McKinsey &Company
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`Hemani Aniavvait
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`Paui van Arkei
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`Jamie Cartel!
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`Fanny Cavalie
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`Giulia Chierchia
`Michael Edwards
`Benjamin Hughes
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`Vivian Hunt
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`NPSEEX. 2168 T
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`Article at a glance
`
`Why is this important?
`
`Launch is one of the most critical moments in a product lifecycle. For 85% of Pharmaceutical
`launches, the product trajectory is set in the first six months. Historically, limited real-life insights and
`an inflexible commercial model made it impossible for Pharmaceutical companies to monitor
`performance dynamically and make course corrections.
`
`What do I need to know?
`
`The wealth of data now available in the form of claims. clinical and social media data, is increasing
`the industry's ability to respond to increased market complexity. and enables the adoption of leading
`practice from other industries. These trends are shifting the basis for competition in Pharmaceutical
`launch away from Share of Voice towards Share of insight. With this increased data transparency,
`winning launches will require Pharma to harness new sources of information to develop superior
`real-time insights, and rapidly operationallse decisions based on these insights.
`
`How do I make it happen?
`
`Organisations need to tackle three areas: Secure access to the most valuable data (including through
`collaboration with payers, providers, academics, and third parties), develop unique granular insights by
`combining advanced analytics with creativity and visualisation technologies. and create organisational
`flexiblity including creating a “Launch Situation Room” to rapidly course correct launch plans.
`
`No part of this publication may be copied or redistributed in any term without the prior written
`consent of ix/|cl<insey & Company.
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`Page 2
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`

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`Winning launches: using analytics and creativity to create superior Sham of Insights
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`The day after Hollywood releases a new movie, studio executives know who
`
`watched it, where, and what they thought about it. Similarly at Procter & Gamble,
`where the first three days of a product launch are critical in determining its success,
`brand teams monitor product launches and adjust their strategy in close to real time.
`For both Pharma and payors, it is already possible to know for drug launch in close
`to real time: which doctor prescribed it where? To which patient? What the doctor
`and patient thought about it?
`
`The data explosion in healthcare is shifting the basis of competition away from Share
`of Voice towards Share of insight.
`
`Why this is important
`
`Launch is one of the most critical moments in a product lifecycle. For 85% of
`Pharmaceutical launches, the product trajectory is set in the first six months.
`
`Historically, limited real-life insights and an inflexible commercial model made it
`
`impossible for Pharmaceutical companies to monitor performance dynamically
`and make course corrections. To be fair, until recently, success did not require
`companies to make swift adjustments to their well—prepared launch plans.
`
`But the world has changed.
`
`On the one hand, launching products has become more complex because
`the healthcare environment has become much more dynamic and diverse.
`Continuous shocks across the healthcare and competitive environment, and
`ever—higher local access hurdles require granular, real—time insights and rapid
`reactions. Given the complexity and diversity of treatment pathways (by area,
`or even by provider) and material difference by TA and HCP, Pharmaceutical
`companies need a detailed understanding of local adoption patterns and a
`fine—grain monitoring of local deviations.
`
`On the other hand, the wealth of data now available is increasing the industry's
`ability to respond to increased market complexity. Data sets are exploding in
`healthcare in the form of claims, clinical and social media data. Although the ability
`to access these data varies by market, the direction of travel towards increased
`
`transparency is a common element for most markets. For example, in the UK, GP
`practice level script data has been publicly released ever since December 2011.
`
`These trends are shifting the basis for competition in Pharmaceutical launch
`away from Share of Voice towards Share of Insight. With this increased data
`transparency, winning launches will require Pharma to harness new sources
`of information to develop superior real—time insights and rapidly operationalise
`decisions based on these insights.
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`Page 3
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`What does excellence
`
`look like?
`
`Insights alone, without a rapid ability to respond with impactful actions, would make
`all of this no more than an expensive toy. Business impact requires the ability to flag
`any potential deviations from plan, and rapidly launch course correction actions.
