Marketers LearnFrom the Pentagon

Triage for Pharmas

Tried and True: Hard Copy

New in Town: Generic Drugs

Expansions: Back from Kuwait

Crosstown Moves

Name Changes

Down Sizing

Leaving Town

Corrections or additions?

This article by Barbara Fox was prepared for the March 24, 2004

edition of U.S. 1 Newspaper. Minor changes were made March 31. All

rights reserved.

Pharma Marketers Go High Tech

Online pharmaceutical marketing is working, says Peter Nalen of

Compass Healthcare Communications on Chambers Street. “Our clients’

most coveted targets are the people who are coming online,” he says.

“They are not sitting back, as when they watch television, but they

are sitting forward as at the keyboard. They have raised their hand

and are saying they want information.”

Last October, with Kristin Marvin Keller and Jack Bilson III, Nalen

founded Compass Healthcare Communications to do brand and E-marketing

for pharmaceutical and biopharma companies. The name is meant to imply

providing direction in an area where people are seeking guidance. For

his future clients, the Internet may be a relatively unfamiliar

medium.

“Thanks to the hard work of Simstar and the other pioneers in our

industry, the major brands look to the Internet as one of their

marketing tools,” says Nalen. Nalen had worked at Simstar at 202

Carnegie Center for two years and says he left because of “differing

thoughts on the direction of the company and differing views on

leadership.”

Nalen feels confident about his building-a-business capability. “I

have helped startups, including medical device firms and advertising

agencies,” he says, “and I have seen them grow rapidly and shrink just

as rapidly. I feel confident that I know what works and what doesn’t

work.”

Nalen grew up near Minneapolis, where his father was a marketing

executive, and graduated in 1983 from Middlebury College with a double

major in American literature and marine biology. The latter involved a

term at Marine Biological Laboratories in Woods Hole, Massachusetts,

and a trip on a 120-foot schooner to the Bahamas. He worked for

General Mills while earning his marketing MBA from Kellogg in 1987,

then did consumer product brand management at Proctor & Gamble in

Cincinnati; Johnson & Johnson, working on Purpose skin care and Clean

& Clear; and at the Sawtooth Group in Woodbridge.

Nalen took a hiatus from corporate world and spent two years in

Vermont, where he ran marketing for a snowboard company, before moving

back to Princeton to work at Simstar. His wife, an actress who was a

cohost on a cable television show, is starting a premium chocolate

company, and they have three schoolage children.

His network of providers started with his Kingston hockey team, where

Matthew Henderson of Princeton Real Estate Group is his teammate and

helped him rent space in the Henderson-owned building at 34 Chambers.

Through another player he located his attorney, Thomas Gombar, in

Pennington. Bookkeepers Plus provided internal accounting software,

and Steve Wills at Golomb Wills does the accounting. William Harley

Builders helped with the buildout, though the Compass staff did some

of it themselves, and O’Hearn Work helped hang white board like

wallpaper. Their staff photo is by Pryde Brown.

Nalen wants to work for the brands that are the second, third, or

fourth in a particular area, the ones that may not enjoy the same

sales force or marketing support that the leading brands receive.

(Nalen says Simstar is targeting different brands from Compass, but,

when asked for a comment, Andrew Friedman, Simstar’s chief financial

officer, said that whether Compass is competition to Simstar remains

to be seen.)

“We are looking for the brands that are second or third in the

category, not the blockbusters,” says Nalen. With less money for heavy

television and print advertising, “they need to do more with less.”

Brand managers with significant agency-run programs enjoy additional

marketing support from those agencies. “We fill the strategy void.”

He says he can provide the “prescription purchase dynamic,” the

marketing ploy that prods someone with a prescription in hand to go

out and actually spend the money for that prescription. Here are his

prescriptions for the drug makers:

Make sure the brand’s site is a communications vehicle, not an

advertising ploy. “It is a medium to be used for information. People

will get the information from wherever they are comfortable.”

Develop content for other websites such as WebMD or Yahoo Health.

Target those who have just gotten a prescription. “Up to a third of

the patients don’t fill prescriptions for some of the chronic

conditions, such as asthma or high cholesterol. A lot of folks will go

online to verify the prescription, to see ‘what is this drug I am

supposed to take, and what are the potential side effects.’”

Put your URL on everything. “You’d be surprised how many companies

give out samples and don’t put the URL on them. We tell our clients,

you have driven the 95 yards, and you can see the end zone. But you

didn’t provide the website to assuage any fears.”

