WINNING COMPETITIVE STRATEGIES

WWW.BERNARDASSOCIATESLLC.COM

-PRODUCT COUNTER-LAUNCHES

-MULTI-LEVEL COMPETITION

P r o d u c t counter-Launches

www.BernardAssociatesLLC.com “Helping Clients Win” 2

/Ŷ ĞĐĞŵďĞƌ ϭϵϵϵ WĂƌŬĞͲĂǀŝƐ ;ŶŽǁ WĮnjĞƌWŚĂƌŵĂĐĞƵƟĐĂůƐͿ ůĂƵŶĐŚĞĚ>ŝƉŝƚŽƌ ĂǀĞƌLJƉŽƚĞŶƚ>>cholesterol-lowering agent. Despite being the sixth ƐƚĂƟŶ ƚŽ ĞŶƚĞƌ ƚŚĞh^ŵĂƌŬĞƚ WĮnjĞƌ ŽǀĞƌǁŚĞůŵĞĚƚŚĞĐŽŵƉĞƟƟŽŶĂŶĚƐŽŽŶŵĂĚĞ>ŝƉŝƚŽƌƚŚĞƚŽƉͲƐĞůůŝŶŐĐŚŽůĞƐƚĞƌŽůĂŶĚƉŚĂƌŵĂĐĞƵƟĐĂůƉƌŽĚƵĐƚŝŶƚŚĞǁŽƌůĚLJϮϬϬϮƐƚƌĂĞŶĞĐĂǁĂƐƉƌĞƉĂƌŝŶŐƚŽůĂƵŶĐŚƌĞƐƚŽƌ Ă ŶĞǁ ƐƚĂƟŶǁŝƚŚ ĞǀĞŶ ŐƌĞĂƚĞƌ >>ͲůŽǁĞƌŝŶŐ ĞīĞĐƚƐthan Lipitor.

Ɛ ƚŚĞŵĂƌŬĞƚ ůĞĂĚĞƌ WĮnjĞƌ ĐŽƵůĚ ŚĂǀĞ ŝŐŶŽƌĞĚ ƚŚĞŝŵƉĞŶĚŝŶŐ ƚŚƌĞĂƚ ĨƌŽŵ ƌĞƐƚŽƌ ĂŶĚ ĐŽŶƟŶƵĞĚ ƚŽĞdžƉĂŶĚƚŚĞŵĂƌŬĞƚƚŚĞƌĞďLJĐŽŶƟŶƵŝŶŐƚŽĐĂƉƚƵƌĞƚŚĞŵĂũŽƌŝƚLJŽĨƐĂůĞƐŝŶƚŚŝƐĐůĂƐƐ/ŶƐƚĞĂĚWĮnjĞƌĐŽƵŶƚĞƌͲĂƩĂĐŬĞĚWĮnjĞƌƉƌĞͲĞŵƉƚĞĚƚŚĞ ůĂƵŶĐŚŽĨƌĞƐƚŽƌďLJƉƌĞƉŽƐŝƟŽŶŝŶŐƚŚĞƐƚƌĂĞŶĞĐĂĚƌƵŐĂƐŚĂǀŝŶŐƐĂĨĞƚLJĐŽŶĐĞƌŶƐ ƐƉĞĐŝĮĐĂůůLJ ƌŚĂďĚŽŵLJŽůLJƐŝƐ Ă ƌĂƌĞ ďƵƚƉŽƚĞŶƟĂůůLJĨĂƚĂůŵƵƐĐůĞĐŽŶĚŝƟŽŶ;>ŝƉŝƚŽƌĂůƐŽŚĂĚƚŚŝƐƐĂĨĞƚLJŝƐƐƵĞŚŝŐŚůŝŐŚƚĞĚŝŶŝƚƐůĂďĞůďƵƚƚŚĞŝŶĐŝĚĞŶĐĞǁĂƐ ĐŽŶƐŝĚĞƌĞĚ ƐůŝŐŚƚůLJ ůŽǁĞƌ ƚŚĂŶǁŝƚŚ ƌĞƐƚŽƌ Ϳ LJƚŚĞƟŵĞŽĨƌĞƐƚŽƌ ƐůĂƵŶĐŚƐƚƌĂĞŶĞĐĂǁĂƐŽŶƚŚĞĚĞĨĞŶƐŝǀĞŚĂǀŝŶŐ ƚŽ ƌĞƐƉŽŶĚ ƚŽƉŚLJƐŝĐŝĂŶƐƉĂƟĞŶƚƐĂŶĚ ƚŚĞ ŵĞĚŝĂ ƌĞŐĂƌĚŝŶŐ ƚŚĞƐĞ ƐĂĨĞƚLJ ĐŽŶĐĞƌŶƐWĮnjĞƌ Ɛ ƉƌŽĂĐƟǀĞ ĐŽƵŶƚĞƌͲůĂƵŶĐŚ ĂƉƉƌŽĂĐŚ ĐƌŝƉƉůĞĚthe launch of Crestor and ensured that it would not ďĞĐŽŵĞĂŵĂũŽƌĐŽŵƉĞƟƟǀĞƚŚƌĞĂƚ

WĮnjĞƌ ƌĞŶŽǁŶĞĚ ĨŽƌ ƉůĂŶŶŝŶŐ ĨŽƌ ĂŶĚ ƉƌĞͲĞŵƉƟŶŐĐŽŵƉĞƟƟǀĞ ƉƌŽĚƵĐƚ ůĂƵŶĐŚĞƐ ŝƐ ĞdžĐĞƉƟŽŶĂů ŝŶ ƚŚŝƐƌĞŐĂƌĚ ƐĂLJƐ ^ƚĂŶĞƌŶĂƌĚDD ƉƌĞƐŝĚĞŶƚ ŽĨĞƌŶĂƌĚƐƐŽĐŝĂƚĞƐ>>tŚŝůĞŵŽƐƚƉŚĂƌŵĂĐĞƵƟĐĂů

ĐŽŵƉĂŶŝĞƐƐƉĞŶĚƐƵďƐƚĂŶƟĂůŵŽŶĞLJ ƟŵĞĂŶĚĞīŽƌƚƚŽ ůĂƵŶĐŚ ƚŚĞŝƌ ŽǁŶ ƉƌŽĚƵĐƚƐ ǀĞƌLJ ĨĞǁ ĐŽŵƉĂŶŝĞƐprepare and execute comprehensive counter-launch ƉůĂŶƐ ;>WƐͿ ƚŽ ĂŶƟĐŝƉĂƚĞ ƵŶĚĞƌŵŝŶĞ ĂŶĚ ĚĞĨĞĂƚĐŽŵƉĞƟƟǀĞ ůĂƵŶĐŚ ƉƌŽĚƵĐƚƐ ďĞĨŽƌĞ ƚŚĞLJ ŚĂǀĞ ƚŚĞĐŚĂŶĐĞ ƚŽ ƉĞŶĞƚƌĂƚĞ ƚŚĞŵĂƌŬĞƚ ĂŶĚ ŐĂŝŶ ƐŝŐŶŝĮĐĂŶƚƚƌĂĐƟŽŶ >WƐ ĂƌĞ Ă ĚĞůŝďĞƌĂƚĞ ƐLJƐƚĞŵĂƟĐ ĂŶĚŝŶƚĞŐƌĂƚĞĚĂƉƉƌŽĂĐŚƚŽĂŶĂůLJnjĞƉƌĞƉĂƌĞĂŶĚƉƌŽƚĞĐƚĂĐŽŵƉĂŶLJ ƐŵĂƌŬĞƚĞĚƉƌŽĚƵĐƚĨƌŽŵĂŶĞǁĐŽŵƉĞƟƟǀĞŝŶƚƌƵĚĞƌ dŚĞLJĚŝīĞƌĨƌŽŵƚƌĂĚŝƟŽŶĂůĐŽŵƉĞƟƟǀĞƉůĂŶƐŝŶƚŚĂƚ>WƐĂƌĞƐƉĞĐŝĮĐĂůůLJĚĞƐŝŐŶĞĚƚŽƉƌĞͲĞŵƉƚĂŶĚƚŚǁĂƌƚƚŚĞůĂƵŶĐŚŽĨŝŵƉŽƌƚĂŶƚŶĞǁĐŽŵƉĞƟƚŽƌƐ

ƌ ĞƌŶĂƌĚ ƐĂLJƐ ũƵƐƚ ĂƐ ƚŚĞƌĞ ĂƌĞ ƚƌĂĚŝƟŽŶĂůůLJ ĨŽƵƌWƐ ŽĨ ŵĂƌŬĞƟŶŐ ƚŚĞƌĞ ĂƌĞ ĨŽƵƌ WƐ ƚŽ ĐŽŶƐŝĚĞƌ ǁŝƚŚĐŽƵŶƚĞƌͲůĂƵŶĐŚƉůĂŶŶŝŶŐƉŚŝůŽƐŽƉŚLJ ƉĞŽƉůĞƉƌŽĐĞƐƐand plans.

KhEdZͳ>hE,W,/>K^KW,zWŚĂƌŵĂĐĞƵƟĐĂůĐŽŵƉĂŶŝĞƐŚĂǀĞ ůŽŶŐĐŽŵƉĞƚĞĚ ůŝŬĞŐĞŶƚůĞŵĞŶĮŐŚƟŶŐ Ă ĨĂŝƌ ĚƵĞů ƚĂŬĞϭϬƉĂĐĞƐďĞĨŽƌĞĮƌŝŶŐ ƌ ĞƌŶĂƌĚƐĂLJƐ/ŶƚŚĞƉĂƐƚĐŽŵƉĂŶŝĞƐĐŽƵůĚĂīŽƌĚ ƐƵĐŚ ĐŽƌĚŝĂů ĐŽŵƉĞƟƟŽŶ ďĞĐĂƵƐĞ ƚŚĞƌĞ ǁĞƌĞŶƵŵĞƌŽƵƐƉƌŽĚƵĐƚůĂƵŶĐŚĞƐŵĂŶLJůĂƌŐĞĂŶĚŐƌŽǁŝŶŐŵĂƌŬĞƚƐ ĂŶĚ ƌĞůĂƟǀĞůLJ ĨĞǁ ĐŽŵƉĞƟƚŽƌƐ Ƶƚ ǁŝƚŚŽŶůLJ ϭϳ ŶĞǁ ŵŽůĞĐƵůĂƌ ĞŶƟƟĞƐ ĂƉƉƌŽǀĞĚ ůĂƐƚ LJĞĂƌ fewer new markets, growing pricing pressures, and ƐŝŐŶŝĮĐĂŶƚ ŐĞŶĞƌŝĐ ĐŽŵƉĞƟƟŽŶ ĐŽŵƉĂŶŝĞƐ ĐĂŶ ŶŽůŽŶŐĞƌĂīŽƌĚƚŽďĞƐŽŐĞŶƚĞĞů

Pharmaceutical executives and marketers should adopt the mindset that the best defense is a good offense: they need to select the best team, process, and plans for counter-launching

www.BernardAssociatesLLC.com “Helping Clients Win” 3

/ŶĐƌĞĂƐŝŶŐůLJ ƉŚĂƌŵĂĐĞƵƟĐĂůĐŽŵƉĂŶŝĞƐŵƵƐƚůĞĂƌŶƚŽĐŽŵƉĞƚĞĂƐ ĂŐŐƌĞƐƐŝǀĞůLJ ĂƐŽƚŚĞƌ ŝŶĚƵƐƚƌŝĞƐ ƐƵĐŚĂƐƚĞůĞĐŽŵŵƵŶŝĐĂƟŽŶƐ ŵĂŶƵĨĂĐƚƵƌŝŶŐ ĂŶĚ ĐŽŶƐƵŵĞƌelectronics.