`Leaders that excel at rapid translation of insights into actions reduce response times
`with thorough scenario planning before they launch — prioritising risks, creating
`insights into what may go wrong, detailing corrective action plans. Additionally,
`leaders create an effective and efficient cross~functional decision-making process to
`
`enable rapid adjustment of commercial tactics in reaction to competitors’ actions,
`customers’ reactions, and distribution hurdles.
`
`Pharma can learn lessons from other industries that already live in and have adapted
`
`to the world of real-time granular insights. Across FMCG, High—Tech, Telecom and
`Automotive, companies have industrialised their insights generation process,
`creating “War Rooms” or “Control Towers" where marketers can visualise how well
`recently—launched products are performing at a granular level. For example, in
`FMCG they can see which retail chains show product sales taking off and which do
`not, why, and take immediate corrective action.
`
`What could the Pharmaceutical industry take away from this? We see three areas
`
`where the industry could leverage the wealth of data to accelerate launches through
`distinctive real—time insights:
`
`- Develop differentiated granular customer insights to individualise launch plans at
`locality, prescriber and patient level
`
`- Step up the rhythm of insight monitoring to flag any deviation before it is too late
`and adapt launch plans on the fly
`
`- Build a more sustainable capability to lever insights over the full growth footprint
`and life cycle of key assets.
`
`Differentiated granular customer insights and individualised launch plans
`
`Many Pharmaceutical companies find it challenging to create sufficiently differentiated,
`granular and actionable customer insights, hindering the ability to fine—tune launch
`tactics to specific customer segments. Like the apocryphai story of the blind men
`feeling the elephant, marketing, market access and sales teams tend to generate
`different views of the customer which are difficult to integrate into a single actionable
`customer view. Marketing teams develop increasingly sophisticated attitudinal
`segmentations based on deep customer insights. Sales force targeting remains driven
`by a mix of customer value (A, B, C, D) segmentation, complemented by qualitative
`insights from field force interaction with customers. Market access customer insight
`approachesare difficult to generalise, though they are typically regarded as being the
`least crystallised andzin many cases lacking sufficient actionability.
`
`‘
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`Page 4
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`Winning launches: using analytics and creativity to create supeiior Share of Insights
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`It is now possible — and a requirement for success — to do much more to master
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`the complexity of local pathways, and differentiate against fierce, fragmented and
`dynamic competition. Specifically:
`
`- Launch teams need to gain unique insights into prescriber behaviour, payer
`needs, competitive dynamics and patient profiles
`
`- Launch teams must harness these new insights to tailor their launch plan to each
`customer's characteristics.
`
`Adopting this approach will require the launch mindset to shift away from one
`monolithic country launch to multiple individual launches which dynamically flex
`timing, target customers, channel mix, and resource levels. There are three areas of
`launch insight where the approach is particularly applicable.
`
`- The first area is identifying and targeting innovator physicians — the first
`physicians to step beyond the current treatment paradigm. The idea of targeting
`“innovators” is not new and is an integral part of most launch preparations. What is
`new, however, is the exponential increase in the ability to identify and understand
`innovator physicians as a target group. Historically, companies had to run market
`research with a limited number of GPS to define segments, and rely on their sales
`force to categorise prescribers; for example a top 10 Pharmaceutical company
`categorised the GPs they were already visiting into "innovator”, “conformist” and
`“traditionalist” prior to a diabetic launch. With the degree of information now
`available it is possible to calculate an “innovativeness score” for the entire universe
`
`of GPs with a high level of accuracy based on their actual behaviour (mix of drugs
`they are prescribing, the speed of adoption of new treatments). It is also possible
`to elucidate other factors that influence prescriber decision making (e.g., size of
`practice, age of physician, degree/role of nurse prescribing, collocation with
`dispensary, economic constraints) and individualise the engagement model
`accordingly (e.g., mix of channel matching their age and location).
`
`- The second area where more granular and actionable customer insights are
`required is payer segmentation. At a time when healthcare budgets are under
`enormous pressure, launch teams need to go beyond traditional payer archetyping
`approaches to understand the affordability level of individual payers — up to
`thousands of them (e.g., PCT, COG or hospital in the UK, GP practice or sickfund
`in Germany). In a similar way to the innovator example above. it is possible to
`derive individual payers’ “affordability score” from e.g,, publicly available financial
`statements, disease incidence rate, and level of generics prescription. Based on
`this score, the launch teams can more easily optimise the product value
`proposition to each payer. For example, for local payers with limited short term
`funds and significant potential budget burden, launch teams could consider
`delaying launch, or offering a discount for the first three—to-six months.
