COMPETITIVE INTELLIGENCE REPORT��PROJECT NOVARTIS
FINAL REPORT – JULY 13, 2023
Prepared by:�CALAMBA, MARY JOY N.�Asian Institute Management�Research Analyst
TABLE OF CONTENTS
PAGE NO.
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5-8
9-12
13-16
17-20
21-24
25-28
29-32
33-36
CARDIO SEGMENT
Sources
C1.1, Key Findings & Verbatims
C1.2, Key Findings & Verbatims
C1.3, Key Findings & Verbatims
C1.4, Key Findings & Verbatims
C3.1, Key Findings & Verbatims
C3.2, Key Findings & Verbatims
C3.3, Key Findings & Verbatims
P1, Key Findings & Verbatims
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SOURCES
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Medical Sales Representative 1 | 8 years | Sales / Cardiovascular |
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Medical Sales Representative 2 | 5 years | Sales / Cardiovascular |
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Medical Sales Representative 3 | 20 years | Sales |
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Medical Sales Representative 4 | 5+ years | Sales force |
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Medical Sales Representative 5 | 10 years | Sales force |
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Medical Sales Representative 6 | 5 years | Sales force |
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District Manager 1 | 8 years | Sales |
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District Manager 2 | 20 years | Sales |
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District Sales Manager | 20 years | Sales |
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Communication and Patients�Engagement Manager | 6 years | Marketing / Patient Engagement |
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Category Questions 1.1
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KEY FINDINGS
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The company does not have a large CME budget and rarely holds seminars. They do, however, maintain consistent and continual communication and involvement with doctors. Their salesforce is also separated into those who work in the field but only in particular locations while adhering to health protocols, and those who work online.
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VERBATIMS:
MEDICAL SALES REPRESENTATIVE 1
"Stress is very evident but day by day nakakapag adjust naman, before kasi may schedule day lang talaga kung kelan kami nasa field, but right now mixed na sya e."
MEDICAL SALES REPRESENTATIVE 2
"Fow now okay naman po, engagement with doctors stable and continous. There's no new models of engagement gaya pa din ng dati. CME we barely do it po sa company namin e. We have budget but limited lang din."
DISTRICT MANAGER
"We don't have much budget for CME to be honest, we barely conduct seminars or webinar for doctors. That time kasi we focused sa most easiest way of communication na magagamit na mga medical doctors. We do provide samples. During pandemic hati ang salesforce, some are working online then yung iba nag aarea sa mga specific places na di ganun kahigpit yung safety protocol. Sa awa naman ng Panginoon ngayon bumalik na sa normal lahat. Nakakapag area na mga nasa sales, at remain pa din lahat ng employees."
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COMMUNICATION AND PATIENTS ENGAGEMENT MANAGER
"Right now face to face engagement and virtual engagement ang nangyayari. We do provide samples for doctors, other than online platform wala namang ibang model of engagement. We don't usually do Conventional for doctors because our budget is limited. Naka focus kami sa online platform which can help MDS to continous learning."
DISTRICT SALES MANAGER
"During pandemic madaming lumabas na ideas e, and to continue to support Medical practitioner we used digital plaftorms. Communication with doctors. We also provide platform specific for doctors only where as they can have learning materials for free."
VERBATIMS:
MEDICAL SALES REPRESENTATIVE 3
"Most of the time we visit them sa hospital or clinic. We have schedule kasi when to visit lang e. Communication is thru viber. Kapag may mga needs si doc or request si doc. No new models of engagement as of the moment."
MEDICAL SALES REPRESENTATIVE 4
"Right now anytime nakakapag visit kami sa mga MD's na cover namin and nadadalhan namin sila ng mga needs nilang supplies. Sometimes naman we communicate thru viber, and we do virtual meetings. We barely conduct CME e as in yung nagpapadala international ng mga doctors para sa mga seminars we dont have much budget for that. Locally, sometimes we conduct seminars for doctors."lahat ng employees."
MEDICAL SALES REPRESENTATIVE 5
"Wala namang bago when it comes to model of engagement e. Hindi kami tulad ng ibang pharma na madalas magconduct ng CME for medical doctors cause we don’t have enough budget for that, We focus kasi sa innovation ng products. Face to face meetings, virtual meetings, phone calls any means of communication applicable sya."
