Organic revenue growth in the pharmaceutical industry is getting increasingly more difficult to achieve. The irony is that that the majority of pharmaceutical companies are leaving 12%-35% of MAT revenues on the table each year. The challenge is to find the internal champion to engage the organization in pursuing this unrealized revenue as the causes and solutions cut across multiple departments. This leaves only the most senior levels to accept responsibility to initiate a program to both maximize revenues and minimize sub-optimal spending across all brands and all commercial departments.

1. Physician Brand Re-engagement
The Hidden Revenue Growth Opportunity

2. Organic Revenue Growth – Increasingly Tougher to Find
• Country Rx Growth – Zero / Single digit
• Category Rx Growth – Flat
• FM/GP Prescriptions – Increasingly Generics
• Specialist Products – Hyper-competition
• Pipelines – Fewer NCEs
• Market Exclusivity – Months vs Years

3. The Irony
• Hidden in the customer base of your promoted brands is an
organic revenue growth opportunity worth between
15%-35% of MAT sales
 At least 1/3 of this unrealized revenue is revenue the
brand had last year and has lost this year.
 Remaining 2/3 is revenue that should have been
realized based on level of promotional activity
• The promotional spending driving this unrealized revenue is
equal to 8%-15% of MAT Sales

4. The Irony
Yes…
…I know it seems improbable

5. How Do We Know?
Description Unrealized Revenue Sub-optimal promo
Spending
Top 10 Pharma Company 18% 11%
Women’s Health Brand 40% 30%
Biologic Brand 22% 20%
Top 20 US Pharma 21% 17%
Biotech - US 35% 18%
GP/SP Brand 27% 12%
• But it is true!
• Results from six pilots - the findings are consistent

6. What is Physician Brand Re-engagement?
• Brand re-engagement is a promotional opportunity
associated with physicians demonstrating ZERO or
NEGATIVE customer share growth over a 24 month period
• Typically impacts 2/3 of a brand’s promotional targets
• Typically the primary brand opportunity
• Typically ignored by brand planning and sales activity

7. What is Physician Brand Re-engagement?
• Therapeutic category agnostic
• Lifecycle agnostic
• Falls outside the traditional Acquire / Grow / Retain pharma
opportunity model

8. Why is Physician Brand Re-engagement Important?
• Unrealized revenue = 12%-35% of MAT revenues
 Negative Growth = revenue the brand had last year but
doesn't have this year
 Zero Growth = revenue the brand should have earned
• Often the primary brand opportunity
 Opportunity ignored
 Brand Planning
 Sales Activity
• Promotional spending delivering sub-optimal return
= 8%-15% of MAT sales

9. Sales
Marketing
Analytics
Training
The Re-engagement Challenge: Cross-functional Solution
Who is
responsible
for addressing
this opportunity?
YOU

10. What is the Impact of Brand Re-engagement
• 2 key metrics requiring constant monitoring:
1. Level of unrealized revenue
 Brand Level
 Physician Segment Level
2. Level of promotional spending delivering a
sub-optimal return
 Including Cost of Acquisition vs Cost of
Retention

11. 1
• Build the Business Case
2
• Data Driven
Re-engagement Plan
3
• Execute & Track
Physician Brand Re-engagement Solution Workflow

12. Typical Causes of Physician Brand Re-engagement
• Analytical Skills
• Sales Conversation
• Targeting – Rank
• Targeting – Frequency
• Skills – Single Patient
Focus
• Perceives superior
clinical value in
competing brands
• Opportunity Ignored
• Clinical Relevance
 Brand
Positioning
 Sales Messaging
Sales PhysicianMarketing
Internal
External

13. Example – The Sales Conversation
Industry Average
Sales Conversation Performance
0 10025 50 75
33
Proficient SuperiorUnacceptable MarginalIneffective
Results based on Sales Conversation Assessment Test

14. Example – Positioning
Example Based on Current Project
• Client Brand Positioning - 1st Line
• Physician Brand Positioning - 4th Line
Position
Armamentarium
Product Average Share
1 Brand “A” 63%
2 Brand “B” 27%
3 Brand “C” 18%
4 Client Brand 9%
4 Brand “D” 6%
5 Brand “F” 2%
5 Brand “G” 1%

15. In Closing
What level of Unrealized Revenue & Sub-optimal
Promotional Spending would motivate you to explore
this hidden opportunity in more detail?
________% of MAT Sales ________% of MAT Sales
Unrealized Revenue Sub-optimal Promo Spend
? ?

16. Unique bottom-up data mining process
Not Really Hidden
Wisdom - execution
Knowledge - application
Information - meaning
Data

17. You Do the Math
Promoted Brand MAT Sales = $___________
Unrealized Revenue (x 15%) = $___________
Sub-optimal Promo Spend (x 10%) = $___________
Can you afford to leave this revenue on the table?
How will this level of unrealized revenue impact your
2014 revenue forecast?
Can you afford this level of inefficient promo spending?

18. In Closing
I look forward to continuing this conversation
David Delong
Chief Customer Evangelist
(705)-733-0-739
ddelong@cmg-pharma.com