Contents:

Launching Pharmaceutical Megabrands: Best Practices in Marketing Blockbusters EXECUTIVE SUMMARY 1 Business Background and Overview 1 Figure S.1-Benchmark Class 2 Figure S.2-Interviewee/Survey Demographics 2 Figure S.3-Benchmark Products 3 Prioritized Findings 3 Report Structure and Organization 6 Summary of Lessons Learned 8 Next Steps 9 Figure S.4-Maximizing Blockbuster Potential 10A DEVELOPING AND DEPLOYING INTEGRATED MARKET SUPPORT 11 Benchmark Data 14 Figure 1.1-Timing of Dedicated Marketing Personnel 14 Figure 1.2-Pre-Clinical Activities by Company 15 Figure 1.3-Activity Frequency at Pre-Clinical Phase 15 Figure 1.4-Phase I Activities by Company 16 Figure 1.5-Activity Frequency at Phase I 16 Figure 1.6-Phase II Activities by Company 17 Figure 1.7-Activity Frequency at Phase II 17 Figure 1.8-Phase III Activities by Company 18 Figure 1.9-Activity Frequency at Phase III 18 Figure 1.10-Submission Activities by Company 19 Figure 1.11-Activity Frequency at Submission 19 Figure 1.12-Launch Activities by Company 20 Figure 1.13-Activity Frequency at Launch 20 Figure 1.14-Employing Broad-Based Market Research 20A Timing of Marketing Activities 21 Figure 1.15-Key Publicity Drivers in Phase III 25 Figure 1.16-Marketing Activities Matrix 29 INVESTING FOR MAXIMUM IMPACT 33 Overview 33 Figure 2.1-Cumulative Pre-Launch Marketing Investments Drive Sales Uptake 34 Benchmark Data 35 Figure 2.2-Total Marketing Spend 36 Figure 2.3-Pre-Launch vs. Launch Marketing Spend 37 Figure 2.4-Pre-Launch Marketing Spend by Phase 38 Figure 2.5-Early Phase Marketing Spend as a % of Pre-Launch Total Marketing Spend 39 Figure 2.6-Marketing Spend by Activity 40 Figure 2.7-New Drug Marketing Investment by Company, Phase, and Activity 41 Figure 2.8-Align Marketing Resources to Provide Early, Ongoing & Consistent Support Throughout Entire Product Life Cycle 42A Investments and Resources 44 MANAGING TEAM STRUCTURE, COMMUNICATION AND TRANSITION 51 Overview 51 Benchmark Data 53 Figure 3.1-Marketing Full-Time Employees 53 Figure 3.2-Company E & J Product Team Model 54 Figure 3.3-Company K Product Team Model 55 Figure 3.4-Company G Product Team Model 56 Figure 3.5-Align Cross-Functional Teams, Structures & Processes To Optimize Speed to Market Penetration 56A Team Structure 59 Structuring Marketing Career Paths 64 Figure 3.6-Defining the Marketing Career Path 64 Figure 3.7-Titles Used for Marketing Departments at Large Pharma 65 Figure 3.8-Marketing Career Path 65 Figure 3.9-Marketing Compensation 66 Figure 3.10-Marketing Department Key Responsibilities 67 Figure 3.11-Marketing Structure-Example A 68 Figure 3.12-Marketing Structure-Example B 69 Figure 3.13-Skills for Marketing Department Recruitment 70 Figure 3.14-Marketing Structure-Example C 71 Early Involvement of Cross-Functional Team 73 Transition and Long-Term Management 77 DRIVING COMMERCIALLY FOCUSED DRUG DEVELOPMENT 81 Overview 81 Figure 4.1-Integrate Marketing and Development to Ensure Rapid Market Uptake 82A Balancing Clinical and Commercial Concerns 85 Trial Strategy and Execution 90 Thought Leader Development 95 Advocacy Group, Payer and Employer Influences on Drug Development 99 PREPARING MARKET FOR RAPID PRODUCT UPTAKE 101 Overview 101 Figure 5.1-Manage All Thought Leader Segments to Shape Commercially Focused Products and Ensure Optimal Market Impact 102A Thought Leader Program Management 104 Competitive Intelligence 110 Publication Strategy 112 BLOCKBUSTER PRODUCT CASE STUDIES 115 Advair 115 Advair Marketing Profile 115 Allegra 117 Allegra Marketing Profile 117 Botox 119 Botox Marketing Profile 119 Celebrex & Vioxx 122 Celebrex & Vioxx Marketing Profiles 122 Cipro 124 Cipro Marketing Profile 124 Claritin/Clarinex 126 Claritin/Clarinex Marketing Profiles 127 Lipitor 129 Lipitor Marketing Profile 129 Nexium 132 Nexium Marketing Profile 132 Paxil/Seroxat 134 Paxil/Seroxat Marketing Profile 134 Premarin 136 Premarin Marketing Profile 136 Prilosec 139 Prilosec Marketing Profile 139 Procrit 141 Procrit Marketing Profile 141 Strattera 143 Strattera Marketing Profile 143 Taxol 145 Taxol Marketing Profile 145 Viagra 147 Viagra Marketing Profile 148 Zyprexa 150 Zyprexa Marketing Profile 150 APPENDIX A: OPTIMIZING COMMERCIAL RESOURCES FOR LAUNCH SUCCESS 153 Key Findings 153 Figure A.1-Global Commercial Resources 155 Figure A.2-Global Commercial Resources 155 Figure A.3-Global Product Team Size Criteria 156 Figure A.4-Global Product Team Size 153 Figure A.5-US Commercial Resources 157 Figure A.6-Commercial Lead 157 Figure A.7-Commercial Lead 158 Figure A.8-Commercial Lead 158 Figure A.9-Product/Brand Manager Qualifications 159 Figure A.10-Commercialization Organizational Structure 159 APPENDIX B: MARKETING METRICS AT A GLANCE 161 Figure B.1-Marketing Metrics At-A-Glance 161 Figure B.2-Brand Performance (Leading Indicators) 162 Figure B.3-Brand Performance (Lagging Indicators) 162 Figure B.4-Marketing Activity Levels 163 Figure B.5-Marketing Process Efficiency 163 Figure B.6-Tracking Marketing Competencies 164 Figure B.7-Marketing Resource Support 164 Figure B.8-Measurement Timeline 165 Figure B.9-Metric Tracking Responsibilities 165 Five Common Tracking Pitfalls 166 Tactics to Successfully Track Performance 166 APPENDIX C: MARKETING PUBLICATIONS STRATEGY 167 Figure C.1-Staff Responsibilities 167 Figure C.2-Phase III to Approval Staff Workload 168 Figure C.3-Launch Year Staff Workload 168 Figure C.4-1-2 Years After Launch Staff Workload 169 Figure C.5-Staff Optimization Responses 169