ĐĐŽƌĚŝŶŐƚŽƌ ĞƌŶĂƌĚƚŚĞŵŽƐƚŝŵƉŽƌƚĂŶƚƟŵĞƚŽĐŽŵƉĞƚĞŝƐĂĐƚƵĂůůLJďĞĨŽƌĞĚƵƌŝŶŐƚŚĞƉƌŽĚƵĐƚůĂƵŶĐŚƉĞƌŝŽĚ džƉĞƌŝĞŶĐĞĚ ƉŚĂƌŵĂĐĞƵƟĐĂů ŵĂƌŬĞƚĞƌƐĂƉƉƌĞĐŝĂƚĞ ƚŚĞ ĂĚĂŐĞ ƚŚĂƚ ƚŚĞLJ ůŝǀĞǁŝƚŚǁŚĂƚ ƚŚĞLJůĂƵŶĐŚƚŚĞƉƌŽĚƵĐƚůĂƵŶĐŚŝƐĞƐƐĞŶƟĂůƚŽƚŚĞƐŚŽƌƚĂŶĚůŽŶŐͲƚĞƌŵƐƵĐĐĞƐƐŽĨĂĚƌƵŐ ŚĞƐĂLJƐŽŶƐĞƋƵĞŶƚůLJ ŝĨĂĐŽŵƉĂŶLJĐĂŶƚŚǁĂƌƚŽƌƵŶĚĞƌŵŝŶĞĂĐŽŵƉĞƟƚŽƌ ƐƉƌŽĚƵĐƚ ůĂƵŶĐŚ ŝƚ ǁŝůů ƐĞǀĞƌĞůLJ ŚĂŵƉĞƌ ƚŚĞŵĂƌŬĞƚƉĞŶĞƚƌĂƟŽŶĂŶĚƐƵĐĐĞƐƐŽĨƚŚĞĐŚĂůůĞŶŐĞƌĨŽƌLJĞĂƌƐƚŽcome.”

/ŶƉƌĞƉĂƌĂƟŽŶĨŽƌ ƚŚĞ ůĂƵŶĐŚŽĨĂĐŽŵƉĞƟƚŽƌ ŵĂŶLJƉŚĂƌŵĂĐĞƵƟĐĂůĐŽŵƉĂŶŝĞƐǁŝůůƐĞƚƵƉƐŽŵĞĚĞĨĞŶƐŝǀĞƉŽƐŝƟŽŶƐ ƐƵĐŚ ĂƐ ĨŽƌƟĮĞĚ ƐĂůĞƐĨŽƌĐĞƐ Žƌ ŚŝŐŚĞƌƉƌŽŵŽƟŽŶĂůƐƉĞŶĚŝŶŐƚŽŽīƐĞƚĂĐŽŵƉĞƟƚŽƌ ƐůĂƵŶĐŚƵƚǀĞƌLJĨĞǁĐŽŵƉĂŶŝĞƐĂŐŐƌĞƐƐŝǀĞůLJĂŶĚƉƌŽͲĂĐƟǀĞůLJĐŽŵƉĞƚĞ ĂŐĂŝŶƐƚ ƚŚĞŝƌ ĐŽŵƉĞƟƚŽƌƐ ďĞĨŽƌĞ ƚŚĞŝƌůĂƵŶĐŚ WŚĂƌŵĂĐĞƵƟĐĂů ĞdžĞĐƵƟǀĞƐ ĂŶĚ ŵĂƌŬĞƚĞƌƐshould adopt the mindset that the best defense is Ă ŐŽŽĚ ŽīĞŶƐĞ ƚŚĞLJ ŶĞĞĚ ƚŽ ƐĞůĞĐƚ ƚŚĞ ďĞƐƚ ƚĞĂŵprocess, and plans for counter-launching.

KhEdZͳ>hE,WKW>ŽŵŵŽŶůLJ ďƌĂŶĚƚĞĂŵƐǁŝůůĂƐƐŝŐŶŽŶĞƚĞĂŵŵĞŵďĞƌ ƵƐƵĂůůLJĂďƌĂŶĚŵĂƌŬĞƚĞƌŽƌŵĂƌŬĞƚƌĞƐĞĂƌĐŚĞƌ ƚŽďĞƌĞƐƉŽŶƐŝďůĞ ĨŽƌ ĐŽŵƉĞƟƟǀĞ ůĂƵŶĐŚ ƉůĂŶŶŝŶŐ dŚŝƐƉĞƌƐŽŶ ŽŌĞŶ ǁŽƌŬƐ ŝŶĚĞƉĞŶĚĞŶƚůLJ ƉĞƌŚĂƉƐ ƵƐŝŶŐƚŚĞ ƐĞƌǀŝĐĞƐŽĨ ĂƉĂƌƚͲƟŵĞŵĂƌŬĞƚ ƌĞƐĞĂƌĐŚĞƌŽƌ ĂŶĞdžƚĞƌŶĂůĐŽŵƉĞƟƟǀĞŝŶƚĞůůŝŐĞŶĐĞĮƌŵ

dŽ ĚĞǀĞůŽƉ Ă ƉŽǁĞƌĨƵů ŝŶƐŝŐŚƞƵů ĐŽƵŶƚĞƌͲůĂƵŶĐŚƉůĂŶ ĐŽŵƉĂŶŝĞƐ ŶĞĞĚ Ă ƉŽǁĞƌĨƵů ŝŶƐŝŐŚƞƵůŵƵůƟĚŝƐĐŝƉůŝŶĂƌLJ ƚĞĂŵ ƌ ĞƌŶĂƌĚĂĚǀŝƐĞƐ ƚ ƚŚĞleast, this team should consist of a senior brand leader; Ă ĐŽŵƉĞƟƟǀĞ ŝŶƚĞůůŝŐĞŶĐĞ ƉƌŽĨĞƐƐŝŽŶĂů Ă ŵĂƌŬĞƚƌĞƐĞĂƌĐŚĞƌ ŝŶƚĞƌŶĂů ƉƌŽĨĞƐƐŝŽŶĂůƐ ƌĞƉƌĞƐĞŶƟŶŐ ŬĞLJƐƚĂŬĞŚŽůĚĞƌ ƐĞŐŵĞŶƚƐ ĨŽƌ ĞdžĂŵƉůĞ ƉŚLJƐŝĐŝĂŶƐĐŽŶƐƵŵĞƌƐ ĂŶĚ ƉĂLJĞƌƐ Ă ŵĞĚŝĐĂů Žƌ ƐĐŝĞŶƟĮĐƉƌŽĨĞƐƐŝŽŶĂů ĂŶ ŝŶƚĞƌŶĂů ŬĞLJ ŽƉŝŶŝŽŶ ůĞĂĚĞƌ ĞdžƉĞƌƚĮĞůĚ ŵĂŶĂŐĞŵĞŶƚ ĂŶĚ ƉƵďůŝĐ ƌĞůĂƟŽŶƐ ƉĞƌƐŽŶŶĞůThe team should have appropriate geographic ƌĞƉƌĞƐĞŶƚĂƟŽŶĂŶĚŵĞĞƚŽŶĂƌĞŐƵůĂƌďĂƐŝƐ

DĂŶLJ ĐŽƵŶƚĞƌͲůĂƵŶĐŚ ƚĞĂŵƐ ĂůƐŽ ƵƐĞ ƚŚĞ ƐĞƌǀŝĐĞƐŽĨ ĂŶ ĞdžƚĞƌŶĂů ĞdžĞĐƵƟǀĞ ĐŽŶƐƵůƚĂŶƚ ƚŽ ƉůĂŶ ĂŶĚdirect the project work; manage the counter-launch planning process; and serve as a domain expert on ĐŽŵƉĞƟƟǀĞŵĂƌŬĞƟŶŐĂŶĚŝŶĚƵƐƚƌLJŝƐƐƵĞƐ

KhEdZͳ>hE,WZK^^For most brand teams, the professional responsible ĨŽƌ ĐŽŵƉĞƟƟŽŶ ĐŽůůĞĐƚƐ ŵĂƌŬĞƚ ƌĞƐĞĂƌĐŚ ŽƌĚĞƌƐƐŽŵĞ ĐŽŵƉĞƟƟǀĞ ŝŶƚĞůůŝŐĞŶĐĞ ĂŶĚ ƉƌĞƉĂƌĞƐ Ă ĨĞǁƐƚĂŶĚĂƌĚ ƉƌŽŵŽƟŽŶĂů ƚĂĐƟĐƐ ƐƵĐŚ ĂƐ ƐĂůĞƐĨŽƌĐĞƉƌĞƉĂƌĂƟŽŶ ĂŶĚ ƚƌĂŝŶŝŶŐ dŚĞƐĞ ŵŝŶŝŵĂů ƐƚĞƉƐƌĞƉƌĞƐĞŶƚ Ă ƐŵĂůů ĨƌĂĐƟŽŶ ŽĨ ƚŚĞ ǀĂƐƚ ƌĞƐŽƵƌĐĞƐͶƟŵĞŵŽŶĞLJ ĂŶĚƉĞƌƐŽŶŶĞůͶƚŚĂƚƚŚĞĐŽŵƉĞƟƟŽŶŝƐŝŶǀĞƐƟŶŐŝŶůĂƵŶĐŚƉƌĞƉĂƌĂƟŽŶĂŶĚƚŚĂƚƚŚĞďƌĂŶĚƚĞĂŵŝƚƐĞůĨĐŽŵŵŝƩĞĚƚŽůĂƵŶĐŚŝŶŐŝƚƐŽǁŶƉƌŽĚƵĐƚDŽƌĞƐŝŐŶŝĮĐĂŶƚůLJ ƚŚŝƐƌĞůĂƟǀĞůLJƐŵĂůů ŝŶǀĞƐƚŵĞŶƚ ŝƐŽŌĞŶŵŝŶŝƐĐƵůĞŝŶĐŽŵƉĂƌŝƐŽŶǁŝƚŚƚŚĞƐĂůĞƐƌĞǀĞŶƵĞĂŶĞdžŝƐƟŶŐƉƌŽĚƵĐƚƐƚĂŶĚƐƚŽůŽƐĞĨƌŽŵƚŚĞůĂƵŶĐŚŽĨĂĐŽŵƉĞƟƚŽƌ ^ƵĐŚ ůŝŵŝƚĞĚƉƌĞƉĂƌĂƟŽŶ ŝƐƵŶůŝŬĞůLJ ƚŽĞǀĞŶƐůŽǁĚŽǁŶĂƉŽǁĞƌĨƵůĐŽŵƉĞƟƟǀĞƚŚƌĞĂƚ

dŽƐƵĐĐĞĞĚĂŐĂŝŶƐƚŶĞǁĐŽŵƉĞƟƟǀĞƚŚƌĞĂƚƐďƌĂŶĚƚĞĂŵƐŶĞĞĚƚŽƚĂŬĞĂƐLJƐƚĞŵĂƟĐŝŶƚĞŐƌĂƚĞĚĂƉƉƌŽĂĐŚƚŽ ĐŽƵŶƚĞƌͲůĂƵŶĐŚƉůĂŶŶŝŶŐ ƌ ĞƌŶĂƌĚ ƐĂLJƐ dŚŝƐĂƉƉƌŽĂĐŚ ŝŶĐŽƌƉŽƌĂƚĞƐ ƚŚƌĞĞ ŬĞLJ ƉŚĂƐĞƐ ĂŶĂůLJƐŝƐƐŝŵƵůĂƟŽŶ ĂŶĚ ƉůĂŶŶŝŶŐ dŚĞ ĂŶĂůLJƐŝƐ ƉŚĂƐĞ ŝƐdesigned to assess external market factors and ŝŶƚĞƌŶĂů ĐŽƌƉŽƌĂƚĞ ĐĂƉĂďŝůŝƟĞƐ ƚŽ ŝĚĞŶƟĨLJ ƉŽƚĞŶƟĂůŽƉƉŽƌƚƵŶŝƟĞƐĂŶĚƚŚƌĞĂƚƐ /ĚĞĂůůLJ ƚŚŝƐƉŚĂƐĞƐŚŽƵůĚďĞ ĨŽůůŽǁĞĚ ďLJ Ă ĐŽŵƉĞƟƟǀĞ ƐŝŵƵůĂƟŽŶ Ă ŶĞǁversion of business war games, to explore and enact ƚŚĞƐĞŽƉƉŽƌƚƵŶŝƟĞƐĂŶĚƚŚƌĞĂƚƐdŚĞƉůĂŶŶŝŶŐƉŚĂƐĞĐĂƉƚƵƌĞƐƚŚĞŬĞLJůĞĂƌŶŝŶŐƐĨƌŽŵƚŚĞĮƌƐƚƚǁŽƉŚĂƐĞƐand outlines an integrated set of counter-launch ƐƚƌĂƚĞŐŝĞƐĂŶĚƚĂĐƟĐƐ

