Maximizing Rx-to-OTC Switch Potential

IMS CONSUMER HEALTH EVIDENCE-BASED RX-TO-OTC SWITCH CAPABILITIES

Switch on to a strategy for a Eurobrand launch in a day!

Consistent growth, new innovation and stronger emphasis on self-medication have made the OTC sector an increasingly attractive platform for business expansion. It is already growing faster than the Rx market, a trend that is set to continue, as generics increase their hold in key therapy areas, and payers become even more restrictive in granting market access. FAST ROUTE TO BIG OPPORTUNITIES
At the heart of recent OTC growth is Rx-to-OTC switching a key driver of many leading brands in the US and Western Europe. In Europe, historically approached on a local basis with varied regulatory acceptance, the power of switch is set to transform with the evolving centralized EU process. Not only does this enable simultaneous launch into 27 EU OTC markets, it also opens up a wealth of opportunities for more expansive, creative switch strategies including the development of new, and potentially lucrative, OTC categories.

Eight of the top 20 brands in Europe are the result of product switches
PREPARING TO WIN
Companies that are prepared to act now and act fast can share the prospect of considerable rewards. For pharmaceutical manufacturers come major possibilities to synergize Rx portfolios and realize the incremental value of potentially under-utilized assets; for OTC firms comes the chance to build a very large brand efficiently, effectively and fast. But, despite the new promise of switch potential, success is not guaranteed. Complex dynamics at the regional and local level must be assessed and fully understood; feasibility from multiple perspectives determined early on; in existing categories, additional switched molecules must be identified and analysed in detail; and in new categories, including chronic and lifestyle, attitudes to self-medication explored. And when the goal is to maximize both Rx and OTC strategy, the challenges are even greater.

CONSIDER THE POSSIBILITIES

It took 25 years for Nurofen to build a Eurobrand. In 2009, it took just 1 day following approval for GlaxoSmithKlines weight loss drug alli to become a 27-country brand, with access to a combined population of more than 500 million people and 160,000 pharmacies.

Maximizing OTC Switch Potential

HOW TO MAXIMISE YOUR SWITCH POTENTIAL
IMS Consumer Health has the consulting skills, capabilities and key data assets covering both prescription and OTC sales to help you assess, analyze, model and maximize the value of your OTC product switch. Whether you are still at the exploratory stage of determining switch feasibility or in search of the optimal go-to-market strategy, our consumer health consulting specialists have the global experience and local market knowledge to build the powerful evidence you need. Our proven approaches, robust methodologies and in depth expertise across all healthcare sectors ensure: Prioritised switch options with key success criteria Rigorous, evidence-based forecasts of commercial potential Ability to drive new category switches Best approach to engaging with all key stakeholders Optimal pricing decisions and target consumer/pharmacy base Strategies to grow your Rx-to-OTC business - fast

ONE ROUTE, ONE CHANCE TO GET IT RIGHT

With one route comes one chance to get things right from the outset. Our Rx-to-OTC switch support spans every step of the journey, from strategic evaluation of the switch landscape and assessment of relevant candidates to quantified analysis of commercial potential and bestpractice strategies for launch. And even after your switch has hit the market, our ongoing post-launch monitoring services keep your Rx and OTC performance on track. Whatever your questions, we can design an evidencebased approach to fit: 1. How can we develop our OTC business? Our comprehensive strategic evaluations utilize rigorous consumer research, first-hand insights into stakeholder support, unique IMS data assets and detailed analysis of relevant categories or appropriate therapeutic analogues, to define the switch landscape for your portfolio options, determine impact on your Rx business, and identify the optimal commercial opportunities and criteria for switch success. 2. Is this switch feasible and what is the potential? Our in-depth feasibility analyses screen your switch priorities against key criteria to determine regulatory and

FIGURE 1: OUR PROVEN EVIDENCE-BASED APPROACH TO SWITCH FITS ALL OR ANY OF YOUR RX-OTC NEEDS - FROM FEASIBILITY AND POTENTIAL TO LAUNCH

STRATEGIC EVALUATION Switch landscape and portfolio assessment

COMMERCIAL POTENTIAL Incremental switch potential

GO TO MARKET Launch strategy and 'total category' implementation tracking

Switch feasibility and prioritization

SWITCH PROCESS Feasibility

Assessing switch feasibility based on in market learning, portfolio assessment and a feasibility business model

Potential Modify
Market potential based on building primary consumer purchasing propensity and professional primary data into a business model

Launch Modify
Targeting pharmacy and other health professionals, plus tracking of both OTC and Rx performance