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MEDICAL SALES REPRESENTATIVE 6
"We always provide support and seeked collaboration for healthcare professional. So to maintain and to sustain, we always communicate sa mga cover naming medical practitioners. In a week 3x a schedule to visit them personally sa mga hospitals or clinics. Then yung natitirang 2 days continous communication thru online naman yun."
DISTRICT MANAGER
"Effective yung digital communication during pandemic, pero di pa din maaalis na sometimes mas okay yung personally mong nadadalaw and nakakausap. We work closely with healthcare professionals to support their treatment of patients. As of the moment walang new model of engagement."
KEY FINDINGS:
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KEY FIGURES
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Net sales
Net sales were USD 12.8 billion (–1%, +5% cc) in the second quarter, driven by volume growth of 12 percentage points, price erosion of 4 percentage points and the negative impact from generic competition of 3 percentage points.
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Corporate income and expense
Net Corporate income and expense, which includes the cost of Group headquarter and coordination functions, amounted to an expense of USD 339 million, compared to an expense of USD 160 million in the second quarter of 2021, mainly driven by higher restructuring costs.
Operating income
Operating income was USD 2.2 billion (–36%, –30% cc), mainly due to lower product divestment gains (USD 0.4 billion), higher impairments (USD 0.4 billion) and higher restructuring costs (USD 0.3 billion) primarily related to the implementation of the new organizational model. Core operating income was USD 4.3 billion (–2%, +5% cc), mainly driven by higher sales, partly offset by higher R&D and M&S investments and lower gross margin. Core operating income margin was 33.4% of net sales, decreasing by 0.1 percentage points (+0.1 percentage points cc).
Income from associated companies
Income from associated companies was USD 0 million in the second quarter compared to USD 239 million in prior year and core income from associated companies was USD 0 million in the second quarter compared to USD 278 million in prior year. These decreases were due to the divestment of our investment in Roche that closed in the fourth quarter of 2021
Category Questions 1.2
How do they transition from traditional to current situation, operationally and organizationally?
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KEY FINDINGS
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Novartis is well adjusted to the pandemic, their operation and organization gradually adapted to the situation. However, they not denying the fact that their industry is affected since most of their transaction are hospitals.
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VERBATIMS:
MEDICAL SALES REPRESENTATIVE 1
"Sa ngayon po operationally and organizationally Novartis were doing fine, lahat naman naka adjust na sa mga changes and situations na naeencounter."
MEDICAL SALES REPRESENTATIVE 2
"During pandemic nagdeclare ng ECQ for everyone's safety. Very evident stressed that time kasi limited sa lahat e, affected masyado yung industry namin dahil mostly transaction namin ay sa mga hospitals, but luckily after almost one year nakabalik kami sa dati may mga limitations pa din pero lumuwag na."
DISTRICT MANAGER
"During pandemic job career thru online lahat interviews and everything, pati mga nasa sales thru online communications sa mga covered areas nila. Right now, back to normal hindi ganun kalaking adjustment since traditionally ganyan ang set up na talaga e."
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COMMUNICATION AND PATIENTS ENGAGEMENT MANAGER
"Operationally were doing fine stable and sales on going ang mga projects and events. Organizationally is also fine all staffs remain. Hindi nagkaroon ng Retrenchment during and after pandemic."
DISTRICT SALES MANAGER
"No retrenchment happened during pandemic, nasustain naman lahat. Adapted sa changes lahat. Hindi naman ganun kahirap yung naging transition kasi we have heads naman who guide us."
VERBATIMS:
MEDICAL SALES REPRESENTATIVE 3
"Challenged sya during pandemic, kasi nakasanayan face to face e. But since limited ang galaw sa labas nagbago yung nakasanayan most of the time we communicate thru online e. Presentations thru online din, but we survived. "
MEDICAL SALES REPRESENTATIVE 4
"Pinaka struggle yung presentations, like for example may bagong product na eendorse kay MD, traditionally before pandemic sa hospital kami nag pproduct presentation e, but during pandemic lahat online, online presentation, virtual meetings and etc."
MEDICAL SALES REPRESENTATIVE 5
" Right now adapted na lahat ng changes, set up during pandemic nagagamit na din paminsan minsan ngayong normal na. Operations were fine."
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MEDICAL SALES REPRESENTATIVE 6
"During pandemic naman kasi wala kang choice sa kung anong ipapatupad ng management e. So kung anong protocol sa taas yun din susundin namin. Sa ngayon back to normal naman na lahat."