^ƵƌƉƌŝƐŝŶŐůLJ ŵĂŶLJ ĐŽŵƉĂŶŝĞƐ ŽŶůLJ ĂŶĂůLJnjĞ ƚŚĞ

Figure 1

www.BernardAssociatesLLC.com “Helping Clients Win” 4

ĐŽŵƉĞƟŶŐ ůĂƵŶĐŚ ƉƌŽĚƵĐƚ ƌ ĞƌŶĂƌĚ ƐĂLJƐ dŚĞLJǁŝůů ƚLJƉŝĐĂůůLJ ĞǀĂůƵĂƚĞ Ă ĐŽŵƉĞƟƚŽƌ Ɛ ƉƌŽĚƵĐƚƐƚƌĂƚĞŐLJ ƉŽƐŝƟŽŶŝŶŐ ŵĞƐƐĂŐŝŶŐ ĂŶĚ ŬĞLJ ƚĂĐƟĐƐƉĂƌƟĐƵůĂƌůLJƐĂůĞƐĨŽƌĐĞŶƵŵďĞƌƐĂŶĚĚĞƉůŽLJŵĞŶƚdŚŝƐŵĞƚŚŽĚŽůŽŐLJƐĞǀĞƌĞůLJůŝŵŝƚƐĂĐŽŵƉĂŶLJ ƐĮĞůĚŽĨǀŝƐŝŽŶĂŶĚŵŝƐƐĞƐƚŚĞĐƌŝƟĐĂůůLJŝŵƉŽƌƚĂŶƚŝŶƚĞƌĚĞƉĞŶĚĞŶĐŝĞƐĂŵŽŶŐ ƚŚĞ ĐŽŵƉĞƟƚŽƌƐ ƐƚĂŬĞŚŽůĚĞƌƐ ĂŶĚ ŽƚŚĞƌŵĂƌŬĞƚ ĨŽƌĐĞƐ DŽƌĞŽǀĞƌ ŝƚ ĨĂŝůƐ ƚŽ ŝŶĐŽƌƉŽƌĂƚĞ ĂĐŽŵƉĂŶLJ ƐŽǁŶƐƚƌĞŶŐƚŚƐĂŶĚǁĞĂŬŶĞƐƐĞƐƌĞůĂƟǀĞƚŽƚŚĞĐŽŵƉĞƟƚŽƌĂŶĚƚŚĞŵĂƌŬĞƚ

A more comprehensive approach includes both an external market assessment and an internal ĐŽƌƉŽƌĂƚĞĂŶĂůLJƐŝƐdŚĞĞdžƚĞƌŶĂůĂƐƐĞƐƐŵĞŶƚĐŽŶƐŝƐƚƐŽĨĂĐŽŵƉĞƟƟǀĞĂŶĂůLJƐŝƐĂƐƚĂŬĞŚŽůĚĞƌĂŶĂůLJƐŝƐĂŶĚĂ ŵĂƌŬĞƚ ĂŶĂůLJƐŝƐ dŚĞ ĐŽŵƉĞƟƟǀĞ ĂŶĂůLJƐŝƐ ƐŚŽƵůĚŝŶĐůƵĚĞ ŶŽƚ ŽŶůLJ ƚŚĞ ĞǀĂůƵĂƟŽŶ ŽĨ Ă ĐŽŵƉĞƟƟǀĞƉƌŽĚƵĐƚ Ɛ ĐůŝŶŝĐĂů ƉƌŽĮůĞ ĂŶĚ ůĂƵŶĐŚ ƉůĂŶƐ ďƵƚ ĂůƐŽĂ ƉƌŽĮůĞ ŽĨ ƚŚĞ ĐŽŵƉĞƟŶŐ ĐŽŵƉĂŶLJtŚĂƚ ĂƌĞ ƚŚĞŚŝƐƚŽƌŝĐĂů ƚĞŶĚĞŶĐŝĞƐ ŽĨ ƚŚĞ ĐŽŵƉĞƟŶŐ ĐŽŵƉĂŶLJ,ŽǁĚŽĞƐŝƚƚLJƉŝĐĂůůLJůĂƵŶĐŚƉŽƐŝƟŽŶŵĞƐƐĂŐĞĂŶĚƚĂƌŐĞƚ ŝƚƐ ƉƌŽĚƵĐƚƐ &Žƌ ĞdžĂŵƉůĞ ƐŽŵĞ ĐŽŵƉĂŶŝĞƐĐŽŶƐŝƐƚĞŶƚůLJ ƐĞĞŬ ƚŽ ƌĞƐŚĂƉĞ ƚŚĞŵĂƌŬĞƚ ƚŽ ƐĞƚ ƚŚĞstage for their products; other companies focus on ĐůŝŶŝĐĂů ŵĂƌŬĞƟŶŐ Žƌ ƉƌŝĐŝŶŐ ĚŝīĞƌĞŶƟĂƟŽŶ ŽƚŚĞƌƐƚƌLJ ƚŽ ŽǀĞƌǁŚĞůŵ ƚŚĞŝƌ ĐŽŵƉĞƟƟŽŶ ǁŝƚŚ ŚƵŐĞƉƌŽŵŽƟŽŶĂůŽƵƚůĂLJƐĂŶĚůĂƌŐĞƌƐĂůĞƐĨŽƌĐĞƐ

^ŽŵĞ ĐŽŵƉĂŶŝĞƐ ǁŝůů ĞǀĂůƵĂƚĞ ŚŽǁ ƚƌĂĚŝƟŽŶĂůƐƚĂŬĞŚŽůĚĞƌƐ ƐƵĐŚ ĂƐ ƉŚLJƐŝĐŝĂŶƐ ĐŽŶƐƵŵĞƌƐ ĂŶĚƉĂLJĞƌƐǁŝůů ƌĞƐƉŽŶĚ ƚŽ ƚŚĞ ůĂƵŶĐŚ ŽĨ Ă ĐŽŵƉĞƟƟǀĞƉƌŽĚƵĐƚƵƚƚŚĞƌĞĂƌĞŵĂŶLJĂĚĚŝƟŽŶĂůƐƚĂŬĞŚŽůĚĞƌƐǁŚŽ ŵĂLJ ŝŶŇƵĞŶĐĞ ƚŚĞ ĂĚŽƉƟŽŶ ƵƐĞ ƉĞƌĐĞƉƟŽŶor pricing of a launch product. Depending on the ƉƌŽĚƵĐƚƐ ĂŶĚ ŵĂƌŬĞƚƐ ƚŚĞƐĞ ƐƚĂŬĞŚŽůĚĞƌƐ ŵĂLJŝŶĐůƵĚĞŬĞLJŽƉŝŶŝŽŶůĞĂĚĞƌƐŚĞĂůƚŚĐĂƌĞƉƌŽĨĞƐƐŝŽŶĂůƐŽƚŚĞƌ ƚŚĂŶ ƉŚLJƐŝĐŝĂŶƐ ƚŚĞ ŵĞĚŝĂ ƉŽůŝƟĐŝĂŶƐƉĂƟĞŶƚ ĂĚǀŽĐĂĐLJ ŐƌŽƵƉƐ ĚŝƐƚƌŝďƵƚŽƌƐ ĂŶĚ ŽƚŚĞƌƐDĂƌŬĞƚĨĂĐƚŽƌƐƐƵĐŚĂƐƌĞĐĞŶƚƌĞŐƵůĂƚŽƌLJĐŚĂŶŐĞƐŽƌƚĞĐŚŶŽůŽŐŝĐĂůĚĞǀĞůŽƉŵĞŶƚƐŵĂLJĂůƐŽƉůĂLJĂ ƌŽůĞ ŝŶƚŚĞ ůĂƵŶĐŚ ŽĨ Ă ĐŽŵƉĞƟŶŐ ƉƌŽĚƵĐƚ Ŷ ĂƐƐĞƐƐŵĞŶƚŽĨŽŶĞ ƐŽǁŶĐŽŵƉĂŶLJ ƐĐĂƉĂďŝůŝƟĞƐƚĞŶĚĞŶĐŝĞƐĂŶĚǀƵůŶĞƌĂďŝůŝƟĞƐŝƐĂůƐŽĞƐƐĞŶƟĂů

