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Copyright © 2018 IQVIA. All rights reserved. Alexandra Smith, Consultant, European Thought Leadership, IQVIA Patrick Bervelt, Sales Director, IQVIA Discover pharma promotional spend in 2018

Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

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Page 1: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

Copyright © 2018 IQVIA. All rights reserved.

Alexandra Smith, Consultant, European Thought Leadership, IQVIA

Patrick Bervelt, Sales Director, IQVIA

Discover pharma promotional

spend in 2018

Page 2: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

1

Discover pharma promotional spend in 2018

Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA

Driving launch success: less can be more in the right channel mix recipe

Bervelt Patrick, Sales Director, IQVIA

A view on the Belgian market

Page 3: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

Copyright © 2018 IQVIA. All rights reserved.

Less can be more in the right channel mix recipe

Alexandra Smith, Consultant, European Thought Leadership

Driving launch success

Page 4: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

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Promotional landscape

Page 5: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

4

The traditional commercialisation model is under pressure

HCP access: reduction in F2F time

Example trends:

Economics: squeezed returns

Industry return on R&D investment* (profit per $1 of R&D spend)

Alternative

models

2007 20172012

$6.6

$5.1$5.7

-23%

Decline in traditional contact

time in EU5 since 2012

Industry regulations restrict

rep access to HCPs

Mismatch: Growth in new

products/indications >> HCP#

-25%

* Top 25 Innovator Pharma companies; source: Company financial reports; IQVIA analysis

HCPs restrict rep access

Source: IQVIA European Thought Leadership

Page 6: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

5

Promotional context: Smaller universe of HCPs to reach

Most of global growth is driven by specialty therapy areas

0 2-1 1 3 4 5 126 7 8 9 11 13 14 1510

71%

Anticoagulants

9%

22%

4%

85%

$1 bn

3%92%

$1 bn

-32%

20%

Respiratory Agents

$1 bn

2%

15%Polyvalent IGs

62%MS

-28% 104%

59%84%

$8 bn

Other CNS

$15 bn11%

$9 bn

Nervous System Disorders

$2 bn

$1 bn

HIV

22%44%Oncologics

$4 bn

12%

-6%

73%Autoimmune Disease

4%78%

8%

Antidiabetics

16%19%

$2 bn

5%

3%

14%

31%

58%

Japan

US

RoW

EU5

Pharmerging

Share of

global growth

2018

27%

18%

14%

7%

4%

35% of

global

value

Global – Highest Growth Therapy Areas

Absolute 1 Year Growth Bn LCUS (MAT Q2 2018)

Source: IQVIA European Thought Leadership; MIDAS MAT Q2 2018; Rx-only; Share of positive growth shown

Specialty TAs

70% of

global

growth

Page 7: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

6

Digital investment is increasing across channels, with digital detailing seeing the most growth

61 570 65 397

89 660

16 66221 037

25 856

6 9428 061

9 142

MAT Q2 2016 MAT Q2 2017 MAT Q2 2018

TO

TA

L I

NV

ES

TM

EN

T(€

K)

Streaming video

e-mailing

Digital detailing

€85 174 k €94 495 k €124 657 k

% of Total Invt 0.8 % 1.0 % 1.3%

% change + 10.9 % + 31.9%

% Change

2018/2017

+ 13.4 %

+ 22.9 %

+ 37.1 %

To

p 5

Eu

rop

eEU5 – Digital Promotion – Total investment & trends

Source: IQVIA European Thought Leadership; ChannelDynamics MAT Q2 2018

Page 8: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

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Individual campaigns may be more advanced than a market as a whole

Markets are at very different stages of embracing multi-channel

Digital sophistication

Ch

an

ne

l m

ix d

ive

rsit

y

LowDominated by

traditional F2F

HighDiversified mix

LowBasic information provision,

email, little coordination

HighRich information & services,

complement traditional channels

Still dominated by

traditional promotional

channels; low digital

share and multichannel

sophistication

Multichannel becomes a

real possibility as digital

share and impact rises,

but the sophistication of

digital channels and of

overall orchestration still

low

A truly orchestrated

approach: synergistic use

of digital and traditional

channels; delivers an

optimal customer

experience aligned to

needs and preferences

Orchestrated

customer engagement

Source: IQVIA European Thought Leadership

Page 9: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

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NationalHow to optimize multt-

channel across entire

target group?