Use a special URL on sample boxes. This page could begin “You have a

sample in your hand…”

Use search engine marketing to get your brand higher. “We can buy key

words but we also are careful to develop the sites so they naturally

come up as high as they can on Google-type searches,” he says.

“Unfortunately the Canadian pharmacies are very good at search engine

marketing, and sometimes the whole first page of a search is listings

from the pharmacies. Google may be looking at ways to ensure the

legitimacy of properties that end up on their search sites.”

Know what the brand manager is being measured against. “You can’t

develop online tactics just because they are cool or sexy. You have to

begin with the end in mind, as Stephen Covey says. We build into our

plan ways to be sure it can be measured, both online and offline.”

Keep it simple. “Our industry may have done itself a disservice by

overcomplicating what we do. Marketing at the end of the day is

straightforward, and the Internet is just another marketing vehicle.

Teach the behavior of taking prescription. Americans are taught as

children to take vitamins, but most adults have very poor pill taking

habits. “When you take a pill you remind yourself that you are sick,”

he says, “which is not positive.”

“We believe physicians are busy,” says Nalen, “and we want to do

anything we can do to help them manage better and quicker, such as

providing a self service center online to order samples or download

information. Adoption of the Internet by doctors is a little slower

than for the consumers, who got used to the Internet at work and are

using it at home.” In contrast, physicians are learning to get

comfortable with the Internet at home and are importing it to work.

“But if you make it easy for doctors, they will come.”

The Internet’s unparalleled capacity to offer information is what

drove Nalen into starting this business. “My older brother had a bout

with cancer in the early ‘90s, and if we had had more information

sooner, my brother might still be with us,” says Nalen.

In the 1990s, before his brother died, the two became very close. “We

were competitive early on, but we figured out late in life that we

were the only ones who did things we like to do in the extremes that

we like to do them — flyfishing for 14 hours straight, eight hours of

non-stop skiing, and hockey. We ended up being great friends.”

The name of the company derives from this friendship, partly because

it reflects his brother’s values, “true north, integrity, and

honesty,” and partly because they went on a camping trip without a

compass and got lost. “We would just use a map and ‘jump ridges’ but

we got turned around and couldn’t find the trail. We followed a stream

to a lake, and then we knew where we were. From that time on, I always

carried a compass, the same one, like a good luck charm.”

“What works sounds corny,” says Nalen, “but if you are honest with

employees and clients, you are going to win at the end of the day.”

Compass Healthcare Communications, 34 Chambers Street, Princeton

08542. Peter Nalen, president/CEO. 609-688-8440; fax, 609-688-8399.

Home page: www.compasshc.com

Top Of Page
Marketers LearnFrom the Pentagon

Yet another product has moved from military use to civilian life —

analytical modeling. The war-game simulation methods that were used to

train Norman Schwarzkopf can now be employed by pharmaceutical

companies.

“Several of the pharmaceutical companies I have talked to are

interested in the active wargaming approach to market analysis,” says

F. Thomas Balzer, CEO of Optio Research at Forrestal Village. “I think

it’s because the market has become so much more competitive.”

Fewer chemical entities are on the market, and the markets are

saturated with sales reps, says Balzer. Yet today’s technology can

increase chances for success. “With a wargaming approach, you can

figure out in a safe environment what promotional strategies to

emphasize, and what can be reduced, without risking the value of the

portfolio.”

“It is much more robust,” says Balzer. “It allows you to evaluate

scenarios in which you are changing lots of the parameters at the same

time.”

Optio Research, a tenant at Forrestal Village since last fall, offers

both syndicated and client-specific market and brand share forecasts

for major diseases. The firm has initial seed funding from MediPhase

Ventures in Boston, which also funded Mount Laurel-based Impact RX,

another company started by Optio’s co-founder, Gerry Gallivan. The

company employs four people now, expects to mark the dozen mark by the

end of the year, and is just about ready to release its first product.

Optio Research’s quarterly syndicated reports, which anyone can buy,

cover a rolling 24-month period. They are based on Optio’s own

research and on information available in the public domain.

Optio’s “value added” is the gathering of the data and the analysis

that develops projections. Client-specific forecasts can incorporate

proprietary information from the client, such as a new product launch

or the reconfiguring of the sales force.

