Social Media In Pharmaceuticals Acg

1Ananth Consulting Group (ACG)October, 2010
Ananth Consulting Group (ACG)
www.ananthconsulting.com
Digital Marketing in Pharmaceuticals
October 17, 2010
Ananth Consulting Group
Social media in pharmaceutical industry...
…a changing paradigm
By Rajaram Iyer
October, 2010
Digital Marketing: New BEAT
in pharmaceutical marketing;
can you hear it??

Social Media, What?
What should
be my social
media
strategy?
What are various
companies doing
in digital
marketing?
What has
worked in social
media so far?
What are the
regulatory
guidelines?

Emerging challenges for pharmaceutical brand managers
 The diversity of media channels through which Pharmaceutical companies can reach out to physicians and patient
groups is fast changing and expanding
 These forces are challenging the effectiveness of traditional marketing strategies that involved providing free drug
samples, publishing drug details in journal articles or opinion leaders, offering gifts with company logos, and
sponsoring CME, most of which was done through pharmaceutical company’s medical representatives
 Physicans and patients are muti-tasking and want easy
access to personalized information in short duration of
time
 Patients are relying on ‘wisdom of crowds’ to make their
purchase decision
 The promotional vehicles available to medical reps are
increasingly being regulated (PhRMA Code 2008) and
the average time of interaction between them and
physician is reducing
 Internet has become a leading source of healthcare
related news, information and education for physicians
and patients
A number of top-selling drugs are going off-patent
The gorwth rate of the global pharmaceutical sector is going
to decelerate. According to IMS, the sector is expected to
grow at 3-5% till 2013
The spate of mergers and acquisition is likely to continue,
driven by the need to balance prescription vs. OTC portfolio,
maintain operating margins and top line growth in lieu of
drugs going off-patent
Governments in the US, EU and Japan are taking steps to
lower healthcare costs and promote generics substitution
The rate of new drug development has declined over the last
few decades. Over half of the new drugs to be launched are
‘Orphan’ drugs targetting specialists
New market access strategies are being tested between
pharma companies and payers/regulators to reduce pharma
costs

 Social media has opened a whole new way of communication and has connected the world in multiple
ways
 Earlier, in pharmaceutical industry, representatives were the only channel between the pharmaceutical
companies & doctors, and there were no direct link between companies and patients, but now with social
media channels there are multiple options available and most importantly the communication process has
become two way as against one way in past
 So far, the use of social media tools in pharmaceutical industry has been limited, however this area is
evolving and is growing rapidly
 Initial results of use of social media has been encouraging and this trend is likely to grow in future
− The current success of various social media tools have been driven primarily by few big companies,
which have used them effectively
 Big concern for the limited usage of social media in pharmaceutical industry is lack of regulatory guidance
from USFDA or other regulatory bodies around the world
 Lot of companies are sitting on the fence and would jump into the bandwagon once the regulatory
guidelines are clear
 Patients with rare/niche diseases have embraced social media tools effectively than patients with common
disorders
Executive Summary
Digital media eroding the power of institutions

Digital marketing is “marketing communicated thru various digital channels such as internet,
email, social networking sites, mobile etc”
As per a report by Econsultancy and ExactTarget, 70% respondents (companies) were planning to
increase their budget for social media activities such as Facebook, Twitter etc
Social Media: Changing the marketing landscape
Blogs VideoHealth Portals
Social
Networking Sites

As Per „en.wiktionary.org‟, blog is
“website that allows users to reflect, share opinions, and discuss various topics in the form of an online journal while readers may
comment on posts. Entries typically appear in reverse chronological order.”
Blogs, in pharmaceutical industry have used by various stakeholders for multiple reasons
To share their opinion about drugs,
adverse events, disease etc and
also to know of good treatment
option for very rare disease.
Patients have used blogs
effectively to connect with fellow
patients to know how to manage
their disease effectively
To share their views on
various diseases and
treatments; this also helps
them in connecting with their
patients better
To promote their brand
and also to disseminate
information about the
medicines, diseases and
various programs
To share their views on
various topics
Patients Physicians Pharmaceutical Companies Individual Experts
Blogs have given power of expression to all the stakeholders and has become an important mode of communication
Blogs (1/2)
Power of expression

 Blogs have reduced the divide which existed before between various
stakeholders and have also done a good job in connecting the patient
community. Blogs have opened multiple channels of communication
and have given the power of expression to various stakeholders
 Pharmaceutical companies are using this medium to promote their
products and other programs around disease management.
Companies not only blog about their product but also use this as a tool
to establish better relationship with the patient community.
−Good example of this is “more than medicine” blog by GSK
which features articles and expert opinions about various topics
of general health and wellness
−Another example is the BTW blog by JnJ, which provides
information about various JnJ initiatives and also some articles
about general wellness
 Patient community is also using blogs effectively to communicate and
connect with other patients with same disease
−Diabetesmine.com and tudiabetes.org are good examples of
effective blogging by patients where they solve each others
problem and help in dealing with diabetes
Blogs (2/2)
Power of expression
• Share views in an unbiased way
• Be upfront and honest ; share adverse events also
• Its better to promote a cause rather than promoting products
Few Do’s