SegmentWhat are my behavioral

segments? And how to

optimize for each?

Individual HCPWhat is the right multi-

channel strategy for HCP

Dr. John Smith?

Drivers of multi-channel sophistication

Multi-channel as a wholeWhat is the optimal channel

mix?

Individual TouchpointWhat is the optimal

campaign? Right content, in

channel of choice.

Touchpoint sequenceWhat is the optimal

frequency & sequence

across channels,

campaigns, functions?

Basic

Advanced

Aspirational

Engagement sophistication

Cu

sto

mer

gra

nu

lari

ty

Source: IQVIA European Thought Leadership

Page 10: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

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Client survey: “Where do you see yourself on the journey to MCM maturity?”

In Europe, most companies consider themselves at the earlystages of the journey towards multichannel maturity

Orchestrated

Customer ExperienceChannel delivery is shaped

by customer needs, action

and preference

Value from MCM

Dig

ita

l M

atu

rity

A medical device client has

received reimbursement for a

digital game to support patient

adherence in children

Service ProvisionChannels are leveraged to

provide services in support of

brands to HCPs & Patients

Field Force

A pharma client deployed a

MCM campaign featuring

automated campaign journeys,

tailored to customer needs and

adapted based on their

feedbackA cardiovascular brand

leveraged additional

channels following a rep

interaction

Integrated ChannelsChannel delivery is

prioritised based on

segment and sequence

Expansion of ReachAdditional channel used

to increase reach from FF

A respiratory brand

targeted non-F2F activity

against lower priority HCPs

Capability AccelerationLeapfrog via partnering and

acquisitions4

3

2

1

13%of respondents

12%of respondents

75%of respondents

Source: IQVIA European Thought Leadership; Client survey

Page 11: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

11

But with only one third of doctors entirely satisfied, there’s room for improvement

The good news: most doctors do value information from pharma and how they receive it

Pharmaceuticals companies provide

information that is up-to-date, and

relevant to my needs

This information is convenient to

access and coherently presented

across multiple channels

Doctor perception of pharmaceutical company promotion (2018)

13%

54%

36%

10%

54%

33%

62%

24%

15%

66%

22%

12%

DisagreeStrongly agree Somewhat Agree

Source: IQVIA ChannelDynamics Doctor Perception of MCM Survey May 2018

Survey of 11,000 HCPs – Q2 2018

EU5 and Belgium

Page 12: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

12

100%

15%

48%

22%

20%

0%

79%87%

96%

60%

65%

52%56%

21%13%

4%

40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Japan US UK France Spain Germany Italy Belgium

2018 - Proportion of HCPs receiving their preferred amount of digital activity

Exceeding demand Not meeting demand In line with demand

However, how doctors want to be communicated with doesn’t always align with what they receive

Source: IQVIA ChannelDynamics Q2 2018, IQVIA Channel Preference Survey July 2018

Page 13: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

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Driving launch success

Page 14: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

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Portfolio renewal is challenging for most major players

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%0% 5% 70%10% 15% 20%

To

tal lo

ng-t

erm

gro

wth

CA

GR

20

13

-2018

Novartis

Lilly

Roche

J&J

BMS

Share of 2018 Sales from recent launches

Pfizer

Merck & Co

Sanofi

Abbvie

GSKBI

Gilead

Amgen

Novo

Takeda

TevaAZ

Bayer Allergan

Mylan

Global: Top 20 companies refreshment index

Source: IQVIA European Thought Leadership; MIDAS Restricted MAT Q2 2018; Rx Only

Note: Recent launches: Innovative branded products launched in the last 5 years (launching after Q2 2013)

1

9

4

6

Gilead is atypical

because growth from

Hep C assets has

peaked and declined

rapidly

2018 Sales from

recent launches

>10% growth and <10%

refreshment: just one

company achieved this -

refreshment is essential

>10% growth and >10% refreshment

>10% refreshment but <10% growth

Page 15: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

15

• Full Spectrum Multichannel approach

• Broad range of mature self

serve channels for all

stakeholders

• Fully integrated customer facing team

• Orchestrated by smaller multi-

functional & multi-skilled teams

• Customer centric by design,

with MSL and commercial roles

As launch success becomes ever more critical, companies must adapt their commercial model

1. Increase number of launches while

consistently maximising

commercial success

2. Do so without significant increase

to SG&A spending due to squeezed

budgets

3. Launch products into complex and

increasingly competitive, often

specialty, environment

A new best in class

specialty commercial

model is required

Companies are faced

with a three-way

problem:

Source: IQVIA European Thought LeadershipSource: IQVIA European Thought Leadership

Page 16: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

16

Are the most commercially successful launches more multichannel?

