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Milestones WOTY Award Turns 20 In 2009, the Healthcare Businesswomen’s Association (HBA) marks the 20th anniversary of its Woman of the Year award. Every year, the HBA, which is committed to increasing recognition for outstanding women in all facets of the healthcare industry, honors an outstanding woman executive in the healthcare industry. The women who have won this award are exceptional, successful, and build strong teams that include other high- performing women and men whom they have mentored. The criteria for Woman of the Year include: having success in the healthcare industry, demonstrating strong leadership capabilities, providing mentorship, and contributing to the community at large. For more information, visit hbanet.org. Informa Training Turns 10 Informa Training Partners celebrated its 10-year anniversary in October 2008. Founded by Jennifer Gulbrand and Evelyn Nichols in 1998, Informa develops off-the-shelf and custom sales training materials for pharma and medical-device sales professionals in a wide range of media, including text, workshops, and interactive e-learning programs. Informa is certified as a woman-owned business from the Women’s Business Enterprise National Council. For more information, visit informatp.com. Industry Overview Top Nine Health Industry Issues in 2009 During 2009, the health industry may prove to be a source of growth during an economic malaise. As new players continue to enter the healthcare market and new technologies develop, the next frontier in healthcare could be hidden from view. Heightened focus by regulators will need to be monitored, as reducing healthcare costs may be viewed as a way to stimulate the economy. 1. The economic downturn requires a back-to-basics approach for health organizations. 2. Underinsured surpassing uninsured as providers’ headache. 3. Big pharma turns to M&A to build the drug pipeline. 4. From vaccines to regulation, prevention is on. 5. Genetic testing reaching price point for the masses. 6. Technology is a powerful health extender. 7. Hospitals must perform to get paid. 8. Payers and employers move the needle on healthy living through incentives. 9. The future is ICD-10. Editor’s Note: Please watch for the March issue of PharmaVOICE for more on these global game changers. Global Market Watch From Russia with Love Russia is expected to join the top 10 global pharmaceutical markets. According to market research published by DSM Group, the Russian pharmaceutical market was expected to grow more than 30% — in U.S. dollar terms — in 2008 compared with 2007. The overall market volume is expected to reach about $18.4 billion compared with $14.3 billion in 2007. These projected results for 2008, based on the market performance in the first half of 2008, would mean that Russia would join the top 10 pharma markets in the world. The key driver behind the buoyant growth is the increasing living standards of the population. The Russian pharma market comprises the commercial drug segment, parapharmaceutical segment, and the state-owned drug segment. Biotech Watch The performance of the biotechnology market is forecast to decelerate with an anticipated CAGR of 12% for the 2006-to-2011 period, which is expected to drive the market to a value of $271.4 billion by the end of 2011. The Cost of Medicine The Price of Drugs to Rise in 2009 Pharmaceutical prices rose an average of 31% per year between 2003 and 2007, far outpacing inflation. According to a recent report from Cutting Edge Information, pharmaceutical prices will continue to rise in 2009. Pharmaceutical and biotechnology companies have had to raise prices to combat increasing clinical development costs. Biologics, for example, cost more than $1 billion on average to develop, and small molecules are almost as costly. Recent discussion in the United States has centered on legislation that would specify a process for registering and marketing generic biologics. Such legislation would force biologic prices down. One of the top recommendations from the study is that drug manufacturers should consistently revise pricing strategies at key product life-cycle milestones. Life-cycle pricing is one of the reasons some drug prices seem to increase every year. But it is also the cause for many drug prices to fall, especially when generics reach the market. Market Watch Global CMOs to Remake Marketing Operations The growing popularity of interactive tools, such as wikis, blogs, and mashups has enabled consumers to engage with firms as never before, which is creating new opportunities and challenges for global marketers. Because marketers are increasingly able to reach out to consumers at all points along the value chain, and no longer just at the moment when a purchase decision is made, many companies have moved to put customers at the center of their operations; 56% of the 263 marketing executives around the world who responded to the Economist Intelligence Unit survey agreed with the statement that their company is highly customer-centric and that marketing functions and sensibilities are interwoven throughout their operations. Five Best Chief Marketing Officer Practices Draw consumers in so they are regarded as helpful participants in the development of the brand. Balance global brand awareness with local market relevance. Integrate marketing with other forms of corp communications. Adopt new media. Develop new skills, capabilities, and partnerships. The Doctors are In Physicians Satisfied with Number of Sales Rep Visits As pharmaceutical and biotech manufacturers have decreased salesforces over the past four years, physicians have increasingly reported more satisfaction with the number of sales reps calling on them. According to SDI’s recently released report, 57% of physicians reported that the current number of sales reps calling on them was appropriate, compared with the 52% and 50% in 2006 and 2004. Additionally, 20% of physicians surveyed in 2008 reported that there were too many reps or more than necessary, compared with 25% who indicated the same feeling in 2004. In 2004-2005, the number of sales representatives peaked at 102,000 but has been decreasing ever since, with 99,000 in 2006 and 92,000 in 2008. For more information, visit sdihealth.com. The 2008 report ranked Pfizer No. 1 in traditional detailing; AstraZeneca was No. 2. Padding the Results n Prescription drugs are the first choice for medical intervention in treating 88% of patients suffering chronic conditions. n The 50% of Americans treated for a chronic condition account for 96% of all prescription drug spending, and 75% of all medical costs. For more information, visit medcohealth.com. The Feminine Mystique Rising Health Costs Prompt Women to Neglect Health A recent survey reveals that almost half of women have skipped medical care due to cost issues. The National Women’s Health Resource Center (NWHRC) highlights another troubling aspect of the current financial crisis: many women have failed to seek healthcare for themselves or their families to save money. Findings also indicate that many women say their health has gotten worse over the past five years and the primary cause women cite for this decline is stress. In addition, while the vast majority of women are emotionally prepared to grow older, the majority do not feel financially prepared. Conducted by Harris Interactive, the fourth annual national Women T.A.L.K. survey explored issues related to women’s health specifically around women’s attitudes about healthcare costs, as well as healthy aging. Almost half of women (45%) have failed to seek medical care in the past year because the cost was too high. This includes skipping doctor’s visits, recommended medical procedures, and medication for themselves or their families. Hispanic women were most likely to have skipped healthcare in the past year (58%) versus white (43%) or African-American (42%) women. More than 40% of women report their health has declined over the past five years, and the most common reasons given for this were stress and weight gain. Tuning in… Featured Podcasts and Weblinx • A Personal and Professional Journey Featured Thought Leader: John Crowley, Amicus Therapeutics Log onto: www.pharmavoice.com/podcasts • The New PhRMA Code Featured Thought Leader: David Ganz, Total Health Rewards Log onto: www.pharmavoice.com/podcasts • Building the Optimal Service Model: Creating the Right Physician Experiences to Drive Business Featured Thought Leaders: Andrew Brana, Mark Sales, and Martin Silverman, TNS Healthcare Log onto: www.pharmavoice.com/servicemodel

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