for pharmaceutical representatives than
they did in 2001.”
- EYEFORPHARMA
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Emerging Trends
• Alternate Channels
– Physicians are using additional channels (internet,
mobile) to gain information about new drugs and
treatment practices.
– Physicians are learning about new treatment therapies
much earlier in their lifecycle.
– Physicians are becoming more technically savvy and
are relying on new technologies for research,
education and an alternate channel to deal directly
with suppliers.
• Sales and Marketing
– Companies are seeking sales reps with broader skills
that can serve as a “trusted advisor” to the physician
on new treatment practices.
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Opportunities for Mobile
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Opportunities for Mobile
“The same study that
showed 38% of physicians
that have made less time for
sales representatives also
reveals that 57% of
physicians would make
more time for sales reps if
they provided more valueadded services.”
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Opportunities for Mobile
• Advances in mobile technology are:
– Enabling more collaborative experience between the
pharmaceutical sales representative and the physician.
– Providing access to improved market intelligence and
ability to segment physician’s more easily based upon
their prescribing practices/brand loyalty.
– Creating opportunities to more easily capture
interactions with the patient/healthcare service provider.
– Enabling the delivery of medical services in ways and to
remote locations that were not possible before.
– Creating new opportunities around patient compliance.
– Enabling consumer-based healthcare applications.
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Summary
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Summary
“In order to regain their informational edge, pharmaceutical
companies will continue to deploy technologies such as
mobile to improve their sales channels and their ability to
provide advanced treatments to the patients they serve.”
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