Across Health Multichannel Maturometer 2017

1. 27/07/2017Proprietary and Confidential Information© Across Health1 Across Health is pleased to present you with the state of the multichannel landscape in life sciences in Europe, US and emerging markets – now in its ninth year.

2. 27/07/2017Proprietary and Confidential Information© Across Health2 01 02 03 04 05Key Survey Statistics Strategy & Organization Business Technology & Processes Multichannel Integration Measurement (After some delays): Ready for take-off? Preface Fonny Schenck CEO, Across Health Fonny.schenck@a-cross.com Interestingly, the only exception is the multichannel rep. This is the only space where knowledge and comfort continue to grow – 84% of respondents (vs 74% in 2016) feel quite or very confident here. Also, looking back to 2012, the only two key MCM tactics that continued to increase in prominence are rep-focussed channels (tablet detailing and approved emails). At the other extreme, a very low level of comfort with marketing automation (28% - similar to 2016) confirms this rep-centric trend. Could this be a case of “Multichannel Myopia”, with the industry widely digitising the old model and considering it ‘solved’, while ignoring other segments and stakeholders, as well as new opportunities (like health tech)? And, could this unidimensional focus (and perhaps ditto strategy) not also explain the low satisfaction levels? High margins, a complex regulatory environment, and limited competition have long fended off the burning platform for digital transformation in life sciences. Thanks to some of the above trends, however, the industry appears ready for take-off. Do you want to fly high or stay grounded? Happy reading! Dear colleague, I am delighted to present you with the results of our 9th Across Health Maturometer, the longest running and most widely referenced industrywide snapshot of digital transformation in Life Sciences. After five years of slow progress, it appears that we have - finally! – got onto the runway for digital in pharma. Indeed, there has been a 20% uptick in digital marketing budgets. This brings digital up to 19% of total marketing spend (and even higher in the US).* Another glimmer of hope is that boards are (finally) getting behind these programmes – one of the biggest changes this year. In the real world, we see several newly minted CEOs of industry majors and specialty companies taking charge of digital themselves, which is a clear change to the scattered “bottom up” approach seen in most companies so far. Not all is rosy, however. We see a continuation of the historic low level of satisfaction with digital and multichannel activities. There has been no change since 2015, and only 13% are very satisfied. In addition, the level of expertise in digital in general and channel mix decisions in particular continues to be very low. * If you look at the total customer engagement budget (marketing, sales, medical and service), digital budgets are probably closer to 6-7% (vs 4-5% last year)…

3. Proprietary and Confidential Information 01 3 Key survey statistics © Across Health

4. Proprietary and Confidential Information 01 Key Survey Statistics © Across Health4 Key survey statistics • 256 respondents from life sciences (no agencies/consultancies) • 96% from pharma/biotech; 2% Medtech: 3% OTC & Other • 48% from Europe • 47% national scope; 53% int/global • 35% Digital/Multichannel, 25% Marketing, 10% CRM, 9% Sales • 48% (senior) manager level; 43% director or C-level • A variety of TAs: 17% across all areas, 14% Oncology, 8% Neurology….

5. Proprietary and Confidential Information 02 5 Strategy & Organization © Across Health

6. Proprietary and Confidential Information 02 Strategy & Organization Only a quarter of respondents have a strong digital vision & strategy, but boards are getting more firmly behind digital Respondents who ‘completely agree’ about board support up 12% from 2016 n=221 European Scope Please rate your level of agreement with each of the following statements based on the scale below 6% 29% 24% 40% 35% 51% 45% 28% 18% 9% 9% 7% Staff well-trained in digital Strong digital/MC team with board support Strong digital transformation vision & strategy Completely agree Somewhat agree Somewhat disagree Completely disagree © Across Health6

7. Proprietary and Confidential Information 02 Strategy & Organization Digital transformation is moving slowly globally (perceived as slower than 2016) – with more than half (57%) of respondents thinking it is (very) slow 7 © Across Health How would you rate the pace of implementation of digital transformation in your organization? n=256 (Global); 221 (Europe); 45 (US) 2 2 2 16% 14% 14% 24% 26% 28% 49% 46% 44% 9% 13% 13% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% US Europe Global Very fast Fast About right Slow Very Slow