KŶĐĞ ƚŚĞ ĂŶĂůLJƐĞƐ ĂƌĞ ĐŽŵƉůĞƚĞĚ ƚŚĞ ĐŽƵŶƚĞƌͲ

ůĂƵŶĐŚ ƚĞĂŵ ƐŚŽƵůĚ ƐLJŶƚŚĞƐŝnjĞ ĂŶĚ ƐƵŵŵĂƌŝnjĞ ƚŚĞĮŶĚŝŶŐƐ ĨŽĐƵƐŝŶŐŽŶ ƚŚĞ ŬĞLJŽƉƉŽƌƚƵŶŝƟĞƐ ƚŚƌĞĂƚƐĂŶĚ ƉŽƚĞŶƟĂů ĂĐƟŽŶ ƐƚĞƉƐ ĨŽƌ ƚŚĞ ĚĞĨĞŶĚŝŶŐ ďƌĂŶĚĂŶĚĐŽŵƉĂŶLJƌ ĞƌŶĂƌĚŽƵƚůŝŶĞƐEĞdžƚĐŽƵŶƚĞƌͲůĂƵŶĐŚƚĞĂŵƐƐŚŽƵůĚĐŽŶĚƵĐƚĂĐŽŵƉĞƟƟǀĞƐŝŵƵůĂƟŽŶƚŽƚĞƐƚ ƚŚĞƐĞƉŽƚĞŶƟĂůƐƚƌĂƚĞŐŝĞƐ ƚĂĐƟĐƐĂŶĚĂĐƟŽŶsteps.” ŽŵƉĞƟƟǀĞ ƐŝŵƵůĂƟŽŶƐ ĂƌĞ ŵŽƌĞ ƌĞĂůŝƐƟĐ ŵŽƌĞĐƵƐƚŽŵŝnjĞĚĂŶĚŵŽƌĞĞŶŐĂŐŝŶŐƚŚĂŶƚƌĂĚŝƟŽŶĂůǁĂƌŐĂŵĞƐ hŶůŝŬĞ ǁĂƌ ŐĂŵĞƐ ĐŽŵƉĞƟƟǀĞ ƐŝŵƵůĂƟŽŶƐŝŶĐŽƌƉŽƌĂƚĞ ŵƵůƟƉůĞ ĐŽŵƉĞƟƚŽƌƐ ĐƵƐƚŽŵĞƌƐĂŶĚ ƐƚĂŬĞŚŽůĚĞƌƐ dŚĞLJ ĂůƐŽ ƐŝŵƵůĂƚĞ ĂŶĚ ƚĞƐƚ ĂĐŽŵƉĞƟƚŽƌ ƐŽǀĞƌĂůů ůĂƵŶĐŚƉůĂŶĂŶĚ ƚŚĞ ĐŽŵƉĂŶLJ ƐĐŽƵŶƚĞƌͲůĂƵŶĐŚ ƉůĂŶ ŶŽƚ ũƵƐƚ Ă ƐŝŶŐůĞ ƉƌŽŵŽƟŽŶĂůƚĂĐƟĐ ƐƵĐŚ ĂƐ ƉŚLJƐŝĐŝĂŶ ĚĞƚĂŝůŝŶŐ ŽŵƉĞƟƟǀĞƐŝŵƵůĂƟŽŶƐ ĐĂŶ ďĞ ĐƵƐƚŽŵŝnjĞĚ ƚŽ ĂĚĚƌĞƐƐ ƚŚĞŵŽƐƚimportant counter-launch issues, such as various ŵĂƌŬĞƚƐĐĞŶĂƌŝŽƐĂŶĚƉƌŝĐŝŶŐŽƉƟŽŶƐĂŶĚƚŽĐĂƉƚƵƌĞǀĂůƵĂďůĞ ĨĞĞĚďĂĐŬ ĨƌŽŵ ŬĞLJ ĐƵƐƚŽŵĞƌƐ ĂŶĚ ŽƚŚĞƌƐƚĂŬĞŚŽůĚĞƌƐŽŵƉĞƟƟǀĞƐŝŵƵůĂƟŽŶƐĂůƐŽƵƐĞŵƵĐŚmore engaging, relevant, and appropriate themes ƚŚĂŶďĂƩůĞƐŽƌƐŬŝƌŵŝƐŚĞƐ

tŚŝůĞ ŵĂŶLJ ŵĂƌŬĞƚĞƌƐ ĂŶĚ ďƌĂŶĚ ŵĂŶĂŐĞƌƐ ŶŽǁĐŽŶĚƵĐƚ ĐŽŵƉĞƟƟǀĞ ƐŝŵƵůĂƟŽŶƐ ĨŽƌ ůĂƵŶĐŚŝŶŐ ƚŚĞŝƌŽǁŶƉƌŽĚƵĐƚƐ ƌĞůĂƟǀĞůLJ ĨĞǁĐŽŶĚƵĐƚ ƐŝŵƵůĂƟŽŶƐ ƚŽprepare their teams to preempt and defend their market against intrusion from a new product,” Dr. ĞƌŶĂƌĚ ƐĂLJƐ /ŶŵLJ ĞdžƉĞƌŝĞŶĐĞ ƚŚĞƌĞ ŝƐ ŶŽ ďĞƩĞƌƚLJƉĞ ŽĨ ŵĂƌŬĞƚ ƌĞƐĞĂƌĐŚ Žƌ ƚĞĂŵ ƉƌĞƉĂƌĂƟŽŶ ƚŚĂƚenables brand teams to test counter-launch strategies ĂŶĚƚĂĐƟĐƐ

KhEdZͳ>hE,W>EE/E'dŚĞ ĮŶĂů ƐƚĞƉ ŝŶ ƉƌĞƉĂƌŝŶŐ Ă ĐŽƵŶƚĞƌͲůĂƵŶĐŚ ŝƐ ƚŚĞplanning phase. Dr. Bernard asserts that there are two general rules for counter-launch planning. “First, ĚŽŶŽƚĮŐŚƚƵŶůĞƐƐLJŽƵŚĂǀĞƚŽĮŐŚƚ ŚĞƐĂLJƐdŚĞƌĞĂƌĞƐĞǀĞƌĂůǁĂLJƐƚŽĂǀŽŝĚĂĮŐŚƚƐƵĐŚĂƐƌĞĚŝƌĞĐƟŶŐĐŽŵƉĞƟƚŽƌƐ ƚŽ ŽƚŚĞƌ ĚŝƐĞĂƐĞ ƐƚĂƚĞƐ Žƌ ŵĂƌŬĞƚĞĚƉƌŽĚƵĐƚƐ Žƌ ĚĞƉůŽLJŝŶŐ ůĞŐĂů ŵĂŶĞƵǀĞƌƐ ƚŽ ƉƌĞǀĞŶƚĐŽŵƉĞƟƚŽƌƐĨƌŽŵĞŶƚĞƌŝŶŐLJŽƵƌŵĂƌŬĞƚ&ŽƌĞdžĂŵƉůĞŵŐĞŶ ƚŽ ĚĂƚĞ ŚĂƐ ƉƌŽƚĞĐƚĞĚ ŝƚƐ ŵƵůƟďŝůůŝŽŶ ĚŽůůĂƌ

Figure 2:^>dyDW>^K&KhEdZͳ>hE,d/KE^KīĞŶƐŝǀĞWƌŽĂĐƟǀĞ^ƚĞƉƐ ĞĨĞŶƐŝǀĞZĞĂĐƟǀĞ^ƚĞƉƐ

ŽŵƉĞƟƟǀĞWƌŽĚƵĐƚWƌĞƉŽƐŝƟŽŶŝŶŐ ĂƐĞĞĨĞŶƐĞ;ĞŐDĂƌŬĞƚ^ĞŐŵĞŶƚĞŶŝĂůͿ>ĞŐĂůDĂŶĞƵǀĞƌƐ ,ŝŐŚ^ǁŝƚĐŚŝŶŐŽƐƚƐĂƉĂĐŝƚLJ>ŽĐŬŽƵƚƐ ^ĂůĞƐĨŽƌĐĞƵŐŵĞŶƚĂƟŽŶWƌŽƉƌŝĞƚĂƌLJdĞĐŚŶŽůŽŐŝĞƐ ŶŚĂŶĐĞĚWƌŽŵŽƟŽŶĂů^ƉĞŶĚŝŶŐDĂƌŬĞƚͲĞƚĞƌƌŝŶŐŽŵŵƵŶŝĐĂƟŽŶƐ dŚƌĞĂƚŽĨZĞƚĂůŝĂƟŽŶ

www.BernardAssociatesLLC.com “Helping Clients Win” 5

ĂŶĞŵŝĂĚƌƵŐ ĨƌĂŶĐŚŝƐĞ ŝŶ ƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐďLJĮůŝŶŐa patent infringement lawsuit to prevent Roche from ŝŶƚƌŽĚƵĐŝŶŐŝƚƐŶĞǁĂŐĞŶƚDŝƌĐĞƌĂdŚĞƐĞĐŽŶĚƌƵůĞŝƐƚŚĂƚŝĨLJŽƵŚĂǀĞƚŽĮŐŚƚƉŝĐŬƚŚĞĂĐƟŽŶƐƉůĂĐĞĂŶĚƟŵŝŶŐ ƚŚĂƚ ƉƌŽǀŝĚĞ LJŽƵƌ ƉƌŽĚƵĐƚ ǁŝƚŚ ďĞƐƚ ĐŚĂŶĐĞŽĨƐƵĐĐĞƐƐDŽƐƚĐŽŵƉĂŶŝĞƐƵƐĞĚĞĨĞŶƐŝǀĞƐƚĞƉƐŽƌĞŶƚƌLJ ďĂƌƌŝĞƌƐ ƐƵĐŚ ĂƐ ĞŶŚĂŶĐĞĚ ƐĂůĞƐĨŽƌĐĞƐ ƉƌŝĐĞƌĞĚƵĐƟŽŶƐ Žƌ ŚŝŐŚ ƉƌŽĚƵĐƚ ƐǁŝƚĐŚŝŶŐ ĐŽƐƚƐ ƌ ĞƌŶĂƌĚ ĐŽŶƟŶƵĞƐ Ƶƚ ƌĞůĂƟǀĞůLJ ĨĞǁ ĐŽŵƉĂŶŝĞƐƚĂŬĞ ĂƐƐĞƌƟǀĞ Žƌ ƉƌŽĂĐƟǀĞ ĂĐƟŽŶƐ ƚŽ ƉƌĞĞŵƉƚ ĂŶĚƵŶĚĞƌŵŝŶĞĂĐŽŵƉĞƟƚŽƌ ƐůĂƵŶĐŚ

&Žƌ ĞdžĂŵƉůĞ ƐŽŵĞƉŚĂƌŵĂĐĞƵƟĐĂů ĐŽŵƉĂŶŝĞƐ ŚĂǀĞƵŶĚĞƌƚĂŬĞŶ ƟŵĞůLJ ĐĂƉĂĐŝƚLJ ůŽĐŬͲƵƉƐ ďLJ ƉƵƌƉŽƐĞůLJŽĐĐƵƉLJŝŶŐŬĞLJĐůŝŶŝĐĂů ƌĞƐĞĂƌĐŚĞƌƐ ƌĞƐĞĂƌĐŚƐŝƚĞƐŽƌƐƚƵĚLJ ƉĂƟĞŶƚƐ ŬĞLJŵĂŶƵĨĂĐƚƵƌŝŶŐ ƉůĂŶƚƐ Žƌ ƐĐĂƌĐĞraw materials. Other companies have leveraged ƉƌŽƉƌŝĞƚĂƌLJƚĞĐŚŶŽůŽŐŝĞƐƚŽƉƌĞĞŵƉƚŶĞǁĐŽŵƉĞƟƚŽƌƐ'ĞŶĞŶƚĞĐŚ Ɛ ďƌĞĂƐƚ ĐĂŶĐĞƌ ĂŐĞŶƚ ,ĞƌĐĞƉƟŶ ƚŚĞĮƌƐƚ ĐŽŵƉŽƵŶĚ ŝŶ ŝƚƐ ĐůĂƐƐ ŚĂƐ ďĞĞŶ ĐŽŵďŝŶĞĚǁŝƚŚ ƚŚĞ ,ĞƌĐĞƉdĞƐƚ ĂŶĚ ŽƚŚĞƌ ,ĞƌĐĞƉƟŶͲƐƉĞĐŝĮĐƉŚĂƌŵĂĐŽŐĞŶĞƟĐƚĞƐƚƐǁŚŝĐŚŝĚĞŶƟĨLJǁŚŝĐŚƉĂƟĞŶƚƐǁŝůů ƌĞƐƉŽŶĚ ĨĂǀŽƌĂďůLJ ŽŶůLJ ƚŽ ƚŚĞ ĚƌƵŐ ,ĞƌĐĞƉƟŶŽŶƐĞƋƵĞŶƚůLJ ŶĞǁĞƌĂŐĞŶƚƐŚĂǀĞďĞĞŶƌĞůĞŐĂƚĞĚƚŽƐĞĐŽŶĚͲůŝŶĞŽƉƟŽŶƐ

