AT A STRATEGIC INFLECTION POINT ?

Generic Pharma

International Health Forum

Dr. Nicos RossidesCEO Medochemie

BucharestSeptember 12, 2013

Strategic Inflection… What is

it?Where outside forces have challenged the norm, radically altering the competitive landscape

Old ways of doing business are destroyed…new competitors emerge.

Existing businesses are forced to change or die

Internal reactions often amount to ‘strategic dissonance’:

- competencies suddenly diverge from the basis of competition

- company’s stated strategy tends to differ dramatically from what it actually does

…Andrew Grove, Intel

PATIENT EMPOWERMENT

DEMOGRAPHICS

REGULATORY

COM

PETITION

PRICE

MEDICAL

BREAKTHROUGHS

Generic

Pharma

From Digital Marketing to Living & Working in a Digital World

DigitalFocus

H

L 2005 2007 2013 2009

BRANDWEBSITES

ONLINEMEDIA

SOCIALMEDIA

‘DigitalMarketing’

‘Business in aDigital World’

Towards a digital strategy…Access & context

Always available computing power &

storage.

Insight & predictive analytics.

Behavior, preference & interaction.

In roughly a decade…

2001 2003 2004

2007 20102006

201220112011 2012

A Few Numbers…..

665M

189M

active users/day

active users through mobile

410,714

55

join each day

minutes spent/day

500Mactive users

9Munique visitors/day

200Mactive users

172,800join each day

Per Day…• 32M unique visitors

• 195M hours of videos watched

• 3Bn views

The New Era

2013 Stats

7.1Bn people on earth

6.8Bn

2.7Bn

165Bn

823M

Fast forward to 2020…

In 2020: Mobile will dominate

In 2020: Media Consumptionindividual & interactive

Primacy of Earned Media

OwnedMedia

BoughtMedia

EarnedMedia

Digital Culture

brand website,brand social network page,

packaging, experiential

online conversations / blogs,consumer driven brand advocacy,

consumer driven buzz/viral

TV, press, radio, online, sponsorships

e.g.PR

e.g.

RM activatio

ne.g.RM acquisition

PUSH

PUSH & PULL

PULL

Appropriate mix of push and pull marketing

need to evolve from ‘push’

(tell/sell)

to ‘pull’ (help/support)

In 2020: TV no longer the spoke of the advertising wheel

By 2020…

PATIENT ENGAGEMENT

PATIENT CENTRICITY

Web enabled devices will grow fourfold.

20,000,000,000

‘Big data’ will drive decisions

Terabyte

Petabyte

GB

Exabyte

Zettabyte

MB

Implications for businesses

What is the opportunity for generic pharma - apart from survival?Reduce cost

Do more for less

Create proprietary sources of insights - such as online communities - for competitive advantage

Translate insights into marketing and operational actions… more effectively and faster

Social media monitoring

Chat Groups /Bulletin Boards

Online communities

Web listening

Video photo diaries

Stimuli /Video Clip Evaluation

Polling

New ways of gaining insight!

Listen

Analyze

Understand

Engage

….Less questioning, more listening & interacting.

But…..

It’s easy to be busy with social media. It’s hard to

be strategic.

Social media is becoming the primary means for communication & collaboration.

The Evidence….

PATIENT

PHYSICIANS

PARTNERS

Healthcare & Social Media

The Connected Patient

• 25% of Internet users live with a disease.

• 80% seek info on their disease.• 23% follow their friends’ health

status.• Seek medical info & second opinions.• Rate products & services.• Share their experience - provide

support & encouragement.

The Connected Patient

How about physicians?

The Connected Physician• 90% of U.S. physicians go

online for health or drug info.• 92% accessed it from their

office.• 21% did so with a patient in

the examination room.• 88% looked for health info

online from home.• 59% used mobile device to

get online.

adverse effects?

best treatment?

dosage forms?

new molecules

tips from specialists?

indications?

drug interactions?

The Connected Physician…

The way forward…

Improve patient engagement

Provide relevant content & give feedback to gain patient trust, anticipate changing

needs & add value.

Increase physician engagement

Create a positive customer experience with physicians by understanding their specific clinical &

professional needs.

Through dedicated portals, CRM.

Get complete view of customers

Effective targeting & advanced analytics to evaluate customer behaviour & refine

customer segments.

Enable mass collaboration & co-

creation

Build on-line communities for co-creation & engagement while creating lasting

relationships.

Move from procedural to strategic uses of

social media Screen for applicants with digital capabilities – partner them with experienced managers.

Harness the new ways of gaining insight & creating engagement – communities, gamification.

Extend capabilities through third party providers – for content production, analytics etc.

Targeted Healthcare Portals• B2C portals - info about diseases,

medical products & services (www.intelihealth.com) to enable patients to buy OTC online (www.drugstore.com).

• B2D portals – networking, info exchange, expert advice for doctors.

(www.sermo.com).• B2B portals - connect pharma

companies, hospitals, wholesalers and pharmacies to reduce transaction costs (www.webmd.com).

What we should be asking:

Who owns “digital” in

my company?

What is my “digital” strategy?

Am I spending enough?

Am I spending it

the right way?

How do I choose my

“digital” partners?

Create a strategy around…

relationships

relevance

interaction

In which ways is our industry changing?

How is technology changing?

Are the changes evolutionary or revolutionary?

What are the implications for how we do business?

Thank YouMultumesc