The pharmaceutical services area is the second career for CEO Balzer,

but he is not new to the business of forecasting. Balzer had been a

forecasting expert for the military, and he has also done analytical

modeling for such pharmaceutical companies as Quintiles and ZS

Associates.

As a field artillery officer in the U.S. Army from 1966 to 1986,

Balzer commanded a unit in Vietnam. He spent four years at the U.S.

Army Command and General Staff College at Fort Leavenworth, Kansas,

using war game simulations to train active army and reserve officers,

including Schwarzkopf.

His final military assignment was to be the lead analyst for

conventional war gaming at the Pentagon for the Joint Chiefs of Staff.

His conventional force combat simulation models were used to assess

global contingency scenarios.

A Chicago native, Balzer is the son of an HVAC mechanical engineer,

and his academic credentials include a BA from Park College in Kansas,

a master’s degree from the University of Southern California, and an

MBA from Central Michigan University. He worked on the MBA, a weekend

program, while he was stationed at Ft. Leavenworth, Kansas. He also

has a PhD in operations research from the University of New South

Wales in Australia.

After he left the army, he worked for pharmaceutical companies in 20

countries, logged in 100,000 airline miles a month, and was outside

the United States nearly 200 days a year. His wife, Judy, is from

Australia, and they have two grown children.

The co-founder of Optio Research and board chairman is Peter Ernster,

the retired senior vice president of business management for Merck’s

U.S. pharmaceutical business, where he guided Merck’s first use of

systems dynamics-based forecasting and planning used in a successful

product launch.

Co-founder Gallivan worked for Merck in Canada, and when he took over

Merck’s U.S. sales force, he paid attention to the reasoning processes

that determine the real reaction of doctors to promotional activity.

To develop this idea he founded ImpactRx, a Mt. Laurel-based company

that aims for longitudinal perspective by relating promotion efforts

to subsequent prescriptions written by doctors.

Pharmaceutical companies traditionally do statistics-based analysis of

historical trends and project them into the future, says Balzer.

Simulation studies, in contrast, also account for what is driving

change. A simulation study lets clients predict what would happen if

they invested heavily in a particular sales strategy — adding

“detailer” staff for sales to physicians, spending money on

advertising for direct to consumer sales, or adjusting prices for

managed care contracts.

“Through our website forecasting we really are into business

simulation, deciding how to employ the resources across the right time

and the right place in the product portfolio to maximize the return on

investments,” says Balzer. “Our simulation models offer an opportunity

to evaluate a number of scenarios and pick the best resource

allocation strategy to maximize the return on a client’s investment.”

“The other unique feature of our planning system is that we actively

model the competitive response. Traditionally you would look at the

statistical variation, all things being equal, and not consider what a

competitor might do. But our system models the competitive response to

whatever systems you are employing.”

“Our fundamental methodology, system dynamics, was invented in 1960 at

MIT and has been used successfully in a number of very complex

environmental assessments,” says Balzer. A calculus based technology,

it allows for all the variables changing at the same time. The FAA

used system dynamics to model the air traffic system in the United

States.

Balzer prefers to compare his models to environmental/global warming

models, where the effects of decisions are not closely related in

time. “You have to include how long the strategy takes to play out in

the marketplace.”

Optio Research Inc., 116 Village Boulevard, Suite 300, Princeton

08540. F. Thomas Balzer, CEO. 609-720-9600; fax, 609-720-9330. Home

page: www.optioresearch.com

Top Of Page
Triage for Pharmas

On a battlefield, medics do triage — they decide which cases the

doctors should see first, and which can wait. In medical marketing,

Triage HealthCom has a similar goal, to prioritize data and

information to create a clinical and health economic platform for

product lifecycle marketing.

Says John P. Proach, a principal at Triage Healthcom LLC: “In our

business, we don’t market products, pills, or devices, or injections.

We market information.” This information is crucial to the success of

value-based market access strategies, medical marketing, and the

commercial success of products or franchises. “The more information

you have to bring you closer to your objective, the better it is.”

“We want to be the client’s partner in the identification and

commercial development of life science products or technologies and

assist them in bringing them to market successfully,” says Proach. His

company assesses market opportunities, clears reimbursement and

regulatory hurdles, plans and designs, collects value based-data, and

communicates the results. Proach and his partner, Kathryn Cromer,

moved from home offices to a space in the Weidel Real Estate office on

Lawrenceville’s Main Street last year. They have seven part-time

staffers at this office, plus a half-dozen employee-investors (Phds,

MDs, and PharmDs) working from remote locations. Currently they are

working in the antiviral area — anti-infectives and vaccines.

