Blockbuster Launch Evolution - Chris Bogan Keynote-FINAL (09-24-2015)

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Transcript of Blockbuster Launch Evolution - Chris Bogan Keynote-FINAL (09-24-2015)

  • Page | 1 Page | 1

    Blockbuster Launch Evolution: Mapping Market-Entry Changes That Cause New

    Products To Stumble or Soar

    Presented by Chris Bogan,

    Chief Executive Officer

  • Page | 2

    Blockbuster Warm-up Quiz: Which Product Belongs With

    This Peak Year Sales Number?

    $13.7 billion

    A

    B

    D E

    C

  • Page | 3

    $10.283

    Billion

    =

    Sovaldi $1.56 Billion =

    Incivek

    $12.41

    Billion = Gilead

    HCV

    Franchise

    $2.127 Billion

    = Harvoni

    Blockbuster Products Are Alive and Well But Market-Entry Has

    Evolved Radically Over the Past Decade Gileads Sovaldi + Harvoni franchise produced nearly 800% greater revenues in its first 12-months in market than did the previous blockbuster launch champion Incivek, also marketed for Hepatitis C.

    Source: Gilead 10K Filings and Best Practices, LLC Analysis

    Comparing Champions: 1st Year Market Entry Launch Revenue and Power

  • Page | 4

    What do Darwins Finches and Blockbuster Launches Have

    In Common?

    Image Source: http://www.pbs.org/wgbh/evolution/library/01/6/images/l_016_02_l.gif

    Small variations in new product launch can result in

    dramatically different launch outcomes?

  • Page | 5

    Market Insight: Learning To See The

    Market In Different Wavelengths &

    Perspectives

    Evolution of a

    Blockbuster:

  • Page | 6

    Eyes Are A Common Evolutionary Mechanism To Survive In

    Nature and in The Marketplace

    Market Research & Insight Functions Are The Eyes of the Enterprise

    http://ebiomedia.com/gall/eyes/Images.htmlhttp://ebiomedia.com/gall/eyes/underwater.htmlhttp://ebiomedia.com/gall/eyes/nocturnal.htmlhttp://ebiomedia.com/gall/eyes/pretend.htmlhttp://ebiomedia.com/gall/eyes/protect.htmlhttp://ebiomedia.com/gall/eyes/eye1.htmlhttp://ebiomedia.com/gall/eyes/sharp.htmlhttp://ebiomedia.com/gall/eyes/eye1.html

  • Page | 7

    Some Species Eyes Have Evolved to See the World From

    Different Perspectives and With Deeper Insight

    SOURCE: http://lorologiaiomiope-national-geographic.blogautore.espresso.repubblica.it/files/2013/07/peacock-mantis-shrimp.jpg

    # of Photoreceptors in

    Different Species Eyes

    16 Color Photo-receptors

    Mantis Shrimp

    5 Photoreceptors -

    Butterflies

    4 Photoreceptors - Birds

    3 Photoreceptors -

    Humans

    2 Photoreceptors - Dogs

    Mantis Shrimp The Most Sophisticated Eyes on the Planet?

  • Page | 8

    Market Research Is The Function Through Which To See

    Market Opportunities But Not All Have 20-20 Vision

    (6) MARKET SHARE

    When all is equal, speed navigating

    markets drives share gains.

    (7) GROWTH VS. DIVIDEND

    Growth models need to grow faster & into

    new adjacencies; dividend models can

    grow slow and pass cash to shareholders.

    MR is most important to growth models.

    (4) MARKET

    NICHES Growth paths move into market niches,

    making understanding the niche critical.

    (5) LAUNCH

    CURVE

    Launch curves are inflected up or down by

    market understanding & positioning.

    (2) NUMBER OF STUDIES

    # of studies drives market understanding

    & responsiveness.

    (3) COMPETITIVE MARKETS

    Rising market competition makes MR more

    important & harder to conduct in specialty /

    Rare disease markets

    (8) MARKET CAP

    Growth and profit

    disproportionally drive

    market capitalization. MR

    enables a biosciences

    growth company.

    (1) MR APPROVAL TIMES

    Approval speed affects number of

    studies & MR productivity.

    Market Research

    Speed & Insight

    Drives

    Competitiveness

    in Growth

    Companies

    Source: Best Practices, LLC 2015 Field Benchmark On Market Insights Process

  • Page | 9

    Not All Companies Look Into The Market As Fast, As Deep or

    As Frequently Affecting Market Insight & Launch Trajectory

    Top performers find

    parallel review highly

    effective

    Parallel

    Processing

    High performers average

    85% fewer exception rates

    than SlowCos

    Exception Rates

    0-10% High performers have

    set standards for

    response times across

    all stakeholders

    Response

    Standards

    High performers average

    90% faster than SlowCos

    in getting approvals

    Speed of MR Approvals

    1-2

    days High performers actively

    manage & simplify

    approval processes

    Approval Efficiency

    High performers use

    automation & digital

    tracking extensively

    and effectively.

