International Congress and Convention Association

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Category E Extra Value:

Carol Krugman is supported and selected

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International Congress and Convention Association

The Pharmaceutical Industry:What’s Happening?

Carol Krugman, CMP, CMMKrugman Group International, Inc.St. Petersburg, Florida, USA

44th ICCA Congress & Exhibition, Tuesday 8 November 2005

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Session Overview

Pharmaceutical Meetings

Background/overviewWhat has changed/is changing?What does this mean to all of us?What do we do now?

Types of Pharma Meetings

• Open symposia at congresses• Closed symposia at congresses• Free/standing symposia• Investigators meetings (pre-/post approval)

• Advisory Boards• Key Opinion Leaders (KOLs)meetings• Local meetings (dinner)• Internal company meetings

– Marketing, medical, sales, etc.

There Will Always Be Pharma Meetings

• Only way to insure correct adherence to study protocols – compliance, credibility of data

• Only legal way to communicate product information to MDs prior to regulatory approval

• Major source of continuing professional education for health care personnel

Pharma Alphabet Soup

• CME (Continuing Medical Education)

• ACCME (www.accme.org)

Accreditation Council for Continuing Medical Education

• PhRMA Code (www.PhRMA.org/publications)

• SOX (Sarbanes-Oxley law)

A Tale of Two Pharmas

1985 …

…2005

1985

New Product Pre-Launch

1985 Costs CoveredWeekend Meeting

• Honorarium/per diem• Airfare for attendee + spouse/guest• Ground transfers• 2 night hotel (5 star)• All meals for attendee and guest• Golf/other recreation• Spouse/guest program• Gift

2005

2005 Costs CoveredWeekend Meeting

• Honorarium/per diem• Airfare for attendee + spouse/guest• Ground transfers• 2 night hotel (5 star)• All meals for attendee and guest • Golf/other recreation• Spouse/guest program• Gift

What Has Caused The Change?

• Regulatory environment• Economy

Causes of Change

• Government regulation– SOX (Sarbanes-Oxley)– PhRMA Code, ACCME guidelines

• Expense reduction– Procurement and strategic sourcing

initiatives throughout corporation

CIC Economic Impact Study(September 2005)

Corporate meetings/events US$ 40.3 billion (33%)

ConsolidationConsolidation• Already in effect with regard to Already in effect with regard to

corporate travel – airlines, hotelscorporate travel – airlines, hotels• Volume buying, preferred suppliers, Volume buying, preferred suppliers,

master contractsmaster contracts• Old relationships may or may not Old relationships may or may not

be helpfulbe helpful• New relationships in flux as New relationships in flux as

definition of “client” shiftsdefinition of “client” shifts

Who is your client today?

Who will be your client tomorrow?

(Will you have a client tomorrow?)

Corporate PlannerCorporate Planner• Salaried employeeSalaried employee• May or may not have title of May or may not have title of

“meeting planner”“meeting planner”• May or may not spend 100% of May or may not spend 100% of

time planning meetingstime planning meetings• May or may not outsource to May or may not outsource to

independent planners or othersindependent planners or others

Independent PlannerIndependent Planner

• PCO equivalentPCO equivalent• Self-employed individual or owner Self-employed individual or owner

of own companyof own company• Client base includes corporate, Client base includes corporate,

association, other independentsassociation, other independents• Plan meetings 100% of the timePlan meetings 100% of the time

Travel ManagerTravel Manager• Salaried employee or in-house Salaried employee or in-house

mega-agency implantmega-agency implant• Travel agent backgroundTravel agent background• Survived consolidationSurvived consolidation• Increasing responsibility for Increasing responsibility for

planning meetings planning meetings (NBTA White Paper (NBTA White Paper on Strategic Meetings Management)on Strategic Meetings Management)

Procurement Executive

• Salaried employee• Usually in finance department• Minimal/no experience or

exposure to meetings• Objective – save $$• Consolidate and centralize costs• Meetings are a commodity

“Third Party”

• Research hotel space/rate availability

• Present options/recommendations• Negotiate contract• Receive commission on space/rates• No further involvement in program

Who Is Your Client?

New Entrants/New Philosophy

• Preferred supplier lists• Minimum requirements to qualify

“Bigger is better”• Volume pricing• Lower margins• “Take it or leave it”

What This Means

• Business as usual is no longer business as usual

• The old rules and relationships no longer apply

• US and European multinationals in the vanguard – the rest of the world will follow

What Do We Do?• Understand and embrace the change

– it will not go away!• Use established relationships to

assist in forming new ones• Be prepared to change your business

model, services and pricing• Join/stay current with MPI initiatives

and education (www.mpiweb.org) GCCOE white papers

What Do We Do?BE PROACTIVE!

• Become “PhRMA PhRIENDLY”• Know the rules • Get creative – go after the new

market instead of bemoaning the loss of the old one

• Explore strategic alliances

Questions to Consider

• What does this have to do with associations?

• What does this have to do with destinations?

• What does this have to do with me?

Remember Darwin?

“It is not the strongest species that survive, nor necessarily the most intelligent, but rather the ones that are

most responsive to change.”

International Congress and Convention Association

iccaworld.com

44th ICCA Congress & Exhibition, Tuesday 8 November 2005

Thank you!