DISTRICT MANAGER
"Business continuity is essential for pharmaceutical industry, As a result of pandemic mostly employees naka remote work e, dun pumasok yung work from home, teleworking set up. So from tradition on site set up naging work from home. Adapted naman lahat sa set up and right now tuloy tuloy na working on site."
Category Questions 1.3
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KEY FINDINGS
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Novartis has faced various challenges since the outbreak of the epidemic. However, with the help of other coworkers and wide idealism. To sustain and maintain its operations, the company diversifies into digital platforms and builds MEDHUB.
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VERBATIMS:
MEDICAL SALES REPRESENTATIVE 1
"Well, nung pumutok yung pandemic last 2020 dun talaga nagkaroon ng changes, changes in scenarios, changes sa mga schedules but not to the point na nagbawas ng salesforce. But right now, I can say that nakabangon na."
MEDICAL SALES REPRESENTATIVE 2
"During pandemic digital online platforms, more on phone calls to keep updated sa mga cover namin. Sa ngayon, okay na madalas na kami sa area pero may limitation pa din and di pa din araw araw."
DISTRICT MANAGER
"Year 2020 hanggang around July we focused on digital platforms, like platforms. We do lots of videos to promote awareness and etc."
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COMMUNICATION AND PATIENTS ENGAGEMENT MANAGER
"Novartis is a well known company for innovations. So, during pandemic lots has happened, we encoutered so many struggles and problems, luckily may mga kasamahan kaming innovative na nakatulong. Gumana yung digital platforms andun si NOVARTIS MEDHUB which is an online platform specific for doctors or physicians only, They can access it for free, they can also downloads materials which can help them to sustain their CME."
DISTRICT SALES MANAGER
"During the hardest time of pandemic, we make sure to strengthen the healthcare infrastruture inclduing funding of additional medical personnel, sourcing of medicines and medical equipment. We established digital platforms for COVID-19 related data collection, remote delivery of healthcare and effective dissemination of important public information. We have digital platform called NOVARTIS MEDHUB."
VERBATIMS:
MEDICAL SALES REPRESENTATIVE 3
"Theres no changed in salesforce during and after pandemic. When it comes to digital platforms we have technology platform we always seek out new drug targets and therapeutic interventions to treat diseases."
MEDICAL SALES REPRESENTATIVE 4
"Sa salesforce wala namang changes. Innovations yung NOVARTIS BIOME HUB. Meron ding for doctors only NOVATIS MEDHUB naman tawag dun."
MEDICAL SALES REPRESENTATIVE 5
"Wala naman gaanong changes sa saleforce, same pa din before magkaron ng pandemic yung set up. Yes we also have online platforms, nadeveloped sya nung nagkaron ng pandemic. Convenient way for physicians."
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MEDICAL SALES REPRESENTATIVE 6
"May online platform kami si NOVARTIS MEDHUB. This included specialized content that is easily accessible for physicians."
DISTRICT MANAGER
"We used digital technology to continue to support the needs and ofcourse to increase our sales. May marketing online platform. And meron ding platform for doctors, NOVARTIS MEDHUB. The purpose of this platform is to strengthen the pharma physicin relationship. During pandemic this is our way to keep in touch with healthcare communities to respond to the effect of pandemic."
Category Questions 1.4
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Direct engagement with patients (Digitam/CRM)
KEY FINDINGS
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The only option for the company to sustain high client involvement is through virtual services. Because face-to-face communication is limited, they engage with a group called Patient Organization to increase awareness and safety measures. However, beginning in 2021, they were allowed to resume normal operations.
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VERBATIMS:
MEDICAL SALES REPRESENTATIVE 1
"We don't usually talk to patients, if you're talking about Patient Organization yes we talked to them and we maintain a good enagement. We aslo maitain enagement to Clinic, hospitals and doctors. And lahat ng yan direct engagement, we talk to them personally and we visit them from time to time."
MEDICAL SALES REPRESENTATIVE 2
"Regarding customer relationship management during pandemic na lessen sya, kasi we do phone calls lang e. we are not allowed to visit them. So yah, online communication lahat."
DISTRICT MANAGER
"Virtual services dyan lang umiikot lahat during pandemic. Right now back to normal, actually pagpasok palang ng 2021 okay na e nakakapag areas na."