Summary:

This study performs an industry-wide benchmark study on multi-phased marketing support for new products across an elite group of high performing pharmaceutical companies. Newly updated with case studies from some of the most ground-breaking product launches, the findings in this Best Practices Benchmarking® Report will enable pharmaceutical executives to understand the winning strategies, practices, team structures and investment patterns that distinguish successful new product development and marketing planning. Moreover, the project findings will enable companies to move knowledgeably toward the objective of developing world-class marketing support capabilities. The leading practices, managerial insights and benchmark metrics in this report are drawn from in-depth interviews (1-2 hours per interview) with executives from more than 15 leading pharmaceutical companies. Additionally, pharmaceutical marketing support information was gathered from various other sources, including Best Practices, LLC’s proprietary databases, other public and private databases, literature reviews and on-line data research. The chart on the next page profiles the full benchmark class of companies and interviewee demographics. Key Findings The benchmark study findings are organized into an executive summary and five chapters: Executive Summary The executive summary outlines the five top ""Lessons Learned,"" as identified by benchmark partners and project analysts. Studying these lessons learned will help your team members frame their overall thinking about new product development and marketing support decisions. Accompanying charts provide one-glance summaries of the key findings of the project. Each chapter includes an overview summarizing the winning approaches of top-performing companies in the given area, benchmark data tables where relevant, and the best practices of marketing support identified by benchmark partners and analysts. Chapter 1: Developing and Deploying Integrated Marketing Support Replete with graphs of benchmark responses and data analysis, Chapter 1 shares the timing and frequency of key marketing activities conducted for new products by benchmark partners. Chapter 2: Investing for Maximum Impact In Chapter 2, benchmark data of spend levels are coupled with key insights regarding resource allocation and spend differentiation among pharmaceutical companies. Chapter 3: Managing Team Structure, Communication & Transition A key driver of development success is properly managing team structures and transitions in order to leverage product knowledge. Chapter 3 diagrams multi-phase reporting relationships and details lessons learned shared by benchmark executives. This chapter also includes practices detailing marketing career paths, team structures and transitions in order to leverage product knowledge. Chapter 4: Driving Commercially Focused Drug Development There are many pieces of the puzzle which, when joined, prepare a product to achieve optimal commercial potential. Chapter 4 explores how thought leader input, trial strategy and pharmacoeconomic outcomes work to create a balance between clinical and commercial development. Chapter 5: Preparing Market for Rapid Product Uptake In conjunction with preparing the drug for launch, key activities prepare the market to accept the drug. This chapter relates lessons learned for marketing strategies that employ thought leaders, public relations, advocacy and payer groups, as well as competitive intelligence. Chapter 6: Blockbuster Product Case Studies This section highlights the marketing success stories behind 16 of the world’s top selling drugs. Learn the marketing profiles, tactics and strategies that made these products into blockbusters. Appendix A: Optimizing Commercial Resources for Launch Success This appendix identifies best practices in optimizing commercial resource support for pharmaceutical product launches. Appendix B: Marketing Metrics at a Glance Appendix B includes the leading and lagging indicators for brand performance, marketing metrics responsibilities, and timeline and competencies to evaluate marketing effectiveness. Appendix C: Marketing Publications Staffing This appendix reveals optimal staffing levels, staff workload and staff optimization resources that are critical for marketing publications that support blockbuster product launches.

Companies Mentioned

Abbott Laboratories; Bristol-Myers Squibb; Amgen; Boehringer-Ingelheim; Bayer; AstraZeneca; Aventis; Eli Lilly and Company; Novartis; GlaxoSmithKline ; Pfizer; Merck; Wyeth