Press Release

New Commercial Models, Healthcare Reform, Cross-Organizational Talent Needs Pose Challenges for Pharma Operations Execs at TGas Advisors’ Leadership Summit

East Norriton, Penn., June 4, 2010 – The new, evolving commercial model for pharmaceutical companies poses one of the chief strategic challenges facing pharmaceutical leaders in Commercial Operations today, according to executives who gathered at the largest ever TGaS Advisors Leadership Summit, held May 25 in Chicago. The 55 Commercial Operations leaders, representing 20 of the nation’s top pharmaceutical companies, exchanged views on how to stay ahead of the curve in today’s fast-moving, constantly evolving pharmaceutical environment. The invitation-only event, the tenth in a series of high-level cross-customer twice-yearly gatherings, included the benchmarking and advisory services firm’s clients in Executive Commercial Operations, Marketing Operations, Marketing Sciences, Sales Operations and PDMA Compliance.

Calling the Summit a “mega-dose of outside-in thinking,” V. James Mercante, TGaS Advisors Partner, presented an overview of key topics, including new commercial models, the impact of healthcare reform and cross-organizational talent needs. A lead-off panel featuring Ken Coyle, Executive Director, Commercial Insight, AstraZeneca; Steve Banet, Vice President, Centers of Excellence, UCB, and Nick Marmontello, formerly Vice President, Healthcare Systems, for Wyeth, provided insights.

An on-the-spot poll showed that 72% of the participating companies have or expect to change their Field Force selling model. A major focus for Summit participants was how to manage the move operationally from the old blockbuster, mass market model to less homogeneous markets and more flexible, regional structures, while forging partnerships with Sales and Marketing.

“It is critical that Commercial Operations understand the evolution of the customer model as well as other companies’ strategic direction in order to partner proactively with Sales and Marketing leadership and help drive a new organization direction,” said Marmontello. “The Summit provided an opportunity to step back from the day-to-day and think strategically about these key issues.”

The uncertain impact of healthcare reform on pharma was also a hot topic. TGaS Advisors presented data from the 2010 Annual State of Commercial Operations Benchmark showing that at the outset of 2010, just over a third of companies had engaged resources to focus on formal planning for reform. TGaS Advisors benchmark data show that companies assess their overall preparedness to deal with this impact as a work in progress: 5.8 on a scale from 1 (lots of work to do) to 10 (very well prepared).

As for talent needs, cross-organizational experience will be critical to future success. As markets become more regional/local, the need for strategic and analytic capability will increase, the panel concluded.

“This is a period of unprecedented challenge and change in the pharmaceutical industry, with new commercial and sales models and new promotional methods and channels. These significant challenges and changes will require new ways of strategic thinking and operational execution for Commercial Ops organizations and leadership,” said Mercante.

One Executive Commercial Operations participant commented, “Of all the meetings I go to, I take home the most new ideas and ‘to-do’s’ from this one.”

Stephen E. Gerard, TGaS Advisors Founder and Partner, also announced three new TGaS Advisors solutions in addition to existing peer-set benchmark offerings: “Best of the Best,” a comparison to the companies deemed Best in Class overall or in particular areas; “Most Efficient,” comparison to those who get the job done with the lowest spend; and a hybrid of the two, helping Operations develop strategies to become best in some areas and most efficient in other, depending on the company’s overall priorities.

Break-out sessions explored specific areas of Commercial Operations in greater detail. A sampling of hot topics and results of on-the-spot surveys from sessions on Executive Commercial Operations, Marketing Operations, Marketing Sciences, Sales Operations and PDMA Compliance. See slides.

A standalone Managed Markets Summit is planned for June 10 in Philadelphia. Digital & Relationship Marketing will be part of the TGaS Advisors Fall Summit, scheduled for the East Coast in November.

About TGaS Advisors

Ranked in the top 50 among U.S. Business Products & Services companies by the Inc. 500, TGaS Advisors is the leading benchmarking and advisory services firm serving pharmaceutical Commercial Operations organizations. The TGaS Advisors roster includes the top 10 and the majority of the top 50 pharmaceutical companies with operations in the U.S. market. The firm provides the only comprehensive series of benchmarking solutions and advisory services for objectively improving the strategy and effectiveness of pharmaceutical operations organizations. TGaS Advisors is based in East Norriton, Pennsylvania.