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。CONFIDENTIAL Pharmaceutical Life Cycle Management (LCM) Client workshop June 2020 1 Today180。s discussion * Footnote Source: Source Key elements of Life Cycle Management Thoughts on how to anize for LCM Key issues 2 Life Cycle Management Life Cycle Management is largely about building brands over time – by incremental investments in value creating activities to maximize the value of a pound Objective Building a business based on a great product idea/brand – not just launch an innovation Mindset 3 LCM requires a mercial mindset Setting ambition level Shape the product Shape the market Shape the pany 4 LCM requires a mercial mindset Setting ambition level Shape the product ? Early cross functional agreement on vision for the product (target label) ? Invest with a venture capitalist mindset ? Deliver against timeline ? Focus on what is important ? Continuously enhance petitive differentiation ? Clinical development entirely focused on value creation (., most important indications) 5 LCM requires a mercial mindset Setting ambition level Shape the market ? Shape the market early and actively ? Clear and consistent messages in munication/PR strategies ? Recognize regional differences in key markets ? Clear and broad perspective on resources required to shape the market ? Ensure tight link between Ramp。D strategy and market strategy Shape the market Shape the pany 8 The life cycle can be divided into three phases Actions often taken years earlier! Year Overall ambitions 0–4 ? Gain market share ? Establish market ? Rapid sales rampup 5–10 ? Expand market ? Gain market share 11+ ? Minimize impact of generics ? Develop and launch lineextensions Typical industry curve Potential curve with active LCM Phase Launch Extend Sustain 9 Best practice targets for ”launch” phase Ambitions ? Rapid growth in market share (x% by year 4) ? Establish overall market (from y to z billion USD) ? Rapid sales ramp up (a% of year 4 sales in year 2) ? Align and anchor targets with entire anization Shape the product ? Rapid launch across all markets ? Product label/positioning/branding is consistent and differentiated ? Competitor moves and strategies assessed and implications taken – in advance ? LCM strategy/positioning over time is clearly identified Shape the market ? Establish KOL work and build base for ongoing relationship ? Pricing strategy balances need for quick approval/peration and establishing favorable longterm position ? Marketing mix and focus on key influencers to reach ambition ? Clinical “share of voice” and publication levels of sufficient magnitude and quality Shape the pany ? Competitive investment level across markets (., x per patient) ? Transition global team role and position。 pink sheets。 Man Stanley analyst report (7/98)。 prefer true and tested drug ? New drug is not on many formularies/ physician does not want to deal with MCO callbacks ? Physician does not want to switch patient who is stable on old drug ? Not all patients respond well to new drug ? New drug is not on many formularies ? New drug does not have full range of indications Example of physician decision funnel Bottlenecks ILLUSTRATIVE EXAMPLE 15 Publication volume is important in differentiating drug products Source: Cited reference science database, various marketing/sales database and publications Diovan (Novartis) launched in 1994 one year after Cozaar (Merck) with a higher efficacy and better tolerated drug。s discussion Key elements of Life Cycle Management Thoughts on how to anize for LCM Key issues 30 Design principles Drive life cycle management around the major planning events (early on milestones and later in annual planning cycle) Create clear roles and responsibilities between global and markets Document life cycle management thinking in a simple document that potentially is broader than the business plan document 31 Focus areas and early remendations Clarify decisionmaking around LCM ? Make LCMplan an integral part of tollgate decisions ? Make LCM planning part of annual portfolio management process Define roles and responsibilities ? Define who has what responsibilities Define the pany life cycle plan ? Upgrade the LCMplan to a real annual strategy document for post launch