Source: IQVIA European Thought Leadership

Define successful launches

Use ChannelDynamicsTM data

to compare use of digital

channels

Insight

Step 1 Step 2 Step 3

- New Active Substance

Launches in the top 7

developed markets in a 5 year

window (2012-2017- 755

individual launches)

- “International Top Sellers”

were consistently in the top

quartile of launches based on

absolute sales in 2 or more

countries for the 1st year

following launch

- Compared international top

sellers against all other

launches on 4 key metrics of

multichannel activity

▪ Total volume of digital

contacts

▪ Profile of digital activity

▪ Richness of channel mix

▪ HCP perception of digital

engagement

- International Top Sellers

consistently have a higher

share of digital promotional

activity in their first year

- International top sellers also

supported by more sustained

digital and richer channel mix

- However, the detail can be

more complex…

Page 17: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

17

Common patterns observed re: digital in successful launches

Source: IQVIA European Thought Leadership; ChannelDynamics Q3 2017; MIDAS Q3 2017; Rx-only

HIGHER DIGITAL VOLUME SHARE

Internationally successful launches see

higher digital volume shares in the first year

across all countries

Avg. digital share of promo volume

International Top Sellers All Others

0%

5%

10%

15%

20%

25%

Quarters after launch

Ave

rage

dig

ita

l vo

lum

e s

ha

re (

%l

Q1 Q3Q2 Q4

64%Higher digital share

of total activity

Top 7 developed: New Active Substances 2012-2016

Source: IQVIA European Thought Leadership

Page 18: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

18

Common patterns observed re: digital in successful launches

HIGHER DIGITAL VOLUME SHARE

Internationally successful launches see

higher digital volume shares in the first year

across all countries

SUSTAINED DIGITAL APPROACH

Strong launches consistently have “Courage

in Their Convictions” and are more likely to

have a sustained digital approach

Sustained digital effort over 1st year post launch

International Top Sellers All Others

Top 7 developed: New Active Substances 2012-2016

Sh

are

of la

un

ch

es w

/ su

sta

ine

d d

igital e

ffo

rt (

%)

0%

20%

40%

60%

80%

100%

Italy

23%

64%

Germany

62%

Japan

77%80%

US

23%

33%

France

93%

Spain

49%

42%

73%

47%

76%

UK

63%

Source: IQVIA European Thought LeadershipSource: IQVIA European Thought Leadership; ChannelDynamics Q3 2017; MIDAS Q3 2017; Rx-only

Page 19: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

19

Common patterns observed re: digital in successful launches

HIGHER DIGITAL VOLUME SHARE

Internationally successful launches see

higher digital volume shares in the first year

across all countries

SUSTAINED DIGITAL APPROACH

Strong launches consistently have “Courage

in Their Convictions” and are more likely to

have a sustained digital approach

RICHER MIX OF DIGITAL CHANNELS

Stronger launches utilise a richer mix of

digital channels (3 or more) during the 1st

year following launch

Share of “digitally rich” launches by type*

International Top Sellers All Others

Top 7 developed: New Active Substances 2012-2016

27%

55%

70%

85%

29%

53%

18%

9%

37%

79%

61%

21%

48%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Sh

are

of “d

igita

lly r

ich

” la

un

ch

es (

%)

0%

ItalyGermany Japan USFrance Spain UK

Source: IQVIA European Thought LeadershipSource: IQVIA European Thought Leadership; ChannelDynamics Q3 2017; MIDAS Q3 2017; Rx-only

Page 20: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

20

Four key findings for successful launches

Source: IQVIA European Thought Leadership

Product Type

• The most commercially successful launches, i.e. “International top sellers”, were all specialty products