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COMMUNICATION AND PATIENTS ENGAGEMENT MANAGER
"Ofcourse during pandemic limited ang galaw sa labas. Hindi naman kami nakikipag usap sa mga patients directly, We talk to an organization which is the Patient organization to boost awareness and practice, we also talk to doctors, pharmacies/drugstores and other key accounts. More on online during pandemic e, pero ngayon back to normal na lahat."
DISTRICT SALES MANAGER
"We maintain a high level of engagement with the patient community during pandemic, to ensure the health and safety. We also have, I don’t know if familiar ka dito NOVARTIS PATIENT ADVOCACY. During pandemic we all know that healthcare professionals and health system resources are being diverted to address the pandemic, so patient organization stepped forward to provide crucial educational, psycho-social and health support. "
VERBATIMS:
MEDICAL SALES REPRESENTATIVE 3
"Yes we maintain a good and direct engagement po sa Patients Organization before, druing and after pandemic. CRM meron naman talaga neto from the start na nahired ako sa company.
MEDICAL SALES REPRESENTATIVE 4
Naintroduced yung CRM system during our orientation and training.
MEDICAL SALES REPRESENTATIVE 5
"Since well known si Novartis for innovations, CRM system does exist. Merong position sa company na tinatawag nilang "SALES FORCE EFFECTIVENESS ANALYST e.
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MEDICAL SALES REPRESENTATIVE 6
"May mga organizations kaming sinusupport included dun si NOVARTIS PATIENT HUB. Before pa magpandemic nakasupport na kami dito and during pandemic mas lalong lumakas yung support na nakukuha from us. Direct engagement yes we visit them, minsan sumama pa kami sa mga seminars nila sa mga constituents nila during pandemic. Regading sa CRM yes meron pong system CRM system ang Novartis."
DISTRICT MANAGER
"As a support for patients, we have this heart care program called The Pulse Care & Heart Care Program. Program po ito na nagsusupport ng help sa mga nag susuffer from heart problem. May mga partner kaming doctors dito and lahat ng patients nila pwedeng maka avail ng medicines assistance for up to 50% door step po ang deliver neto sa mga pasyente. Meron kaming CRM system to tract yung effectiveness ng mga nasa salesforce."
Category Questions 3.1
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Validate if there is really looming supply issue
KEY FINDINGS
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The company does not have any looming issues even during the pandemic. Since their supplies are highly essential, Novartis is perfectly fine and they have enough supplies.
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VERBATIMS:
MEDICAL SALES REPRESENTATIVE 1
"So far, wala naman po lahat ng supplies ay sapat naman."
MEDICAL SALES REPRESENTATIVE 2
"During pandemic walang naging problema sa supplies up until now na wala ng pandemic."
DISTRICT MANAGER
"Wala naman when it comes to supply. Perfectly fine during and after pandemic."
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COMMUNICATION AND PATIENTS ENGAGEMENT MANAGER
"Nung nagkaron ng pandemic wala namang naging problem sa supplies since essential naman."
DISTRICT SALES MANAGER
"Our products are all essentials, during pandemic smooth naman lahat, walang aberya at di nagkaron ng kakulangan sa mga supplies."
VERBATIMS:
MEDICAL SALES REPRESENTATIVE 3
"Wala namang naging problem sa supplies. Up until now wala namang nagiging problem sa supplies."
MEDICAL SALES REPRESENTATIVE 4
"Wala kaming nabalitaan na problema sa supplies."
MEDICAL SALES REPRESENTATIVE 5
"Wala namang naging problem sa supplies.".
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MEDICAL SALES REPRESENTATIVE 6
"Wala namang problem sa supplies."
DISTRICT MANAGER
"During pandemic okay naman ang dating ng supplies, di naman din nagkaron ng kakulangan or any problem."
Category Questions 3.2
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If there is, what is the impact to pricing – some segments?�Which one?
KEY FINDINGS
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Novartis' product pricing did not change because they have sufficient supplies and no problems with their supplier.
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VERBATIMS:
MEDICAL SALES REPRESENTATIVE 1
"No changes sa pricing, as is pa din."
MEDICAL SALES REPRESENTATIVE 2
"Since wala namang problem sa supplier, there's no change din in pricing."
DISTRICT MANAGER
"As is pricing, hindi nagtaas and hindi din bumaba."
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COMMUNICATION AND PATIENTS ENGAGEMENT MANAGER
"Since okay yung supplies, hindi din gumalaw ang pricing."
DISTRICT SALES MANAGER
"Prices remain, no changes."