DŽƐƚ ƉŚĂƌŵĂĐĞƵƟĐĂů ĐŽŵƉĂŶŝĞƐ ǁĂŝƚ ƵŶƟů ĂĐŽŵƉĞƟƚŽƌ ůĂƵŶĐŚĞƐ ŝƚƐ ƉƌŽĚƵĐƚ ďĞĨŽƌĞ ĚĞĨĞŶĚŝŶŐƚŚĞŝƌŵĂƌŬĞƚĞĚƉƌŽĚƵĐƚ/ƌŽŶŝĐĂůůLJ ƚŚĞůĂƵŶĐŚƉĞƌŝŽĚŝƐ ƚŚĞ ƟŵĞ ǁŚĞŶ ĐŽŵƉĞƟƚŽƌƐ ĂƌĞ ŝŶ ƚŚĞ ƐƚƌŽŶŐĞƐƚƉŽƐƐŝďůĞƉŽƐŝƟŽŶƚŚĞLJĂƌĞŵŽƐƚƌĞĂĚLJ ďĞƐƚƌĞƐŽƵƌĐĞĚĂŶĚŵŽƐƚ ĂďůĞ ƚŽ ƐĞůĞĐƚ ƚŚĞŝƌ ďĞƐƚ ďĂƩůĞŐƌŽƵŶĚ ĨŽƌĂƩĂĐŬ

/ŶĐƵŵďĞŶƚ ĐŽŵƉĂŶŝĞƐ ƐŚŽƵůĚ ĂĐƟǀĞůLJ ƵŶĚĞƌŵŝŶĞmarket challengers in their pre-launch period, when ƚŚĞLJĂƌĞǁĞĂŬĞƐƚĂŶĚŵŽƐƚǀƵůŶĞƌĂďůĞ ƌ ĞƌŶĂƌĚƐĂLJƐ /Ŷ ƚŚĞ ƉƌĞůĂƵŶĐŚ ƉĞƌŝŽĚ ƉƌĞͲŵĂƌŬĞƚĞĚƉƌŽĚƵĐƚƐ ĂƌĞ ĞdžƚƌĞŵĞůLJ ůŝŵŝƚĞĚ ŝŶ ƚŚĞŝƌ ŵĞƐƐĂŐŝŶŐĂŶĚ ƉƌŽŵŽƟŽŶƐ ƚŚĞ ůĞĂƐƚ ƉƌĞƉĂƌĞĚ ĂŶĚ ƚŚĞ ůĞĂƐƚĞdžƉĞƌŝĞŶĐĞĚ &Žƌ ŝŶƐƚĂŶĐĞ ĂƐ ĚŝƐĐƵƐƐĞĚ ŝŶŝƟĂůůLJ WĮnjĞƌ Ɛ>ŝƉŝƚŽƌďƌĂŶĐŚƚĞĂŵƵŶĚĞƌŵŝŶĞĚƐƚƌĂĞŶĞĐĂ ƐƌĞƐƚŽƌĚƵƌŝŶŐŝƚƐƉƌĞůĂƵŶĐŚƉŚĂƐĞďLJƉƌĞƉŽƐŝƟŽŶŝŶŐŝƚǁŝƚŚŬĞLJŽƉŝŶŝŽŶůĞĂĚĞƌƐĂŶĚŽƚŚĞƌƐƚĂŬĞŚŽůĚĞƌƐ

DŽƌĞŝŵƉŽƌƚĂŶƚůLJ ďĞĐĂƵƐĞWĮnjĞƌĂĐƚĞĚĞĂƌůLJŝŶƐƚĞĂĚŽĨǁĂŝƟŶŐƵŶƟůƌĞƐƚŽƌůĂƵŶĐŚĞĚŝƚǁĂƐŝŶĂƉŽƐŝƟŽŶƚŽ ƐĞůĞĐƚ ƚŚĞ ŵĂƌŬĞƟŶŐ ďĂƩůĞŐƌŽƵŶĚ ƚŚĞ ƐĂĨĞƚLJƉƌŽĮůĞŽĨƚŚĞƚǁŽƐƚĂƟŶƉƌŽĚƵĐƚƐǁŚĞƌĞ>ŝƉŝƚŽƌŚĂĚĂŶĂĚǀĂŶƚĂŐĞ ŝŶƐƚĞĂĚ ŽĨ ĐŚŽůĞƐƚĞƌŽůͲůŽǁĞƌŝŶŐ ĞĸĐĂĐLJ where Crestor had the upper hand,” Dr. Bernard ĐŽŶƟŶƵĞƐ ŽƵŶƚĞƌͲůĂƵŶĐŚƉůĂŶŶĞƌƐ ƐŚŽƵůĚ ŝĚĞŶƟĨLJƚŚĞ ďĞƐƚ ĐŽŵƉĞƟƟǀĞ ĂĚǀĂŶƚĂŐĞ ĨŽƌ ƉƌĞͲĞŵƉƟǀĞƐƚƌŝŬĞƐĂŐĂŝŶƐƚĐŽŵƉĞƟƚŽƌƐ ůĂƵŶĐŚŝŶŐĂƉƌŽĚƵĐƚdŚĞƉƌĞĨĞƌƌĞĚďĂƩůĞŐƌŽƵŶĚĐĂŶƌĞĨĞƌƚŽĂŵĂƌŬĞƚƐĞŐŵĞŶƚ

Ă ĐůŝŶŝĐĂů ƉĂƌĂŵĞƚĞƌ Žƌ Ă ƐƚĂŬĞŚŽůĚĞƌͲƐƉĞĐŝĮĐ ŝƐƐƵĞ/ĚĞĂůůLJ ĐŽƵŶƚĞƌͲůĂƵŶĐŚ ŵĂŶĂŐĞƌƐ ƐŚŽƵůĚ ƐĞĞŬ ƚŽĐŽƵŶƚĞƌͲůĂƵŶĐŚǁŚĞƌĞŝƚƐƉůĂŶŶĞĚĂĐƟŽŶƐƉůĂĐĞĂŶĚƟŵŝŶŐŽǀĞƌůĂƉ ƚŚĞ ĐŽƵŶƚĞƌͲůĂƵŶĐŚ njŽŶĞǁŚĞƌĞ ƚŚĞĚĞĨĞŶĚŝŶŐ ĐŽŵƉĂŶLJ ŚĂƐ ƚŚĞ ŽƉƟŵĂů ŽƉƉŽƌƚƵŶŝƚLJ ƚŽƉƌŽƚĞĐƚŝƚƐĐŽŵƉĞƟƟǀĞĂĚǀĂŶƚĂŐĞƐ ^ĞĞ&ŝŐƵƌĞϭ

,ĂǀĞ LJŽƵ ĞǀĞƌ ǁŽŶĚĞƌĞĚ ǁŚLJ WƌŽĐƚŽƌ Θ 'ĂŵďůĞƐĞůůƐ ŶŝŶĞĚŝīĞƌĞŶƚďƌĂŶĚƐŽĨ ůĂƵŶĚƌLJĚĞƚĞƌŐĞŶƚ /ƚ ƐďĞĐĂƵƐĞWΘ'ǁŚŝĐŚŚĞůƉĞĚĞƐƚĂďůŝƐŚƚŚĞĐŽŵŵĞƌĐŝĂůƉŽǁĞƌŽĨŝŶĚŝǀŝĚƵĂůďƌĂŶĚƐƌĞĐŽŐŶŝnjĞƐƚŚĞĂĚǀĂŶƚĂŐĞŽĨĐŽŵƉĞƟŶŐǁŝƚŚŵƵůƟƉůĞďƌĂŶĚƐŝŶĂƐŝŶŐůĞĐŽŶƐƵŵĞƌĐĂƚĞŐŽƌLJdŚĞĐŽŵƉĂŶLJ ƐŐŽĂůŝƐŶŽƚƐŝŵƉůLJƚŽŚĂǀĞƚŚĞƐŝŶŐůĞďĞƐƚͲƐĞůůŝŶŐďƌĂŶĚƚŚĞLJǁĂŶƚƚŽŵĂdžŝŵŝnjĞƚŚĞŝƌƚŽƚĂůƐĂůĞƐďLJŽǁŶŝŶŐƚŚĞƉƌŽĚƵĐƚĐĂƚĞŐŽƌLJ

^ŝŵŝůĂƌůLJ DĂƌƌŝŽƩ ŐĂŝŶƐ ĐŽŵƉĞƟƟǀĞ ĂĚǀĂŶƚĂŐĞ ďLJŽīĞƌŝŶŐ Ă ƉŽƌƞŽůŝŽ ŽĨ ƚŚŝƌƚĞĞŶ ĚŝīĞƌĞŶƚ ƚLJƉĞƐ ŽĨůŽĚŐŝŶŐƐ ƌĂŶŐŝŶŐ ĨƌŽŵƚŚĞ ůŽǁĞƌͲĞŶĚ&ĂŝƌĮĞůĚ /ŶŶ ƚŽůƵdžƵƌLJŚŽƚĞůŝĞƌZŝƚnjͲĂƌůƚŽŶdŚĞtĂůƚŝƐŶĞLJŽŵƉĂŶLJŚĂƐůĞǀĞƌĂŐĞĚŝƚƐŶĂŵĞƚŽƐĞůůŶŽƚŽŶůLJŵŽǀŝĞƐďƵƚĂůƐŽamusement parks, hotels, television shows, consumer ƉƌŽĚƵĐƚƐ ƚŽLJƐ ĂŶĚ ƌŽĂĚǁĂLJ ƐŚŽǁƐ ĂŵŽŶŐ ŽƚŚĞƌƚŚŝŶŐƐtŚŝůĞĞĂĐŚŽĨƚŚĞƐĞĐŽŵƉĂŶŝĞƐŽīĞƌƐĂƐƚƌŽŶŐŝŶĚŝǀŝĚƵĂůďƌĂŶĚ ƚŚĞLJŐĂŝŶ ƐŝŐŶŝĮĐĂŶƚĂĚǀĂŶƚĂŐĞƐďLJĐŽŵƉĞƟŶŐ ĂƚŵƵůƟƉůĞ ůĞǀĞůƐ ďĞLJŽŶĚ ƚŚĞŝƌ ŝŶĚŝǀŝĚƵĂůbrand.

