Professional Documents
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REPORT AUTHOR
Christopher Taylor
Report Author
CHRISTOPHER TAYLOR is a specialist writer on management, and the issues
and concerns which affect business today. With a background in newspaper
and radio journalism, and a Masters degree in Business Administration (MBA)
from Bradford University, he has developed a career down two parallel streams
– international business consultancy, and editing specialist management titles
(Strategic Direction, Managing Service Quality, International Journal of
Business Transformation, Measuring Business Excellence, Benchmarking, etc.)
and writing for similar titles across much of the english-speaking world. He has
also contributed to academic and other course study books.
ISBN 1-843-110-083
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Contents
Communicating in a shrinking world 2
Communicating
in a shrinking
world
Pharma e-50 report editor and E-Audits’ principal
consultant Richard Evans outlines the pressures
transforming the global pharmaceuticals industry
Richard Evans
As the 21st century dawns, the aware of its own health problems this first Pharma e-50 report, the
world is quickly changing. Plans and more vocal over a wide range most comprehensive survey of
to expand both the European of ethical and environmental major pharmaceuticals firms’
Union and the North American issues. And they need to cast a online activities undertaken so
Free Trade Area will soon lead to wider net in forming strategic far. The research was undertaken
tariff-free zones encompassing alliances, inventing new products by E-Audits, the London-
more than a billion people. As and recruiting the best scientific based e-business intelligence
the globalisation of business and managerial talent. consultancy. Founded in 1997,
continues apace, national and For many reasons, after years E-Audits marshals considerable
regional industries are consoli- of delay, the industry is now experience, having already
dating further. For over two turning to the Internet and undertaken five previous studies
years now, scarcely a week has WorldWide Web. And there’s examining the Internet behaviour
gone by without the announce- growing proof of the Web’s of pharmaceuticals giants, along
ment of a major merger or efficacy as a sales and marketing with other industries as diverse
acquisition. tool. Following regulatory changes as electronics, finance, telecoms,
These pressures are deeply felt in the United States allowing and travel and transport.
in the international pharma- direct consumer marketing of All research was undertaken
ceuticals industry, which has prescription medicines, sales by a highly skilled team during
witnessed more large cross- have risen anywhere between the first and second quarters of
border mergers than almost any 10% and 25%. The attendant 2001. Companies were ranked
other. The reasons for these potential cost savings are sub- according to eight scoring criteria
mergers are already well noted; stantial indeed. According to in a methodology developed
the spiraling cost of R&D, greater Almasan Ltd, the UK-based specifically for this report. We
international competition and e-pharma experts, the cost of hope you will find the results
the drive by health services, each prescription generated enlightening.
insurers and health management online in the US is only $54,
Richard Evans is founder and principal
organisations to cut costs. compared to $318 for each consultant of E-Audits, the London-
Sometimes accused of secrecy traditional printed scrip. Further, based e-business intelligence
and complacency by the press, e-marketing suppliers claim far consultancy. He can be reached
the big pharma makers are also superior access to physicians at eaudits@evansnet.demon.co.uk
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2 The Pharma e-50 COMMUNICATING IN A SHRINKING WORLD
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Executive summary
of findings
In the 2001 Pharma e-50 report we companies, four are European, three profession than to investors and the
examine the online behaviour of the are American and three are media. In fact, of our eight scoring
world's 50 largest pharmaceuticals Japanese. dimensions, addressing the needs of
companies by revenue. Each was medical professionals came in sixth
US weakness in web site
appraised on the basis of eight place, and helping patients and carers
design and interactivity
scoring dimensions: with information finished a distant
These findings would appear to
• Web Site Access and Design seventh.
indicate that any previous ‘Internet
• Core Content
gap’ between the US and the rest of Most firms now
• Product/Clinical Information/
the world has disappeared entirely, recruit talent online
R&D
with American firms now fighting It was evident that many companies
• The Medical Community
to keep up with online innovation are utilising the Internet as a power-
• Patients/Users/Carers
increasingly coming from Europe ful recruitment tool to complement
• Investors
and Japan. existing human resources strategies.
• Media
• Web Site Proactivity An impressive 90% offer specific
Investors are clear focus
Overall scores and rankings were information for job seekers on their
of most companies
then created by aggregating all eight Web sites, and 72% post live vacancies
A large majority (82%) of companies
dimensional scores for each firm. and offer advice on how to apply for
specifically acknowledge investors
A team of experienced researchers these posts.
and direct them to a dedicated area
fluent in English, Dutch, French, of their Web site. Ethical and environmental
German and Japanese languages Only 42% of firms offer the same issues poorly represented
conducted all site audits. dedicated area to patients and carers, Despite growing public concern over
Here is a sample of the most and fewer still (40%) provide special a host of issues such as environ-
essential findings: online areas to medical professionals. mental issues, animal testing and
Pharma firms everywhere are Media rank second as the ethics of selling drugs for profit
embracing the internet a target audience in the developing world, only the
100% of the pharmaceuticals After investors, most of the firms most aware among our survey have
companies we examined have surveyed see the press as their most responded with any serious attempt
already developed a Web site. The important target audience to reach to address these issues over the
overwhelming majority of firms over the Web. Clearly, the most Internet.
have invested time and money in aware among the global pharma-
e-commerce barely a factor
producing substantial sites. ceuticals industry have realised that
There is very little e-commerce
the media are greatly influential in
Europe now the web leader presently undertaken by the world’s
shaping the public’s view of them as
over the US and Japan 50 largest pharmaceuticals
successful businesses.
With Germany’s Merck KGaA the companies. Just 8% of surveyed
overall survey winner, and with Doctors and patients needs firms offer some products for sale
three of the top five places, Europe not well addressed over the Internet. Many are of
has emerged as regional winner of Disappointingly, far less online course unable to do so because of
the 2001 Pharma Web 50 survey. attention is paid to patients, carers various regulatory restrictions and
Similarly, among the top ten ranked and members of the medical regulations.
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Over the past year more has been the US, 93% of doctors now log on study, we examined the web
written and claimed about the Internet daily, according to Harris Interactive presence of 50 companies, asking
than at any time before. Of course, Research. And 42% of all US doctors’ a total of 108 questions across eight
the news was not always good. But practices have their own Web site. scoring dimensions, to reach the
the collapse of the so-called dot.com A whole range of pressures obliges overall picture which we present
economy and bankruptcy of many major pharmaceuticals companies to here. Companies were selected on
New Economy start-ups have only use the Internet more substantively. the basis of size, determined by year
heightened the renewal of interest Patients and carers are increasingly 2000 revenues.
in Old Economy businesses. educated and demanding, looking The eight scoring dimensions are:
One dramatic illustration of this for better information about both • Site Access and Design
reversal of fortune can be drawn illnesses and remedies. Doctors, • Core Content
from how different industries have researchers and health managers • Product/Clinical
withstood the financial turmoil want to find the most effective cures Information/R&D
much of the globe has suffered since at a realistic price. Investors demand • The Medical Community
March 2000, when the dot.com detailed information and frequent • Patients/Users/Carers
bubble burst. The darlings of investors updates. The wider public has come • Investors
over recent years, global technology to expect greater openness on the • Media
stocks have fallen in value by an part of the pharmaceuticals industry • Web site Proactivity.
astounding average of 55% over the regarding business practice, ethics Overall scores and rankings were
past year. Pharmaceuticals and and drugs in development. then created by aggregating all eight
healthcare stocks, by contrast, have Thus the time for this first Web dimensional scores for each firm.
actually risen by 12% over the same Pharma e-50 report is ripe. In it we A standard and systematic tie-break
period. Investors’ priorities are examine in great detail the online resolution was adopted. A team of
clearly changing. behaviour of world’s 50 largest experienced researchers fluent in
At the same time, Internet use is pharmaceuticals companies. We English, Dutch, French, German and
increasingly widespread with its report on how effectively they Japanese languages conducted the
impact now felt globally. In the have grasped the use of Internet site audits. All sites were reviewed in
United States, half of all Americans technology. We look at how well their own primary language as well
now have ’Net access, as do 35% they are addressing the needs of as being examined in English.
of both Western Europeans and patients, doctors, investors and
Japanese. A global community of the media. We study how well Chris Taylor is a management writer
at least half a billion people now they market themselves and what and editor, and a senior member of the
communicates regularly online. sort of information they provide E-Audits team. He can be reached at
ct@clara.net
The new medium of the World- to those that log onto their Web
Wide Web, which makes the Internet sites.
easier to use, is now embraced Employing the E-Audits method-
widely by medical professionals. In ology especially adapted for this
Media rank second inquiries and receive replies. This Few take advantage of
as a target audience compares to 24% of firms which web's interactive nature
After investors, most of the firms offer the same service to journalists Despite Internet technology’s ability
surveyed see the press as their most and 24% which offer a customisable to sustain all manner of two-way,
important target audience to reach alert service to investors, allowing interactive communications, most
over the Web. Clearly, the most them to shape the information they firms are still using the Web as little
aware among the global pharma- are sent. more than an electronic notice
ceuticals industry have realised that board.
Most firms now
the media are greatly influential in In order to test the responsive-
recruit talent online
shaping the public’s view of them as ness of the surveyed firms, our
It was evident that many companies
successful businesses. researchers sent messages to all
are utilising the Internet as a power-
A full two-thirds (66%) of those companies (64%) featuring
ful recruitment tool to complement
surveyed firms specifically acknow- either an email address or an online
existing human resources strategies.
ledge the media and direct them to Web mail form for enquiries. We
An impressive 90% offer specific
a dedicated area of their Web site. asked a very simple question:
information for job seekers on
An impressive 88% offer some form ‘Where can I find information on
their Web sites, and 72% post live
of online news archive cataloguing drugs in development on your site?’
vacancies and offer advice on how
press releases and other media Fully half of all firms contacted
to apply for these posts. This reflects
material. never replied. Of the 32% that did
the already well-publicised current
The most Web savvy pharma reply, one in five resulted in simple
worldwide shortage of both scientific
companies seem well aware that they ‘we’ll contact you later’ notices
and technical talent.
can help shape the press agenda, which were never followed up on.
with 32% of them offering a search Ethical and environmental Thus, only about one in four actually
engine to help journalists sift through issues poorly represented responded to a simple query with
the masses of information residing Despite growing public concern meaningful information.
on their sites. Just under a quarter over a host of issues such as Also significant is that only a
(24%) provide some form of inter- environmental concerns, animal meagre 10% of companies actually
active service allowing customised testing and the ethics of selling offer any kind of ‘help’ button, or
online media queries. drugs for profit in the developing similar device, with which to receive
world, only the most aware among information or guidance about their
Doctors and patients needs
our survey have responded with any Web sites.