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`For payers with structural deficits, launch teams could explore collaborations around
`pathway re~design to identify where to free up money. Based on the level of
`attractiveness and preparedness of local accounts, affiliates should also decide where
`and when to switch on the sales force, and re-deploy resources where it matters most.
`
`- The third area where granular insights are critical to the long term success of the
`brand is in understanding which patients receive the new drug. While brand
`teams have traditionally developed patient profiles and aligned these with the
`sales force messaging to make it easier for clinicians to ‘recognise’ appropriate
`patients, it is now possible to take this approach to a new level, by capturing
`data on the patients that are actually receiving the drug to identify where the
`patients are coming from (previous treatment), what they look like
`(demographics), what their medical history is (lab results, scores, events) and
`how they behave (adherence and switch history). This enables the actual patient
`profile to be understood in addition to the outcome and whether physicians (and
`even patients) perceive the experience as a success story. During launch, sales
`representatives now have the actionable insights to identify which patients are
`being treated with the launch product, and working down from the best fitting
`patient types, identify and discuss with the physician the next patient cohorts
`that could (or should) be transferred to the new treatment.
`
`Live insight monitoring and adaptive go-to-market approach
`
`Launch teams increasingly go through the first months of launch with a level of
`frustration that equals, if not supersedes, the level of excitement. This is because they
`routinely lack timely and accurate information on what's really going on. in many
`cases, even if launch teams had better access to the right information at the right
`time, it would be challenging to take appropriate and timely action. Typically, after
`spending months perfecting the launch plan, execution is delegated to the sales force
`and there is limited opportunity to intervene and adjust in response to evolving market
`dynamics. Usually the next opportunity to adjust the launch trajectory in a meaningful
`way is during the next planning cycle — when six crucial months may have passed.
`
`With the higher frequency of information now available, and with an increasingly
`flexible commercial model (e.g., multi—channel, variable salesforce resource and
`territories, flexible resource allocation process), launch teams are for the first time
`able to course—correct and fine—tune the trajectory of a drug with greater precision
`and timeliness.
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`Page 6
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`Winning launches: using analytics and creativity to create superior Share of Insights
`
`Ch
`
`For example. the industry is already exploiting patient level data in the US such as
`iKnowMedTM which captures the insight of community based oncology practices
`across the US in real time, and provides instant information on individual prescriptions
`and related claims. One Pharmaceutical company uses this information to detect
`
`potential bottlenecks in treatment or administration: it can immediately flag if a specific
`doctor's claim was denied because they recorded the wrong price in the system and
`then reach out to the practice to resolve the issue. Interestingly, in this specific case,
`the sales channel, with its four—week call cycle, was not sufficiently responsive to take
`advantage of this new opportunity and phone and digital channels had to be deployed
`to provide the real—time ability to respond to customer needs. In Europe, even though
`there is less commercially—available data, various patient level medical records can be
`accessed at least on a bi-weekly basis (the costs of more frequent access are usually
`too prohibitive) and online panels, social media and field force can provide continuous
`updates. Frequent updates need to be interpreted with caution since variations may
`be driven by a limited number of data points or by temporary factors. However, those
`rapid feedback loops are absolutely necessary to flag unexpected deviations from the
`plan, trigger immediate investigation — and, if required, rapid action.
`
`For instance, if the first prescriptions of a new drug are limited to a subset of the target
`population — one that is easier to acquire — the brand growth will flatten out after a few
`months, when it is too late to change the “niche" perception of the drug. Additionally, if
`the first prescriptions go to off—label patients, safety issues may compromise the brand
`image in the first months of launch. it is therefore critical to intervene to understand
`
`why the first adopters do not prescribe to the right patients, and rapidly act to mitigate
`the risk.
