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DTC ALERT Shift to Physician Offices, Online Programs

Cegedim Dendrite’s annual survey indicates DTC marketing is moving away from traditional mass media promotion. According to the survey, almost twothirds of marketers want to see more spending on emerging and targeted approaches, such as email,Websites, and programs in physicians’offices and pharmacies,but so far the transition has been slow. While DTC budgets are stagnating, the survey shows that other challenges to DTC marketing are abating.For instance, marketers report lower levels of interference due to government regulations (54% compared with 61% in 2007) and Medicare Part D issues (3% versus 14%).Part D subsidizes the costs of prescription drugs for Medicare beneficiaries in the United States. Fewer industry professionals anticipate increases in spending, with almost 30% reporting their budgets will decrease from last year (compared with only 16% in 2007), including 12% saying their budget will decrease by more than 10%. Respondents were split over the effectiveness of DTC marketing,with 31% saying it has become less effective and the same percentage saying it has become more effective. While there have been no dramatic shifts in tactics since 2006,with DTC marketers clearly still concentrating on patient education and assistance in their marketing plans, they do expect to see increased usage of patient education events, rebates/coupons,and product placement efforts in 2008. Healthcare provider (HCP) programs continue to be a popular method to supplement DTC marketing,with the vast majority of respondents (83% ) saying they have some sort of HCP adjunct associated with their DTC programs. STOKING THE PIPELINE Record Spending on R&D America’s pharmaceutical and biotech research companies invested a record $58.8 billion last year in the research and development of new life changing medicines and vaccines — an increase of almost $3 billion from 2006, according to analyses by the Pharmaceutical Research and Manufacturers of America (PhRMA) and Burrill & Company. PhRMAmember companies alone spent an estimated $44.5 billion on pharmaceutical R&D last year — up from the previous record of $43 billion in 2006, according to the PhRMA survey. The Burrill analysis shows that nonPhRMA pharmaceutical research companies in the United States spent about $14.3 billion on R&D last year, compared with $12.2 billion in 2006. Over the past seven years, America’s pharmaceutical research companies have consistently invested around 18% of sales on R&D activities. There are more than 2,700 medicines in development in the U.S. for almost 4,600 different indications. Five years ago, there were about 2,000 medicines in development. The current pipeline includes more than 600 medicines to treat cancer, more than 300 specific to rare diseases, and more than 275 medicines for heart disease and stroke. This activity dwarfs the pipelines in other parts of the world, such as Europe and Japan, partly reflecting existing policies in the U.S. that foster innovation. SOURCE: PHRMA,WASHINGTON,D.C. R&D spending by U.S. biopharmaceutical companies reaches record $58.8 billion in 2007. SOURCE:ERNST &YOUNG,NEWYORK FINANCE CHIEFS Managing Returns According to two recent Ernst & Young surveys,pharmaceutical CFOs will play key roles as companies move away from a focus on driving topline revenue growth to managing for return. Carolyn Buck Luce,E&Y’s Global Pharmaceutical Sector Leader, reports that CFOs will: # Shape Growth Strategies: 74% of respondents agreed that CFOs will need to shift their time from lowvalue functions, such as defensive monitoring and reporting, to partnering to help shape growth strategies that enhance business performance. # Reduce Costs: A large majority — 92% — of respondents rated global cost reduction as a key issue for their businesses. # Manage Human Resources: Challenges are more acute for Indiabased subsidiaries compared with pharmaceutical companies with headquarters in India. THE WINNER IS … Pharma Med Device PharmaVOICE would like to thank all of the attendees who stopped by our booth at the recent Interphex PharmaMedDevice Expo in Philadelphia — the first event to focus on the convergence of the medical device, pharma ceutical, and biologic industries. The lucky winner of the iPod was Debbie Walker, IT Manager, from AmeriSourceBergen. 