Spend

• Although specialty launches have lower promotional spend than primary care launches, international top sellers had higher promotional investment than other specialty launches

Digital Share

• International top sellers have a higher share of digital contacts than other launches, and more sustained digital activity over time

Quality Engagement

• A richer, more sophisticated use of digital channels could improve HCP perception and engagement

Page 21: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

21

There is no single path to digital success, however, a set of core principles applies

Imperatives for Pharma

1. Digital must be part of an integrated multi-channel approach

4. Master data management (‘one truth’) and analytics are key enablers for OCE

3. A granular micro-strategy is key, based on customer needs and preference:

➢ right content, channel mix, volume, frequency, touch point sequence

2. Customer engagement needs to be orchestrated across channels and functions

Source: IQVIA European Thought Leadership

Page 22: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

Thank you

• Alexandra Smith – [email protected]

Source: IQVIA European Thought Leadership

Page 23: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

Copyright © 2018 IQVIA. All rights reserved.

A view on the Belgian market

Patrick Bervelt, Sales Director, IQVIA

Discover pharma promotional

spend in 2018

Page 24: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

24

Panels

GPs

Neuro-Psy

Cardiologists

Pulmonologists

Endocrinologists

Dermatologists

(2019)

Type of interaction

TraditionalOnline /

Digital

Belgian Channel Dynamics collects data from a GP/SP panel and monitors advertising and digital online activities

Sales force detailing

Meetings / events

Mailing

Samples

Professional advertising

Web sites

Social Media / Apps

IQVIA - CIB Presentation - Discover pharma promotional spend in 2018

Source: IQVIA ChannelDynamics™

Page 25: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

25

Strong similarity between the repartition of the specialists in the universe and the captured spendings

Belgian Channel Dynamics data cover the largest markets through 5 specialties

IQVIA - CIB - Discover pharma promotional spend in 2018

14020

47%

78%

2829

19%

8%

1289

18%

7%

731

9%

5%396

6%2%

40%

50%

60%

70%

80%

90%

100%

Repartition perSpecialty

Panel Spending per Specialty

General Medicine Neuro-Psy Cardio Pneumo Endocrino

Repartition and promotional spending according to specialty

(Absolute count of HCP and relative value in Eur; MAT Q3 2018)

Source: OneKey™ & IQVIA ChannelDynamics™

Average spending per HCP per specialty

(Relative value in Eur; MAT Q3 2018)

Page 26: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

26

Trends

Page 27: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

27

Decline of the promotional spends continues in 2018

11%

7%

7%

7%

6%

62%

R03 - ANTI-ASTHMA & COPD PROD

A10 - DRUGS USED IN DIABETES

C10 - LIPID-REG/ANTI-ATHEROMA

C09 - RENIN-ANGIOTEN SYST AGENT

G04 - UROLOGICALS

Others

Promotional spending according to ATC class – Split GP/SP

(Value in Mio EUR; MAT Q3 2018)

-6.1%

-47.9%

+60.7%

-35.2%

Growth in %

+8.8%

IQVIA - CIB Presentation - Discover pharma promotional spend in 2018

13%

8%

7%

7%

5%

60%

B01 - ANTITHROMBOTIC AGENTS

N07 - OTHER CNS DRUGS

R03 - ANTI-ASTHMA & COPD PROD

N05 - PSYCHOLEPTICS

C10 - LIPID-REG/ANTI-ATHEROMA

Others

-43.0%

+16.5%

+13.2%

-2.5%

+30.8%

Growth in %

€ 26.0 mio

SPs- 4.0%

-22.5% -3.9%

€ 87.7 mio

GPs- 15.6%

Source: IQVIA ChannelDynamics™

Page 28: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

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R06 - ANTIHISTAMINES SYSTEMIC

C11 - C.V.MULTITHER.COMB.PRODS

R05 - COUGH & COLD PREPARATIONS

N02 - ANALGESICS

B01 - ANTITHROMBOTIC AGENTS

G04 - UROLOGICALS

C09 - RENIN-ANGIOTEN SYST AGENT

C10 - LIPID-REG/ANTI-ATHEROMA

A10 - DRUGS USED IN DIABETES

R03 - ANTI-ASTHMA & COPD PROD

GP/FP DETAILING SAMPLES JOURNAL ADVERTISING MAILING MEETINGS

-6%

-48%

61%

-35%

9%

-67%

-9%

-23%

-43%

-17%

PPG%

Weight of the Sales Force in the promotional spend mix at GP is dominant

IQVIA - CIB - Discover pharma promotional spend in 2018

Source: IQVIA ChannelDynamics™

GPs Top 10 ATC classes to promotional spending

(Value in Mio and PPG% - MAT Q3 2018)