Social Networking Sites (1/2)
Promotion thru networking
Social networking sites such as facebook, twitter etc have also been a part of digital strategy for the pharmaceutical industry.
These websites have been used to raise and spread awareness. Facebook is an effective medium to spread awareness
especially amongst the youth as most of them are part of some kind of social media website and use them regularly
Facebook has been used effectively by Merck (Gardasil) and Johnson & Johnson (JnJ) (awareness about ADHD-Attention
Deficit Hyperactivity Disorder) to promote their respective brands
Twitter is a useful tool in disseminating various updates about companies. Twitter so far has been used primarily as a corporate
promotion site as against a site to promote brands
Social networking sites such as facebook and twitter have given a new avenue for pharmaceutical companies to
communicate with their audience. Interestingly, this communication is a two way process, as against one way in past

Social Networking Sites (2/2)
Promotion thru networking
 Big reason regarding the popularity of Merck‟s (take a step against Cervical
cancer) and JnJ‟s(ADHD Moms) facebook page is that they stand for the
disease and not for the brand. People want to get associated with a cause and
not brand
 Another reason is that these pages share lot of practical tips about disease
management and most importantly, these tips come from people who are either
the patients or caregivers, so these tips have really worked with someone
 These sites also provide a platform to discuss various issues regarding the
disease management
 These websites also post success stories of patients and that acts as a big
motivator
 An area which is under active debate is „reporting of adverse events‟. Most
people believe that pharmaceutical companies will not be very upfront in
reporting adverse events with its drugs. There are no regulatory guidance on
this and hence most of the companies are waiting for that clarity

Health Portals
Healthy Information
Health portals provide free information of various types related to various diseases. Portals like webmd, revolution health,
everyday health etc provide basic information about the disease, treatment options, scientific guidelines etc. In addition to other
features most of these websites have a feature where patients can blog about their condition, their experiences with various
drugs etc.
Health portals have become primary source of information for lot of people looking for health information online
There are certain niche health portals which are meant for patients suffering from few rare disorders. Patientslikeme.com is one
such example which provides information about diseases such as Parkinson‟s, Multiple Sclerosis, Fibromyalgia etc.
Analytics from these health portals have also become sought after, as the data here is real time and is generated by the patients

Video Channels
“A picture is worth a thousand words”
Online video sharing sites have also been utilized by pharmaceutical companies for promoting . Sites such as youtube have
drawn maximum attention. Pharma companies have used this channel to promote their products, clinical trial results etc.
Companies use youtube to create their own mini channel (just like a big TV channel which airs different programs) which
provides information about the company and its products, pipeline status, patient stories, videos about the various diseases etc.
This channel concept looks good as it provides a platform to spread awareness about the disease in a more neutral manner
Johnson and Johnson has a dedicated health channel on youtube which provides various contents for healthy living. It also posts
success stories of patients. Sanofi Aventis TV is another channel where Sanofi is trying to promote information about the
company and its wide range of patient-focused businesses, social responsibilities, and employee activities

Social Media: New chapter in pharmaceutical marketing (1/2)
 Use of social media is relatively new and is an evolving area amongst pharmaceutical industry. Various
companies are trying different things to promote themselves
 Pharmaceuticals companies started social media activities for promoting their brands, but lately the trend is
shifting towards engaging and empowering the patients. Most of the pharmaceutical companies are now
encouraging open discussion about the disease treatment etc.
− Human touch: Most of the blogs /twitter posts (tweets) by pharmaceutical companies are actively
managed by individuals where patients and caregivers can ask questions about the disease and
treatment options
 There are multiple channels being tried in digital marketing such as twitter, facebook, blogs, etc. Some of
the companies have adopted an integrated approach
 Some of successful campaigns in social media has been:
− JnJ‟s blog BTW
− Merck‟s and JnJ‟s facebook page for Cervical Cancer and ADHD
− Youtube channel for Novartis, Sanofi and JnJ
 Patients are sharing lot of information on health portals such as patientslikeme.com etc and hence social
media analytics is likely to become big in future
− Patients share lot of data about disease management, efficacy and safety of various drugs, adverse
events profile etc and hence analytics of this data will be sought after by both the payors and
pharmaceutical companies
− Payors will use this data to decide reimbursement and coverage while pharmaceutical companies will
use this data for coming up with improved formulation/therapies

Social Media: New chapter in pharmaceutical marketing (2/2)
 Lack of regulatory guidance / guidelines poses a big challenge for companies to adopt and embrace social
media strategy. We expect more companies will join social media platform, if regulatory guidelines are clear
− Pharmaceutical companies‟ biggest concern is reporting of adverse events and they are seeking
clarity around the amount of disclosure
 Social media strategy is not just about having a corporate account in twitter, facebook etc, but it is way
beyond that and should focus on engaging the patients
 Social media can be a great customer service tool, so please use it!