8. Proprietary and Confidential Information 02 Strategy & Organization While advanced knowledge of digital may be at an all time high – ‘sufficient’ knowledge is down vs. 2016 10% 10% 8% 12% 12% 6% 11% 14% 34% 21% 30% 34% 25% 28% 36% 30% 31% 42% 44% 36% 38% 39% 33% 36% 20% 24% 18% 16% 21% 25% 17% 17% 4% 2 1 2 4% 3% 3% 3% 2010 2011 2012 2013 2014 2015 2016 2017 More than sufficient (expert) Sufficient Between sufficient and insufficient Insufficient Totally insufficient n=256 Global Scope Do you feel that you have sufficient knowledge of all opportunities offered by the internet for your business activities? © Across Health8

9. Proprietary and Confidential Information 02 Strategy & Organization 4% 5% 6% 8% 9% 14% 15% 16% 18% No expert agencies with multichannel pharma background… Customers are not ready No senior management support No budget No headcount to support this No clear digital strategy ROI questions Not enough internal knowledge Regulatory / legal / Healthcare compliance issues -0.9% -1.1% 5.7% 3.2% 2.1% 2.9% 1.4% 1.1% 1.7% High Increase Low Increase Decrease % Change since 2011 n=237 Global Scope Lack of internal knowledge, ROI questions and lack of budget see biggest increases vs. 2011 – MLR and digital strategy show decreases © Across Health9 Please allocate 100 points over these potential bottlenecks for digital in your organization (highest number = biggest hurdle)

10. Proprietary and Confidential Information 03 10 Business Processes & Technology © Across Health

11. Proprietary and Confidential Information 03 Business Processes & Technology n=221 European Scope 2% 8% 17% 24% 31% 51% 43% 47% 23% 30% 14% 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% MC campaign automation Robust process for channel mix Digital/MC team integrated with Business/IT Completely agree Somewhat agree Somewhat disagree Completely disagree Digital teams are (slowly) being more integrated with IT – but channel mix processes and campaign automation still quite immature © Across Health11 Please rate your level of agreement with each of the following statements based on the scale below

12. Proprietary and Confidential Information 03 Business Processes & Technology Big jump in multichannel budgets from 2016 – but the US is pulling away n=26 US Scope 2% 42% 38% 11% 8% 14% 23% 7% 4% 13% 8% 2% 8% 4% 8% 4% 4% Europe US less than 5% 5% to 10% 11% to 15% 16% to 20% 21% to 25% 26 to 35% 36 to 45% 46 to 55% more than 55% n=163 European Scope Year 2016 2017 Average 15.7% 18.9% If you oversee a product or marketing budget, which percentage of MARKETING budget is allocated to digital initiatives THIS YEAR? © Across Health12 Year 2016 2017 Average 19.4% 21.6%

13. Proprietary and Confidential Information 03 Business Processes & Technology A brisk 20% increase in digital marketing budgets ends a 5-year flatliner for Europe 0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 14,0% 16,0% 18,0% 20,0% 2011 2012 2013 2014 2015 2016 2017 Average 8% Average 15% Average 16% Average 15.6% Average 15.1% Average 15.7% Average 18.9% n=163 European Scope © Across Health13 If you oversee a product or marketing budget, which percentage of MARKETING budget is allocated to digital initiatives THIS YEAR?

14. Proprietary and Confidential Information 04 14 Multichannel Integration © Across Health

15. Proprietary and Confidential Information 04 Multichannel Integration 26% 7% 14% 45% 30% 37% 18% 38% 27% 11% 25% 22% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Reps equipped with digital tools beyond edetail Good view of HCP channel acceptance Integrated customer Db across channels Completely agree Somewhat agree Somewhat disagree Completely disagree n=221 European Scope The ‘multichannel rep’ continues to be the only channel integration component in which respondent knowledge is growing…. © Across Health15 Please rate your level of agreement with each of the following statements based on the scale below