not well addressed
serious attempt to address these
Disappointingly, far less online
issues over the Internet. Timeliness of information
attention is paid to patients, carers
Only 28% of companies flag up could be better
and members of the medical pro-
any form of ethical policy on their One great advantage of communi-
fession than to investors and the
home page or site map, which could cating via the Internet is that it is
media. In fact, of our eight scoring
help to guide the public and press. cheap and easy to update and
dimensions, addressing the needs of
Just 52% explain their policy in any publish new material, given that files
medical professionals came in sixth
way on environmental protection, can be altered and deleted at very
place, and helping patients and
genetic modification, or testing on little cost compared to traditional
carers with information finished
animals – and only 6% explain all printed media.Yet few companies
a distant seventh.
three. 22% of surveyed firms are doing as well at updating their
Just 42% of the Web Pharma e-50
describe their policies regarding Web sites as they should. The
sites offer any dedicated area to
disposal of hazardous waste and tendency often is to treat the
patients and carers and only 24%
dangerous chemicals. corporate Web site like a printed
offer similar facilities to medical
professionals. While it is recognised e-commerce barely a factor brochure that is altered only
that more unobserved communi- There is very little e-commerce occasionally.
cation may take place over private presently undertaken by the world’s 74% of surveyed firms show
networks to which our researchers 50 largest pharmaceuticals evidence that their Web sites have
did not have access, this still comes companies. Just 8% of surveyed been updated within the past 30
as an unexpected disappointment. firms offer some products for sale days. But that seems awfully slow
Regarding patients and relatives, over the Internet. Many are of for the Web. And we only found
only 16% of the surveyed firms’ sites course unable to do so because of 58% of companies with financial
offer links to independent patient various regulatory restrictions and reports referring to periods ending
groups and other forums. Only a regulations. Sales are limited to less than six months ago.
tiny minority (8%) offer any kind of over-the-counter products and some
online feedback service where at-cost literature, but few firms even
patients can make personalised attempt to do that.
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Merck KGaA – European Winner Bristol-Myers Squibb – US Winner, Yamanouchi – Japanese Winner,
and Overall Winner Ranked 3rd Overall Ranked 5th Overall
As the top scoring company in our As the top scoring American firm, Yamanouchi’s Web site is
survey, Germany’s Merck offers a Bristol-Myers Squibb excels at comprehensive by Japanese
comprehensive and highly useful providing useful information to standards, and also easily navigable.
Web site that is easy to use and patients and carers online, one of It offers a great variety of links to a
provides a wealth of information. the few in our survey to do so. The number of external bodies including
Merck was also the top scoring company’s Web site demonstrates the Japanese Health Ministry, as
company regarding overall site real thought regarding how material well as personal contacts in many
access and design, and in catering to should be presented to specific areas including recruitment. It is
the needs of medical professionals. audiences, to the degree of even one of the few Japanese sites which
Its online presence is home to an offering a larger typeface to diabetes appears to model itself on the US
unusual breadth of information patients who may also have eye style, even to the degree of adopting
including a dedicated area for problems. There are excellent links the ‘.com’ suffix instead of the
suppliers. There is a wealth of to a variety of product areas, with normal national identifier, ‘.jp’.
material regarding ethical and good search facilities and incisive The company shows remarkable
environmental issues, and even a product descriptions. Unusually, willingness to enter into social
dedicated telephone number potential side effects are also clearly debate with a significant section
provided in the case of accidents outlined. devoted to its ethical policies.
involving hazardous materials. There is an admirable focus on user
groups, with a dedicated phone line
provided for patient enquiries.
It’s an acknowledged fact that an variety of sites from which the home as if the designers felt this vital
attractive window display will draw page of the company under investi- function was unimportant.
shoppers in, and the same certainly gation could be found. Despite this apparent willingness
applies to online users of the Among 50 firms surveyed only to help visitors navigate their sites,
WorldWide Web. While the parallel one, Dainippon (ranked 50th overall), only 54% of companies possess a
between a retail store and the Web could not be located immediately fully functional and intuitive search
presence of the world’s leading and this clearly differentiated its Web facility operating on the home page.
pharmaceutical companies is not presence. The same applies to loading Some companies including Aventis
exact – there certainly is evidence the surveyed sites: 92% of home pages (ranked 30) have basic search
that the companies surveyed consider were clear and loaded reasonably
facilities which appear in some
accessibility to their sites the top promptly without obvious errors.
sections but not in others, and fail to
priority. However, only 86% of sites
work reliably. Others, like Alza
Access and Design was the highest immediately confirm the user has
(ranked 36), have clearly spent a
scoring of our eight analytical located the right company, without
great deal of time polishing this
dimensions, with the average having to go to a deeper level than
function with good result.
company score an impressive 81%. the home page.
Nearly all (92%) place few, if any,
In measuring the quality of online Once in the site, only two firms
restrictions on where you can visit
access and site design we looked for failed to provide adequate signposts
within their sites. The other 8%
a visible and attractive Web-based to make for easy navigation of general
position themselves as providing a
shop window, and a welcoming and and unrestricted areas. We expected
service for healthcare professionals,
clearly signposted interior. more than a basic linear search and
only requiring visitors to register
Most important was to determine discover format, and in general we
before browsing the site any more
how easy it was to find these found it. Almost three-quarters
deeply than the home page.
companies on the Web. In most cases (74%) of companies achieved this
this was simplicity itself; a majority of through a constant navigation bar on Regarding the basic operation
sites were found by simply keying in screen, and a full 76% provide a site of the site, 50% offer at least one
‘www.company name.com’. Others map accessible from the home page. additional language choice other
were traced rapidly using a multiple Novo Nordisk (ranked 2) sets the than English, and some offer several
search engine (such as www.meta- standard with a comprehensive, well- languages. While noting the offer,
crawler. com) which scans individual structured map which is very easy to we reviewed each site, wherever
engines including Lycos, Excite, follow. Eli Lilly (ranked 8), by possible, in its native language,
Yahoo, AltaVista, Google, DirectHit. contrast, is one of several companies using other options simply as a
In most cases, we were offered a whose site map wasn’t easy to find – means to check the degree that site
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cross references, and Chugai time. Several companies, including constraints of the format and
(ranked 6) which while very easy Schering AG (ranked 25), offer an transcends the ‘square box’ look of
to navigate, suffered from areas email address for those who prefer to most sites through a highly
which remain incomplete. receive hard copy versions of reports. imaginative use of graphics – without
Roche (ranked 16) was the only Site design, in our view, is critical the often concomitant loading delay.
Web site where moving through to a company’s ability to present a Timeliness of information is
simple use of the ‘back’ and ‘forward’ coherent image and attractive brand. another area of concern. Surprisingly,
commands proved to be difficult and It is, of course, understandable that a 26% of all sites fail to provide clear
did not work consistently. Bayer corporate R&D department may have evidence that at least some
(ranked 4) was one of several sites created its Web pages at a different information has been updated within
where sub-windows open without time, and using different resources, the past 30 days. One site, UCB
being requested and then need to than the marketing department (ranked 42) appears at first to be
be closed manually. which built the basic corporate site. more than a year out of date, though
Somewhat irritating was the But is that really a good enough other material eventually suggested
tendency shown by 24% of surveyed excuse to make your company look that it is actually fairly current.
firms to offer information, and when it inadequate in front of millions of GlaxoSmithKline (ranked 24) claims
was requested, to start immediately a people? The integrity of both style to be updated, but nevertheless
download process without consulting and design are essential, and their posted a notice on the home page
the user. This is the rough equivalent absence can give the impression that promoting a conference that had
of a shop assistant spending a few no-one is in overall charge of the site. concluded more than a week earlier.
minutes taking details of what you Inconsistent design was found on Maintaining a site and removing
want, before telling you that you’ll 34% of surveyed sites, including a outdated material is not that difficult;
have to order it. It is extremely simple number of Japanese ones such as much of it can be done automatically
to indicate whether the information Takeda, Kyowa Hakku (ranked 14), with the right software. As with
on a site is held in a PDF file (or Sankyo (ranked 19) and Yamanouchi inconsistent design, outdated
other download format), and users (ranked 5). At the other end of the material leaves an impression of a
may well want to reject it if it is only scale, Amgen (ranked 15) stands company that is not perched on the
held in PDF format – or else come apart for the skill and integrity of its leading edge of its industry.
back later when they have more design, which overcomes the
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In today’s world, we demand There are some achievements, claim this facility will be available
immediate satisfaction in both however, and most companies have shortly. Pfizer (ranked 33) is so keen
business and pleasure. It’s not good clear priorities regarding the core to help it even features a helpful
enough any more for companies to content on their sites. For example, section on how to create a resumé or
provide quality goods or services as 96% include a clear overview of the CV. Johnson & Johnson (ranked 22)
advertised, they have to be able to company and what it does, while on the other hand, was one of several
provide them now. It’s the same with 88% provide in some form a physical which, probably inadvertently, makes
the Internet and the Web: for a list of their products and services. recruitment information harder to
company to win the attention of More disappointing is that only 36% find than it should be.
browsers in an increasingly offer easy and clear contact details Another widely addressed area,
encompassing mail and email
competitive environment, it must and one of growing public concern,
addresses and phone and fax
demonstrate – in seconds – that it concerns ethics and the environment.
numbers. Merck KGaA (overall
can perform the task or provide the Just over half (52%) of companies do
survey winner, ranked 1st) is among
service specified by the user. This explain their company policies on
a very few which provide all this
means that a wide spectrum of basic environmental protection, genetic
information on their home page.
information must be highly visible – modification, or testing on animals.
Obviously, far more firms provide at
or the Web user will move on, with a However, three companies – Merck
least some contact information.
poor impression of your site and, KGaA, Novo Nordisk, and Novartis –
Most companies provide some
perhaps, your company. provide real examples of leadership
information about their geographical
The 50 pharmaceuticals companies in this sensitive domain, posting clear
operating areas. Indeed, 64% provide
surveyed, by and large, perform policies on all three. Merck KGaA
some form of map showing their
adequately in this regard, but with even goes to the lengths of explaining
locations worldwide or regionally,
substantial room for improvement. why testing on animals is necessary.
and 68% have developed and
Only 22% of firms scored more than Two further firms state where they
maintain effective direct links
half the possible points regarding between sites, often between stand on two out of these three
core Web site content. Even the top different national operating units. issues. One of these is AstraZeneca
scoring company, Novo Nordisk, Another priority area for many (ranked 7), which proves itself to be
(ranked 2nd overall) only achieved companies concerns information for up to be abreast the news by
72%, and only a further two job seekers. A full 90% of surveyed explaining that while it does animal
companies topped the 60% mark. firms provide specific information for testing, it will not work with the
The average score across all 50 this audience, while 72% publish controversial Huntingdon Life
companies was 37.9%, pushing this actual vacancies. Some companies Sciences, a British firm recently
dimension into fourth place out of encourage online applications; beleaguered by animal rights
all eight dimensions reviewed. others, including Aventis (ranked 30) demonstrations and protests.
