Professional Medical Education Excellence Pharma Report Summary

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Professional Medical Education Excellence: Structures, Resources, Services & Performance Levels to Optimize

Pharmaceutical Education Groups

TABLE OF CONTENTSI. Executive Summary

Business Issue & Objectives, p.4Project Blueprint, p.5Key Findings, p.6-8Participants, p.9-10Medical Education Landscape, p.11

II. Participant Overview Information, p.12-15

III. Organizational Fit & Geographic Focus, p.16-28

IV. Staffing Benchmarks & Program Trends, p.29-45

V. Roles for Key Activities & Program Deployment, p.46-60

VI. Budget Benchmarks & Allocation Trends, p.61-74

VII. Trends & Directions, p. 75-83

VIII. About Best Practices, LLC, p.84-85


Optimize Medical Optimize Medical Education Capabilities, Education Capabilities,

Efficiency & Efficiency & EffectivenessEffectiveness

Business Issue & Objectives

Objectives:Determine the structure and activities of Medical Education function.

Benchmark professional Medical Education staffing.

Identify Medical Education services and role of Medical Education group in key activities (thought leaders, professional societies, education programs and compliance).

Benchmark Medical Education resources, investment allocation and budget allocation by region and program type.

Determine the future trends and direction in Medical Education for field-based medical educators, technological changes and spending changes.

Many in the Pharma sector need evidence-based medical education staffing benchmarks to determine if their medical education group is sufficiently staffed and funded or should add resources, shrink resources or shift resources.

Field Research & Insight Development:• Results based on initial survey

responses from 35 pharma and medical device organizations

• Conducted in-depth interviews with four industry leaders

INFORMINFORM


Key Findings: MedEd Technology and Performance Measurement

Medical Education technology and performance measurement

Technology-based programs will increase in the next two years in both pharma and device sectors. However, 61 percent of pharma participants project increases of 10 percent or more, while device participants foresee an explosion with 58 percent anticipating more than 30 percent in growth. Another difference between both segments in terms of technology is the adoption of iPads/tablets into the education environment. Pharma’s investing in iPads/tablets will represent, on average, 16 percent of their technology budget over the next two years. In contrast, iPads/tablets will represent 29 percent of device technology budgets in the device sector, according to respondents. One key reason for this difference is that the iPad/tablet technology is a good fit for the animations and simulations that complement device training.

Performance measurement in Medical Education is a sore point for many, with no one voicing absolute satisfaction with current approaches in either pharma or device segments.Common metrics used to show value are programs conducted, attendees, and percentage of repeat attendees in different courses. Post-program surveys are also common, although many don’t view them as reliable measures. Market adoption of a therapy can be a useful measure of training, but it is best used in geographies where there is low penetration of the treatment.


Study Draws Robust Response from Pharma and Device SectorsForty medical education executives and leaders from across 35 pharmaceutical and medical devices companies participated in this study. Participants included 26 leaders from 25 pharma companies and 14 medical education leaders from 10 medical device firms.

Survey OnlyParticipating Companies


Professional Medical Education Excellence: Organizational Fit & Geographic Focus


Pharma Medical Education Professional Fit is with Med AffairsAfter years of transitioning from other functions such as marketing, Medical Education in pharma has become firmly nestled in medical affairs. The association with medical affairs has reduced criticism of pharma-funded CME programs. Pharma MedEd groups are now more diligent about following guidelines regarding CME content development and delivery.

Medical Education Professional Fit: Please indicate where the professional medical education function fits professionally at your company or unit.

