social media in pharmaceuticals acg

1Ananth Consulting Group (ACG)October, 2010

Ananth Consulting Group (ACG)www.ananthconsulting.com

Digital Marketing in Pharmaceuticals

October 17, 2010

Ananth Consulting Group

Social media in pharmaceutical industry...

…a changing paradigm

By Rajaram IyerOctober, 2010

Digital Marketing: New BEAT

in pharmaceutical marketing;

can you hear it??


Social Media, What?

What should be my social

media strategy?

What are various companies doing

in digital marketing?

What has worked in social

media so far?

What are the regulatory guidelines?


Emerging challenges for pharmaceutical brand managers

The diversity of media channels through which Pharmaceutical companies can reach out to physicians and patient

groups is fast changing and expanding

These forces are challenging the effectiveness of traditional marketing strategies that involved providing free drug

samples, publishing drug details in journal articles or opinion leaders, offering gifts with company logos, and

sponsoring CME, most of which was done through pharmaceutical company’s medical representatives

Physicans and patients are muti-tasking and want easy access to personalized information in short duration of time

Patients are relying on ‘wisdom of crowds’ to make their purchase decision

The promotional vehicles available to medical reps are increasingly being regulated (PhRMA Code 2008) and the average time of interaction between them and physician is reducing

Internet has become a leading source of healthcare related news, information and education for physicians and patients

A number of top-selling drugs are going off-patent

The gorwth rate of the global pharmaceutical sector is going to decelerate. According to IMS, the sector is expected to grow at 3-5% till 2013

The spate of mergers and acquisition is likely to continue, driven by the need to balance prescription vs. OTC portfolio, maintain operating margins and top line growth in lieu of drugs going off-patent

Governments in the US, EU and Japan are taking steps to lower healthcare costs and promote generics substitution

The rate of new drug development has declined over the last few decades. Over half of the new drugs to be launched are ‘Orphan’ drugs targetting specialists

New market access strategies are being tested between pharma companies and payers/regulators to reduce pharma costs


Social media has opened a whole new way of communication and has connected the world in multiple

ways

Earlier, in pharmaceutical industry, representatives were the only channel between the pharmaceutical

companies & doctors, and there were no direct link between companies and patients, but now with social

media channels there are multiple options available and most importantly the communication process has

become two way as against one way in past

So far, the use of social media tools in pharmaceutical industry has been limited, however this area is

evolving and is growing rapidly

Initial results of use of social media has been encouraging and this trend is likely to grow in future

− The current success of various social media tools have been driven primarily by few big companies,

which have used them effectively

Big concern for the limited usage of social media in pharmaceutical industry is lack of regulatory guidance

from USFDA or other regulatory bodies around the world

Lot of companies are sitting on the fence and would jump into the bandwagon once the regulatory

guidelines are clear

Patients with rare/niche diseases have embraced social media tools effectively than patients with common

disorders

Executive SummaryDigital media eroding the power of institutions


Digital marketing is “marketing communicated thru various digital channels such as internet,

email, social networking sites, mobile etc”

As per a report by Econsultancy and ExactTarget, 70% respondents (companies) were planning to

increase their budget for social media activities such as Facebook, Twitter etc

Social Media: Changing the marketing landscape

Blogs VideoHealth PortalsSocial

Networking Sites

http://twitter.com/

http://www.everydayhealth.com/


As Per „en.wiktionary.org‟, blog is

“website that allows users to reflect, share opinions, and discuss various topics in the form of an online journal while readers may

comment on posts. Entries typically appear in reverse chronological order.”

Blogs, in pharmaceutical industry have used by various stakeholders for multiple reasons

To share their opinion about drugs,

adverse events, disease etc and

also to know of good treatment

option for very rare disease.

Patients have used blogs

effectively to connect with fellow

patients to know how to manage

their disease effectively

To share their views on

various diseases and

treatments; this also helps

them in connecting with their

patients better

To promote their brand

and also to disseminate

information about the

medicines, diseases and

various programs

To share their views on

various topics

Patients Physicians Pharmaceutical Companies Individual Experts

Blogs have given power of expression to all the stakeholders and has become an important mode of communication

Blogs (1/2)Power of expression


Blogs have reduced the divide which existed before between various

stakeholders and have also done a good job in connecting the patient

community. Blogs have opened multiple channels of communication

and have given the power of expression to various stakeholders

Pharmaceutical companies are using this medium to promote their

products and other programs around disease management.

Companies not only blog about their product but also use this as a tool

to establish better relationship with the patient community.