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or FAQ, page – a device that deserves comprehensive directors’ CVs. company here on its site. In a
widespread acceptance as an effective More encouraging is the fact that substantial majority of cases,
means of disseminating commonly over half (56%) of firms clearly however, we could not even find an
demanded information. Rather more, indicate ownership of the group and address to write to them. It is
22%, do offer a dedicated FAQ page whether it owns, or is owned by, disappointing, too, to find so many
for their products and services. another organisation. Sankyo cases of spelling and grammatical
Chugai (ranked 6) is in the process (ranked 19) makes its equity owner- errors – and not just in companies
of building such a page. ship clear, even explaining its share working outside their own language.
Other efforts to convey basic support programme – a strategy A few firms do show real
company information include designed to maximise shareholder innovation regarding site content.
Pharmacia (ranked 10) which has value through buying back its own Pfizer, which did not fare that well
placed product logos and brands on stock or that of partner companies. overall, does nevertheless offer two
its site’s home page. Bayer (ranked 4) Examining evidence of community novel and useful features. Its
offers a technological solution for involvement by pharmaceuticals ‘prodhelp.com’ linked site adds real
those wanting more detailed makers on the Web, we found this to value in explaining its products and
information – company videos be the case in 52% of cases. Merck its ‘send a card to a doctor’ facility
available to download. KGaA, for example, supports an suggests a more caring and humane
There is not enough information orchestra, while Shionogi (ranked 40) approach than seen on the majority
available for Web users wanting to sponsors a well known Japanese of sites.
understand a company’s corporate television show. Many other The failure of many companies to
structure or its management. Just companies claim local initiatives with adopt widely the FAQ format appears
16% include a corporate structure schools or colleges. Posting these ill-informed. In some cases where a
diagram, and just 38% identify any activities on the Web can help FAQ facility does exist, the questions
contacts by name as well as by job enhance a firm’s public image. addressed are utterly baffling. For
title/position. Aventis is unusual in All in all, the demonstration of a instance, Johnson & Johnson’s FAQ
offering a wide range of well-defined wide variety of core Web site content inquires: ‘how do I get my child
email addresses. Some 14% of firms proved to be a mild disappointment. featured in your commercial
provide details of directors’ external An Internet user should be able to advertising?’
activities, with Glaxo standing out find most, if not all, of the important
through the provision of background information about a
Development strong
but product info lags
It is a challenge for businesses to specific illnesses, only scored fifth dimension. We also found that 68%
provide enough information to satisfy highest among the eight dimensions. of companies make the effort to write
the interested and curious without In this dimension we also assessed about their products in non-technical
revealing competitively sensitive the quality of information on the terms, along with easily understood
material. This dilemma affects the R&D base, including pipeline descriptions of what the products are
pharmaceuticals industry perhaps products and research collaborations, for and how they work. Some
more than most. Aside from the and looked specifically for objective attempts at openness, however, are
normal competitive issues, much of endorsement through third-party thwarted by technical malfunctions.
what drugs makers do is subject to tests, and through links to articles in For instance, Bristol-Myers Squibb
restrictions and can also be subject to the trade and professional press. The (ranked 3) offers admirable non-
scrutiny by a number of watchdog average score across companies technical product descriptions, but on
and other special interest groups. reviewed was just 34.9%. several occasions these were
Thus, the emergence of the Even understanding the
distorted by corrupted or overlaid
Internet as a business medium has background, it is disappointing that
text files making comprehension
doubtless caused the pharma only 4% of surveyed companies have
difficult. Unfortunately, this sort of
companies some headaches. The posted external endorsements by
disruption is all too common to
normal function of a Web site, as an third parties on their Web sites. Just
pharma industry Web sites, where a
online shop window, is often 8% offer site links to product
clearer and simpler design should be
inappropriate as e-commerce is comparisons, and 18% provide links
able to pre-empt most such
difficult or impossible. Further, to scholarly or medical journal
problems.
products registered for commercial articles about their products. This is
Clearly concerned about litigation
use in one country may not be so simply not the openness one would
by patients and consumers, only 36%
registered in another, and some can hope for regarding potentially critical
of firms, extend this openness about
be dispensed over the counter in one health issues.
product information to include
country, but not another. In some other respects, however, a
possible side effects resulting from
Thus it is not surprising that this majority of companies do show a
product use, and some of those that
scoring dimension, focusing on how willingness to share important
do so fail to make this information
firms make available information information – or at least acknowledge
easy to find. There are some notable
about their products, and about their the value of doing so. Only (6%)
exceptions, however. Banyu
use and value for the treatment of failed to make any score in this
(ranked 26) stands out as a company
Dimension 3: Product and clinical information/R&D with clear and easily accessible
Number of questions 15 information about the possible
Max. possible score 15 effects of its drugs on users, while
Average score across all companies 5.24 ( 34.9%) others including Merck & Co
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(ranked 13) identify the product area, firms that do, the information development a higher priority for
including potential side effects, as a provided can be far from clear. publication than a detailed and
new area of its site which is still Pharmacia (ranked 10), for example, discrete Web site dedicated to their
under development. describes drug development as key products. Indeed, some firms
A solid majority of companies ‘long term’ and ‘medium term’ only, barely mention existing products;
(64%) list and summarise current dispensing altogether with the more Welfide (ranked 27) is typical in this
and past research, while almost as understandable Phase 1, Phase 2 group. A small majority of 52% of
many (60%) identify and describe, and Phase 3 terminology. firms maintain specific product sites,
albeit to differing levels of detail, Still fewer sites (10%) make clear but clear and functional links
their drugs in development. Again, the opportunities for individuals to between their corporate and the
some companies seem to tuck their participate, or put themselves product sites are not always found.
development pipeline information forward for participation, in drug A good idea – overlooked by all but
away, to where only the most trials. But of those which do, a few – would be to place details of
dedicated researcher can find it. Japanese companies lead the way. key products and brands on the
Examples of this include Chugai Takeda (ranked 11) invites interested home page. This is indeed the tactic
(ranked 6) and Novo Nordisk parties to make contact about its adopted by Pharmacia, where a
(ranked 2). Sanofi-Synthelabo work on Alzheimers’ disease; Daiichi simple click on the logo or brand
(ranked 34) on the other hand, offers (ranked 18) does the same on name provides a quick and easy link
excellent and clear information which hepatitis, and Fujisawa (ranked 38) to comprehensive details. Tanabe
is easy to find, while Sankyo for rheumatism. GlaxoSmithKline (ranked 9) offers an email link
(ranked 19) provides a dedicated has a closed Clinical Pharmaceutical dedicated to those with questions
email contact for development Unit for registered users only, about products.
information. Noticeably fewer, just which (it appears from the outside) It seems to us that the ability
38%, explain the development status offers opportunities for drug trial to search a company’s site for a
of those drugs, regarding where they participation to its members. particular drug by name (to find its
are in the pipeline and if they are yet Perhaps surprisingly, many application) or by the name of an
in clinical trials. Even among the companies consider research and illness (to find a suitable treatment)
is a desirable attribute, bearing in for further details. Pfizer (ranked 33), world which can appear to favour
mind the wide use of the Internet for clearly links its academic work with closed doors.
research. However, a minority of community involvement and a Two factors appear to mitigate
companies appear to share that view; desire to address the issues of against success. First, the research
only 34% provide an easily accessible early education – its site features was seeking product information
facility to search by product name a pharmaceutical science ‘fun-zone’ from companies, of whom many are
and just 24% enable an effective where youngsters can learn about clearly focused on the perceived
search by product attribute, illness or important issues in a playful needs of investors (to be examined in
symptom. Elan’s (ranked 39) Online environment. more detail later). This helps explain
Learning Centre deserves a mention Also worthy of mention is Merck why some companies place details
for carrying much useful information, & Co’s (ranked 13) summary of of their development pipeline
as well as a comprehensive and well- articles from relevant professional exclusively under the Investor
functioning search feature. journals on its site. Category winner section of their Web site.
Rather more, 40% of the companies, AstraZeneca’s (ranked 7 overall) A second mitigating factor is the
identify on their sites details of provides comprehensive links to application of the technology itself.
research links with schools, professional and other medical The impressions gathered by our
universities, and other organisations clinical and patient support sites. researchers are sometimes of
– and many of these go into some Forest Labs (ranked 44) offers a companies not entirely at ease with
detail about research collaborations user-friendly – but quite openly the idea of posting so much sensitive
with potentially competing companies. marketing-oriented – ‘desktop information using a medium as
Of the companies which list their prescription reminder tool’. Merck public and open as the Internet.
links with academic institutions, KGaA (overall survey winner, Clearly, companies are struggling to
half go further in offering contact ranked 1) is to be applauded for its master a technology of open
opportunities for prospective research candid dialogue on sensitive topics information, perhaps sometimes
projects where partner organisations, like company sales policy in the third against their own instincts.
or individuals, are sought. Boehringer world and the rationale for relocating
Ingelheim (ranked 23), offers details production to low-cost regions. These
of internships and an email contact provide a breath of fresh air in a
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any one language group. Nor, when medical community, and 24% require We looked for companies’ active
their overall rankings are compared, registration before entering this area at attempts to help the medical
do they tend to cluster together in all, a further 10% offer deeper levels community through the
other scoring dimensions. While top- of information available to those who dissemination of information, both
scoring companies figure among pre-qualify through some form of proprietary and third party, in three
their number, including Novo professional registration. Merck different ways. First, we searched
Nordisk (ranked 2) and Bayer KGaA (ranked 1), for example, scored for evidence of contact details for
(ranked 4), 66% only make it into maximum points in this category members of this audience indicating
the lower half of the rankings. their interests, problems and concerns,
without requiring pre-registration,
An exception – and a disappoint- and found this present with 30% of
yet offered more information
ment – is Allergan (ranked 49). companies. Second, we sought to
specifically targeted at chemists if
Many indications suggest that this establish whether leaflets, research
they chose to register.
company should have ranked higher, notes or other literature designed for
A total of 30%, including those
but its overall performance was badly medical professionals were available,
requiring registration, offer the
marred by continual problems which and found this in 28% of cases. Third,
facility for users to customise the
consistently caused computers to we looked for links to professional
Web site or tailor it more specifically
freeze and its site to crash. The forums or other interactive bodies
to their requirements, through an
disappointment is that Allergan's where doctors, researchers and
express log-in or similar mechanism.
attractive home page features a link health managers could share
A total of 32% of companies
to its ‘Professional Pathway’ – a experiences and learn from each
dedicated area for the medical surveyed offer a dedicated FAQ others’ examples, and found this in
community. Ironically, access was (frequently asked questions) page 32% of cases.