Rkg

Trimbow/Trelegy, Relvar Ellipta/Onbrez, Ultibro/Symbicort/Inuvair/Spiolto

Invokana, Forxiga/Jardiance/Toujeo/Trulicity and rest of top 10

Rosuvastatine/Ezgal/Ezetimibe, Crestor/Repatha,

Atozet

Xarelto/Lixiana/Eliquis/Pradaxa/Clopidogrel

9,98

6, 23

5,95

5,78

5,32

4,71

1,95

1,87

1,59

1,37

Page 29: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

29

N04 - ANTI-PARKINSON PREPS

L01 - ANTINEOPLASTICS

N06 - PSYCHOANALEPTICS

A10 - DRUGS USED IN DIABETES

C09 - RENIN-ANGIOTEN SYST AGENT

C10 - LIPID-REG/ANTI-ATHEROMA

N05 - PSYCHOLEPTICS

R03 - ANTI-ASTHMA & COPD PROD

N07 - OTHER CNS DRUGS

B01 - ANTITHROMBOTIC AGENTS

SP DETAILING MEETINGS CLINICAL TRIALS JOURNAL ADVERTISING SAMPLES MAILING

Meetings and Clinical Trials are complementing the face-to-face approachat SP level

IQVIA - CIB - Discover pharma promotional spend in 2018

Source: IQVIA ChannelDynamics™

SP Top 10 ATC classes to promotional spending

(Value in Mio and PPG% - MAT Q3 2018)

-43%

17%

13%

-3%

31%

-35%

-20%

-47%

30%

51%

PPG%

Rkg

3,30

2,07

1,93

1,74

1,38

0,95

0,92

0,53

0,47

0,38

Lixiana/Eliquis/Xarelto/Pradaxa, Brilique

Trimbow/Trelegy/Fasenra, Spiolto/Xolair,

Ultibro/Nucala/Symbicort

Rosuvastatine/Ezgal, Repatha,

Praluent/Atozet

Fiasp Jardiance/Forxiga/Invokana, Trulicity, Victoza/Toujeo

Page 30: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

30

-39%

-11%

-11%

-10%

25%

3%

2%

-14%

-10%

-13%

PPG%

BOEHRINGER INGEL

SANOFI

MYLAN

ASTRAZENECA

JOHNSON & JOHNSON

GLAXOSMITHKLINE

STADA

SERVIER

NOVARTIS

MENARINI

GP/FP DETAILING SP DETAILING SAMPLES MEETINGS

JOURNAL ADVERTISING OTHERS MAILING CLINICAL TRIALS

The top 10 companies with the highest promotional spend, invested on average 4.9 mio Eur in promotional activity in the last MAT

IQVIA - CIB - Discover pharma promotional spend in 2018

Top 10 international company according to promotional spending

(Value in Mio and PPG% - MAT Q3 2018)

Rkg

Source: IQVIA ChannelDynamics™

7,94

6,69

5,31

5,22

5,07

4,07

3,90

3,74

3,41

3,37

Spedra/Aduneric, Bellozal

Rosuvastatin, Entresto, Ultibro

Triplixam, Bipressil, Lipertance

Rosuvastatine/Ezetimibe/Tadalafil

Trelegy, Relvar, Incruse

Esketamine, Invokana, Trevicta

Crestor, Forxiga/Symbicort

Rosuvastatin, Tribvit, Brufen

Stilnoct/Praluent, Toujeo

Spiolto/Jardiance/Pradaxa

Top3 Brands in Spends – Evolution vs 2017

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31

4.634 4.747 5.000 5.275138 137 133 118

The evolution of the promotional spend of the Top10 Corporation is not necessarily reflected in the Sales performance compared to the rest