Proach grew up in Wilkes Barre, Pennsylvania, where is father worked

for U.S. Steel. He graduated from New York University in 1975, worked

for Ted Bates advertising in Manhattan, Warner Lambert, and was

executive vice president of a medical book publishing company,

Churchill Communications NA, a division of Financial Times of London,

now owned by Elsevier. He started Triage in 2000.

“We help pharmaceutical, biotech, medical device, and medical

diagnosis companies globally to identify how they need to get market

access to be successful,” says Proach. “Ninety-eight percent of our

business is with major companies, not generic houses.” Clients include

Novartis and Hoffman LaRoche, and 65 percent of the total revenue is

international. “The balance are companies that create products, some

very small, with a technology that they want to license.”

Triage researchers use information available in the public domain,

information supplied by the client, and information obtained from

focus groups, round tables, or commercial market research. They work

on any stage of a product, whether it is in the pipeline, in clinical

trials, or when it is just a twinkle in somebody’s eye. “If a company

wants to be a player in a particular franchise, a therapeutic area,

such as infectious disease, we help them identify potential products,

what they need to do to get market access, what data they will need to

be successful,” says Proach.

Triage HealthCom LLC, 2681 Main Street, Lawrenceville 08648. John P.

Proach, principal. 609-219-0611; fax, 609-219-0613. Home page:

www.triagehc.com

Top Of Page
Tried and True: Hard Copy

One pharmaceutical service firm, a medical publisher, is determinedly

staying off the web. Multimedia Healthcare Freedom LLC sends its

magazines to those who care for older patients, and it is not moving

its focus to the Internet. “It seems that the tried and true is still

working for us,” says CEO Robert Preston, who publishes two magazines,

the Annals of Long Term Care and Clinical Geriatrics.

Preston recently expanded his 23-person business from two buildings at

Princeton Meadows to take 4365 Route 1 South. Buzz Woodworth of Keller

Dodds helped Preston find the space.

The professional advertising market has been on a six year downward

slide, says Preston, because the pipeline of new drugs was clogged.

Without new drugs to tout, pharmaceuticals had less need to educate

doctors, and they began spending more money on direct to consumer

advertising.

So last year was a tough year for healthcare publishing, and one of

Preston’s magazines, Home Health Care, has been folded into the Annals

of Long Term Care. But the early signs for this year show a recovery.

“We are teaming up with Alzheimer’s Foundation of America to launch a

publication for Alzheimer’s caregivers. To the AFA’s knowledge, no

such publication exists,” says Preston.

Preston majored in business at Montclair State, Class of 1977, and

started out selling ad space for the Paterson News. He has been in

healthcare publishing for more than two decades. Before taking this

job he had been group publisher in Montvale for Medical Economics

Thomson Healthcare in Montvale.

This company used to be part of what is now Intellisphere, Michael

Hennessy’s company at Princeton Meadows Office Center. It was partly

owned by Freedom LLC, a billion dollar, privately held company.

Freedom’s flagship publication is the Orange County Register. When

Freedom exercised an option to buy the company, the Intellisphere

division, which focuses on the Internet, was spun off as a separate

company.

“We have no foot in the Internet space at all. Our website is a ‘value

added’ benefit for our readers,” says Preston. “We do dabble in CD

ROMs, meetings, and conferences but our core business is in print.”

Multimedia Healthcare/Freedom LLC, 4365 Route 1 South, Suite 250,

Monmouth Junction 08852. Robert W. Preston, CEO. 609-452-9200. Home

page: www.mmhc.com

Top Of Page
New in Town: Generic Drugs

Aurobindo Pharma Ltd., 666 Plainsboro Road, Suite 210, Plainsboro

08536. Prasada Reddy Kambham, vice president. 609-716-1190; fax,

609-716-1142. Home page: www.aurobindo.com

This U.S. office of a generic drug manufacturer was founded in 1988

and is based in Hyderabad. One of its products is making its way

through the FDA approval process. Vice president Prasada Reddy Kambham

went to SV University in South India, Class of 1988, and has a

master’s from City University of New York.