>ŝŬĞƚŚŽƐĞĐŽŵƉĂŶŝĞƐƉŚĂƌŵĂĐĞƵƟĐĂůĐŽŵƉĂŶŝĞƐĂƌĞŝŶĐƌĞĂƐŝŶŐůLJ ƵƐŝŶŐ DƵůƟͲ>ĞǀĞů ŽŵƉĞƟƟŽŶ ;D>ͿƚŚĞ ƉƌŽĐĞƐƐ ŽĨ ĐŽŵŵĞƌĐŝĂůŝnjŝŶŐ ƐŝŵŝůĂƌ Žƌ ƌĞůĂƚĞĚƉƌŽĚƵĐƚƐ ĂŶĚ ĂƐƐŽĐŝĂƚĞĚ ŽīĞƌŝŶŐƐ ĂĐƌŽƐƐ ƚŚĞ ďƌĂŶĚĨƌĂŶĐŚŝƐĞ ƉŽƌƞŽůŝŽ ĂŶĚŽƌ ĐŽƌƉŽƌĂƚĞ ůĞǀĞůƐ ƚŽ ŐĂŝŶŵĂƌŬĞƚĂĚǀĂŶƚĂŐĞƐĂŶĚƚŽŽƉƟŵŝnjĞƐĂůĞƐƐŚĂƌĞƐĂŶĚƉƌŽĮƚĂďŝůŝƚLJ ĨŽƌ ƚŚĞ ĐŽŵƉĂŶLJ dŚĞ ŽďũĞĐƟǀĞ ŽĨ D>ŝƐƚŽĨŽƌĐĞLJŽƵƌĐŽŵƉĞƟƚŽƌƐƚŽĐŽŵƉĞƚĞŽŶƚŚĞ ůĞǀĞůŽƌ ůĞǀĞůƐ ǁŚĞƌĞ LJŽƵƌ ĐŽŵƉĂŶLJ ŚĂƐ ƚŚĞ ĂĚǀĂŶƚĂŐĞdŚŝƐ ĐŽůƵŵŶ ŚŝŐŚůŝŐŚƚƐ ĞdžĂŵƉůĞƐ ŽĨ ƉŚĂƌŵĂĐĞƵƟĐĂů

ĐŽŵƉĂŶŝĞƐ ĚĞƉůŽLJŝŶŐ D> ŝĚĞŶƟĮĞƐ ƐŽŵĞ ŽĨ ƚŚĞadvantages of this approach, and outlines steps for ĂƉƉůLJŝŶŐD>

W,ZDdhZE^dKD>WƌŽŐƌĞƐƐŝǀĞƉŚĂƌŵĂĐĞƵƟĐĂůĐŽŵƉĂŶŝĞƐĂƌĞŝŶĐƌĞĂƐŝŶŐůLJƵƐŝŶŐŵƵůƟͲůĞǀĞůĐŽŵƉĞƟƟŽŶƚŽĚƌŝǀĞďƵƐŝŶĞƐƐďĞLJŽŶĚthe brand level. This includes taking measures at the ĨƌĂŶĐŚŝƐĞƉŽƌƞŽůŝŽĂŶĚĐŽƌƉŽƌĂƚĞůĞǀĞůƐ

&ƌĂŶĐŚŝƐĞ >ĞǀĞů ;ƐŝŶŐůĞ ƚŚĞƌĂƉĞƵƟĐ ĂƌĞĂ Žƌ ĚŝƐĞĂƐĞƐƚĂƚĞͿ Ɛ ƚŚĞ ǁŽƌůĚ Ɛ ůĞĂĚŝŶŐ ƉƌŽĚƵĐĞƌ ŽĨ ŝŶƐƵůŝŶ ďLJǀŽůƵŵĞ EŽǀŽ EŽƌĚŝƐŬ Ɛ ĚŝĂďĞƚĞƐ ĨƌĂŶĐŚŝƐĞ ĐŽǀĞƌƐƚŚĞ ĨƵůů ƌĂŶŐĞŽĨ ŝŶƐƵůŝŶĂŶĂůŽŐƵĞƐŽƌĂůĂŶƟͲĚŝĂďĞƟĐĚƌƵŐƐ ĂŶĚ ƚŚĞ ŶĞǁ'>WͲϭ ĐŽŵƉŽƵŶĚ sŝĐƚŽnjĂ EŽǀŽĐŽŵƉůĞŵĞŶƚƐ ŝƚƐ ĨƌĂŶĐŚŝƐĞ ǁŝƚŚ ĂŶ ŝŶĚƵƐƚƌLJͲůĞĂĚŝŶŐůŝŶĞŽĨĚĞůŝǀĞƌLJƉĞŶƐĂŶĚĚĞǀŝĐĞƐĂƐǁĞůůĂƐĚŝĂďĞƚĞƐĞĚƵĐĂƟŽŶ ĂŶĚ ƐƵƉƉŽƌƚ ƉƌŽŐƌĂŵƐ LJ ϮϬϭϰ EŽǀŽŝƐ ƉƌŽũĞĐƚĞĚ ƚŽ ŚĂǀĞ Ă Ϯϳ ƉĞƌĐĞŶƚ ƐŚĂƌĞ ŽĨ ƚŚĞ ĂŶƟͲĚŝĂďĞƟĐ ŐůŽďĂů ŵĂƌŬĞƚ ƚŚĞ ƐĞĐŽŶĚ ŚŝŐŚĞƐƚ ƐŚĂƌĞĚŽŵŝŶĂŶĐĞŽĨĂŶLJŵĂũŽƌĐŚƌŽŶŝĐĐĂƌĞŵĂƌŬĞƚ

ďďŽƩŚĂƐƌĞĐĞŶƚůLJƐƚĂƌƚĞĚĐŽŵƉĞƟŶŐĂƚƚŚĞĨƌĂŶĐŚŝƐĞůĞǀĞů ŝŶ ƚŚĞ ĐŚŽůĞƐƚĞƌŽů ŵĂƌŬĞƚ ďďŽƩ ŚĂƐ ĨŽĐƵƐĞĚŽŶ ĐƌĞĂƟŶŐ ƚŚĞ ǁŽƌůĚ Ɛ ŵŽƐƚ ĞdžƚĞŶƐŝǀĞ ĐŚŽůĞƐƚĞƌŽůĨƌĂŶĐŚŝƐĞƵƐŝŶŐǀĂƌŝŽƵƐĐŽŵďŝŶĂƟŽŶƐŽĨĮďƌĂƚĞŶŝĂĐŝŶĂŶĚƐƚĂƟŶƉƌŽĚƵĐƚƐĐĐŽƌĚŝŶŐƚŽ:ŽŚŶdŚŽŵĂƐďďŽƩǀŝĐĞƉƌĞƐŝĚĞŶƚ tŝƚŚdƌŝŽƌ EŝĂƐƉĂŶ ŝŵĐŽƌ dͲϯϯϱĂŶĚŽƵƌĐŽŵďŝŶĂƟŽŶƉƌŽĚƵĐƚǁŝƚŚƌĞƐƚŽƌ ďďŽƩ ƐŐƌŽǁŝŶŐ ĐŚŽůĞƐƚĞƌŽů ĨƌĂŶĐŚŝƐĞ ŚĂƐ ƚŚĞ ƉŽƚĞŶƟĂů ƚŽ

Increasingly, pharma companies are expanding from brand vs. brand to battle at the franchise, portfolio, and corporate levels

MuLti-LeveL coMPetition

www.BernardAssociatesLLC.com “Helping Clients Win” 6

ŝŶĐůƵĚĞĂƚůĞĂƐƚĮǀĞƵŶŝƋƵĞƚŚĞƌĂƉŝĞƐďLJϮϬϭϬ

WŽƌƞŽůŝŽ >ĞǀĞů ;ŵƵůƟƉůĞ ĚŝƐĞĂƐĞ ƐƚĂƚĞƐͿ Roche ĐŽŵƉůĞƚĞĚƚŚĞĂĐƋƵŝƐŝƟŽŶŽĨ'ĞŶĞŶƚĞĐŚƚŽĞŶŚĂŶĐĞƚŚĞ ŝŶĚƵƐƚƌLJ Ɛ ƐƚƌŽŶŐĞƐƚ ŽŶĐŽůŽŐLJ ƉŽƌƞŽůŝŽ ǁŚŝĐŚŶŽǁŝŶĐůƵĚĞƐĮǀĞŝŶŶŽǀĂƟǀĞĐĂŶĐĞƌƉƌŽĚƵĐƚƐ;ǀĂƐƟŶ,ĞƌĐĞƉƟŶyĞůŽĚĂDĂďdŚĞƌĂĂŶĚdĂƌĐĞǀĂͿĂĚũƵǀĂŶƚagents, various tumor markers, and a range of ŵŽůĞĐƵůĂƌŽŶĐŽůŽŐLJƚĞƐƚƐĐĐŽƌĚŝŶŐŵĂƌŬĞƚƌĞƐĞĂƌĐŚĮƌŵ ǀĂůƵĂƚĞWŚĂƌŵĂ ďLJ ϮϬϭϰ ZŽĐŚĞ ǁŝůů ŚĂǀĞ ƚŚĞŵŽƐƚĚŽŵŝŶĂŶƚƐŝŶŐůĞƉŽƌƞŽůŝŽŝŶƚŚĞƉŚĂƌŵĂĐĞƵƟĐĂůŝŶĚƵƐƚƌLJƐĂůĞƐŽĨŝƚƐŽŶĐŽůŽŐLJƉƌŽĚƵĐƚƐĂƌĞƉƌŽũĞĐƚĞĚƚŽ ƌĞĂĐŚ ΨϮϴϯ ďŝůůŝŽŶ ƌĞƉƌĞƐĞŶƟŶŐ Ă ŵĂƐƐŝǀĞ ϯϴƉĞƌĐĞŶƚŽĨ ƚŚĞΨϳϱďŝůůŝŽŶĐĂŶĐĞƌŵĂƌŬĞƚDŽƌĞŽǀĞƌ ZŽĐŚĞ Ɛ ƉŝƉĞůŝŶĞ ŽĨ ϴϴ ŽŶĐŽůŽŐLJͲƌĞůĂƚĞĚ ƉƌŽĚƵĐƚƐ ŝƐŶĞĂƌůLJĚŽƵďůĞƚŚĞŶƵŵďĞƌŽĨŝƚƐĐŽŵƉĞƟƚŽƌƐ

ůƌĞĂĚLJĂŵŽŶŐƚŚĞƚŽƉƚŚƌĞĞǀĂĐĐŝŶĞŵĂŶƵĨĂĐƚƵƌĞƌƐ'ůĂdžŽ^ŵŝƚŚ<ůŝŶĞ ;'^<Ϳ ŝƐ ƐĞĞŬŝŶŐ ƚŽ ůĞĂƉĨƌŽŐ ŝƚƐĐŽŵƉĞƟƚŽƌƐ ďLJ ĚĞǀĞůŽƉŝŶŐ ƚŚĞ ǁŽƌůĚ Ɛ ďƌŽĂĚĞƐƚǀĂĐĐŝŶĞƉŽƌƞŽůŝŽdŚĞĐŽŵƉĂŶLJĐƵƌƌĞŶƚůLJŵĂƌŬĞƚƐϯϬvaccines, and has 25 more in clinical development. In ϮϬϬϴ'^<ĚŝƐƚƌŝďƵƚĞĚϭϭďŝůůŝŽŶĚŽƐĞƐŽĨǀĂĐĐŝŶĞƐͶƚŚĂƚ ƐϯŵŝůůŝŽŶĚŽƐĞƐƉĞƌĚĂLJĂƌŽƵŶĚƚŚĞǁŽƌůĚ