IQVIA - CIB - Discover pharma promotional spend in 2018

Total pharmaceutical revenue and promotional spending evolution

(Value in EUR; MAT Q3 2015 - 2018)

Source: IQVIA ChannelDynamics™, LMPB Smart QQ, BHA Smart QQ

Total Belgian

market

Belgian pharmaceutical market (Mio EUR)

1,305 1,338 1,370 1,340

1,737 1,713 1,736 1,737

388 402 431 496

1,203 1,2941,462 1,702

0

1,000

2,000

3,000

4,000

5,000

6,000

MAT Q3 2015 MAT/9/2016 MAT Q3 2017 MAT Q3 2018

MN

F/E

UR

Top10 Retail Others Retail Top10 Hosp. Others Hosp.

Hosp

Retail82 80 79

69

56 57 54

49

-14.0%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

MAT Q3 2015 MAT Q3 2016 MAT Q3 2017 MAT Q3 2018

-

20

40

60

80

100

120

140

160

PP

G%

To

tal p

rom

otio

na

l sp

en

din

g

Top 10 Highest promotional spending

Total other Promotional Spending

Total other Promo spend PPG%

Top 10 Highest promotional PPG%

Total Belgian

market

Belgian Promotional spending (Mio EUR)

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Multichannel

Page 33: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

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71%

10%

9%

7%

2% 1%0%

Detailing(Face to Face)

Samples

Meetings

Journal Advertising

Mailing

Clinical Trials

Detailing(Telephoneonly)

95% 94% 95%

5% 6% 5%

MAT Q3 2016 MAT Q3 2017 MAT Q3 2018

Rela

tive p

rom

otional spendin

g

Traditional Spending Digital Spending

Detailing (face-to-face) accounts for the large majority of traditional spending

Traditional spending accounts for the lion-share of total promotionhowever is decreasing

IQVIA - CIB - Discover pharma promotional spend in 2018

Source: IQVIA ChannelDynamics™

Total

(mio)Total Traditional Spending: 112 mio

56%

44%

decrease

increase (or willbegin to prescribe)remain unchanged

Detailing

Rx intent

Distribution of spending through traditional/digital channel – Focus traditional

(Value in EUR; MAT Q3 2016 - 2018)

137 133 118

Page 34: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

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80% of face to face contacts involve detailed aid. 50% of this spending is still linked to printed materials

IQVIA - CIB - Discover pharma promotional spend in 2018

FACE TO FACE

20% NO material

80% involve detail aid

50% Printed Material

22%

Portable handheld

Device

8% Laptop-based material

19.6 19.3 16.0

MAT Q32016

MAT Q32017

MAT Q32018

Distribution of face to face detailing

(MAT Q3 2018)

36.738.8

37.4

MAT Q32016

MAT Q32017

MAT Q32018

6.0 5.7

6.2

MAT Q32016

MAT Q32016

MAT Q32018

58%

41%

56%

43%

59%

41%

Detailing Rx intent

Spending in Mio EUR

56%

44%

decrease

increase (or willbegin to prescribe)remain unchanged

49%

50%

Source: IQVIA ChannelDynamics™

Page 35: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

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95% 94% 95%

5% 6% 5%

MAT Q3 2016 MAT Q3 2017 MAT Q3 2018

Rela

tive p

rom

otional spendin

g

Traditional Spending Digital Spending

Corporate website and mailing, however, represent close to 60% of digital spending

Sales reps continue to be instrumental, companies investments in digital remain stable at 5% of the total promotional spending

IQVIA - CIB - Discover pharma promotional spend in 2018

Source: IQVIA ChannelDynamics™

Total

(mio)

60%20%

7%

10%

2%1%

0%

CORPORATEWEBSITE

MAILING

WEB ADVERTISINGGPS / PRIMARY CARE

SOCIAL MEDIA

DETAILING

APPS

MEETING

Total Digital Spending: 6.2 mio

Distribution of spending through traditional/digital channel – Focus digital

(Value; MAT Q3 2016 - 2018)

137 133 118

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GP/SP detailing and samples represent >60% of the promotional spendings

Large companies spend relatively more in digital than Small & Medium companies

IQVIA - CIB - Discover pharma promotional spend in 2018

94% 6%

TRADITIONAL DIGITAL

Source: IQVIA ChannelDynamics™

Small Company

(<30 Mio Eur Revenue)

