the role of marketing in pharma industry - esade

The role of marketing in pharma industry

Gregory Behar, Novartis Spain Marketing HeadESADE Business School, Barcelona, Mar. 4th 2009

2 | The role of marketing in pharma industry | Gregory Behar | March 2009 | ESADE Business School

Agenda

3 Profile of marketing in pharma

1 Company presentation

2 Industry evolution


Agenda





Novartis has an excellent portfolio to address changing patient needs

InnovativeMedicines

Reducing economic burden

Self-care

Environment Patient needs Novartis portfolio

Pharmaceuticals (General Medicines,

Oncology)

Vaccines and Diagnostics

Sandoz(Generics)

Consumer Health (OTC, Animal Health and

CIBA Vision)Full rangeof healthcareoptions

Innovative medicines

Prevention

Affordable options

Self-care

5 | The role of marketing in pharma industry | Gregory Behar | March 2009 | ESADE Business SchoolSixth global pharma company in sales volume

One of the 20 largest corporations in stock exchange capitalization

Considered as one of the best 20 Companies worldwide

Novartis is a world-leading healthcare company

Division sales – 2008

ConsumerHealth

Sandoz

Pharma

V&D

Key data2008 USD mill.Net sales: 41,4 Net benefit: 8,1 R+D Investment: 7,2Overview of the companyEmployees: 96 717# Countries: 140Headquarters: Basel

Top 10 markets

USBrazilFranceItalyJapan

CanadaU.K.GermanySpainSwitzerland

4%

63%14%

19%

Region sales – 2008

EEUU

Europe

Asia/Africa/Australasia

17%

44%

31%

8%


We are fully focused on healthcare


Novartis has 4 commitments in its daily business

Business Policy

ComplianceMarketing policies Third Party managementIntegrity

People & SocietyDiversity & InclusionCompensationSecurity Support the society

Patients

AccessR&DClinic StudiesInteraction

Environment

Risks prevention and managementResource management


In 2008, Novartis contributed to treat and protect more than 850 M people around the world

Glivec (cancer): Free therapy to more than 35.000 people over 80 countries. More than 100.000 patients with a considerably high life expectancy (GIPAP program*)

Hypertension: more than 15 million patients leading normal lives

Tuberculosis: > 500.000 treatments delivered in 5 yearsGenerics: 540 million USD in savings for our customersFlu vaccines: more than 54 Million doses produced, preventing illnessCoartem (malaria): 73,7 Million treatments in 2008. A total of 216 million

treatments which helped to save the lives of approximately 550.000 people

In Novartis we make the difference to millions of patients

*GIPAP (Glivec International Patient Assistance Program)


Net Official Help to Development in 2008 (% of GNI)

Source: OECD, April 3, 2007, NovartisGNI: Gross National IncomeAnnual Results Media Conference-January 2009

Novartis significantly contributes to development through treatment-access programs

Norway

Luxe

mbourg

Denmark

Sweden

Hollan

d

Portug

al

France

Belgium

Irelan

d

Switzerl

and

UK

Finlan

dGerm

any

Canad

a

Spain

Austra

lia

Austria

New Zea

land

Greece

Japa

n

United

StatesItaly

Novart

is

3%

0,0

0,5

1,0

1,5

2,0

2,5

3,0

UN objective for developing countries: 0.7

Average effort of countries : 0.42

In 2008, contributed with 3% of our net sales to Access to Medicines

programs

Access programs with 1.260 Million dollars reached 74 million patients in 2008


1 Euro solidarity campaign

One Toy, One Smile Solidarity day

Solidarity Roses

Clothes collection Healthy Quarters

Call centerF. Vicente Ferrer

Social Commitment Social integration

Social Action in SpainCorporate social responsibility

Solidarity employees


Fortune: “World’s Most Admired Companies”Novartis ranked No.1 amongst pharmaceutical companies

10 98765432

1 Novartis2007

109876543

2 Novartis1

2008

10 9876543

2 Novartis1

2006

109876543

2 Novartis1

2005

10 9 8 76

5 Novartis4321

2004

1098

7 Novartis654321

2003

The 10 most admired pharmaceutical companies1

1 As per evaluation of 1,500 senior pharmaceutical industry executives and financial analysts on a scale from 0 (poor) to 10 (excellent) on nine criteria: community/environment, financial soundness, global presence, innovation, long-term investment, management quality, people management, products/service quality, use of assets

6,04

6,36,33

6,496,556,68

6,956,89


Agenda





…with many opportunities remaining

Reducing economic burden

Self-care

…but facing significant challenges

Aging population

Unhealthy lifestyles

Emerging growth markets

Scientific advances

Industry fundamentally attractive with strong growth drivers…

Pressure on drug prices

Increasing use of generics

Conservative regulators

Weakening IP rights

Recession


To adapt, patient and customer must be at the forefrontof what we do


What would a “whole product” look like in Primary Care, for instance in Depression?


OTC companies/divisions are already creating more integratedsolutions – such as alli


Agenda





Although it could be logical…


…nobody said it was going to be easy


There are many paths to develop the right profile…


1 - 5 Years 5 - 10 Years

…growing the leaders of tomorrow

MBA

Brand Manager

Sales Manager/KAM

BU Head (Sales & Marketing Director)

CEO

MBA

Sales Rep/KAM

Brand Manager

MBA

Global Brand Manager

Access Manager

Previous Work Experience


It is not only capabilities and skills but attitude is key to make the shift

Attitude

Capabilities Skills


Companies look for individuals that can in addition drive the evolution

Attitude

Capabilities Skills

Objective: Develop High Performing Teams


Key success factors to be shaping the pharma world

Clear VisionKey for Success:• Attitude• Skills• CapabilitiesExceed expectationsEnjoy along the track


At Novartis, we have started this journey


“The dictionary is the only place where success comes before work” Mark Twain

The role of marketing in pharma industry

Gregory Behar, Novartis Spain Marketing HeadESADE Business School, Barcelona, Mar. 4th 2009

the role of marketing in pharma industry - esade

Documents