ŽƌƉŽƌĂƚĞ>ĞǀĞů;ŵƵůƟƉůĞĚŝƐĞĂƐĞŚĞĂůƚŚƐĞŐŵĞŶƚƐͿ hŶůŝŬĞ ŵŽƌĞ ŵĂƚƵƌĞ ŝŶĚƵƐƚƌŝĞƐ ŶŽŶĞ ŽĨ ƚŚĞ ŵĂũŽƌƉŚĂƌŵĂĐĞƵƟĐĂůĐŽŵƉĂŶŝĞƐ ƚŽĚĂƚĞŚĂƐ ƚƌƵůLJĂƉƉůŝĞĚD> Ăƚ ƚŚĞ ĐŽƌƉŽƌĂƚĞ ůĞǀĞů :ŽŚŶƐŽŶ Θ :ŽŚŶƐŽŶ ŝƐƉĞƌŚĂƉƐďĞƐƚƉŽƐŝƟŽŶĞĚƚŽĚŽƐŽďĞĐĂƵƐĞŽĨŝƚƐƐƚƌŽŶŐĐŽƌƉŽƌĂƚĞďƌĂŶĚŶĂŵĞĂŶĚƉƌŽĚƵĐƚĚŝǀĞƌƐŝƚLJ

sEd'^K&D>WƌŽĚƵĐƚ ŽͲWŽƐŝƟŽŶŝŶŐ ĂŶĚ ^ĞŐŵĞŶƚĂƟŽŶ Proctor Θ'ĂŵďůĞŝĚĞŶƟĮĞĚŶŝŶĞĚŝīĞƌĞŶƚůĂƵŶĚƌLJĚĞƚĞƌŐĞŶƚƐĞŐŵĞŶƚƐĞĂĐŚǁŝƚŚƵŶŝƋƵĞŶĞĞĚƐĂŶĚŚĂƐĚŝƐƟŶĐƚůLJƉŽƐŝƟŽŶĞĚ ĞĂĐŚ ďƌĂŶĚ ;ŽůĚ ŚĞĞƌ ĂƐŚ ƌĞŌƌĂ'ĂŝŶ/ǀŽƌLJ^ŶŽǁKdžLJĚŽůĂŶĚdŝĚĞͿƚŽŵĞĞƚƚŚĞneeds of these segments. For example, with a tag-ůŝŶĞŽĨŐĞŶƚůĞĂƐĂŵŽƚŚĞƌ ƐƚŽƵĐŚ ƌĞŌĚĞƚĞƌŐĞŶƚŝƐ ƐƉĞĐŝĂůůLJ ĨŽƌŵƵůĂƚĞĚ ĨŽƌďĂďLJ ĐůŽƚŚŝŶŐĂŶĚŽƚŚĞƌŝƚĞŵƐ ^ŝŵŝůĂƌůLJ ďďŽƩ ǁŝůů ďĞ ƉŽƐŝƟŽŶŝŶŐ ŝƚƐ ĮǀĞĚLJƐůŝƉŝĚĞŵŝĂĂŐĞŶƚƐĨŽƌƐƉĞĐŝĮĐƉĂƟĞŶƚƐĞŐŵĞŶƚƐǁŝƚŚĚŝīĞƌĞŶƚ ĐŽŵďŝŶĂƟŽŶƐŽĨ >>,>ĂŶĚ ƚƌŝŐůLJĐĞƌŝĚĞĂďŶŽƌŵĂůŝƟĞƐ

ŽŵďŝŶĂƟŽŶƐŽĨWƌŽĚƵĐƚƐďďŽƩŚĂƐ ůĞǀĞƌĂŐĞĚ ŝƚƐĚLJƐůŝƉŝĚĞŵŝĂ ĨƌĂŶĐŚŝƐĞ ďLJ ĐŽŵďŝŶŝŶŐ ƉƌŽĚƵĐƚƐ ŝŶƚŽƐŝŶŐůĞƉŝůůƐŝŶĐůƵĚŝŶŐƚŚĞĚĞǀĞůŽƉŵĞŶƚĂůĐŽŵďŝŶĂƟŽŶŽĨŝƚƐĮďƌĂƚĞdƌŝ>ŝƉůŝdžǁŝƚŚƐƚƌĂĞŶĞĐĂ ƐƐƚĂƟŶƌĞƐƚŽƌ ZŽĐŚĞ ƚƌŝĞƐ ƚŽ ŵĂdžŝŵŝnjĞ ƚŚĞ ƵƐĞ ŽĨ ŝƚƐ ŽŶĐŽůŽŐLJƉŽƌƞŽůŝŽ ƉƌŽĚƵĐƚƐ ďLJĚĞŵŽŶƐƚƌĂƟŶŐ ƚŚĞďĞŶĞĮƚƐŽĨa combined regimen in clinical trials. For example, in ƚŚĞƌĞĐĞŶƚd>^ƚƌŝĂůZŽĐŚĞ ƐǀĂƐƟŶĐŽŵďŝŶĞĚǁŝƚŚ

its cancer pill Tarceva extended the period without ĚŝƐĞĂƐĞ ƉƌŽŐƌĞƐƐŝŽŶ ŝŶ ƉĂƟĞŶƚƐ ǁŝƚŚ ĂĚǀĂŶĐĞĚ ůƵŶŐcancer. ZĞƉƵƚĂƟŽŶƌĂŶĚ ƌŵĞĚ ǁŝƚŚ ŵƵůƟƉůĞ ĐƵƫŶŐͲedge, targeted therapies, Roche is able to leverage ŝƚƐ ŐƌŽǁŝŶŐ ƌĞƉƵƚĂƟŽŶ ĂƐ ƚŚĞ ůĞĂĚŝŶŐ ŝŶŶŽǀĂƚŽƌŝŶ ŽŶĐŽůŽŐLJ ǁŝƚŚ ŚĞĂůƚŚĐĂƌĞ ƉƌŽǀŝĚĞƌƐ ĂŶĚ ŽƚŚĞƌstakeholders.

^ŚĞůĨ^ƉĂĐĞďďŽƩǁŝůůůŝŬĞůLJƵƐĞŝƚƐĮǀĞĐŚŽůĞƐƚĞƌŽůƉƌŽĚƵĐƚƐƚŽƚĂŬĞƵƉƐƉĂĐĞŝŶƉŚLJƐŝĐŝĂŶƐƐƵƉƉůLJĐĂďŝŶĞƚƐ'^< ƚƌŝĞƐ ƚŽ ĐĂƉƚƵƌĞ ƚŚĞ ůŝŵŝƚĞĚ ĂǀĂŝůĂďůĞ ƐƉĂĐĞ ĨŽƌǀĂĐĐŝŶĞƐ ŝŶ ƚŚĞ ƉĞĚŝĂƚƌŝĐŝĂŶ Ɛ ŽĸĐĞ ƌĞĨƌŝŐĞƌĂƚŽƌ ƚŚĞƌĞďLJŵŝŶŝŵŝnjŝŶŐƐƉĂĐĞĨŽƌĐŽŵƉĞƟƚŽƌƐ

WƌŝĐŝŶŐŽŶƚƌĂĐƟŶŐ '^< ĞŶĐŽƵƌĂŐĞƐ ŝƚƐ ǀĂĐĐŝŶĞƉĂLJĞƌƐ ƚŽ ƉƵƌĐŚĂƐĞ ĨƌŽŵ ŝƚƐ ĞdžƚĞŶƐŝǀĞ ƉŽƌƞŽůŝŽ ŽĨǀĂĐĐŝŶĞ ƉƌŽĚƵĐƚƐ ďLJ ŽīĞƌŝŶŐ ǀŽůƵŵĞ ŝŶĐĞŶƟǀĞƐZŽĐŚĞ ƐĞdžƚĞŶƐŝǀĞŽŶĐŽůŽŐLJƉŽƌƞŽůŝŽƉƌŽǀŝĚĞƐŝƚǁŝƚŚƐƵďƐƚĂŶƟĂůŶĞŐŽƟĂƟŶŐůĞǀĞƌĂŐĞǁŝƚŚƉĂLJĞƌƐ

^ĂůĞƐ^ƚĂŬĞŚŽůĚĞƌZĞůĂƟŽŶƐŚŝƉƐBecause of its long-ƚĞƌŵĨŽĐƵƐŽŶƚŚĞĚŝĂďĞƚĞƐŵĂƌŬĞƚƉůĂĐĞEŽǀŽŚĂƐĂƚƌĞŵĞŶĚŽƵƐƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨĂŶĚƌĞůĂƟŽŶƐŚŝƉƐǁŝƚŚits diabetes prescribers, thought leaders, professional ƐŽĐŝĞƟĞƐĂŶĚŽƚŚĞƌŬĞLJƐƚĂŬĞŚŽůĚĞƌƐ

ŽƐƚKƉĞƌĂƟŶŐĸĐŝĞŶĐŝĞƐEŽǀŽŚĂƐŵĂĚĞŝƚƐŝŶƐƵůŝŶƉĞŶͲĮůůŝŶŐ ƐƚĂƟŽŶ ŵŽƌĞ ĞĸĐŝĞŶƚ ďLJ ƵƐŝŶŐ ƐŝŵŝůĂƌƉĂƌƚƐ ĨŽƌ ĐŽŵƉŽŶĞŶƚƐ ŽĨ Ăůů ƉĞŶƐ ZŽĐŚĞ ĂŶĚ '^<ŐĂŝŶŵĂŶƵĨĂĐƚƵƌŝŶŐĞĸĐŝĞŶĐŝĞƐďLJƵƐŝŶŐƚŚĞŝƌƉůĂŶƚƐƚŽ ƉƌŽĚƵĐĞ ŵƵůƟƉůĞ ďŝŽůŽŐŝĐ ĂŶĚ ǀĂĐĐŝŶĞ ƉƌŽĚƵĐƚƐƌĞƐƉĞĐƟǀĞůLJ

ƵƐŝŶĞƐƐ ĞǀĞůŽƉŵĞŶƚ>ŝĐĞŶƐŝŶŐ dŚĞ ĐŽŵƉĞƟƟŽŶƚŽ ůŝĐĞŶƐĞ Žƌ ĂĐƋƵŝƌĞ ŝŶŶŽǀĂƟǀĞ ƉŚĂƌŵĂĐĞƵƟĐĂůĐŽŵƉŽƵŶĚƐŝƐŝŶĐƌĞĂƐŝŶŐůLJŝŶƚĞŶƐĞŽŵƉĂŶŝĞƐǁŚŝĐŚĨŽĐƵƐ ŽŶ ƐƉĞĐŝĮĐ ĨƌĂŶĐŚŝƐĞƐ Žƌ ƉŽƌƞŽůŝŽƐ ŚĂǀĞ ĂĐŽŵƉĞƟƟǀĞĂĚǀĂŶƚĂŐĞ ŝŶ ĂƩƌĂĐƟŶŐƉĂƌƚŶĞƌƐ ĚƵĞ ƚŽextensive market experience, long-standing customer ƌĞůĂƟŽŶƐŚŝƉƐĂŶĚĞƐƚĂďůŝƐŚĞĚĐĂƉĂďŝůŝƟĞƐ

t/EE/E't/d,D>dŚĞƌĞĂƌĞƐĞǀĞƌĂůǁĂLJƐĨŽƌƉŚĂƌŵĂĐĞƵƟĐĂůĐŽŵƉĂŶŝĞƐƚŽ ƐƵĐĐĞƐƐĨƵůůLJ ŝŵƉůĞŵĞŶƚ ŵƵůƟͲůĞǀĞů ĐŽŵƉĞƟƟŽŶThese include:

1 /ŶĐŽƌƉŽƌĂƚĞD>ŝŶƚŽƐƚƌĂƚĞŐLJĂŶĚŵĂƌŬĞƟŶŐ ƉůĂŶƐǀĞƌLJĐŽƌƉŽƌĂƚĞƉŽƌƞŽůŝŽĨƌĂŶĐŚŝƐĞ ĂŶĚďƌĂŶĚƉůĂŶƐŚŽƵůĚŝŶĐůƵĚĞƐĞĐƟŽŶƐŽŶĐŽŵƉĞƟŶŐĂƚ Ăůů ĨŽƵƌ ůĞǀĞůƐ dŚĞƐĞ ƐĞĐƟŽŶƐ ƐŚŽƵůĚ ŝĚĞŶƟĨLJ ƚŚĞůĞǀĞůƐ ǁŚĞƌĞ ƚŚĞ ĐŽŵƉĂŶLJ ĂŶĚ ĐŽŵƉĞƟƚŽƌƐ ŚĂǀĞƌĞůĂƟǀĞĂĚǀĂŶƚĂŐĞƐĂŶĚĚĞƐĐƌŝďĞŚŽǁƚŽůĞǀĞƌĂŐĞŽƌ