denied not by the need to register targeting the medical audience, and A few companies deserve special
but by the poor site design causing 26% offer a dedicated email help acclaim. Merck & Co (ranked 13) was
accessing computers to crash line, or query line. Kyowa Hakku one of the relatively few companies
repeatedly. (ranked 14) was one of the few whose medical community area is
Bearing in mind then that only Japanese companies that provide this both explicit and open to the public
40% of companies clearly address the service. without registration. Understanding
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its audience better than some, Merck Web wise. In our view the German direct medical professionals to a
makes clear the differences between firm well deserves its position as special area of their site, and that just
the US and other parts of the world overall winner. over half of those (24%) determined
regarding drug approval, use, and All in all, the results of our analysis that this area should be closed to the
sale. This was the only clear of how well, or poorly, pharma casual browser or non-professional
explanation we found of this companies cater to the needs of was perhaps to be expected. But
throughout the entire exercise. medical professionals surprised that 60% should either ignore this
Merck KGaA (ranked 1), on the us. The form and structure of this important audience altogether, or at
other hand, is the only company to scoring dimension were developed least not provide information in any
achieve full marks in this dimension on the assumption that this audience systematic or organised way, was
by actual scoring, rather than by would be proven to be important to very surprising to us. One would
default through the requirement to the pharmaceuticals companies’ expect a better lobbying effort by the
register. Of course, Merck KGaA is overall Web strategy, but this was not big pharma firms, if only out of
mentioned elsewhere and frequently found to be so. That a minority, just enlightened self-interest.
in this report as being exceptionally 40%, of firms clearly and explicitly
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product list with some general Squibb (ranked 3), Bayer (ranked 4), and carers. The ability to share and
information, presented more as Tanabe (ranked 9), and Novartis discuss the progress of condition
product promotion rather than (ranked 12) are among those who do. with others may play a crucial part
patient assistance. We also tested for Boehringer Ingelheim (ranked 23) in emotional acceptance of disease,
evidence that patients or concerned has no specific patient site but does and also perhaps provide useful
carers could get answers regarding offer downloadable literature on information. We looked for active
illnesses without necessarily being various aspects of healthcare. links from patient sites to user
able to name a specific drug. But AstraZeneca (ranked 7), on the groups, forums, and found these
this service proved to be rare. other hand, offers no downloaded in just 16% of companies.
Takeda (ranked 11), however, has supporting literature, but outperforms The quality of such links varies
made the effort to render its question many of those who do by providing widely. AstraZeneca (ranked 7) offers
and answer area entertaining as well comprehensive online material, a large number of good third party
as informative and eye-catching. Its clearly signposted from the site’s links, while Takeda (ranked 11) has
cartoon-style information for the home page. effective links for those suffering
company’s over-the-counter products For patients and users wanting from Alzheimer’s Disease and those
is easy to run as well as quite helpful. to register for more personalised with certain gynaecological concerns.
There is even a downloadable cartoon service, 10% of firms offer the facility Eisai (ranked 32) has a new area,
addressing general health concerns. to tailor a site for their needs through launched in conjunction with Pfizer
Johnson & Johnson (ranked 22) an express log-in or similar tool, with (ranked 33) in March 2001 which
also stood out in the clarity and most of those (8%) seeking pre- also addresses Alzheimer’s.
direction of its information for this registration. Pharmacia (ranked 10) Other companies offer links
audience, with specific headings requires registration for US users providing informative material, but
including ‘Women’s Heath’,‘Child only, while others such as Amgen not all were easy to find. The marked
Care’, etc. (ranked 15) offer a fairly basic Web tendency to provide information as a
Those looking for information such site but with comprehensive links subset of product areas assumes
as leaflets describing illnesses and to product and other information. more knowledge than some users
their treatments, were served by just Contact with other affected people may have at the outset of a Web
12% of companies. Bristol-Myers is an important factor for patients search. Bayer (ranked 4) provides a
large number of links, but they are (ranked 6) stand out as providing cancer…’, but loses through
not easy to locate. Roche (ranked 16) clearly visible contact telephone difficulties with the site which mean
offers much patient information under numbers for patients. Bayer that it frequently freezes. Allergan
a separate healthcare site, and Serono (ranked 4), on the other hand, is (ranked 49), also promises more than
(ranked 31) also offers a dedicated site typical of most who offer this facility, the site seems able to deliver, due to
for this audience. Tanabe (ranked 9) in that they provide an email link technical design or delivery problems.
is one of few companies that clearly but no name to accompany it. Overall, it seems that many
focuses attention on patients, while Memorable features include companies demonstrate that they
both Sankyo (ranked 19) and Chugai contributions from Bristol-Myers do not fully understand a vital part
(ranked 6) provide a great deal of Squibb (ranked 3 overall and the of doing business today - the
information, including relevant winner in providing information to importance of the customer interface.
academic articles. patients, users and their relatives) As individuals acquire more and
One way in which we assessed which offers clear signs of thoughtful more knowledge, as well as greater
sites was to search for some way human intervention on its site. In the influence over key purchasing
patients or others in this audience area on diabetes, acknowledging that decisions, most companies are
can receive feedback regarding their this condition can affect eyesight, the directing their attention towards their
concerns directly from the company company provides a click box to end-users in an attempt to create and
itself. Only 8% of surveyed firms increase the font size of written text build loyalty. Many pharmaceuticals
provide contact names and numbers, on the screen. Aventis (ranked 30) firms, based on these research
however, and the same percentage also deserves mention for its frank findings, have a long way to go.
provide a dedicated email help line. approach to medical problems, viz:
Yamanouchi (ranked 5) and Chugai ‘One in three Americans will have
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DIMENSION 6: INVESTORS
Ten to 15 years ago investors loved Access and Design (dimension 1) provide most of the information
the pharmaceutical sector. New covering basic site design, scoring required.
scientific techniques like higher. The overall goal of the research
combinatorial chemistry and high- In scoring this dimension, we was not to scour every available
throughput screening promised to set out to establish the degree to avenue in search of elusive
accelerate the pace of commercial which the companies reviewed information, but rather to investigate
‘blockbuster’ drugs with sales over acknowledge the needs and wishes its ready availability; signposting,
$500 million a year. It was not of private and institutional investors, directions, and easy access, were as
unusual for a winning pharma maker and how far they go towards meeting important as the data itself. With that
to post earnings increases of 20% or those needs and wishes. Particular in mind, the scores described here
more per year. They were the darlings attention was paid to how quickly were not obtained by downloading
of the stock market. and simply one can determine a the latest annual report – available in
Towards the mid-1990s, however, current share price in relevant 80% of cases, the balance tending to
information technology and Internet markets, and to determine stock be private companies or wholly
stocks overtook pharmaceuticals as movements, equity holdings – owned subsidiaries. Rather we
the greatest bonanza investments. both of the company itself and, wanted to see evidence that they had
The drugs industry itself entered a significantly, of its directors. Also considered what information should
period of turmoil where the cost of
deemed important was the ready be available instantly without time-
drugs development soared,
availability of and access to financial consuming downloads, and it is on
prompting a long, and ongoing,
material including regular reports this basis that the below scores were
chain of mergers and takeovers.
and trend information. assessed.
Profits flagged and investors looked
Underlining the importance of this A large majority (82%) of the
elsewhere. Today, pharmaceuticals
audience to companies, there were companies reviewed specifically
firms are trying hard again to inform
many sites where the only route into acknowledge this investor audience,
both institutional and private investors
product, R&D, clinical, even media and the same number direct them to
about the very real growth prospects
focused material was under the a dedicated area on their Web sites.
of their industry.
Investor heading. Some provide a A full 60% provide the company
In that context, it is hardly surprising
very good service – the highest share price at the end of the previous
that the 50 surveyed firms scored
scorers listed in the table clearly trading day, although many are far
highly on the provision of inform-
ation to investors, with this dimension Dimension 6: Investors
ranking second out of all eight Number of questions 16
included in our study. The average Max. possible score 16
company score was 40.1%, with only Average score across all companies 6.42 ( 40.1%)
more up-to-date than that providing request for reports and other docu- this regard, offering sophisticated
15 or 20 minute updates published ments to be mailed out free of charge. features that have been well thought
on the home page. Examples include We only found 58% of companies out.
Roche (ranked 16) which links to the with financial reports immediately To make it easier and faster to
Reuters trading platform, and available referring to periods ending access information, 20% of firms
Yamanouchi (ranked 5), Kyowa Hakku less than six months ago. This was provide an investors’ FAQ facility that
(ranked 14), Daiichi (ranked 18), and mildly disappointing as we expected is different from the main corporate
Taisho (ranked 21) which link with to see more quarterly results and FAQ, or which links direct to a
Yahoo Finance – the world’s most other interim figures posted, with specific section of the larger item.
widely used financial portal. the ability to compare with previous Some of those who do not answer
While four-fifths of all companies periods. A full 76% of those questions make easy connections to
make their annual reports available surveyed, however, provide some the Search facility. Bayer (ranked 4)
as downloads, 46% include form of historic information, mostly is one such, and this company also
comprehensive summaries on their in the form of previous yearly figures. provides a comprehensive list of
Web pages for those who do not But this information is not always company contacts for investors, so
need or wish to see the full easy to find: Alza (ranked 36) places they can place queries directly.
document. The quality of these much useful financial data under the In 24% of companies, investors can
summaries is sometimes excellent – heading ‘Advanced Fundamentals’. sign up by email to receive details of
Pfizer (ranked 33) includes a full And if Servier (ranked 48) has (for example) further stock and bond
reformatted report, available from a financial data more recent than issues, and to receive copies of
contents menu, section by section. 1998/99, it eluded us completely. specified reports. We looked across
AstraZeneca (ranked 7) does When it comes to analysing all companies to find direct links to
similarly, while Aventis (ranked 30) numbers, 42% of companies provide independent investment reports, to
provides detailed press releases functions allowing researchers to comment by banks and brokers, and
designed for experienced financial chart and graph data of their own to articles or comment in the
journalists as well as for investors. choosing in – broadly speaking – the financial press, but found none. The
Schering AG (ranked 25) is one of manner they choose. Merck & Co closest we came was with Merck
several which accepts an emailed (ranked 13) is the class benchmark in KGaA (ranked 1) which lists its own
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issuing banks and brokers with the Investors heading, compared with animals as it is widely accepted there
contact details for individuals within that apparently available elsewhere. is little viable alternative. Some firms,
each organisation. One exception is material surrounding notably Merck KGaA (ranked 1) and
We looked for explicit information details of directors’ share options. AstraZeneca (ranked 7) make the
about company ownership and found Only 6% of firms, including Bayer case for so doing. But AstraZeneca
that 30% offer some material on their (ranked 4), AstraZeneca (ranked 7), specifies explicitly that it does not
major stakeholders, while 26% and Merck & Co (ranked 13) provide work with Huntingdon, as the
provide details of other firms in such information. execution of tests there may be
which the company in question Another growing area of interest deemed to be cruel.
holds stakes in. for investors surrounds the ethical Ethical concerns pose a
We gained much information, but and environmental policies by which considerable problem for many
insufficient in most cases to state pharmaceuticals firms operate. Today, companies’ efforts to provide a
categorically the precise relationships these are a mainstream concern of Web space that is open, honest and
that exist in this tight-knit industry. both press and public. Ill-regarded informative. The 50 large pharma-
Of course, publicly listed ethical approaches to selling drugs to ceuticals makers we surveyed are
companies are often obliged by law the developing world or to testing on split almost evenly over the issue,
to list any investor holding more than animals can have catastrophic effects with 52% offering some explanation
5% of the firm. Eisai (ranked 32) goes on a company’s share price. of their policies regarding the environ-
so far as to identify its top ten Take the UK-based product ment, genetic modification, animal
shareholders by stock volume. development and safety testing testing and other ethical issues.
