Jim O’Dea

President and CEO

Rx EDGE

Pharmacy Campaigns –Growing Brands by Reaching Health-Minded Patients

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Did You Know?

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Beyond a Dispenser of Drugs

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Beyond a Dispenser of Drugs

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What percentage of Americans live within 5 miles of a pharmacy?

A. <70%

B. 80%

C. 90%

D. 98.6%

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Question 1

90% of Americans live within 5 miles of a pharmacy

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Answer 1

What percentage of Americans visit a pharmacy in a typical week?

A. <60%

B. 60-69%

C. 70-79%

D. 80-89%

E. >90%

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Question 2

86% of Americans visit pharmacies each week

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Answer 2

What percentage of prescriptions are dispensed in retail pharmacies?

A. <60%

B. 60-69%

C. 70-79%

D. 80-89%

E. >90%

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Question 3

87% of prescriptions are dispensed in retail pharmacies

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Answer 3

90% of Americans live within 5 miles of a pharmacy

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The Facts

86%, or 275 million Americans, visit pharmacies each week

87% of prescriptions are dispensed in retail pharmacies

BONUS: 81% of people use OTCs as their first line of defense

Healthcare reform

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Transforming Landscape

Projected upwards of 30 million newly insured

Primary care physician (PCP) shortages

Projected around 65,000

Aging America

10,000 Americans turn 65 daily

In terms of reach, the POC channel is second only to TV with most Americans seeing or hearing an ad within the last 12 months

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Ad Spend

Spend$2 billion on television ads$1.4 billion on digital media$400 million for POC advertising

Source: ZS Associates, Washington Post, emarketer

Mindset Moment™

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A state of mind when consumers’ attention is on their health or healthcare, and they are receptive to information and motivated to take action i.e. healthcare is top of mind

Jimmy still hasn’tgotten rid of his cough, I

wonder if he has allergies?I need some advice.

It seems like I'm alwaysbuying heartburn medicine...

could it be somethingmore serious?

Maybe my chronicjoint pain is due to RA, it

does run in my family.

Because of my diabetes,my doctor says I should keepmy feet healthy. I'll check theFoot Care section for ideas.

Consumer Avoidance

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CASE STUDY ADHD

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About Solutions at the Shelf™

Take-one inserts contained in Solutions at the Shelf™ dispensers can convey product/condition information and promote doctor communication

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Retailer Location

4,000 Stores across during a 26 week run:

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Indications

Adult Child

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Adult Indication

ObjectiveRaise awareness about adult ADHD

Messaging “Are you considering ADHD treatment?”

Booklets InsertsUse a “symptom quiz” to drive a conversation with the doctor

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Child Indication

ObjectiveReach a large audience of parents during the back-to-school timeframe

Messaging“Are you considering ADHD treatment for your child?”

Booklet InsertsDeliver detailed product information about a significant point of difference vs. other drug therapy options

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Direct OTC Corollary Products

INDICATION STORE SECTION

Allergy Sinus

Chronic Constipation Laxative

Dry Eye Eye Care

Flu Cold/Cough

GERD Antacid

Skin Condition Skin Care

ADHD ?

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Brand and condition demographic factors1

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Comorbidity disease states

Large foot traffic areas of stores

Other related market data

Store Section Considerations

Vitamin Section for Adult version

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Selected Store Sections

Analgesics Section for Child version

Store Traffic • Audience: 182 million in a twelve-week period• Heavily shopped OTC section

– $3 billion in dollar sales – About 400 million in unit sales– 46% of U.S. households buying

• 77% of people use a multivitamin• 64% of people purchase their vitamins in retail

pharmacies such as CVS and Walgreens

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Vitamin Rationale

Store Traffic

• Audience: 262 million in a twelve-week period

• Heavily shopped OTC section

– $4 billion in dollar sales

– Over 700 million in unit volume

– 65% of households buying

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Analgesic Rationale

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Measurement Methodology

Test vs. Control Matched Store Panels

Matched pairs are created based on key attributes including sales patterns, geography, customer demographics, hours of operation, and store footprint

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Research Design

Panel matches are refined further based on scripting volume during the twelve-week Base Period

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NRx 9,697

RRx 2,620

INCREMENTAL SCRIPTS GENERATED

Script Lift Results

The Rx EDGE program:

Increased TRx’s by 12,317 scripts

Increased RRx’s by 2,620 scripts

Drove most of the increase from NRx, 9,697 new scripts

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Script Percent Increases

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

ADULT & CHILD ADULT ONLY CHILD ONLY

5.7%

3.5%

4.6%

8.8%

5.4%

7.1%

2.5%1.6% 1.9%

TRx NRx RRx

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ROI

Single Script ROI: $10.14

Patient Value ROI: $18.12

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What We’ve Covered

Pharmacy innovation and evolution1

Consumer behavior = receptive2

Pharmacy program implementation and results3

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