ǁǁǁĞƌŶĂƌĚƐƐŽĐŝĂƚĞƐ>>ĐŽŵ ,ĞůƉŝŶŐůŝĞŶƚƐtŝŶ ϳ

ŽīƐĞƚƚŚŽƐĞĂĚǀĂŶƚĂŐĞƐ

2 ƵŝůĚďƵLJ ĞdžƚĞŶĚĂŶĚŽƌƉĂƌƚŶĞƌĨŽƌ ĞŶŚĂŶĐĞĚ ůĞǀĞůƐ dŚĞƌĞĂƌĞĚŝīĞƌĞŶƚǁĂLJƐ ƚŽĞŶŚĂŶĐĞƚŚĞĐŽŵƉĞƟƟǀĞǀĂůƵĞŽĨĂďƌĂŶĚĨƌĂŶĐŚŝƐĞƉŽƌƞŽůŝŽŽƌĐŽŵƉĂŶLJ&ŽƌĞdžĂŵƉůĞďďŽƩ ŝŶŝƟĂƚĞĚŝƚƐĐŚŽůĞƐƚĞƌŽůĨƌĂŶĐŚŝƐĞǁŝƚŚĂƐŝŶŐůĞĮďƌĂƚĞƉƌŽĚƵĐƚƉƵƌĐŚĂƐĞĚ<ŽƐWŚĂƌŵĂĐĞƵƟĐĂůƐƚŽĂĚĚŶŝĂĐŝŶĂŐĞŶƚƐĐƌĞĂƚĞĚ Ă ƐĞĐŽŶĚ ŐĞŶĞƌĂƟŽŶ ĮďƌĂƚĞ ĂŶĚ ƚŚĞŶƉĂƌƚŶĞƌĞĚǁŝƚŚƐƚƌĂĞŶĞĐĂƚŽĚĞǀĞůŽƉĂĐŽŵďŝŶĂƟŽŶďƌĂŶĚĞĚƐƚĂƟŶͲĮďƌĂƚĞƉƌŽĚƵĐƚ

/ŶŽƌĚĞƌƚŽĐŽŵƉĞƚĞǁŝƚŚ,/sŝŶĚƵƐƚƌLJůĞĂĚĞƌ'ŝůĞĂĚ^ĐŝĞŶĐĞƐ '^< ĂŶĚ WĮnjĞƌ ƌĞĐĞŶƚůLJ ĨŽƌŵĞĚ Ă ũŽŝŶƚǀĞŶƚƵƌĞ ĐŽŵƉĂŶLJ ƚŽ ĐŽŵďŝŶĞ ƚŚĞŝƌ ,/s ƉŽƌƞŽůŝŽƐ'^< ƐKŶĚƌĞǁtŝƩLJƐĂŝĚ zŽƵďůĞŶĚŽƵƌƉŽƌƞŽůŝŽǁŝƚŚ WĮnjĞƌ Ɛ ĂŶĚ LJŽƵ ĐŽǀĞƌ Ă ƌĂŶŐĞ ŽĨ ĚŝīĞƌĞŶƚƚĂƌŐĞƚƐŝŶĂƌĂŶŐĞŽĨĚŝīĞƌĞŶƚǁĂLJƐǁŚŝĐŚŝƐĂǀĂůƵĂďůĞďĞŶĞĮƚ

3 dĞƐƚƚŚĞ&ƌĂŶĐŚŝƐĞDĂŶĂŐĞŵĞŶƚ^ƚƌĂƚĞŐLJ /ŶĐƌĞĂƐŝŶŐůLJ ŵĂƌŬĞƚͲůĞĂĚŝŶŐ ƉŚĂƌŵĂĐĞƵƟĐĂůĐŽŵƉĂŶŝĞƐ ĂƌĞ ĐŽŶĚƵĐƟŶŐ ŶŽƚ ŽŶůLJ ďƌĂŶĚ ďƵƚ ĂůƐŽĨƌĂŶĐŚŝƐĞ ƉŽƌƞŽůŝŽ ĂŶĚ ĐŽƌƉŽƌĂƚĞ ǁĂƌ ŐĂŵĞƐThe most progressive of these companies conduct ŽŵƉĞƟƟǀĞ ^ŝŵƵůĂƟŽŶƐ ĂŶ ŝŵƉƌŽǀĞĚ ǀĞƌƐŝŽŶŽĨ ǁĂƌ ŐĂŵĞƐ ƐƉĞĐŝĮĐĂůůLJ ĚĞƐŝŐŶĞĚ ƚŽ ƌŽůĞͲƉůĂLJ ƉƌĞƐƐƵƌĞͲƚĞƐƚ ĂŶĚ ǀĂůŝĚĂƚĞ Ă ĐŽŵƉĂŶLJ ƐͶĂŶĚ ŝƚƐĐŽŵƉĞƟƚŽƌƐͶƐƚƌĂƚĞŐŝĞƐ ĂŶĚ ƚĂĐƟĐƐ ŝŶĐůƵĚŝŶŐDƵůƟͲ>ĞǀĞů ŽŵƉĞƟƟŽŶ ŝŶ Ă ƐŝŵƵůĂƚĞĚ ŵĂƌŬĞƚenvironment. ŽŵƉĂŶŝĞƐ ƵƐŝŶŐ D> ĂƉƉƌŽĂĐŚĞƐ ŐĞŶĞƌĂůůLJdemonstrate deeper customer knowledge, enhanced ƐƚĂŬĞŚŽůĚĞƌ ƌĞůĂƟŽŶƐŚŝƉƐ ŝŵƉƌŽǀĞĚ ĞĸĐŝĞŶĐŝĞƐďĞƩĞƌ ZK/ ƐŝŐŶŝĮĐĂŶƚ ĐŽŵƉĞƟƟǀĞ ĂĚǀĂŶƚĂŐĞƐĂŶĚ ƵůƟŵĂƚĞůLJ ŚŝŐŚĞƌ ŵĂƌŬĞƚ ƐŚĂƌĞƐ ĂŶĚ ƐĂůĞƐŝŶ ƚŚĞŝƌ ƉƌŽĚƵĐƚ ĐĂƚĞŐŽƌŝĞƐ /ŵƉŽƌƚĂŶƚůLJ ǁŚŝůĞŵĂŶLJ ƉŚĂƌŵĂĐĞƵƟĐĂů ĐŽŵƉĂŶŝĞƐ ŚĂǀĞ ŵƵůƟͲďƌĂŶĚĨƌĂŶĐŚŝƐĞƐ Žƌ ƉŽƌƞŽůŝŽƐ ĂŶĚ ĚĞƐŝŐŶĂƚĞĚ ďƵƐŝŶĞƐƐůĞĂĚĞƌƐ ƌĞůĂƟǀĞůLJ ĨĞǁ ĐŽŵƉĂŶŝĞƐ ĨƵůůLJ ůĞǀĞƌĂŐĞƉŽǁĞƌĨƵů DƵůƟͲ>ĞǀĞů ŽŵƉĞƟƟŽŶ ƐƚƌĂƚĞŐŝĞƐƚĞĐŚŶŝƋƵĞƐ ĂŶĚ ƚĂĐƟĐƐ ƚŽ ǁŝŶ ĂŐĂŝŶƐƚ ĐŽŵƉĂŶŝĞƐƌĞůLJŝŶŐŽŶƐŝŶŐůĞďƌĂŶĚƐ

^ƚĂŶĞƌŶĂƌĚDDŝƐWƌĞƐŝĚĞŶƚŽĨĞƌŶĂƌĚƐƐŽĐŝĂƚĞƐ>>ƚŚĞŐůŽďĂůƉŚĂƌŵĂĐĞƵƟĐĂůŝŶĚƵƐƚƌLJƐůĞĂĚŝŶŐĐŽŵƉĞƟƟŽŶĐŽŶƐƵůƟŶŐ Įƌŵ ĨŽƌ ĐŽŵƉĞƟƟǀĞ ƐŝŵƵůĂƟŽŶƐǁĂƌ ŐĂŵĞƐ ϮϬ ĐŽŵƉĞƟƟǀĞ ƉƌŽĚƵĐƚ ůĂƵŶĐŚĞƐ ĂŶĚ ĐŽƵŶƚĞƌͲůĂƵŶĐŚĞƐĐŽŵƉĞƟƟǀĞƐƚƌĂƚĞŐLJĂŶĚĂĐƟŽŶƉůĂŶŶŝŶŐĐƵƐƚŽŵŝnjĞĚĐŽŵƉĞƟƟǀĞǁŽƌŬƐŚŽƉƐĂŶĚĐŽŵƉĞƟƟǀĞƚƌĂŝŶŝŶŐ,ĞĐĂŶďĞƌĞĂĐŚĞĚĂƚ^ĞƌŶĂƌĚDΛĞƌŶĂƌĚƐƐŽĐŝĂƚĞƐ>>ĐŽŵ

www.BernardAssociatesLLC.com “Helping Clients Win” 8

dŚĞηϭ'ůŽďĂůŽŵƉĞƟƟŽŶŽŶƐƵůƟŶŐ&ŝƌŵĨŽƌƚŚĞWŚĂƌŵĂĐĞƵƟĐĂů/ŶĚƵƐƚƌLJ,ĞĂĚƋƵĂƌƚĞƌĞĚŝŶDŽƌƌŝƐƚŽǁŶE:

Founded in 1999

DŝƐƐŝŽŶ,ĞůƉŝŶŐůŝĞŶƚƐtŝŶ

dĞůĞƉŚŽŶĞ;ϵϬϴͿϯϬϰͲϮϴϴϴŵĂŝů^ĞƌŶĂƌĚDΛĞƌŶĂƌĚƐƐŽĐŝĂƚĞƐ>>ĐŽŵ

tĞďƐŝƚĞǁǁǁĞƌŶĂƌĚƐƐŽĐŝĂƚĞƐ>>ĐŽŵ

^ĐŽƉĞdŚĞĮƌŵǁŽƌŬƐĂĐƌŽƐƐŚĞĂůƚŚĐĂƌĞƉƌŽĚƵĐƚƐƚŚĞƌĂƉĞƵƟĐĂƌĞĂƐƉƌŽĚƵĐƚůŝĨĞĐLJĐůĞƐƚĂŐĞƐŵĂƌŬĞƚƐƐƚĂŬĞŚŽůĚĞƌƐĂŶĚĐŽŵƉĞƟƟǀĞůĂŶĚƐĐĂƉĞƐ

ůŝĞŶƚƐKǀĞƌϭϮϱůĞĂĚŝŶŐƉŚĂƌŵĂĐĞƵƟĐĂůĂŶĚŚĞĂůƚŚĐĂƌĞĐŽŵƉĂŶŝĞƐĂĐƌŽƐƐĮǀĞĐŽŶƟŶĞŶƚƐ

^ĞƌǀŝĐĞƐͻ ŽŵƉĞƟƟǀĞ^ŝŵƵůĂƟŽŶƐ;ƵƐŝŶĞƐƐtĂƌ'ĂŵĞƐϮϬͿͻ ŽŵƉĞƟƟǀĞWƌŽĚƵĐƚ>ĂƵŶĐŚĞƐĂŶĚŽƵŶƚĞƌͲ>ĂƵŶĐŚĞƐͻ ƵƐƚŽŵŝnjĞĚŽŵƉĞƟƟǀĞtŽƌŬƐŚŽƉƐͻ ŽŵƉĞƟƟǀĞŶĂůLJƐŝƐ^ƚƌĂƚĞŐLJ ĂŶĚWůĂŶŶŝŶŐ^ĞƌǀŝĐĞƐͻ ŽŵƉĞƟƟǀĞdƌĂŝŶŝŶŐ^ĞŵŝŶĂƌƐ