Key challenges and new insights of the Healthcare Marketing Environment

1. Results of the second Health Care Marketing Survey 2009 Health Care Marketing Congress 0ctober 8 th 2009

7. Compared to last year, the importance of building relationships with hospitals and pharmacists has increased Ranking of the 10 biggest challenges 2010 versus 2008 2009 results 2008 results Respondents (%) N 2008 = 89 N 2009 = 93 LEGEND:

8. The largest increase in influence and power in the coming year is expected to occur at governmental parties Only GP’s will decrease in influence Evolution of influence/power of different decision makers 43% 43,8% 61% 66% 49% 47% 44% 41% -14,4% Pharmacists Legal and regulatory institutions General practitioners Social security Insurance companies Patient associations Patients Hospitals Specialists N=89 16% 12% 10% 8% -4% 6% Wholesalers & distributors laboratories Research organisations Net Adjusted Index (%) Q: How do you evaluate the influence of the following “decision makers” on your business in the near future?

10. The largest increase in influence and power in the coming year is expected to occur at governmental parties Only GP’s will decrease in influence Evolution of influence/power of different decision makers 43% 43,8% 61% 66% 49% 47% 44% 41% -14,4% Pharmacists Legal and regulatory institutions General practitioners Social security Insurance companies Patient associations Patients Hospitals Specialists N=89 16% 12% 10% 8% -4% 6% Wholesalers & distributors laboratories Research organisations Net Adjusted Index (%) Q: How do you evaluate the influence of the following “decision makers” on your business in the near future?

14. Compared to last year, innovation, measuring ROI and optimizing pricing are the three fastest growing marketing challenges 2009 results 2008 results Ranking of the 5 biggest marketing challenges 2009-10 versus 2008 N 2008 = 89 N 2009 = 90 Respondents (%) LEGEND:

15. Compared with RX, ME focuses also on price management and ROI, whilst OTC is challenged more by customer loyalty, innovation and MarCom mix Ranking of the 6 biggest marketing challenges 2009-10 by sector RX sector ME sector OTC sector OTC: N= 8 RX: N= 30 ME: N= 28 Note: ME = Medical Equipment Respondents (%) LEGEND: Top challenges 09-10

18. Health Care marketing budgets in 2008-09 were lower than previously stated and expectations for 2009-10 are even lower Net Adjusted Index (%) 2006 2007 2008 Marketing budgets NAI of marketers from other industries for future budget NAI of Health Care marketers for future budget LEGEND: NAI of Health Care marketer for actual budget 2009 2010 Q: In 2008, how did the total marketing budget available within your marketing department change and what are the expectations for 2009-2010?

19. Online communication methods and lobbying are expected to replace traditional channels especially during crisis Sponsoring and print are the biggest losers in the expected budget shift Sales visits of specs Sales visits of GP’s Congresses Events and trade fairs Market research POS materials Above the line media Public relations On-line marketing Direct marketing Sampling Sponsoring Newspapers/magazines Lobbying Patient support groups Price promotions Average of MarCom budget spent in 2008 (%) NAI, Budget expectations for 2009-10 Budget expectations for 2009-10 Average spent in 08 LEGEND: N=66 Evolution of Marketing spending in Health Care Total average spent in 08

22. The general marketers’ confidence index is at its lowest point in history Health Care marketers are even more pessimistic Net Adjusted Index(%) 2006 2007 2008 2009 2005 Year General marketers’ confidence index LEGEND: A decrease in their marketing budget will negatively impact the Health Care marketers’ media expenditures and modify their marketing organization

23. Marketers believe their pricing will be put under great pressure by governments, patients and pharmacists Government will push cheaper alternatives Pharmacists will protect their margins Patients will become more price sensitive Patients will ask for generic / alternative products Patients will be more critical/pro-actively compare treatments Physicians will change prescription behavior towards cheaper products Loyalty of patients towards a product will decrease Volume of medicines purchased by patients will decrease N=87 Slightly disagree Totally disagree LEGEND: Neutral Slightly agree Fully agree 89% 88% 83% 63% 74% 37% 33% 26% Net Adjusted Index (%) Q: How do you expect customers to react on the current economical crisis?

26. Marketers understand the value that they provide to customers … N=90 Q: To what extent do you agree with the following statements? We have a good understanding of the unique value we provide to customers We can effectively communicate our value Net Adjusted Index (%) Slightly disagree Totally disagree LEGEND: Neutral Slightly agree Fully agree 82 % 58 %

27. … but often lack the tools to efficiently measure that value N=90 Q: To what extent do you agree with the following statements? Slightly disagree Totally disagree LEGEND: Neutral Slightly agree Fully agree Management decisions at my company are based on the most recent customer & market data My company has a detailed marketing and sales dashboard to track evolution of KPI’s My company leverages the data captured by our CRM system 27 % 26 % 0 % Net Adjusted Index (%)

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