Top Of Page
Expansions: Back from Kuwait

A.L. Robinson Pharmaceutical Services Inc., 116 Village Boulevard,

Suite 200, Box 568, Monmouth Junction 08552-0568. Arthur Robinson,

president. 609-734-4350; fax, 609-734-4349. Home page:

www.arpharmasvc.com

Arthur Robinson has come back from the Kuwaiti desert to resume

building his pharmaceutical service business. Fortunately, he says,

the period from December, 2002, to June, 2003, when his Naval reserve

unit was called to active duty, was a slow period. So while he was

handling ammunition, his brother was able to keep an eye on his

business.

Raised by a single mother and motivated, he says, by teachers and

librarians, Robinson has a chemical engineering degree from North

Carolina State.

Robinson does pharmaceutical and chemical consulting — manufacturing,

environmental, health & safety, audits, employee training, and

distribution/courier services. He is also a notary public, and his

company is certified as a minority small business enterprise.

Top Of Page
Crosstown Moves

NOP World/Market Measures Cozint (UNEWY), 1060 State Road, Princeton

08540. Barry Zimmerman, CEO. 609-683-6333; fax, 609-683-6211. Home

page: www.mmc-nopworld.com

The Bear Tavern Road office of Market Measure Cozint has moved to

State Road, joining another Market Measures office. Both are sectors

of NOP World, and Barry Zimmerman is the new CEO here. Now called NOP

World Health, this sector has about 40 employees here and 200 overall.

Cindy Blodgett, who was executive vice president of Market Measure

Cozint, is now executive vice president of NOP World Health, which

does research for the pharmaceutical and healthcare industry. Donna

Famoso also moved a Market Measures Cozint office. Hers was at Palmer

Square and is now in the State Road building, and she is now vice

president of a research team. The consumer sector of NOP was the

original tenant of the building. Until it was bought by Roper ASW, it

was known as Response Analysis.

Top Of Page
Name Changes

Isis Research U.S./Synovate Healthcare, 2 Wall Street, Princeton

08540. Linda Levy, president. 609-688-0474; fax, 609-688-0435. Home

page: www.isisresearch.com

Isis Research has merged with Synovate Healthcare. It has 15 workers

in 3,700 square feet at Research Park. Based in London, and with more

than 200 employee worldwide, 15 in this office, it does pharmaceutical

marketing research.

Top Of Page
Down Sizing

Data Vision Research, 114 West Franklin Avenue, K19-3, Pennington

08534. Ronald Vangi, president. 609-818-1944; fax, 702-656-4112. Home

page: www.dvrinc.com

The database management firm moved from 2,300 square feet at Princeton

Service Center to a smaller office at the Straube Center. The phone is

new.

Vangi majored in theoretical mathematics at Montclair State, Class of

1976, and opened the Princeton office of a Manhattan-based statistical

firm. He founded his own company in 1982 to specialize in database

management and marketing services such as survey tabulation. He opened

the Las Vegas office when he began getting high-tech clients from

California.

For the marketing and survey research industries DVR does database

management, maintenance, and design, plus marketing services including

survey tabulation, data entry, coding, and scanning.

DVR also writes commercial and custom software applications for

database design. WinPrint, for instance, is a freeware product that

can be downloaded from Data Vision’s website. It is designed to print

wide text files such as Tabulation files in landscape mode. But Vanni

has closed the sister firm, Detail Technologies, that sold the

software. “Our plan is to have all the software back out by the end of

the year.”

“The scope of the business changed, and most of us are working from

home,” says Vangi in an interview from Las Vegas. “You’ve got to go

with the flow, and the hot area seemed to be the web surveys.” Las

Vegas does the database services and the New Jersey office does web

services.

Top Of Page
Leaving Town

Clinical Connexion, 6 Terry Drive, Newtown 18940. Susan Cohen,

president. 215-944-9400; fax, 215-944-9444. Home page:

www.clinicalconnexion.com

Susan Cohen expanded her 35-person pharmaceutical communications firm

with a move from 3150 Brunswick Pike to Newtown, Pennsylvania. Founded

in 1999, the company is medical education agency does physician

advocacy and strategic marketing communications.

Pfizer, 973-541-5900; fax, 973-299-4588. Home page: www.pfizer.com

Forty people left the 7 Roszel Road office of Pharmacia when that

company consolidated with Pfizer last year. Many of them are now

working in Parsippany. “We are in the midst of an expansion program in

the Morris area,” says Paul Fitzhenry, spokesperson, “and we are

employing a lot of swing space, as we prepare to renovate the Morris

campus.”


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