16. Proprietary and Confidential Information 04 Multichannel Integration 3% 4% 7% 7% 7% 8% 8% 13% 13% 16% 17% 20% 20% 20% 24% 25% 32% 32% 34% 36% 43% 45% 48% 50% 55% 61% 74% 85% 16% 16% 13% 20% 57% 31% 30% 14% 42% 43% 57% 47% 45% 33% 40% 23% 39% 23% 39% 28% 32% 39% 39% 24% 16% 29% 17% 9% 63% 63% 61% 56% 57% 48% 48% 49% 37% 36% 20% 27% 30% 40% 24% 38% 23% 28% 16% 20% 15% 11% 9% 18% 19% 6% 5% 3% 17% 18% 20% 17% 18% 13% 14% 24% 8% 5% 6% 7% 6% 7% 11% 14% 7% 17% 11% 16% 11% 4% 4% 9% 11% 5% 4% 3% Artificial Intelligence ePrescribing advertising and promotion services Remote patient monitoring Marketing automation software e-MSL Integrated cross-channel campaigns Social media monitoring Patient adherence tools Mobile marketing Healthcare professional self-service portal Online medical education Approved email Direct marketing Pharma-owned website* Standard practice Pilot planned or ongoing Never Do not know / not applicable n=256 Global Scope Tablet detailing maintains its 1st position – email marketing overtakes direct marketing - also a big climb for patient adherence tools * Company, product or disease websites ** electronic or personal health record © Across Health16 Please evaluate how often you use the following channels TODAY to reach your customers

17. Proprietary and Confidential Information 04 Multichannel Integration 34% 37% 43% 43% 49% 50% 56% 62% 73% 84% HCP self-service portal SEO Web conference or virtual meeting Online medical education Approved email** Web Banners Direct marketing** Email marketing Pharma-owned website* Tablet eDetailing Of the tactics which we have surveyed since 2012, tablet detailing is the only real climber! European Scope * Company, product or disease websites -1 -1 -2 +3 -5 -1 -1 ** Not measured in 2012 -1 Changes in rank since 2012 Increase Slight decrease Big decrease © Across Health17

18. Proprietary and Confidential Information 05 18 Measurement © Across Health

19. Proprietary and Confidential Information 05 Measurement n=221 European Scope 13% 9% 17% 40% 47% 46% 32% 30% 24% 15% 15% 13% Good mix qualitative & quantitative KPIs Measure hcp engagement Measure results of all channels Completely agree Somewhat agree Somewhat disagree Completely disagree Still less than 20% of European respondents are very comfortable with measuring impact – and measuring HCP engagement is at a three-year low © Across Health19 Please rate your level of agreement with each of the following statements based on the scale below

20. Proprietary and Confidential Information 05 Measurement rep (tablet/iPad) website eNewsletter DMbanners eMail Rep eMedEd webcast smartph app promo call pat adherenceeDetail eMSL ePrescribing rep 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Low Medium High Channels most frequently used by pharma are not always aligned with the impact they have on HCP’s © Across Health20 %ofpharmamarketswho use Source:Maturometer2017(EU Scope) Impact on HCPs Source: Across Navigator 2017 (EU Physicians) LowMediumHigh

21. Proprietary and Confidential Information 06 21 Conclusions © Across Health

22. Proprietary and Confidential Information 06 Conclusions 0% 10% 20% 30% 40% 50% 60% 2010 2011 2012 2013 2014 2015 2016 2017 Dissatisfied Neutral Satisfied n=256 Global Scope Satisfaction rates dropped in 2014 – and haven’t really grown since © Across Health22 On a scale from 0 to 5, how satisfied are you with your current digital/multichannel activities?

23. Proprietary and Confidential Information 06 Conclusions 4% 7% 5% 4% 6% 9% 11% 14% 16% 26% 2% 6% 6% 6% 7% 8% 11% 13% 18% 23% 2% 6% 7% 7% 7% 7% 11% 13% 18% 23% Healthcare disruption Big data and artificial intelligence Maximizing the opportunities of digital health Developing a strong integrated emedical offering Moving from HCP-centricity to patient-centricity Getting robust insights of the omnichannel ecosystem Upskilling the organization Moving from product-centricity to customer-centricity Transforming the fieldforce to multichannel reps Defining & optimizing the customer journey across multiple touchpoints Global Europe US Customer journeys and transitioning to a multichannel fieldforce are the most important topics for next two years – with customer centricity and upskilling the organization in slots 3 and 4…disruption is not yet a key focus area (but perhaps it should be) Please indicate the importance of these topics to your organization in the next 2 years. Please distribute 100 points over the most important ones n=256 (Global); 221 (Europe); 45 (US) © Across Health23

24. Proprietary and Confidential Information 06 Conclusions Rank Company 1 2 3 4 5 6 7 8 9 10 Largest companies generally recognized by peers as the most digitally mature…. 24 © Across Health n=256 Global Scope Rankings are based on a weighted average linked to a selection of the perceived top 3 digitally mature pharma companies.