Pharmaceutical SegmentN=26

A free-standing or independent

group or function, 4%

Part of larger

Marketing group, 4%

Part of larger

Medical Affairs

group, 92%


Professional Medical Education Excellence: Staffing Benchmarks & Program Trends


100%

20%

76.30%

0% 0%

20% 20%

100%

20%3.30% 2.40% 1.90%14.80% 1.40%

0%0%0% 0%North America (US

/ Canada)Europe Asia-Pacific

(Japan, Australia,New Zealand)

Latin America(Mexico,

Caribbean,Central & South

America)

Asia-Emerging(China, India,

Southeast Asia)

Eastern Europe

Max Mean Min

Emerging Markets Lacking FTEs from Pharma Sector

North America and Europe remain the main home to Medical Education FTEs in the pharmaceutical sector. However, resources will only increase in emerging markets such as China and India as those areas represent future growth for the industry.

N=19

Please estimate the relative percent allocation of total medical education FTEs working to support each region. The total should sum to the total global FTEs.

Pharmaceutical Segment


In-House Medical

Education Employees,

69.8%

Field-Based Employees,

30.2%

Pharma Relies More on Home Office MedEd Staff

Mix of Medical Education Employees: Estimate the percentage of medical education global employees in different home-office and field-based jobs/roles within your medical education organization.

Max 100% 100%75th Percentile 90% 42.5%Mean 69.8% 30.2%Median 77.5% 22.5%25th Percentile 57.5% 10%Min 0% 0%

In-House Medical Field-Based Education Employees Employees

In-House Medical

education Employees,

84%

Field-Based Employees,

16%

Medical Device Segment


N=12

N=21

Max 100% 80%75th Percentile 100% 20%Mean 84% 16%Median 100% 0%25th Percentile 80% 0%Min 20% 0%

In-House Medical Field-Based Education Employees Employees

Both the pharma and device segments utilize field-based Medical Education staff but the pharma side is less engaged in their use (pharma avg. 16 percent vs. device avg. 30 percent). The difference is tied to device MedEd groups relying on field staff to train physicians in clinical settings to demonstrate safe and effective use of devices.


Pharma Concentrates on CME Program TypesWhile the Medical Education groups of both device and pharma participants support both CME and non-CME programs, pharma heavily favors CME programs while the device sector focuses more on non-CME programs.

Programs Supported By Professional Medical Education Group: Estimate the total number of programs supported by your medical education organization in the last fiscal year.

* 5 Med Dev organizations said they did no CME programs

Medical Device SegmentN=13

Max 400 1250 140075th Percentile 91 90 280Mean 69 187 256Median 3 60 12025th Percentile 0 24 24Min* 0 3 6

# of CME # of Non-CME TotalPrograms Programs

Pharmaceutical SegmentN=22

Max 2500 2200 400075th Percentile 438 24 578Mean 398 185 583Median 50 5 6525th Percentile 6 0 16Min 0 0 2

# of CME # of Non-CME TotalPrograms Programs


Professional Medical Education Excellence: Roles for Key Activities & Program Deployment


Pharma MedEd Staff Play Active Role with SocietiesLike the device segment, pharma participants reflected an active role in all activities related to professional societies. Similarly, Medical Education staff are most involved in grants for societies - more than 80 percent say they lead or are active in this activity.

Professional Societies: Please note the roles played by your Medical Education function in conducting these key activities regarding Professional Societies.

N=23 Pharmaceutical Segment

13%

17%

13% 35%

26%

39%

35%

26%

30% 57%4%

9%

9%

4%4%

9% 39%

13%

17%

Develop relations with professionalmedical societies

Serve as key liaison betweencompany and medical society senior

leadership

Sponsor presentations duringannual society meetings

Provide grants to medical societiesfor education

Total Active/ Lead Role

87%

65%

52%

52%

No Role Small Role Support Role Active Role Lead Role


North America and Europe dominate as the site of pharma Medical Education programs. However, emerging regions are sure to see an increase in programs given the growing sales in those markets. In 2010, emerging Asia Pacific accounted for 17 percent of GSK’s, 18 percent of Pfizer’s and 30 percent of Sanofi’s revenues. Emerging regions present a clear opportunity for education programs.

Pharma MedEd Programs U.S. – Europe Centric

Regional Program Deployment: Estimate the percentage of your total medical education programs in the last 12 months deployed across the following regions.

