Contents:

OUR VIEW 1 CATALYST 1 SUMMARY 1 METHODOLOGY 1 2 ANALYSIS 4 An Introduction to the role of CRM in the pharmaceutical industry 4 Analytical and Operational CRM 4 Regulatory constraints and the nature of the products sold make pharmaceutical CRM unique 5 Defining the "C" in CRM for the pharmaceutical vertical 6 The "R" in CRM does not stand for "ROI"... 9 ...but ROI cannot be ignored 9 "Management" means much more than it used to 11 Dropping the "e" in eCRM 13 The view of CRM as a solely a sales, marketing or customer fulfillment strategy is flawed and contributes to unrealistic expectations and shortfalls in implementation 14 Drivers and resistors of CRM 14 CRM and the pharmaceutical sales force 17 CRM and marketing to key target groups 17 CRM and customer fulfillment 18 Customer fulfillment online: providing eSamples to physicians and consumers 19 CRM as a holistic business solution, rather than as a sales, marketing or fulfillment solution 25 The leading CRM vendors in the pharmaceutical vertical will combine industry experience with a focus on technology and functionality that meets specific needs rather than hard to define ROI targets 25 The Vendor Landscape 25 The Market Leader 27 Oracle (including PeopleSoft & Siebel Systems) 27 Case Studies: Novartis looks to Siebel for a CRM solution 29 Runners up 29 Salesforce.com 29 SAS 30 SAP 30 Unica 31 Microsoft 31 THE FUTURE DECODED 33 In the future, the focus of CRM will move beyond managing customer relationships towards community-building and support 33 Online Communities as a Tool of CRM 33 At a minimum, pharmaceutical companies should be using online communities as a market research tool 34 Greater lessons to be learned from online communities 34 APPENDIX List of Figures 36 Definitions and abbreviations 36 References 37 Extended methodology 38 Our eHealth Physician Insight Survey 2005 38 Our eHealth Consumer Insight Survey 2005 38 Ask the analyst List of Figures Figure 1: CRM ideally keeps customers involved in an ongoing relationship with a company 5 Figure 2: Pharmaceutical companies are unique in that they have to deal consistently with a diverse customer base, some of which have conflicting needs 7 Figure 3: Companies stuck in a sales force arms race have consistently seen the value of the investment diminish 8 Figure 4: As much as one third of the costs of adopting a CRM solution have to be invested up front 10 Figure 5: Information from online medical journals and website is often accessed more frequently than information from pharmaceutical sales representatives 12 Figure 6: Early adopters of Internet-enabled sales solutions have seen increases in the length of time physicians are willing to engage in a sales or educational activity 13 Figure 7: Overall, patients are now seen as equally as influential at the point-of-care as pharmaceutical sales reps 15 Figure 8: Traditional resistors of CRM are loosing ground to changing market forces 16 Figure 9: Approximately 4 out of every 10 patients need to be incentivized in order to be most likely to fill a prescription 21 Figure 10: Providing services to physicians through the channels they prefer greatly increases the likelihood that a long-term relationship can be established and maintained 23 Figure 11: Websites are a great channel through which to fulfill consumers needs for information and to introduce them to new services and channels of communication 24 Figure 12: The CRM vendor market is beginning to stabilize, but remains highly competitive 27 Figure 13: Oracles recent acquisitions of PeopleSoft and Siebel cements its place as the market leader within the pharmaceutical CRM vertical 28