−Good example of this is “more than medicine” blog by GSK

which features articles and expert opinions about various topics

of general health and wellness

−Another example is the BTW blog by JnJ, which provides

information about various JnJ initiatives and also some articles

about general wellness

Patient community is also using blogs effectively to communicate and

connect with other patients with same disease

−Diabetesmine.com and tudiabetes.org are good examples of

effective blogging by patients where they solve each others

problem and help in dealing with diabetes

Blogs (2/2)Power of expression

• Share views in an unbiased way

• Be upfront and honest ; share adverse events also

• Its better to promote a cause rather than promoting products

Few Do’s


Social Networking Sites (1/2) Promotion thru networking

Social networking sites such as facebook, twitter etc have also been a part of digital strategy for the pharmaceutical industry.

These websites have been used to raise and spread awareness. Facebook is an effective medium to spread awareness

especially amongst the youth as most of them are part of some kind of social media website and use them regularly

Facebook has been used effectively by Merck (Gardasil) and Johnson & Johnson (JnJ) (awareness about ADHD-Attention

Deficit Hyperactivity Disorder) to promote their respective brands

Twitter is a useful tool in disseminating various updates about companies. Twitter so far has been used primarily as a corporate

promotion site as against a site to promote brands

Social networking sites such as facebook and twitter have given a new avenue for pharmaceutical companies to

communicate with their audience. Interestingly, this communication is a two way process, as against one way in past


Social Networking Sites (2/2) Promotion thru networking

Big reason regarding the popularity of Merck‟s (take a step against Cervical

cancer) and JnJ‟s(ADHD Moms) facebook page is that they stand for the

disease and not for the brand. People want to get associated with a cause and

not brand

Another reason is that these pages share lot of practical tips about disease

management and most importantly, these tips come from people who are either

the patients or caregivers, so these tips have really worked with someone

These sites also provide a platform to discuss various issues regarding the

disease management

These websites also post success stories of patients and that acts as a big

motivator

An area which is under active debate is „reporting of adverse events‟. Most

people believe that pharmaceutical companies will not be very upfront in

reporting adverse events with its drugs. There are no regulatory guidance on

this and hence most of the companies are waiting for that clarity


Health Portals

Healthy Information

Health portals provide free information of various types related to various diseases. Portals like webmd, revolution health,

everyday health etc provide basic information about the disease, treatment options, scientific guidelines etc. In addition to other

features most of these websites have a feature where patients can blog about their condition, their experiences with various

drugs etc.

Health portals have become primary source of information for lot of people looking for health information online

There are certain niche health portals which are meant for patients suffering from few rare disorders. Patientslikeme.com is one

such example which provides information about diseases such as Parkinson‟s, Multiple Sclerosis, Fibromyalgia etc.

Analytics from these health portals have also become sought after, as the data here is real time and is generated by the patients


Video Channels“A picture is worth a thousand words”

Online video sharing sites have also been utilized by pharmaceutical companies for promoting . Sites such as youtube have

drawn maximum attention. Pharma companies have used this channel to promote their products, clinical trial results etc.

Companies use youtube to create their own mini channel (just like a big TV channel which airs different programs) which

provides information about the company and its products, pipeline status, patient stories, videos about the various diseases etc.

This channel concept looks good as it provides a platform to spread awareness about the disease in a more neutral manner

Johnson and Johnson has a dedicated health channel on youtube which provides various contents for healthy living. It also posts

success stories of patients. Sanofi Aventis TV is another channel where Sanofi is trying to promote information about the

company and its wide range of patient-focused businesses, social responsibilities, and employee activities


Social Media: New chapter in pharmaceutical marketing (1/2)

Use of social media is relatively new and is an evolving area amongst pharmaceutical industry. Various

companies are trying different things to promote themselves

Pharmaceuticals companies started social media activities for promoting their brands, but lately the trend is

shifting towards engaging and empowering the patients. Most of the pharmaceutical companies are now

encouraging open discussion about the disease treatment etc.