Medium Company

(>=30 - 100 Mio Eur Revenue)

Large Company

(>=100 Mio Eur Revenue)

96% 4%

TRADITIONAL DIGITAL

54%

12%

16%

6%

7%

2% 0%

3%

95% 5%

TRADITIONAL DIGITAL

59%

8%

8%

6%

12%

2%1%

4%

55%

14%

7%

7%

8%

3%2%

4%

Promotional spending according to company size

(Value in Mio - MAT Q3 2018)

GP/FP DETAILING SP DETAILING SAMPLES JOURNAL ADVERTISING MEETINGS MAILING CLINICAL TRIALS OTHERS

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Sales Force Trends

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Overall projected salesfore is decreasing to 1721 SFE

Decreasing Sales Force is concentrated at GP level, while on SP level the number of reps remains stable

1652 1580 1444

297 277 277

1600

1650

1700

1750

1800

1850

1900

1950

2000

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

MAT Q3 2016 MAT Q3 2017 MAT Q3 2018

Sale

s f

orc

e (

in F

TE

)

Repart

itio

n S

FE

(in

%)

GPs Specialists Total

Salesforce evolution split GP/SP

(sales force equivalent split; MAT Q3 2016 - 2018)

IQVIA - CIB - Discover pharma promotional spend in 2018

Source: IQVIA ChannelDynamics™

Page 39: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

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The medium size company segment showed an increase in sales rep equivalents

Overall projected salesforce is decreasing

IQVIA - CIB - Discover pharma promotional spend in 2018

1,949 1,856

1,721

-18%

-16%

-14%

-12%

-10%

-8%

-6%

-4%

-2%

0%

-

500

1,000

1,500

2,000

2,500

MAT Q3 2016 MAT Q3 2017 MAT Q3 2018

Sale

s R

ep

Equiv

ale

nt

count

Total Sales Rep Equiv. PPG% Large companies PPG% Medium companies PPG% Small companies

Salesforce evolution

(sales force equivalent count; MAT Q3 2016 - 2018)

Source: IQVIA ChannelDynamics™

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Promotion & Sales2 examples on the NOAC market

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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

1 3 5 7 9 11 13 15 17 19 21 23

Bra

nd

sh

are

Month

Anonymized brand A – last 24 months evolution

Is my Share of Voice in line with my Market Share?

IQVIA - CIB - Discover pharma promotional spend in 2018

Source: IQVIA ChannelDynamics™ & IQVIA Xponent

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

1 3 5 7 9 11 13 15 17 19 21 23

Month

Anonymized brand B – last 24 months evolution

Brand Share of Voice spend Brand Market Share Linear (Brand Share of Voice spend) Linear (Brand Market Share)

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What sticks in the doctors’ mind after an interaction?

Brand A Brand B

IQVIA - CIB - Discover pharma promotional spend in 2018

Verbatim wordclouds

(GPs, September 2018)

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Key Takeaways

Page 44: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

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Key Takeaways

IQVIA - CIB - Discover pharma promotional spend in 2018

The Sales Force remains the preferred channel to get in touch with the HCP, but continues to shrink

Dominance of the Sales Force detailing is more present at GP side than at SP side

At SP level, Meetings and Clinical Trials are used to get additional touch points with the HCP

Declining trend of the promotional spends continues in 2018 with a -11,1% for GP & SP

Higher investments in the Lipid market (C10) at both GP & SP

Respi market (R03) declining at GP level while increasing at SP level

Lower investments in Antithrombotics (B01) and Diabetes (A10) markets at both GP & SP level

Top3 Corporations in promotional spendings unchanged

Use of the promotional mix varies pretty much across the top10 corporations

Digital Channel does not follow EU trends and stays very low in Belgium

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Go to IQVIA Belux on LinkedIn to have easy access to the 2018 ChannelDynamics™ Global Reference

IQVIA - CIB - Discover pharma promotional spend in 2018

Page 46: Discover pharma promotional spend in 2018 · 1 Discover pharma promotional spend in 2018 Smith Alexandra, PhD, Consultant, European Thought Leadership, IQVIA Driving launch success:

Thank you!

Source: IQVIA European Thought Leadership