Katzmair cop2011 - evidence based mapping

Evidence Based Mapping Network Strategy Consulting in KOL Management, Marketing, Regulatory & Market Access.

Harald Katzmair

6/6/2011 1 © 2011 FAS.research

FAS.research is a Social Network Analytics & Strategies company. FAS.research maps key-drivers and key-influencers to leverage the power of networks for KOL management, public affairs, key account management and social change.

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Clients (Selection)

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Rx

How does the Pharma Business work?

Perceived medical need and value

Pri

ce

Drug from Pharma Company ABC

Perceived medical need and value

Pri

ce

Rx

Goal Pharma Company ABC

Perceived medical need and value

Pri

ce

Huge therapeutic deficit Huge pain and suffering No alternatives Low complexity Evidence

Goal Pharma Company ABC

Perceived medical need and value

Pri

ce Massive development

and research costs Secure medical

progress High service level

(hotlines, value adds) General economic

savings through reduced follow up costs

Goal Pharma Company ABC

Perceived medical need and value

Pri

ce

Rx Rx High value block buster

drug

Goal Payor ABC

Perceived medical need and value

Pri

ce

Rx

Goal Payor ABC

Perceived medical need and value

Pri

ce

Commoditize perceived medical value and need

Not enough evidence in all fields

Existing alternatives High complexity Me-too product

(Pseudo Innovation) Therapeutic guidelines Competitors product

shows more evidence and value

Rx

Goal Payor ABC

Perceived medical need and value

Pri

ce

Re

du

ce d

rug

pri

ces

(Sic

k fu

nd

s)

FRP Guidelines Rebates

Rx

Goal Payors and Competitors

Perceived medical need and value

Pri

ce

Rx

Biggest bang for the buck

Commoditized markets (Scaling Effects)

Decreasing health care costs

Strategy of Payor ABC

Perceived medical need and value

Pri

ce

Product B

Product C Product D

Product A

Challenge Evidence Discredit as Me-too

product (Pseudo Innovation)

Show Alternatives

Pharma Portfolio Strategies

Perceived medical need and value

Pri

ce

Based on position of drug different strategies Qualitative Increase perception of medical value and need (quality) strategy Quantitative Maximize price (avoid, delay FRP, rebate contracts negotiation excellence)

Product B

Product C Product D

Product A

Challange

Perception of value and need outcome of a social construction and negotiations?

Who are the people, institutions, frames and stories that shape the value perception of a drug?

How robust and stable are those constellations?

What are the right strategies and tactics to improve the value perception?

Stories, frames, domains, context?

Key Opinion Leader? „Followers“?

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Social Networks in Business-to-Doctor (B2D)

Pharma-to-Doctor Doctor-to-External

Doctor-to-Doctor Doctor-to-Altera

Peer Group Networks

Associations

Research Groups (Hospital)

Informal Group

…

Patient organizations

Networks

Informal Groups

Sick Funds

Quality Circle

Research Groups

Focus Groups

Advisory Boards

Informal Groups

…

Specialists/ Hospital Re+ Ug+

Specialists, GPs + Pharma

Opinion Leaders ++ Pharma

GPs + Ug+

Patient, doctor, family

members…

Based on van Lier, 2007

Key Opinion Leader (KOL)

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Influence Drug Perception and Value

• Assessing drug efficacy (evidence)

• Forming public opinion

• Lobbying (regulatory

& reimbursement

Evidence and Guidelines

Reimbursement

Clinical Trials

• Conducting, Supervising

Clinical Trials

• Advising company

• Lobbying (regulatory &

reimbursement)

Regulatory Acceptance and FRPs

• Building early trust

• Running clinical trials

• Conducting early research

use for: use for: use for:

KOL Segmentation

Functional KOL Segmentation

Global KOL Local KOL Emerging KOL

Clinical Trials

Evidence based validation cycle

ok

check ok

check

low high

low

h

igh

Potential Network Partners

Invest (selectively)

Unnecessary Network Actors

Disinvest

Key Network Partner

Develop & Invest

Peripheral Network Actors

Hold

Impact on value

perception of Drug RX

Access and win-win opporunities

The Myth of Influence

Is really everybody a receptive match?

Who is receptive / susceptible?

I. Awareness 1. Hears drug story (media, colleagues etc.)

2. Understands value proposition

II. Conviction

3. Likes story and value prop (matches with need)

4. Talks with colleagues and KOLs

5. Experiences consensus in network

III. Decision 6. Intents to prescribe

IV. Action 7. Prescribes

V. Confirmation 8. Positive / Negative experiences

9. Passes on experience

Prescribing as Process

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Who is receptive / susceptible ?

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stable instable neutral

Role of KOL Change agent,

becomes a new attractor

Role of KOL Conservative,

keeps the systems thresholds and

boundaries stable

Role of KOL Agnostic / nihilistic,

everything is equally good / bad

Influence: Cause or Effect?

Influence is the result of the sensitivity of a system towards variables from the environment.

The higher the instability (closeness to threshold) of a node the higher the (random) influence of the environment.

Examples for instability

– Buyers remorse

– Diminishing returns

– Crisis, confusion, insecurity

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Stages of a network

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Growth

Equilibrium

Crisis

Re-organization

Sensitivity Parameter Attribute of Node:

– Horizontal centrality (betweeness)

– Vertical centrality (eigenvector)

– Degree of economic stress of organization

– Phase in the PLC and adaptive cycle

Attributes of Product:

– Therapeutic risks

– TNT, revenue and profit for prescribers

– Number of alternative products

Attribute of Network:

– Degree of cognitive dissonance and polarization in the therapeutic field

– Morphology: Structural Holes, Closure, Fold, Random Network

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Next Generation Strategy Map

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Summary

Network Mapping has proven to be a very powerful process to identify und understand different functional roles and their key players in the Pharma business.

Network Strategy Consulting requires to overcome a mythological framework to understand and manage influence.

Based on a modified, more realistic model of influence new insights about people and organizations with increasing or decreasing capacities to influence can be identified.

Future research and application at FAS will intensify the combination of node centric measures and models to measure the degree of sensitivity of the overall network.

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Evidence Based Mapping Network Strategy Consulting in KOL Management, Marketing, Regulatory & Market Access.

www.fas-research.com mailto:harald.katzmair@fas-research.com

6/6/2011 35 © 2011 FAS.research

Thank you for your Attention!