Investors are clearly the focus of company Huntingdon Life Sciences, Some must feel they will only be
the Web presence for an overwhelm- which works closely with the criticised for describing what they do
ing majority of companies. Schering pharmaceuticals industry, amongst regarding ethics and the environ-
AG (ranked 25) is especially noted others. Informed opinion, by and ment, while they will be accused of
for the depth of information under large, does not oppose all tests using secrecy if they remain silent.
DIMENSION 7: MEDIA
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offer such an archive, and all of these other hand, has a useful search facility of emailing their press queries
properly date their material. Some mechanism that works well. – but not always to a named
archives, however, are better than Two companies deserve special individual. This may discourage
others. Shionogi (ranked 40) provides mention. Merck & Co (ranked 13) usage, as the perception among
a handful of releases while other divides its press release archive into journalists is frequently that
firms offer hundreds of them going corporate and financial sections – a
questions sent to unnamed parties
back more than two years. Kyowa valuable help that can speed searches
will not be answered in a timely
Hakku (ranked 14) has no press by journalists. Roche (ranked 16)
manner. Nevertheless, companies
releases archived on its Japanese posts key elements of its photo
that provide the service include Akzo
language site, but offers a selection in library on its site, in a closed area for
Nobel (ranked 20), Boehringer
its English language area. which registration is quite reasonably
Ingelheim (ranked 23 overall and 2 in
In virtually all cases, releases are required. This registration can
immediately viewable, with only one perform the useful function in the Media dimension), and Merck
company, Banyu (ranked 26) storing identifying interested journalists. KGaA (ranked 1 overall and 7 in the
them as files for downloading only. 28% of companies provide a clear Media dimension).
This is a significant weakness in our and accessible contact for quotes and Disappointingly, we looked for an
view, as the whole idea behind further information – as mentioned FAQ (frequently asked questions)
offering releases is to encourage above – and the same number offer facility designed specifically around
quick and painless browsing. a dedicated phone line for media the needs of the media, and only
A relatively small number of inquiries. Companies providing this found one – Boehringer Ingelheim
companies (32%) have an adequately basic but important to media service (ranked 23) – and for evidence of
performing search engine operating include Novartis (ranked 12), Abbott
direct links to public relations
throughout this archive. More typical (ranked 17), and Teva (ranked 28).
agencies. This was only evident in
is GlaxoSmithKline (ranked 24) in The quality of press contact
only two cases: Eli Lilly (ranked 8
that its archive relies on the site’s information varies widely. GlaxoSmith-
overall and 1 in the Media dimension),
general search mechanism, which Kline (ranked 24) offers a single
and Daiichi (ranked 18). In the latter
takes you to the item that includes phone number, apparently for world-
case, however, it appears that this is
the word you want, but not to the wide, English language use. DuPont
word itself. This means that searches (ranked 43) provides direct email intended for financial PR only, as it
– especially where there are dozens, links under a number of headings appears under the Investor heading.
or even hundreds, of archived including the media, but no names or
releases – can be too time consum- numbers are provided. Just 24% of
ing. Pharmacia (ranked 10), on the companies offer journalists the
DIMENSION 8: PROACTIVITY
Proactivity remains a
distant dream for most
Despite all of the complex issues invited to share their experiences – Our eighth and final scoring
surrounding the Internet and its use and even occasional or one-time dimension, Proactivity, was intended
for competitive advantage, there are visitors to the site can be encouraged to explore the degree to which pharma-
really only two options regarding to input material. Information ceutical companies exploit the
how a company Web site should gathered in this manner could technology’s extraordinary potential
function. Either it acts essentially as provide, for example, insight into for interactivity, to a degree unimagin-
an electronic notice board or it can be national/regional attitudes among able even ten years ago. The results
interactive, providing genuine two-way medical professionals and the extent are far from encouraging. Based on a
communication between a company and character of educational needs. ranking of average scores across all
and its various stakeholders – some Proactivity carries some companies reviewed, Proactivity came
in the public arena, some closed to all disadvantages, too – but these are a distant last with a score of just 11.8%.
but pre-registered and qualified use. principally questions of time and A meagre 8% of companies
Consider the advantages of cost. Channel integration should volunteer a clear listing of email
opening up your Web site. It allows actually improve business addresses for named individuals or
companies access to information performance once it is set up and departments. Some offer an immediate
from people who contact them – running. By its very nature, the Web online Web mail facility, but that is
subject to applicable data protection lends itself to the effective integration not very helpful if you want to note
laws – and can provide a valuable of communications channels. A an address and make contact later.
Some, including Schering-Plough
database, with lists of interested university student looking for a job,
(ranked 41), give the appearance of
individuals and organisations from for instance, should be able to find as
not wanting to be contacted. Others,
among the investor community, the much information on a Web site as he
where we could not find a suitable
medical profession and its ancillaries, or she would gain from a job fair. Nor
email address for queries, include
the media, and other audiences. should it be necessary for a journalist
GlaxoSmithKline (ranked 24), Eli
If you know who is visiting your or an investor to write or phone to
Lilly (ranked 8), Abbott (ranked 17),
Web site, and you have the ability to establish where a company stands on
Tap (ranked 46), and Takeda
'talk' to them by email, you can find the question of testing on animals.
(ranked 11). It is possible, however,
out what they want and tailor your Ultimately, a well-designed and
that such facilities may exist within
site accordingly. This is a critical part comprehensive Web presence can
closed areas of these Web sites.
of doing business today, in that it help enhance a company’s image.
Some 12% of firms post contact
helps to build loyalty among all Users will draw their own con-
telephone numbers for some areas of
audiences. Interactivity also can be clusions about what sort of company
their business on their sites. Schering
used as a means of gathering and it is, and what it would be like to work
AG (ranked 25) is typical of these,
disseminating information. With a with, work for or invest in, from what
with numbers for appropriate people
contact database, individuals can be they see and experience.
appearing in the Investor area, as
well as for company spokesmen
Dimension 8: Proactivity
addressing environmental issues.
Number of questions 7 In order to test the responsiveness
Max. possible score 8 of the surveyed firms, our researchers
Average score across all companies 0.94 ( 11.8%) sent messages to all those companies
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featuring either an email address or whom it was addressed was not include Chugai (ranked 6), which
an online Web mail form for general listed. Schering AG (ranked 25) provides an easily completed form
or media inquiries. Our question was replied, redirecting the query to the which can be emailed to the
not complex – we asked: ‘where can I postal address of an agency in the appropriate area, and Amgen
find information on drugs in UK. Sanofi-Synthelabo (ranked 34) (ranked 15), which is the only firm
development, on your site?’ was just one of several where we that appears to actively seek input.
This message was sent to 64% of could not send an email, but in this On almost every page, Amgen asks
companies (all those possible), and was not due to any lack of contact for feedback on all aspects of its
exactly half, 32%, responded, with two- address or link. Rather it was because performance. Allergan (ranked 49)
thirds of these answering within one system problems caused the computer suffers the problem of ‘freezing’
working day and the remainder within to freeze every time Outlook Express
noted elsewhere.
two working days. Among those who was opened.
Just 8% of surveyed firms offer
did reply within the one working day Automated systems of the type
some products for sale over the
were Novo Nordisk (ranked 2), which reply virtually immediately
Internet. Many are unable to do so
Novartis (ranked 12), Johnson & proved rare, available at only 8% of
because of various trading restrictions
Johnson (ranked 22), Serono companies, including Akzo Nobel
and regulations. Sales are limited to
(ranked 31), and Alza (ranked 36). (ranked 20), Allergan (ranked 49) and
over-the-counter products and some
The best response came from Amgen (ranked 15).Yet none of these
at-cost literature.
Forest Labs (ranked 44), when a companies actually followed up later
All in all, the results indicate that
named individual replied, suggesting with any further contact.
most firms have a long way to go
a time and day when she could be DuPont (ranked 43) provides an
before they can make effective use of
reached on a certain phone number, example of those which offer direct
by which time she would establish all email links under a variety of the Web's highly proactive nature.
details that might be helpful. At the headings such as disease areas, Simple failings that can be easily
other end of the scale is Boehringer products and careers while others, overcome include the listing of
Ingelheim (ranked 23), which offers including Servier (ranked 48), only contact details for individuals or
specific named contacts for media offer contacts under the Career and departments, the provision of
and recruitment areas only, and Investment areas. assistance for those who need help,
includes an online email request Only 10% of companies have an promptly replying to queries, and the
form. A reply came back extremely effective ‘help’ button, or similar introduction of a basic e-commerce
rapidly, stating that the email could device, to contact the company for service which can help cover some
not be delivered as the person to information or guidance. These Web costs.
Too many
portals
Simon Seljeflot believes big pharma companies
can turn the current shakeout among Web
portals to their advantage
Simon Seljeflot
There are at least 100,000 health- sole information provider. www. This regard might be warranted;
related sites on the Internet. There HealthZone.com bought www. Health- while web sites have only voluntary
are 17,000 health-related portals. The Shop.com. www.drKoop.com acquired codes of conduct, pharma companies
market is over saturated and, one by www.drDrew.com. www. MotherNature are at least subject to stringent
one, these sites are collapsing or .com liquidated. And these are just a regulation about the claims that they
buying one another out. At the same handful of the industry’s biggest can make for their products.
time, the pharmaceutical industry names, representing only the tip of The current situation should give
stands on the periphery of this the iceberg. big pharma just the opportunity it
frenetic activity, a stable industry One of the major problems needs to finally make a committed
reluctant to enter the unpredictable consumer-facing pharmaceutical move into developing an online
flux. Is there a way for the two to and healthcare portals must address presence. Portals are vulnerable to
come together to mutual benefit? is that of trust. Of the 100,000 or takeover and crying out for sponsor-
The pharmaceutical/healthcare more medical or health sites on the ship, and have problems of trust with
portal developed hand in hand with Internet, it is estimated that only the consumer. Big pharma has the
the rise of the informed consumer. about half of these are reviewed money to invest, and can offer trusted,
The Internet has provided an easy by doctors. The Federal Trade reliable brand names. For big pharma,
route to a wealth of knowledge, and Commission (FTC) is waging an the opportunities that portals offer are
with a little knowledge comes the ongoing war against sites making direct consumer contact, the ability to
desire for more. The Internet is now a bogus claims and selling fake establish relationships with the
major force in health information treatments, identifying at least 400 consumer, and a wealth and density
provision: a survey by Cyber Dialogue health sites making dubious claims of market information that is only
last year found that 40.9 million – 54% in 1999. According to the FTC, 67% available online.