VERBATIMS:
MEDICAL SALES REPRESENTATIVE 3
"During pandemic sa pagkakaalam ko yung may price increase mga drugstores and pharmacies, but to us wala namang changes sa pricing."
MEDICAL SALES REPRESENTATIVE 4
"Wala namang changes sa pricing."
MEDICAL SALES REPRESENTATIVE 5
"There no price increase."
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MEDICAL SALES REPRESENTATIVE 6
"Hindi naman kami nagbago ng pricing."
DISTRICT MANAGER
"Since there was no problem sa supplies, prices remain."
Category Questions 3.3
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Indicators to pricing changes: CIF Rates (COGS, Insurance, Freight Charges), etc.
KEY FINDINGS
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Only pharmacies or drugstores resulted in price adjustments during the epidemic. However, the prices of Novartis products remain unchanged.
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VERBATIMS:
MEDICAL SALES REPRESENTATIVE 1
"So far, there's no issue like that kasi our products are essentials naman, like yung cardiovascular products maintenance drugs sya e."
MEDICAL SALES REPRESENTATIVE 2
"Wala naman, usually kasi ang nagkakaroon ng ganyang changes mga drugstore, Cardiovascular products performing really good now a days."
DISTRICT MANAGER
"During pandemic sa mga drugstores nagkaron ng changes sa pricing saming mga direct supplier wala as is sya."
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COMMUNICATION AND PATIENTS ENGAGEMENT MANAGER
"Wala halos naging problems dito e, mostly ang nakaka encounter neto mga drugstores."
DISTRICT SALES MANAGER
"Kadalasan kasi ang nakaka encounter neto mga drugstores, samin wala e. Kasi pagdumaan na sa distributor namin which is si Zuellig ofcourse magbabago pricing nila kasi during pandemic nag increase yung rates ng delivery nila so pag binaba sa mga drugstores nagtataas na ng konti sa pricing and si drugstores ofcourse magpapatong din ng presyo."
VERBATIMS:
MEDICAL SALES REPRESENTATIVE 3
"Wala namang changes."
MEDICAL SALES REPRESENTATIVE 4
"Sa ngayon wala namang ding changes."
MEDICAL SALES REPRESENTATIVE 5
""Wala po kaming nababalitaan na chnages."
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MEDICAL SALES REPRESENTATIVE 6
"Usually kasi same lang din naman wala halos changes."
DISTRICT MANAGER
"Wala naman normal pa din."
Proving Questions
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P1. Productivity Tracking & Reporting
KEY FINDINGS
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Novartis maintained a mixed combination of face-to-face and online communication of their operation as of now. However, during the pandemic, the company strictly implemented submitting its updated reports through online meetings.
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VERBATIMS:
MEDICAL SALES REPRESENTATIVE 1
"Right now po kasi our set up is combination. Combination of online communications, like reporting online, online meetings and face to face meeting."
MEDICAL SALES REPRESENTATIVE 2
"Combination of online meetings, including zoom meetings, reporting on site and online."
DISTRICT MANAGER
"Zoom meeting lahat, dun yung updating ng mga reports and progress reporting, right now once a week merong face to face meeting kasama ang team to discuss and to know san dapat mag focus."
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COMMUNICATION AND PATIENTS ENGAGEMENT MANAGER
"Online lahat during pandemic e, online reporting, online meetings, righ now every now and then nagkakaron ng forum every team."
DISTRICT SALES MANAGER
"Back to normal naman na lahat ngayon. Weekly every managers nag coconduct ng forum sa mga team na handle nila, to discuss problems na naencounter, and progress report na din."
VERBATIMS:
MEDICAL SALES REPRESENTATIVE 3
"Sa trackingh ng productivity base on sales, every week naman nagkakaron ng meeting with our district manager."
MEDICAL SALES REPRESENTATIVE 4
"Based on sales ofcourse, reporting via meeting discussion."
MEDICAL SALES REPRESENTATIVE 5
"Mostly sa sales quota to nakabase. We have meetings weekly reporting yun and seminar na din. Tracking po may mga viber gc naman emails and etc."
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MEDICAL SALES REPRESENTATIVE 6
"Weekly may forum kasama district head namin, then discussion ng sales qouta and everything."
DISTRICT MANAGER
"Well sa productivity yung CRM system, natatract kasi dun how effective ang isang nasa sales force."
Thanks!
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