− Human touch: Most of the blogs /twitter posts (tweets) by pharmaceutical companies are actively

managed by individuals where patients and caregivers can ask questions about the disease and

treatment options

There are multiple channels being tried in digital marketing such as twitter, facebook, blogs, etc. Some of

the companies have adopted an integrated approach

Some of successful campaigns in social media has been:

− JnJ‟s blog BTW

− Merck‟s and JnJ‟s facebook page for Cervical Cancer and ADHD

− Youtube channel for Novartis, Sanofi and JnJ

Patients are sharing lot of information on health portals such as patientslikeme.com etc and hence social

media analytics is likely to become big in future

− Patients share lot of data about disease management, efficacy and safety of various drugs, adverse

events profile etc and hence analytics of this data will be sought after by both the payors and

pharmaceutical companies

− Payors will use this data to decide reimbursement and coverage while pharmaceutical companies will

use this data for coming up with improved formulation/therapies


Social Media: New chapter in pharmaceutical marketing (2/2)

Lack of regulatory guidance / guidelines poses a big challenge for companies to adopt and embrace social

media strategy. We expect more companies will join social media platform, if regulatory guidelines are clear

− Pharmaceutical companies‟ biggest concern is reporting of adverse events and they are seeking

clarity around the amount of disclosure

Social media strategy is not just about having a corporate account in twitter, facebook etc, but it is way

beyond that and should focus on engaging the patients

Social media can be a great customer service tool, so please use it!


Social Media: Future trends (1/4)

Companies will promote their products directly to patients and insurance

companies/payors; role of representatives will be reducedTrend No1

Internet will replace physicians as the primary / first source of information about

the disease. Patients will have much richer conversation with their doctors

regarding their treatment approach

Trend No 2

Social media analytics will become big and insurance companies will start using

this data to decide coverage and reimbursementTrend No 3

Newer ways of DTC marketing will evolveTrend No 4

One way to two way communicationTrend No 5



As digital marketing and social media evolve, pharmaceutical companies will start focusing their promotional

activities directly towards patients and will enable direct communication channel with patients. In terms of other

stake holders for pharmaceutical companies, insurance companies have also emerged as a major stake holder

and pharmaceutical companies will direct their communication to them also.

As patients will directly get lot of information, both, about the disease and treatment options, role of physicians

will become limited and hence pharmaceutical companies would reduce their spend on traditional methods of

marketing.

On the other hand, physicians will also get lot of information thru the internet and hence the role of medical

representative will be marginalized. Additionally, the move away from blockbuster model will also reduce the

need for sales force.

Overall, in future, social media and digital channels will play a big role in communication and will reduce the

impact of traditional ways of communication.

Companies will promote their products directly to patients and insurance

companies; role of representative will be reducedTrend No1



With the ease of availability of quality data (to patients) both about the disease and management, patients will

be more involved in deciding the treatment option and also start playing a much bigger role. The conversation

between physicians and patients will go to the next level. Moreover, with patients paying additional co-pay for

newer therapies, they will take substantial control over their treatment decision.

With patients at the helm of affairs, it will become a necessity for pharmaceutical companies to engage them

thru social media.

Internet will replace physicians as the primary / first source of information about

the disease. Patients will have much richer conversation with their doctors

regarding their treatment approach

Trend No 2

With lot of data being generated thru patient community, social media analytics will play a center stage role in

the future and insurance companies and PBMs (pharmacy benefit manager) will start using this data to decide

coverage and reimbursement.

Websites such as patientslikeme.com have lot of patient data and is a good source to see what are the

common side effects of a drug , what's the general perception about the safety and efficacy etc. In future we

expect lot of such data would be available live, generated by the patients, and payors will use this data to

decide the reimbursement status.

Social media analytics will become big and insurance companies will start using

this data to decide reimbursementTrend No 3



As communication thru digital media evolves, newer ways of communication will develop. Digital media has

evolved in last 5 years with lot of social networking tools being utilized. Currently, only few social media tools

are being used by pharmaceutical companies. As the awareness increases, newer ways of DTC will evolve and

shape up the market dynamics.

Most of the current social media tools used by pharmaceutical companies such as facebook, blogs, twitter etc

will become overused in near future and companies will have to look for newer and innovative ways to engage

the audience.

Newer ways of DTC marketing will evolveTrend No 4

In past, pharmaceutical companies were communicating directly with the physicians and there was no way for

them, to both, communicate directly and also to take feedback from the patients. With the advent of social

media tools, companies and patients are able to communicate with each other. In fact, with social media,

multiple channels of communication have opened between all the stake holders. Patients are now able to share

their data thru blogs, health portals etc and both pharmaceutical companies and payors are listening.

One way to two way communicationTrend No 5


Social Media: Few questions??

Will social media improve the quality of healthcare; will this reduce the overall healthcare

cost?

What restrictions will regulatory agencies put?

How do I measure my ROI (return on investment)?

What changes should I do to my organization structure to

participate in social media?


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social media in pharmaceuticals acg

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