?
Kill

Go

?
Kill

Go

market acceptability, ensuring a business model based on consumer propensity and evidence of price elasticity, and build in robust, interactive modelling factors such as volume/value ranges that allow you to determine and maximize - the OTC potential. 3. How should we approach the market? Our extensive commercialization support builds a bestpractice, go-to-market strategy for your brand that is fully aligned to local requirements, addresses key consumer and professional criteria, optimizes pharmacy segmentation and targeting, and enables optimal

engagement with all relevant stakeholders including doctors, government, pharmacists and consumers for strong, sustainable growth. 4. How can we drive our success post-launch? Our switch launch tracking service keeps you fully informed and in control of your brand in the critical months post-launch, with an ongoing understanding of sales relative to the total switch category, brand performance against established KPIs, the impact of the switch on your Rx business, and guidance on the development of corrective action where required.

IMS CONSUMER HEALTH CONSULTING IN PRACTICE

Whether you are looking for new business potential or to expand an established presence in OTC, building the evidence for informed decisions is key. Insights from IMS switch analyses have helped many of our Rx and OTC clients prioritize, shape and support their product switching to enable sustainable growth. ASSESSING SWITCH FEASIBILITY AND BUSINESS POTENTIAL The challenge: An Rx manufacturer wanted to verify switch feasibility to create a new chronic indication category. The condition was embarrassing, often undiagnosed and largely untreated in the Rx sector, leaving significant unmet sufferer need. Recognizing a major opportunity for market expansion but uncertain of the best way forward, the company approached IMS Consumer Health for help. Our approach: IMS developed a robust, validated business model using insights gained from in-depth discussions with KOLs, consumer research in three different countries, an understanding of the potential impact on the Rx market, and a systematic evaluation of appropriate analogues to plot a best-fit likely uptake curve for the OTC product. Client benefits: The IMS business feasibility assessment provided clear direction on the best route to market, critical insight into the issues that would need to be addressed, and quantified detail on the commercial potential essential to securing senior management support for the pre-patent expiry switch. Crucially, the interactive, evidence-based model enabled the client to make informed and decisive choices at key strategic points to see how to secure the maximum return on its switch investment. BUILDING A PARTNERSHIP STRATEGY FOR SWITCH SUCCESS The challenge: An OTC company with a strong heritage of Rx-to-OTC switching saw a key opportunity to market a major brand switch by partnering with a leading Rx player. Certain that it had a strong business case for recommending the relationship and keen to communicate its business case to the best possible effect, the OTC company came to IMS Consumer Health for help. Our approach: IMS completed a detailed assessment of the companys track record in growing global brands, its experience of Rx-to-OTC switching and the key benefits its dedicated switch team could bring to the table. This was complemented by an in-depth strategy for switching several of the prospective partners leading brands, further showcasing the clients expertise in action. Client benefits: The value proposition developed by IMS provided compelling evidence of the companys strength in OTC switching, the potential to secure a best practice launch from the partnership, and a recommended go-to-market strategy underpinned by gold standard IMS data and a rigorous analytical process. This powerful articulation of the business rationale served as a critical platform for high-level discussions with the prospective partner and a vital tool for exploring their synergistic potential.

FIND OUT MORE

To find out more about the way that our consulting team at IMS Consumer Health can help you assess, determine and maximize the commercial potential of your Rx-to-OTC switches, please contact Andy Tisman, Senior Principal, IMS Consumer Health on (+44) 020 3075 5295 or +44 (0)7904 288819 or by email at ATisman@uk.imshealth.com

ABOUT IMS

IMS HEALTH

Operating in more than 100 countries, IMS Health is the worlds leading provider of market intelligence to the pharmaceutical and healthcare industries With $2.2 billion in 2009 revenue and more than 50 years of industry experience, IMS offers leading-edge market intelligence products and services that are integral to clients day-to-day operations, including product and portfolio management capabilities; commercial effectiveness innovations; managed care and consumer health offerings; and consulting and services solutions that improve productivity and the delivery of quality healthcare worldwide. Additional information is available at http://www.imshealth.com

EUROPE & WORLDWIDE 7 Harewood Avenue London NW1 6JB UK Tel: +44 (0)20 3075 5888

THE AMERICAS IMS Health 660 West Germantown Pike Plymouth Meeting PA 19462 USA Tel: 1.800.523.5333 ASIA-PACIFIC 10 Hoe Chiang Road Keppel Towers # 23-01/02 Singapore 089315 Tel: 65-6227-3006

JAPAN Toranomon Towers Office 4-1-28 Toranomon, Minato-ku Tokyo 105-0001 Japan Tel: 81-3-5425-9000

www.imshealth.com/oncology

2010 IMS Health Incorporated or its affiliates. All Rights Reserved.

CH_OTCSW_0510