`
`Furthermore, monitoring the drug perception close to real time through social media or
`medical record text mining can flag unexpected reactions that could be linked to
`competitors’ actions, uncommon patient side—effects, uneven sales force execution,
`
`etc. Those unexpected events may hinder the drug trajectory if not corrected quickly.
`
`Although the old saw, knowledge is power, applies in launch, winning launches
`based on Share of Insight also requires timely insight-driven modification of tactics
`(and sometimes strategy). What this practically means for a launch team is that, if
`
`empowered, they can adapt more than 80% of the launch plan on the fly by adapting
`messages (e.g., communicate the risk for off—label patients if the first prescriptions
`are inappropriate), developing new tactics (e.g., tools to identify the right patient),
`and re—deploying resources across areas (e.g., towards accounts with changes in
`protocols/pathways or unexpected competitor actions) or across channels based
`on initial feedback and impact.
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`Page 7
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`

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`How to make it happen
`
`Convinced of the opportunities to step up launch insights for business impact but
`sceptical that it can work in Pharmaceuticals? While acknowledging the greater
`complexity, opacity, regulation, and fragmentation of Pharma compared to industries
`such as FMCG and High-Tech, we strongly believe that the industry can leverage
`the ocean of new data to individualise and adapt launches in an effective and
`
`practical way. The following three actions are required to seize the opportunity.
`
`- Secure access to the most valuable data — including through collaboration
`with payers, providers, academics, and third parties
`
`- Develop unique insights by combining advanced analytics with creativity,
`and investing in visualisation technologies
`
`- Create a “Launch Situation Room" to rapidly course correct launch plans.
`
`Securing access to the most valuable data
`
`Although Pharmaceutical companies inhabit in a world of rich data, they often
`under~leverage most of the available information. For example, sales force feedback
`is often poorly captured, social media data are considered too dangerous. and
`payer and provider data are hard to access and analyse. This does not mean that
`Pharmaceutical companies should try to digest as much data as possible. Volume
`of data is a poor proxy for value. The first important step is to make an inventory of
`the available information sources and prioritise the data sources that lead to the
`most impactful insights.
`
`The second is to secure access to the data. For example, private and public payers
`(Sick funds or research institutes such as BIPS‘ in Germany, Assurance Maladie in
`France) sit on highly-valuable claims data. Hospitals also have large episode data
`sets (HES2 in UK, PMSI3 in France). Both types of organisation perform basic
`analysis and start experimenting with outcomes research, but they are under-
`exploiting their data. Why? Limited analytic skills, and until recently, limited need.
`With healthcare cost reduction now imperative, they are much more keenly
`interested in a granular understanding of their patient pathways and associated
`cost drivers. Pharmaceutical companies are able to bring analytic skills and
`additional investment to make the most of existing data in a win—win collaboration.
`A joint data mining initiative could enable monitoring of whether the right patients
`are getting the right drugs, in addition to uncovering patient adherence patterns
`and related outcomes.
`
`‘ Bremen iristiiuie for Epzdarnioiogy and Prevention Research
`r Hospital Episode Statistics
`" Prograrnrne as =nedic;allsation ales systsiiies dwlilormation
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`Winning laiinrhesz using, analytics and c1'cati\'it\' to cmite SllpEl'i01' Share of Insights
`
`\4
`
`Combining the power of advanced analytics, creativity and visualisation
`
`Where is an ocean of data out there — accessible to you and to most of your
`competitors. Many data are underleveraged and also sitting in silos that make it
`difficult to create holistic customer insights. With the right analytical smarts and
`creativity you can develop insights that others don't have by identifying the micro-
`segments that drive your brand, monitoring the dynamic of those segments,
`combining data from different sources (eg, claims, hospital episodes, social media,
`field force) and by simulating and predicting customer response (e.g., modelling GP
`prescribing budget trajectories to anticipate when their behaviour might change).
`
`Analytics is nothing without the ability to visualise complex data in an intuitive and
`actionable way. To leverage the full power of the data it is critical to use the latest
`visualisation tools and adapt them to the channels that make sense for the person
`consuming them (e.g., by putting them in each rep’s pocket on their smartphone).