of the online population of America of online health information seekers Pharma companies can refocus
– use the Internet for healthcare. found it difficult trying to decide their marketing to primary care
In response health sites what online information they could physicians by offering free fast
proliferated and portals emerged. The consider trustworthy. Internet connection and IT tuition,
trouble is there were too many of Big pharma companies are in a and by offering online conferences
them and their business models just perfect position to capitalise on this and symposia. Using the Internet
did not work. So today, portals are sense of circumspection surrounding offers a way to give doctors access to
swallowing one another up and online health information. The the information they want without
entering into contra-deals to further opportunity is there to enter the making them feel that it is being
extend the range of functions that market and create consumer portals forced upon them, as they often do
they offer and stave off the collapse of their own or add their stamp of with rep visits.
that has affected so many sites. In approval to established sites. Pharma Online marketing via health
April last year www.CVS.com and companies have widely recognised portals can also enable pharma
www.WebMD.com entered into a and respected brand names that are companies to penetrate the doctor-
partnership where CVS became regarded with more confidence than patient relationship. If patients can
WebMD’s sole medication provider in the Internet sites and portals that store their records on www.thedaily
return for WebMD becoming CVS’s seem to have appeared overnight. apple.com, then this site will most
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likely be accessed by both the patient consumer, pharma companies motivated enough to pursue it (or
and the doctor. The site simply needs sponsoring or advertising on portals at least to click through to more
to be set up so that different can have a dramatic effect on drug information from the pharma
advertisements or promotions or choice and compliance. A survey by company). And by monitoring click-
medical information is displayed Cyber Dialogue found that online throughs and traffic, pharmaceutical
depending on the user logged on for direct to consumer marketing out- companies gain instant feedback on
a particular session. Even more performed all other DTC (Direct how promotions are performing, and
significantly, the portal becomes a To Consumer) advertising media. even on how specific (though
common point of reference for the Measuring patient requests for drug possibly anonymous) individuals
doctor and for the patient – the information from their doctor, the travel through their and other sites.
portal becomes an integral part of survey found that the cost per The online opportunities for big
the doctor-patient relationship. request was $14 for online drug pharma are clear. Portals are crying
This level of intervention will advertisements, as against $197 for out for funding and consumers are
become more complex, as in the print and $220 for television. Else- desperate for information they can
announcement of a collaboration where, a survey has found that 80% really believe in. Big pharma can
between Infinet and Swedish pharma of doctors would prescribe the drug supply both. In doing so they can
company Ferring to help monitor the patient requested. If the Internet further extend their marque, establish
bedwetting patients. Patients using can make marketing cheaper and direct relationships with their
DDAVP could register with the site more effective, then in turn pharma consumers, and access the kind of
and use an online calendar to record companies will be able to continue to detailed marketing research that
taking their medication and their develop drugs that would tradition- wasn’t even dreamt of just a few
bedwetting. Ultimately this kind of ally have been dropped in the years ago.
scheme would improve compliance, development process.
Author’s note: Simon Seljeflot is assistant
provide valuable electronic feedback, If pharma companies can target
editor at Pharmaceutical Business News,
and build a long-term relationship their advertising and sponsorship
published by Informa Global Pharma-
between the pharmaceutical accurately enough, then this ceuticals and Healthcare. He can be
company and the patient. promotional material will be seen by reached at simon.seljeflot@informa.com
By targeting the patient and individuals who are directly interested
promoting the idea of the informed in what they are seeing, and
The truth
about CRM
A cautionary tale by Richard Backhouse, senior
consultant at New Information Paradigms
Richard Backhouse
If you’re about to embrace customer That’s all changing – and quickly. whilst niche areas support targeted
relationship management, take a With the widespread use of email marketing and provide rich pickings,
few minutes to consider why you’re and the growth in consumer the costs are subsequently higher.
ready to commit funds, energy and knowledge and awareness, More channels, more segments
reputations to what will be a major organisations are being forced and more products proliferate
project. The adage ‘if it ain’t broke, to review their position in the opportunities but mean that you
don’t fix it’ may hold true in many knowledge arena. What were once cannot treat all customers the same.
cases, but if your competitors are linear relationships have now Then we have rival company sales
‘doing’ CRM, why aren’t you? formed a web and you are deluded
forces working together and the
Your organisation’s products and if you think you might prevent any
ultimate consummation – the
services may be so good you don’t of the parties communicating with
merger. Few industries have
need to worry – but who dare claim one another and forming opinions.
undergone such a consolidation in
that? Perhaps now’s just the time to Many expert patients are more
such a short period of time. The
enhance what you do, rather than knowledgeable than their GPs
physical effort required to rationalise
react to a crisis when it’s too late. about their condition and GPs are
the back-end systems for invoicing,
But be warned – CRM is part of embracing the changes. They’re
stock control etc. must be carefully
company culture and can’t really learning to work with informed
managed and not deflect resources
exist departmentally. It’s potentially patients for the general good rather
from the on-going customer
time consuming and costly, and than imposing a hollow superiority.
The markets themselves are relationship. In many cases, the new
many people will become involved.
becoming more complex. With organisation will be a new entity –
Complex markets and increasingly more EU and national maybe a new name – and will be
relationships government legislation to comply struggling to make an impact in the
Until recently, relationships with with, pricing and licensing issues first few weeks of inception. With
customers and publics were may be taken out of your immediate only one chance to make a first
essentially linear and the control. Good communications with impression, it’s imperative you get
organisation would take the lead. regulatory bodies are vital. And it right first time.
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Self service solutions have a different take on it. Marketing willing to ‘give up’ what they may
Since information itself has no mass, can create targeted messages; sales perceive as their own personal
no time and no place, the delivery people can plan calls; call centres knowledge can be challenging.
paradigm is unlike that of physical staff can be aware of caller history.
items like a parcel. It’s critical that Building trust essential
Impediments to success
information be stored centrally just Building customer trust is so
CRM sounds such a great idea –
once, but then made available important and you need to provide
shouldn’t everyone be doing it?
instantly on the device of choice,
What can possibly go wrong? Like an openness for users that is secure
independent of time or place. PCs,
so many things, it’s easy to do for the organisation. People will
laptops, personal digital assistants
badly. Even if done well, a CRM expect to see a feedback form and if
(PDAs) and WAP phones can all
implementation will require you to they send you comments, they can
receive web pages and email, so that
resolve a number of potential
reasonably expect an acknowledge-
should be borne in mind when you
conflicts, like – how much will this
consider the infrastructure ment and even some action. Ignore
cost? CEOs want a low cost delivery;
requirements. Supply of quality unsolicited feedback at your peril.
shareholders want to maximise
information can go a long way to Personally, I think all websites
returns, whilst customers want a
defining the (virtual) relationships should have a manned telephone
personalised and responsive service.
you have with your customers. hotline and make the number very
The question of sourcing
The Internet makes it possible to obvious. Never lose sight of the fact
immediately arises – is it better to
provide a ‘self-service’ solution that you’re ultimately dealing with
use organisation know-how and
through a web-enabled front-office build in-house or should we get the people and not machines.
system. Furthermore, the level of so-called experts in? Furthermore, if your CRM system
service provided – including content Whichever way these decisions has a public access area you will be
and timeliness – can be determined go, operational conflicts may soon
forming relationships with people
by your users’ changing needs. What emerge. Is it better to start right
you may know nothing about – yet.
does this mean in practice? As away and learn from experience or
organisations have so many diverse Some of these people could go on to
should we customise the system
‘customers’ with differing require- become customers or even future
before it goes live? The enthusiasm
ments and interests, it makes sense to make the system as good as employees. It makes sense to
to provide them with what they possible must be tempered with the present your organisation favourably
want at any given time. Initially, need to avoid scope-creep and get and to provide a positive long-
access will be provided based on the project finished within time and lasting image of it.
membership of a group, but of budget.
Author’s note: Richard Backhouse is head
course groups comprise many A CRM system can be sparsely
of marketing to the pharmaceuticals
individuals and that is where you populated when launched, but it industry for New Information Paradigms
should focus. Offering a personal- clearly makes more sense to have Ltd, the software development house.
ised, secure access based upon trust some historical content, which itself He specialises in the human/computer
and previous usage can create a rich interface and can be reached at
poses a few problems. There will be
richardb@nipltd.com
environment for individuals that is many potential sources of inform-
driven by organic demand. ation – much of which will not have
A CRM system need not be an owner and which may exist in a
limited to external customers and proprietary computer system or on
partners. Many of your own staff will paper. Evaluating content and
be able to share information, but identifying process owners who are
E-Marketing on proprietary
websites and beyond
Despite much recent investment in
e-health, the big pharma producers
haven’t yet fully embraced the Internet
for sales and marketing, write Aleksandar
Ruzicic and John Haughey of Almasan Ltd,
the dedicated e-marketing consultancy.
Here’s how they can.
Aleksandar Ruzicic John Haughey
Recent market research from Jupiter duration of physician details to more over pharmaceutical companies and
Communication found that in the US, than 8 minutes. Physician Interactive commercial providers; only 25% trust
69% of pharmaceutical marketing (www.physinter active.com) reports and use information provided by the
executives spend 3% or less of their that 70% of participating physicians latter compared to 70-80% for the
DTP (Direct To Profession) marketing choose to be e-detailed outside former.
budgets online. More surprising is traditional office hours. A recent When undertaking any e-marketing
that 56% of respondents plan to study on a Physician Interactive initiative, marketers have to make
increase their online DTP budgets by programme for a top pharmaceutical difficult choices across three specific
25% or less, while 58% will increase company, conducted by HyGro axes, choices we will explore further
their meager online DTC (Direct To Group, documented increases in ROI in this article. For optimal effect,
Consumer) spending by 25% or less. of 480% and brand share growth however, they also have to combine
However, pharmaceutical companies from 3% to over 9% among partici- the individual initiatives into an
adopting Jupiter’s advice and pating physicians. It is important overall online marketing programme.
experimenting with new marketing to note that this programme was The three choices relate to the
approaches achieve promising completed for a large, mature brand objectives, the approach, and the
results. According to Cyber Dialogue, that had been on the market for six external support for the e-marketing
the Internet generates prescriptions years and was nearing the end of its initiatives.
through DTC at a fraction of the cost patent life.
of more traditional channels such as Marketers looking to identify 1. What is the objective of the
print and television. The cost of one winning e-marketing initiatives interaction, and which target
prescription generated online in the should consider carefully increasing audience should be addressed?
US is only $54, compared to $152 by evidence that both physicians and We suggest the traditional
television, and $318 by print. Further- consumers prefer unbiased, patient/physician flow analysis to
more, e-marketing suppliers claim far independent information online. A answer this question (see figure).
superior access to physicians through recent research by the Boston However, due to the new interactive
the online channel. Consulting Group shows that opportunities of the Internet, the
Iphysiciannet, a company European consumers prefer groups of appropriate actions might differ from
providing broadband video detailing, university clinics, medical the offline marketing and sales
claims a fourfold increase in the associations, and university clinics approach.