    Automation

    Higher Vs. Lower Performance Profile

    Six Key Indicators On the Dashboard of High Performance Driving Faster Market Insight

    14 to 28 days =

    avg. approval

    times

    Lower Performers

    have more 31-40%

    Exceptions

    Low Performers

    often lag in these

    areas

    Lower Performers do

    not employ best

    practice rules,

    checklists & practices

    Lower Performers

    have no or looser

    response stds.

    Lower Performers

    have no set review

    process

    Source: Best Practices, LLC 2015 Field Benchmark

  • Page | 10 Page | 10

    Endosymbiosis: Thriving Within Your

    Ecosystem

    Evolution of a

    Blockbuster:

  • Page | 11

    Endosymbiosis Suggests Lessons For Thriving

    Inside the Health Care Ecosystem

    Endosymbiosis is a type

    of symbiosis in which one

    organism lives inside the

    other, the two typically

    behaving as a single

    organism.

    Q: Do human gut bacteria regulate happiness in people?

  • Page | 12

    Biopharma & Medical Device Companies Live &

    Launch Inside the Global Health Care Ecosystem

    Payers

    Patients

    2014 US Healthcare

    Expenditures

    $3.8 trillion

    Expenditures:

    Hospitals = $1.2 trillion

    Physicians & Clinics = $900

    billion

    Prescriptions = $342 billion

    Payers

    Public Payers (Medicare, Medicaid,

    VA, et. al) = $1.8 trillion

    Private = $912 billion

    Sources: Centers for Medicare & Medicaid Services, Office

    of the Actuary, National Healthcare Statistics Group,

    Source: Best Practices, LLC Analysis

  • Page | 13

    Q. Dedicated ACO/IDN Service Staff Resources: What stage is your company at in dedicating staff for each of the

    following type of health care organizations?

    (n=35)

    7%

    8%

    14%

    32%

    36%

    36%

    37%

    42%

    58%

    25%

    20%

    31%

    29%

    29%

    32%

    43%

    19%

    29%

    68%

    72%

    55%

    39%

    36%

    32%

    20%

    39%

    13%

    Long-term care IDNs

    Nursing home IDNs

    Post-acute care IDNs

    Specialty care IDNs (Dialysis, Oncology)

    Therapeutic area specialty care IDNs(Dermatology, Cardiovascular, etc.)

    Academic teaching center IDNs

    ACOs

    Primary care IDNs

    Hospital IDNs

    Dedicated Service Group for Customer Segments

    Curently Have Plan to Have in 2 years No Plans to Have

    % Responses

    As Integrated Healthcare Delivery Networks Have Grown in Influence and Size, Manufacturers have Scrambled To Evolve To Serve Them

    Growing Specialized Field Resources To Serve New Ecosystem Constituents

    Source: Best Practices, LLC 2015 Field Benchmark On IDNs & ACOs

  • Page | 14

    Old Model: Sales Rep to Doctor

    Commercial Selling Models Are Rapidly Evolving from Rep-to-Doctor

    to Business-to-Business Forms To Be Effective

    New Model: Business to Business

    Employing sales representatives

    Aligning strategy around sales

    targets - high-volume writers

    Physicians with practices or

    power to use their own

    strategies and protocols

    Negotiating at the executive level

    Employing dedicated teams of educators

    and KAMs to partner with networks

    Providing services aligned to customer

    strategy and quality metrics

    Doctors following networks strategies and

    protocols for disease management and

    pharmacological intervention

    Source: Best Practices, LLC 2015 Field Benchmark On IDNs & ACOs

  • Page | 15

    Not All Members of The Market Ecosystem Respond The Same

    Making Market Entry Less Predictable

    Public relations

    campaigns,

    prior

    authorization

    programs

    Influence clinical

    guidelines to

    support tiering and

    stage gates so only

    sickest get the

    medicines

    Shame

    Manufactur-

    ers

    Negotiate with other

    competitor drugs

    about tiering Sovaldi

    if they come out with

    less expensive drugs

    Demanding

    health outcomes

    to prove efficacy

    Organize

    coordinated

    protests to

    pressure

    manufacturer

    Wait &

    watch

    Conduct cost

    benefit

    analysis

    Accept

    Sovaldi

    Source: http://www.uhcpharmacyinfocus.com/article/hepatitis-c-big-

    changes-coming-soon-2 & Best Practices, LLC Analysis

    Create Deals To

    Offer Plan

    Exclusivity in

    Exchange for