`
`imagine an interactive map of the UK where shapes and colours indicate the level
`
`of innovation, preparedness, and penetration of individual practices. Where you
`can point at St Thomas’ hospital and immediately see the protocol status, level of
`clinical support, and number of new prescriptions. Visualisation technologies can
`be leveraged to generate intuitive insights, enable comparisons across accounts,
`
`localities, patient types, prescriber segments, provide real life updates and flag
`information that matters (e.g., early deviation from the plan), Digital channels can
`also be used to deploy this insight and visualisation tools to the front line on a
`smartphone, some of these tools and insights can even be shared with customers
`to create a shared conversation around the local health ecosystem based on the
`best available insights.
`
`
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`Page 9
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`Establishing a “Launch Situation Room”
`
`Mature launch concepts from other industries’ — “War rooms” and “Control Towers”
`— are equally relevant to Pharma. Affiliates should establish a “Launch Situation Room"
`with the following elements:
`
`- A dedicated team of cross—functional decision makers
`
`- A physical location with ability to visualise launch insights
`
`I A top management mandate to rapidly adapt the launch plans in order to
`accelerate the uptake.
`
`The Launch Situation Room is where the brand lead holds frequent (weekly orbi-
`
`weekly) action—orientated working sessions with the cross—functional team and the
`organisation's key decision makers — including the country managing director, VPs of
`marketing, sales, medical, compliance, and market access — to discuss collected
`feedback and agree on immediate actions going forward.
`
`Those course corrections are only feasible if affiliates set up an agile commercial model
`— leveraging non face—to-face channels and technologies (e.g.. iPad detailing, webex),
`a flexible resource allocation system, and a versatile sales force that can effectively
`work in different territories and swiftly move from one account to another.
`
`In addition, to the above, it is critical that organisations avoid the pitfall of using the
`new sources of data as a performance control tool. The greatest value is in informing
`local decision making (rather than above market performance management).
`
`New data combined with analytics and creativity create opportunities to compete
`
`based on Share of insight. Rapidly seizing the opportunities will require you to:
`
`- Develop a synthetic but nuanced view of the actual data available in local health
`systems or from vendors, and identify under—exp|oited internal and external data
`that could inform valuable decisions
`
`- Establish who (in or outside your organisation) is able to aggregate, analyse and
`visualise insights from data, incorporating best practices from Other industries to
`develop actionable insight for day—to—day decisions
`
`- Examine your current commercial insight refresh rate and the ability of the
`organisation and launch team to incorporate insights for rapid course corrections,
`including the potential to build more flexibility into day—to-day operations
`
`- Determine the right way to mobilize the organisations, including identifying the
`high priority brand challenges suited to pliot and demonstrate value and the
`appropriate leadership to drive significant change to organisations and processes.
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`Page 10
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`

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`Key contacts
`
`Jamie Cattell
`
`Principal
`
`London office
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`+ 44 (20) 7961 5280
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`jamie_cattell@mckinsey.com
`
`Fanny Cavalie
`
`Associate Principal
`
`London office
`
`+ 44 (20) 7961 6080
`
`fanny_oavalie@mckinsey.com
`
`Other contributors
`
`Hemant Ahlawat
`
`Principal
`
`Brussels office
`
`+ 32 (2) 645 4012
`
`Michael Edwards
`
`Principal
`
`London office
`
`+ 44 (20) 7961 6660
`
`hemant_ahlawa’i@mckinsey.com
`
`michael_edwards@mckinsey.com
`
`Paul van Arkel
`
`Principal
`Zurich office
`
`Benjamin Hughes
`
`Associate Principal
`London office
`
`+ 41 (44) 876 8435
`
`+ 44 (20) 7961 6390
`
`paul_van_arkel@mckinsey.com
`
`benjamin_hughes@mckinsey.corn
`
`Giulia Chierchia
`
`Associate Principal
`
`Brussels office
`
`+32 (2) 645 4206
`
`Vivian Hunt
`
`Director
`
`London office
`
`+ 44 (20) 7961 5633
`
`giulia_chierchia@mckinsey.com
`
`vivian_hunt@mckinsey.com
`
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`June2012
`
`Designed by Visual Media Europe
`Copyright © McKinsey & Company
`www.mckinsey.c:om
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