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Figure: Proposed decision-making appr0ach segment the potential partners into asthma, diabetes, and
Three difficult choices by e-marketing initiative
different categories, and discuss their cardiovascular
ability to help in implementing • Active communities for
Per initiative
Interaction
objective
Ownership
and branding
Relevant
suppliers
successful e-marketing initiatives. peer support
approach
Medical consultation by patients Patient Leading disease management have to trade off between
Disease diagnosis Physician
companies, such as www.life independence and company control.
Treatment selection Physician
chart.com, exploit mobile They also have to choose between a
Prescription filled Patient
Patient compliance Patient input/output devices for product and a disease branded site.
fundamentally new approaches Regarding ownership, pharma-
How can the major leakage be addressed?
to chronic conditions, such as ceutical companies have to resist the
temptation to control initiatives that with the impact the Internet had in 1. Online authorisation services
might jeopardise their targeted another industry – financial services. of medical professionals
objectives. If they want superior Internet discount brokers have forced These companies provide outsourced
access to the targeted audience, banks to make third party mutual verification services to medical
they need to co-operate with funds available to their clients, professionals. Especially in Europe,
independent associations or giving-up the proprietary product companies have to adopt these
commercial portals. These portfolio in favour of capturing the services due to stringent regulations
organisations and companies have customer relationship. for DTC. Most companies provide
However, pharmaceutical only country-specific, or language-
Figure: Branding and infrastructure ownership
companies do have a highly valuable specific solutions, such as www.
• Consumer communities for • Support of patient/
Disease
severe conditions, e.g.,
www.mswatch.com
physician associations asset, ongoing access to physicians medipass.fr for French sites, or www.
• Unrestricted educational
branded • Pharmacoeconomic and grants for physician CME
experience trials, e.g., • Content sponsorships for through their large sales forces. doccheck.com for German sites. There
www.glaukom.de consumer/physician sites
• Consumer sites for lifestyle • Online market research Pfizer has decided to use its 8,000 are currently very few truly global
Product diseases, e.g., Viagra • e-Detailing to physician
branded • Patient compliance, e.g.,
www.Habitrol.com
• Online experience trials
US sales representatives to promote solutions, such as Physician
Company site Independent site a Web-based practice management Verification Services (www.verifies
service. The company has announced .com).
established relationships with the
a partnership with IBM and Microsoft
audience, and give access on a 2. Online market research
to set-up a separate venture that
sponsorship, unrestricted grant, or solutions companies
will challenge already established
fee-for-service basis. These companies provide full
companies such as WebMD. The
Depending on regulations and solutions, and are usually offered by
new entity will be independent,
objectives, marketers will have to general market research experts,
and will not be used to promote
decide about branding initiatives covering quantitative research with
Pfizer’s products or advertise to
with a disease (soft branding), or a both physicians and consumers/
physicians.
product (hard branding). While patients. Global services are offered
product branding offers the best for example by www.pslgroup.com.
Who can help to make the
opportunity for competitive www.medpanel.com offers a unique
initiatives a success?
marketing initiatives, disease qualitative research with academic
We have segmented the supplier
branding is usually required to physicians and opinion leaders on a
market into six segments, given
leverage independent and unbiased global basis, enabling clients to save
their distinct value proposition to
associations/portals. Many companies significant time and cost while
pharmaceutical marketers. Key for a
obtaining high-quality research
are undertaking initiatives to promote successful relationship is defining a
results.
a set of products in the same thera- clear marketing strategy before
peutic area, or targeting a specific contacting vendors, since they all 3. Reach/traffic providers
physician segment on behalf of the Traditionally, portals provide the bulk
Figure: e-Launch Internet marketing program
overall company. These initiatives of the reach and traffic. They can be
in general neglect the patient and segmented by target audience (GPs,
Pre-launch conditioning Opinion
physician requirement for indepen- Leaders Facilitated
influence specialists, consumers/patients),
International marketing Specialists
dent and unbiased information, as GPs
Facilitated viral geographic reach, and covered topics
Local marketing marketing
evidenced by the research. It will be (general, specific diseases). In the
difficult for pharmaceutical Patient initiatives Patients
US, the offer is large and highly
companies to compete with fragmented. Marketers also need to
associations, portals, and hospitals offer solutions to reach very specific consider the financial stability of
for a holistic relationship, and still objectives. Without a clear strategy, their potential partners when closing
remain focused on selling proprietary marketers risk their implementations a deal. Europe has mostly general
products. being driven by the technology portals for physicians and consumers,
The attempt of pharmaceutical solutions of their vendors, rather with several successful national sites,
marketers to capture consumer/ than the strategic needs of their such as www.doctors.net.uk.
patient and/or physician relationships products. The six segments are Additionally there are a very few
exclusively, can best be compared described below: pan-European players such as
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www.planetmedica.com and www. the leader in multi-channel CRM who are interested to follow opinion
netdoktor.com. Europe currently lacks solutions, and its partner leader discussions. The majority of
specific deep and narrow portals, www.synavant.com. www.iphysician prescribing physicians, specialists
those that do exist being provided by net.com provides a unique broadband and/or general practitioners, are
associations and healthcare providers physician video facility in the US, targeted through suppliers of e-
on a non-profit basis. which many of the leading marketing and sales services, such as
pharmaceutical companies have e-detailing, and online Phase IV
4. Content providers adopted. Suppliers such as www.my trials. Marketers can also exploit the
Most portals, publishers, and e-care drugrep.com, www.medsite.com, Internet to facilitate viral marketing
companies provide all the necessary www.physinteractive.com, and among those physicians. Depending
content for Internet initiatives. more traditional Contract Sales on the product and local regulation,
Marketers need to carefully select the Organisations, such as Innovex and marketers will target patients with
content they require since content Ventiv Health, provide one-stop- general awareness programmes,
deals can become costly, while not shop services. product branding initiatives, and
offering substantial differentiation to
compliance/disease management
sites competing for the attention of Combining initiatives into an
initiatives.
the target audience. Since content is Internet marketing programme
Over time, pharmaceutical
also generally available, marketers To be more than a reaction to the
companies will have to complement
should be taking notice of who else Internet, individual company
existing marketing processes to
the information is being syndicated initiatives to influence the
include Internet activities. The global
to, and explore exclusivity clauses if patient/physician flow need to be
and local product teams responsible
they wish to capture a strategic combined into an overall Internet
will be tasked to use the appropriate
advantage. marketing programme. These
planning processes, which will be
programmes will depend on the life
developed through experience with
5. E-care companies cycle stage of the product, and differ
for pre-launch, launch, Rx-to-OTC, initial pilot approaches. Advanced
Most prominent are disease manage-
and patent expiry. Even as they pharmaceutical companies will
ment companies, offering their
change over time, all programmes not use the Internet solely as a
services online and, more recently,
need a strategic consistency that marketing channel, but will also
through wireless devices such as the
unites content, presentation and adopt online workflow and
globally operating www.lifechart.com.
interaction in a compelling fashion to collaboration tools. They will capture
Companies not requiring a one-stop
achieve marketing objectives. the institutional learning across
shop, and looking for a technology
Let’s focus on the most important individual products more effectively,
platform should explore companies
step, the launch of a pharmaceutical and avoid loss of critical know-how
such as www.softwatch.com, who
product. Similar to offline launch due to loss of key personnel.
provide eHealthcare Relationship
Management solutions on a global programmes, where companies have
Authors’ note: Aleksandar Ruzicic and John
basis. adopted sophisticated approaches to Haughey are managing director and
target physicians and patients, they operations director, respectively, with
6. E-Marketing/sales solutions will have to adopt an orchestrated Almasan, the dedicated e-marketing
The market offer can be segmented and carefully timed e-launch consultancy. Previously employed as
into technology platforms and one- consultants with McKinsey and PA
programme. It might start with pre-
Consulting, they combine many years of
stop-shop e-marketing services to launch activities targeted at opinion healthcare sector experience and can be
physicians. While most vendors have leaders, and conditioning them to reached at aleksandar.ruzicic@almasan.com
very specific approaches, they tend to the new product. These opinion and john.haughey@almasan.com.
offer their services only in the US. leaders are subsequently used to
Exceptions include www.siebel.com, influence the relevant early adopters,
Promoting prescription
pharmaceuticals in the
European Union
Recent regulatory and legal changes in the
United States mean that direct advertising
and marketing of prescription drugs has led
to as much as a 25% increase in sales.
Mark Lubbock and Richard Cumbley,
pharmaceutical and e-commerce specialists
at lawyers Ashurst Morris Crisp, explain.
Mark Lubbock Richard Cumbley
Direct to consumer advertising, or DTC tv advertising in August 1997. Notwithstanding that commercial
DTC, has been a controversial topic In 1999, the most recent year for success, regulators remain con-
in the pharmaceutical industry for which figures are available, pharma- cerned at the public health
more than 20 years. Although the ceutical companies spent $1.8 billion implications of DTC advertising.
experiences of the countries that on DTC advertising in the US, up The contents of DTC advertising are
permit such advertising for 38.5% on 1998. 1998’s figures were heavily regulated in the US. In
prescription only medicines (POMs) themselves 50% higher than 1997. summary, the four key elements the
has been mixed, there are signs that The pharmaceutical industry spent FDA controls are the requirements
the prohibition on DTC advertising 33 times as much on DTC of honesty, balance, disclosure (of a
on POMs in the EU, and particularly advertising in 1999 as it did in 1991. summary of the product’s package
the UK, is softening. Thus far, Clearly, from these figures, the insert), and limitation of claims (to
however, only two countries in the industry considers DTC advertising those for which the product is
world permit DTC advertising in its worthwhile, and prescription figures authorised by the FDA). Those four
broadest form – the US and New seem to bear this out. In 1999, elements give the FDA a very wide
Zealand. The US case obviously has Doctors wrote 34.2% more pre- subjective discretion to regulate the
scriptions than in 1998 for the 25 content of DTC advertising – and
far greater potential impact on UK
heaviest DTC promoted products. both the FDA and the drugs
and European trade, and only this is
They wrote 5.1% more for all other companies have complained recently
examined here.
prescription products than 1998. The about the results. The FDA has
The US Situation US National Institute for Health stated that more than 50% of
DTC advertising of POMs was Care Management considers that adverts it sees require corrective
largely prohibited in the US until consumer advertising could be measures; while drugs companies
September 1985, and did not responsible for 10–25% of the recent have complained that they are
become a significant success until increase in prescription drug subject to a regime that is all but
changes in FDA guidelines enabled spending. impossible to comply with.