25. Proprietary and Confidential Information 06 Conclusions Big jump in equipping reps with more digital tools and board support for digital,– but areas like training, channel mix and marketing automation remain quite weak n=256 (2017), 275 (2016) - Global Scope © Across Health25

27. Proprietary and Confidential Information 06 Conclusions n=256 (2017), 275 (2016) Global Scope MLR continues to be the #1 perceived bottleneck, but lack of knowledge and ROI issues are close seconds; effectiveness of local and particularly global digital teams perceived as low and speed of digital transformation too © Across Health27 Positive change Neutral Negative change Changes since 2016 2017 2016 Relative Change 2017 barriers % 2016 barriers % INT digital team existence 82% 82% 0% Regulatory / legal / Healthcare compliance issues 18% Regulatory / legal / healthcare compliance issues 20% INT digital team effectiveness 18% 16% 13% Not enough internal knowledge 16% Not enough internal knowledge 17% Local digital team existence 71% 66% 8% ROI questions 15% No clear digital strategy 17% Local digital team effectiveness 30.2% 30.4% -1% No clear digital strategy 14% ROI questions 11% Speed of digital transformation 15% 17% -9% No headcount to support this 9% No headcount to support this 10% Digital Marketing budget 19% 16% 21% Channel maturity 53% 51% 5% Channel maturity index 1.05

28. Proprietary and Confidential Information 06 Conclusions © Across Health28 Across Excellerator: Capability building offerings - comprehensive & customizable workshops channel guides the missing manual e-learning modules serious gaming healthcare disruption tour 5+ guides available 200+ pages on evidence –based MCM 12 modules available Available in Q4 2017 Over 1,000 people trained in 2015-2016 across the globe 3rd tour in Jan 2018 in US: focus on digital health and technology

29. Proprietary and Confidential Information 06 Conclusions Want to know more? Run your own “Internal Maturometer” Assess the following 4 key areas to measure the digital maturity of your organization! Measurement Develop a compelling business case and measure impact relentlessly with a balanced mix of qualitative and quantitative KPIs People, Strategy & Organisation Set a clear digital vision and strategy, design an effective organizational structure and boost your skillset. Business Processes & Technology Develop key customer-centric cross-departmental processes supported by agile & fit-for- purpose technologies Multichannel Integration Optimize your channel mix decision-making process and integrate your omnichannel execution. • Full analysis of the results (around 50 slides) • For each of the 4 topics assessed, a benchmark with the industry (at regional & global level) • Raw data for reference & further analysis (upon request) For more details and quote contact fadi.baddur@a-cross.com © Across Health29

30. Proprietary and Confidential Information 06 Conclusions And if you want to enhance your (team’s) digital expertise: buy the bestselling evidence-based multichannel handbook! The missing manual for pharma marketers… Has your life science company started on the multi-channel journey but found itself in need of a good roadmap? Across Health’s omnichannel experts describe & discuss the highways and byways of the digitally disrupted landscape, as it impacts the pharma industry. Full of actionable insights and clear guidelines, this book will tell you everything you need to know to boost and direct your company’s customer engagement. © Across Health30 http://www.a-cross.com/health/knowledge/delighting-pharma-customers-in-the-omnichannel-age Over 1000 copies sold

31. Proprietary and Confidential Information 06 Conclusions Please register to participate in the 2018 edition! Participants get the FULL results – 50+ slides on key trends in digital transformation in life sciences… AND… the possibility to win some great prizes, including a copy of our best-selling Omnichannel Cookbook. Hope to “see” you next year! © Across Health31 Would you like to participate in 2018?