Social Media: Future trends (1/4)
Companies will promote their products directly to patients and insurance
companies/payors; role of representatives will be reducedTrend No1
Internet will replace physicians as the primary / first source of information about
the disease. Patients will have much richer conversation with their doctors
regarding their treatment approach
Trend No 2
Social media analytics will become big and insurance companies will start using
this data to decide coverage and reimbursement
Trend No 3
Newer ways of DTC marketing will evolveTrend No 4
One way to two way communicationTrend No 5

As digital marketing and social media evolve, pharmaceutical companies will start focusing their promotional
activities directly towards patients and will enable direct communication channel with patients. In terms of other
stake holders for pharmaceutical companies, insurance companies have also emerged as a major stake holder
and pharmaceutical companies will direct their communication to them also.
As patients will directly get lot of information, both, about the disease and treatment options, role of physicians
will become limited and hence pharmaceutical companies would reduce their spend on traditional methods of
marketing.
On the other hand, physicians will also get lot of information thru the internet and hence the role of medical
representative will be marginalized. Additionally, the move away from blockbuster model will also reduce the
need for sales force.
Overall, in future, social media and digital channels will play a big role in communication and will reduce the
impact of traditional ways of communication.
Companies will promote their products directly to patients and insurance
companies; role of representative will be reducedTrend No1

With the ease of availability of quality data (to patients) both about the disease and management, patients will
be more involved in deciding the treatment option and also start playing a much bigger role. The conversation
between physicians and patients will go to the next level. Moreover, with patients paying additional co-pay for
newer therapies, they will take substantial control over their treatment decision.
With patients at the helm of affairs, it will become a necessity for pharmaceutical companies to engage them
thru social media.
Internet will replace physicians as the primary / first source of information about
the disease. Patients will have much richer conversation with their doctors
regarding their treatment approach
Trend No 2
With lot of data being generated thru patient community, social media analytics will play a center stage role in
the future and insurance companies and PBMs (pharmacy benefit manager) will start using this data to decide
coverage and reimbursement.
Websites such as patientslikeme.com have lot of patient data and is a good source to see what are the
common side effects of a drug , what's the general perception about the safety and efficacy etc. In future we
expect lot of such data would be available live, generated by the patients, and payors will use this data to
decide the reimbursement status.
Social media analytics will become big and insurance companies will start using
this data to decide reimbursement
Trend No 3

As communication thru digital media evolves, newer ways of communication will develop. Digital media has
evolved in last 5 years with lot of social networking tools being utilized. Currently, only few social media tools
are being used by pharmaceutical companies. As the awareness increases, newer ways of DTC will evolve and
shape up the market dynamics.
Most of the current social media tools used by pharmaceutical companies such as facebook, blogs, twitter etc
will become overused in near future and companies will have to look for newer and innovative ways to engage
the audience.
Newer ways of DTC marketing will evolveTrend No 4
In past, pharmaceutical companies were communicating directly with the physicians and there was no way for
them, to both, communicate directly and also to take feedback from the patients. With the advent of social
media tools, companies and patients are able to communicate with each other. In fact, with social media,
multiple channels of communication have opened between all the stake holders. Patients are now able to share
their data thru blogs, health portals etc and both pharmaceutical companies and payors are listening.
One way to two way communicationTrend No 5

Social Media: Few questions??
Will social media improve the
quality of healthcare; will this
reduce the overall healthcare
cost?
What restrictions will regulatory
agencies put?
How do I measure my ROI
(return on investment)?
What changes should I do to my
organization structure to
participate in social media?

About Us
ANANTH CONSULTING GROUP is an emerging business consulting firm which provide answers to
various business problems of global pharmaceutical and other life sciences companies. We provide
various market research and competitive intelligence support activities which enables you to make
informed decisions. Please visit www.ananthconsulting.com for more information
Commercial Strategy Support
TA/Pipeline AnalysisCommercial Strategy Support
Project ManagementPartner identification

This document is a property of Ananth Consulting Group and should not be reproduced or published without the permission of Ananth
Consulting Group.
For Details Contact:
Rajaram Iyer
President – Ananth Consulting Group
D 305 Parsvnath Prestige
Sector 93A, Noida 201304
UP, India
Ph: +91 9818723030
Email: rajaram@ananthconsulting.com
www.ananthconsulting.com
All the logos, trademarks, signs, symbols, websites, screenshots used are property of their respective owners.

Social Media In Pharmaceuticals Acg

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Similar a Social Media In Pharmaceuticals Acg

Similar a Social Media In Pharmaceuticals Acg (20)

Social Media In Pharmaceuticals Acg