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Perhaps the most high profile That lack of distinction is which share a common theme – the
casualty has been Pharmacia’s arthritis exacerbated because the directive ease of information flow provided by
treatment, Celebrex. Deemed the referred to above is then implement- the Internet.
most successful drug launch ever by ed in EU member states by local
Leakage across the Atlantic
Med Ad News in 1999, with sales of legislation, and enforced by local
One of the most striking examples
US$1.47bn in its first year, Pharmacia bodies. In assessing therefore what
of this new DTC advertising is the
spent over $80m marketing the constitutes direct to consumer
leakage of material across the
product in 2000. Its television advertising, interpretations may vary
Atlantic from the USA. The
adverts, which pictured arthritis from member state to state. In the
Internet is no respecter of national
patients engaged in various activities UK, the Prescription Medicines
boundaries, and therefore citizens of
including rowing and riding, were Code Of Practice Authority (PMCPA)
EU countries find it easy to access
pulled after the FDA found that they monitors the advertising, marketing
patient information and advertising
suggested that Celebrex is more and sale of prescription medicines.
web sites aimed at US patients.
effective (in treating arthritis) than In Germany, advertising and
That is not to say that US sites
had been demonstrated by marketing of medicinal products is
are beyond the reach of EU based
substantial evidence. controlled by the health authority of
regulators where they clearly
There is no doubt that the DTC each federal state. Member states
environment in the US remains also have varying laws on methods contravene the EU’s DTC advertising
volatile in trying to balance of advertising; for instance in ban. The UK’s MCA has indicated
commercial success with possible Belgium and France a licence is that sites based outside the UK will
health concerns. The FDA has required for television or radio be subject to UK regulations where
further committed to review its advertising of medicinal products. they are targeted at UK residents.
guidelines once again in two years Because of these disparities in Certainly, delivery of information or
time, in the light of further implementation and enforcement, it products to UK addresses would
experience. is possible for different practices to constitute such targeting, but some
general public has been largely Furthermore, it is clear from In order to circumvent concerns
prevented from seeing this another recent case, involving a that such statements might be
advertising by virtue of close control product web site targeted only at advertising, the Pharmaceutical
of subscription lists – notwithstanding professionals, that healthcare Committee of the EU has produced
the access to such journals afforded companies need to take specific some draft guidance on advertising
by public libraries. steps in order to ensure that non of medicinal products over the
The launch of on-line editions of professionals do not have access to Internet which states that the
these journals has made them far the web site at all. Bristol-Myers Summary of Product Characteristics,
easier to access for the general public. Squibb had set up a product site for the package leaflet and public
The advertising in journals such as one of its products, Zerit, an anti- assessment reports of a medical
the eBMJ and the Lancet Interactive HIV therapy, and had attempted to product would not be considered as
remains, however, targeted at the restrict access to the site to health- advertising provided there was no
Initial concern at such advertising people who accessed the site to prescription, supply, sale or
was highlighted in the PMCPA’s declare whether they were consumers consumption of the product.
review of banner advertising on the or healthcare professionals. If the As a result it appears that such
eBMJ site for Janssen Cilag’s enquirer claimed to be a healthcare information can be placed on a web
Risperdal product. As a result of that professional, they were then site without constituting advertising.
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Internet to promote exchange of and information provision by and encourage direct patient
information between disease June 30, 2001 with a view to the relationships. When taken with
sufferers. The web site for MS MCA finalising such distinctions the guidelines issued by the EU
sufferers, MS-Gateway.com, by June 2002 Pharmaceutical Committee, it is
sponsored by Schering, provides • The ABPI will provide examples clear that there is a large amount of
extensive information about MS for of company generated inform- information that can now be given
sufferers and their families, inform- ation it would like to placed on to patients about POMs on the
ation about support groups and an company web sites by 30 June Internet.
opportunity to exchange information 2001, and a model for company That full DTC advertising will
with other sufferers. Schering has a web sites by 31 September 2001 follow in Europe, notwithstanding
major product in this field – Betaferon. • The MCA will then seek the leakage phenomena outlined
The site therefore provides limited clarification from Europe of above, is neither imminent or even
information regarding Betaferon, what such sites may contain inevitable – particularly given
along the lines to some extent of by June 2002. the reviews planned of current
that described above regarding regulation in both the US and New
online shop windows. The large
The future environment
Zealand. Large portions of the
number of information portals in The current European experience is
professional health care community
the infertility field (see www.repromed increasingly similar to that of the US
remain vigorously opposed to DTC
.net for example), run by hospitals prior to the lifting of the DTC
advertising in all its forms. As
offering infertility treatment clearly advertising prohibition. The US
recently as December 2000, the
serve a similar purpose. ‘help’ advertising of the 1970s, which
Standing Committee of European
Clearly such promotion treads a did almost everything but mention
Doctors and the Pharmaceutical
fine line with pure advertising. The the name of the product, resulted in
Group of the European Union
recent report in March of this year patients asking doctors for products
issued a strongly worded statement
of the Pharmaceutical Industry Com- whose name they did not know; the
opposing DTC advertising as
petitiveness Task Force (PICTF), FDA ultimately took the view that
detrimental to efforts to safeguard
recognising that, has set out a pro- adding the product name to those
public health.
gramme to establish clear guidelines adverts would do more good than
Nevertheless, the Enterprise DG
for the industry in carrying out such harm to public health.
in Brussels has commenced a public
campaigns – particularly where there It is clear from the PICTF report
consultation process with a view to
is only one treatment available in that, at least in the UK, sponsored
reporting on the current climate in
such a disease area. The key planks patient information provision is to
the EU. A new European regulatory
of that review are: be encouraged by means of clear
environment is slowly taking shape.
• The MCA to agree guidelines with guidance from the MCA. This
Authors’ note: Mark Lubbock and
the ABPI on disease awareness together with the web site guide-
Richard Cumbley are pharmaceutical
programmes by 30 June 2001 lines to be agreed between the and e-commerce specialists at the
• The industry will provide to the MCA and ABPI offer a significant international law firm of Ashurst Morris
Crisp. They can be reached at
MCA a working definition of the opportunity for the healthcare sector mark.lubbock@ ashursts.com
difference between advertising to raise awareness of disease areas
4 Bayer AG 16 18 15 8 0 6 10 7 0 0 64.0
6 Chugai 36 17 13 3 9 3 12 4 1 0 62.0
7 AstraZeneca 4 17 13 11 0 3 12 3 2 0 61.0
9 Tanabe 34 16 12 4 9 4 9 5 0 0 59.0
10 Pharmacia 8 14 11 9 0 6 11 6 1 0 58.0
11 Takeda 13 14 11 8 9 4 8 2 0 0 56.0
15 Amgen 20 14 13 7 0 3 9 6 2 0 54.0
19 Sankyo 19 15 8 5 9 4 6 4 0 0 51.0
21 Taisho 30 11 10 7 9 0 9 3 0 0 49.0
24 GlaxoSmithKline 1 16 9 9 0 0 6 6 1 0 47.0
26 Banyu 38 10 7 7 9 3 6 4 0 0 46.0
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44 The Pharma e-50 T H E P H A R M A E - 5 0 : C O M PA R I S O N BY D I M E N S I O N
© Urch Publishing
Comparison by Dimension
Company US$ Dl D2 D3 D4 D5 D6 D7 D8 Tie Total
rank
28 Teva 37 13 8 8 0 0 7 6 3 0 45.0
31 Serono 42 17 5 4 0 3 4 6 2 0 41.0
33 Pfizer 2 13 8 9 0 0 7 2 1 0 40.0
34 Sanofi-Synthelabo 17 17 6 3 0 0 7 6 0 0 39.0
35 Ono 45 12 3 3 9 0 7 4 0 0 38.0
39 Elan 47 16 8 4 0 0 5 2 0 0 35.0
41 Schering-Plough 14 14 5 6 0 0 5 4 0 0 34.0
43 DuPont 31 14 8 5 0 0 1 4 1 0 33.0
45 Solvay 41 16 3 7 0 0 1 3 0 0 30.0
48 Servier 50 13 7 3 0 0 0 0 0 0 23.0
50 Dainippon 40 12 0 1 0 0 6 2 0 0 21.0
The overall goal was to examine and details, a comprehensive listing of with the medical community. Here
measure the online performance and products and services, references to we looked for dedicated contacts,
behaviour of the world’s leading corporate ownership, and links to downloadable targeted information,
pharmaceutical companies – and various regulatory bodies. Given ‘user group’ access, and other
then rank them in terms of overall current consumer concerns, we also elements that would make the site
excellence. The methodology itself is looked for explicit material outlining not only a source of information
comprised of eight different scoring each company’s ethical and but also a useful working tool for
dimensions: environmental operating policies practicing doctors and other medical
unnecessary barriers in the way of ments, along with an explanation to which companies are using their
those with the need or the desire to of side effects and any form of site to educate, inform or communi-
enter, so that they may do so with a comparative data relating to older cate with those who might be
minimum of bother. Once inside or competing drugs. as well as the termed their end users. Recognising
the site, we looked for appropriate presence of any independent this audience’s growing knowledge
signposting, consistency of design, endorsements. We also looked for and assertiveness, we looked for
timeliness, and a general feeling of information on companies’ research much of the same information
user-friendly construction. pipelines and for links to universities we sought under the previous
27
46 The Pharma e-50 ST U DY M O D E L A N D D E S I G N
© Urch Publishing
Investors media phone lines and email annual revenues. Figures were based
Here we asked how surveyed firms addresses with real names as on estimated sales for calendar year
are using the Web to benefit contacts, and the existence of a clear 2000 and fiscal year 2000–2001.
investors, whether individual or FAQ (frequently asked questions) The ongoing spate of mergers and
institutional. We did not think it page providing background acquisitions posed some specific
enough merely to offer an annual information. difficulties, given the integration
report download, but were instead of both companies and Web sites.
expecting specific information to be Proactivity Wherever possible, we based
available immediately. This included This final dimension examined the findings on the online behaviour
the current share price, recent possibility of site visitors establishing of the merged entity.
headline financials and trend data, direct, two-way contact with the Nearly all companies are multi-
independent comment or links, company via its Web site, along with nationals, many with Web sites in
details on equity ownership, and the quality – and speed – of any more than one language. We
evidence that stakeholders could response to emailed queries. We assessed the site, as far as possible,
interact with the company; for looked for the presence of means to in the language of its main national
example, to receive reports or share aid contact, from names and contact market. Specially trained
offers by email. details of appropriate individuals, researchers, native or fluent in
to ‘contact me’ buttons for those English, Dutch, French, German,
The media experiencing difficulty for in navigating and Japanese, undertook the
This audience section considered the site. We also checked for any research. All Web site audits were
how well companies are using their evidence of e-commerce. checked by at least one other
sites to communicate with the researcher in an attempt to reveal
media – requiring more than a basic The companies participating any consistent bias. All research was
press release archive. We examined in the Pharma e-50 survey were undertaken between January and
the ability to register for email chosen from investment bank global May 2001.
delivery of press material, the rankings of the top 50 pharma-
availability of dedicated 24-hour ceutical companies as measured by
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