6 M a y 20 08 PharmaVOICE PV0508 Issue FINAL 4/24/08 10:43 AM Page 6 FOR MORE INFORMATION, PLEASE CONTACT: PETER BURCH AT 7324918043 OR VIA EMAIL AT PBURCH@MTSCORP.COM What if you could target the market with unparalleled accuracy? At MTS, we guarantee it. While most interactive companies provide little more than banner ads, our scalable solutions are based on Healthographics SM a proprietary algorithm of more than 250 individual demographic and health data points. For savvy advertisers, this means a compelling advantage in an increasingly competitive marketplace. Marketing Technology Solutions, Inc. (MTS), is a performancebased, interactive marketing company that specializes in connecting our clients’ brands with healthconscious consumers. Our online solutions help clients to: # Maximize ROI by reaching only those consumers who are actively interested in receiving conditionspecific information. # Build brands through 100 percent optin targeted customer acquisition. # Impact the patient/physician dialogue and drive persistency. # Grow brand awareness through profiled, targeted advertising. The Art and Science of Healthographics SM PharmaVoice_healthographics 4/18/08 2:48 PM Page 1 UPFRONT PDUFA PAYS OFF FDA to Hire More Staff The FDA’s drug centers intend to spend their user fees to hire more safety evaluators, epidemiologists, regulatory project managers, and experts in risk management and medication errors to enhance their postmarket drugsafety activities. In its draft Prescription Drug User Fee Act (PDUFA) IV Drug Safety FiveYear Plan, the agency says it will focus on hiring the staff through fiscal year 2009. Under the PDUFA IV program, the agency will get $29.3 million annually plus a yearly inflation factor to increase its drugsafety capabilities. NEW PhRMA POSITIONS Clark, Brennan, and Kinder On board at PhRMA Richard T. Clark, CEO and President of Merck, was elected board chairman of the Pharmaceutical Research and Manufacturers of America (PhRMA), which represents the country’s leading pharmaceutical research and biotechnology companies. Mr. Clark succeeds Kevin Sharer, chairman, CEO, and president of Amgen, as PhRMA’s chairman, who steps down after an 18month tenure. Also elected were AstraZeneca CEO David Brennan as chairmanelect of the PhRMA board of directors and Pfizer Chairman and CEO Jeffrey B. Kindler as board treasurer. In addition, Takeda Pharmaceuticals North America’s President Mark Booth, SigmaTau Pharmaceuticals’ Chief Operating Officer Gregg Lapointe, and Ovation Pharmaceuticals’ President and CEO Jeffrey S. Aronin are new full members of PhRMA’s board of directors. Wyeth President and CEO Bernard Poussot, Eli Lilly President and Chief Operating Officer John C. Lechleiter, and GlaxoSmithKline President, U.S. Pharmaceuticals, Chris Viehbacher also joined the PhRMA board for the first time. SOURCE:PHRMA,WASHINGTON,D.C. SOURCE:PHARMAVOICE,TITUSVILLE,N.J. TUNING IN… Featured Podcasts, Videocasts, and WebSeminar Programs Podcasts Logontopharmavoice.com/podcast . CounterLaunch Planning to Preempt and Defend Against the Launch of a Competitive Product Featured PodcastThought Leader: Stan Bernard, President, Bernard Associates LLC . Enhancing Global Market Access Strategies with NamedPatientPrograms Featured PodcastThought Leader: John Lagus,VP of Business Development, IDIS . PreCommercial Marketing:Securing Future Success through Meaningful Differentiation Featured PodcastThought Leader: Laurie Lucas, Principal, L3 Healthcare Marketing LLC . LatePhase Research Success:Leveraging Secondary Data Featured PodcastThought Leader: Cyndi Verst, Pharm.D.,Senior VP, Late Phase, i3 Innovus . TheFuture of PharmaCRM Featured PodcastThought Leader: Matt Wallach, Executive VP and General Manager,Verticals OnDemand Inc. . Making it Stick — HowCanPatientEducation Really MakeaDifference? Featured PodcastThought Leaders: Dr. Stanley Wulf, Chief Medical Officer, and W.Ray Bullman,Executive VP of NCPIE (National Council on Patient Information and Education), InfoMedics Videocasts — Industry Vision Logontopharmavoice.com/videocast . Clinical Trial Liaisons — AParadigmShift FeaturedThought Leader: John Hudak,President and Founder,Criterium Inc. . “Glocalisation”and Clinical Trials FeaturedThought Leader: Amanda Decoker, Account Manager,MediciGlobal . TheNextGeneration of Clinical Operations FeaturedThoughtLeaders: Kaushik Bhaumik,Global Practice Leader,Consulting and BPO,and Srivatsan, Head of Life Sciences,North America,Cognizant WebSeminars — WebLinx Logontopharmavoice.com/weblinx . Applying Industry Best Practices to Improve Predictability in Clinical Trials You will learn how to apply predictive analytics and best practices from other industries to improve enrollment performance. Sponsoredby:DecisionView . Planning for Electronic Patient Recorded Outcomes:AGuide to Global Clinical Trials Success With the FDA’s draft guidance for patient reported outcomes (PRO) and the EMEA’s reflection paper on the use of healthrelated quality of life measures, the advantages of using electronic tools for patient data collection are growing. Sponsoredby:Lionbridge . Maximizing Efficiency and Impact through Sales andMarketing Integration The traditional siloed approach by which sales, marketing,public relations, and other functions are each managed by distinct, unconnected teams is not delivering optimal bottomline results. Sponsoredby: inVentiv Health 8 M a y 20 08 PharmaVOICE SOURCE: FDA,ROCKVILLE,MD. PV0508 Issue FINAL2 4/23/08 11:21 AM Page 8

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