100%

25%

80.60%

0% 0%5%

20% 20%

100%

20%2.20% 0.20%1.40% 1.40%12.90% 1.20%

0%0%0%0% 0%North America(US / Canada)

Europe Asia-Pacific(Japan,

Australia, NewZealand)

Asia-Emerging(China, India,

Southeast Asia)

Latin America(Mexico,

Caribbean,Central &

South America)

Eastern Europe Rest of World

Max Mean Min

N=21



Pharma Relies on Technology for ProgramsOn-demand Medical Education programs have proven popular in both pharma and device sectors as they offer busy physicians the flexibility to choose their timing for education. On-demand and online Webcasts will continue to grow because of their convenience.

N=20

Using Technology for Program Deployment: Estimate the percent of various deployment approaches used for delivering your medical education programs in your last fiscal year.

Max 100% 100% 80% 25% 30% 90%75th Percentile 50% 32.5% 20% 10% 2.8% 21.3%Mean 32.3% 25.8% 14.7% 5.5% 4.5% 17.3%Median 22.5% 20% 10% 1% 0% 1%25th Percentile 10% 4% 2.3% 0% 0% 0%Min 0% 0% 0% 0% 0% 0%


Simulations, 4.5%

Site-hosted Videos /

Channels on YouTube,

5.5%

Other, 17.3%

Download-able

Podcasts, Case studies,

14.7%

Online Live webcasts,

25.8%

Online On-Demand

Programs, 32.3%

SimulationsOnline Live

webcasts

Online On-Demand

Programs

Downloadable Podcasts,

Case studies

Site-hosted Videos /

Channels on YouTube Other


Professional Medical Education Excellence: Budget Benchmarks & Allocation Trends


Education grants and programs make up most of the Medical Education budgets in pharma. With fewer FTEs allocated to education in pharma, the percentage of budget dedicated to staff is less. As some of large pharma has stepped away from education because of controversy and perception issues, FTEs and program support have gone down.

Pharma MedEd Budget Mostly for Grants & Programs

Investment Allocations: Please estimate the percentage of your annual budget that is invested in these key areas.

Max 100% 96% 60% 20% 35% 30%75th Percentile 85.3% 42.5% 18.8% 5% 4.3% 0%Mean 53.4% 23.9% 12.4% 4.2% 3.8% 2.3%Median 67.5% 1.5% 6.5% 1% 0% 0%25th Percentile 17.5% 0% 0% 0% 0% 0%Min 0% 0% 0% 0% 0% 0%

N=18


Infra-structure,

3.8%Fellowships,

4.2%

Training Centers,

2.3%

FTEs, 12.4%

Education Programs,

23.9%

Grants, 53.4%

Education Programs FTEsGrants

Training Centers

Infra- structureFellowships


Pharma Sees Web Programs Leading Tech Spending

Web-based education programs will dominate technology budgets over the next two years, pharma participants said.

Technology Spending: Looking forward over the next 24 months, what percentage of your technology budget do you foresee being spent on the following technologies?

Max 90% 50% 40% 50% 25% 100%75th Percentile 67.5% 23.8% 10% 10% 10% 7.8%Mean 46.5% 15.8% 8.1% 7.3% 7.3% 15.1%Median 50% 10% 2.5% 0.5% 3% 0%25th Percentile 32.5% 6.3% 0% 0% 0% 0%Min 0% 0% 0% 0% 0% 0%

N=18


Hand-held devices/

Smartphone, 7.3%

Site-hosted Videos/

Channels on YouTube,

7.3%

Other, 15.1%

Podcasts, 8.1%

Tablets/ Ipads, 15.8%

Web-based Programs,

46.5%

Web-based Programs

Tablets/ iPads

Site-hosted Videos/

Channels on YouTubePodcasts

Hand-held devices/

Smartphone Other


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Professional Medical Education Excellence Pharma Report Summary