ADKN, CO. is a student group in the Strategic Marketing class at Saint Joseph's University. By leveraging a new therapeutic category, Qsymia could ultimately become a market leader.

1. Qsymia® Strategic Marketing Plan
“Weighing in on Healthy Weight Management”
Pharmaceutical & Healthcare Marketing
Strategy and Planning I
Professor Jambulingam
December 11th, 2012
11:00AM
Presented by ADKN, CO. Consulting
Alexa Disco
Ken Norcross
Christian O’Brien
FOR STUDENT/INSTRUCTOR USE ONLY © 1

2. Value Proposition
For cardiometabolic patients seeking to own their healthy
weight management while achieving wellness goals, Qsymia®
is the only once daily pharmacotherapy that offers weight loss
of 10% or greater, providing clinically meaningful results in
cardiovascular and metabolic risk factors.
Adapted from: VIVUS Q3 Conference Call, Seeking Alpha
FOR STUDENT/INSTRUCTOR USE ONLY © 2

3. Agenda
Product Analysis
Internal Analysis: Product and
Company
External Analysis: Market, Customer,
Competitor
SWOT Analysis, Objectives, Critical
Success Factors
Strategies, Tactics and Budget
Proposition
FOR STUDENT/INSTRUCTOR USE ONLY © 3

4. Product Profile
• First once-daily pharmacotherapy with
the proven potential of allowing patients
to achieve and maintain ≥ 10% weight
loss
• Indicated for:
• use as an adjunct to reduce calorie
diet and exercise
• patients who are overweight (BMI
>27 kg/m²) or obese (BMI>30 kg/m²)
• with one or more weight related co- Multiple strengths with simple
morbidity(ies) once-daily dosing
• Common Side Effects
include: • Active ingredients include:
• Dizziness, insomnia, phentermine & topiramate (fixed dose)
constipation and dry • CNS Stimulant/Anorexiant
mouth
Source: Qsymia Website, Package Insert
FOR STUDENT/INSTRUCTOR USE ONLY © 4

5. REMS Program
• Inform prescribers and female patients who are pregnant or may become
pregnant of the potential risk to the unborn fetus
• Ensures that HCPs are offered training on Qsymia®
• VIVUS will have access to a physician database that will show prescription
volume based on prescriber
• Mail order prescriptions only
• Requires additional training of pharmacy staff on REMS procedures
Source: www.qsymiarems.com
FOR STUDENT/INSTRUCTOR USE ONLY © 5

6. Obesity Market Analysis
Total Size of Market:
Source: www.cdc.gov/obesity
• 78 million people (one-third
U.S. population)
• Obesity is directly related to
socio-economic status;
slightly higher incidence in
women (40.6 million) than
men (37.5 million)
Methods of Treatment:
• Diet (Weight Loss Market)
• Exercise (Weight Loss Market)
• Surgical Intervention (Weight Loss Market)
• OTC Pills (Weight Loss/Anti-Obesity Market)
• Prescription Medication (Anti-Obesity Market)
• Holistic Remedies (Weight Loss/Anti-Obesity Market)
FOR STUDENT/INSTRUCTOR USE ONLY © 6

7. Anti-Obesity Market
Dietary • Branded Long Term Anti-Obesity
Supplements Drugs included products belonged to
three categories:
OTC
1. Appetite Suppressants
Generic Short
2. Metabolism Accelerators
Term Drugs 3. Nutrient Blockers
Branded (Malabsorption)
Short-term
Drugs • Focus: Delivering value through
cosmetic (short-term) change
Branded • Limited Efficacy
Long Term
Anti- • Undesirable side effect profile (i.e.:
Obesity GI issues)
Drugs
• Cardiovascular and pulmonary
safety issues
FOR STUDENT/INSTRUCTOR USE ONLY © 7

8. Healthy Weight Management
Market
• Two new weight management drugs
approved during summer 2012: Belviq
(ARENA) & Qsymia (VIVUS)
• Focus: Delivering value by
improving weight-related co-
morbidities; chronic disease
management
• Improved Efficacy (weight loss
>5%)
• Improved Side Effect Profile
• Improvement in concomitant
weight related diseases
FOR STUDENT/INSTRUCTOR USE ONLY © 8

9. Product Performance Analysis
Qsymia Rx Sales Volume • Less than 5,000 patients prescribed
Qsymia since launch
Q3 2012 • Generates lots of interest among
6000 prescribers
• Sales force effective (25,000 targeted)
4000 MDs 28,000 details (1-2 details per MD
Rx Sales…
2000 since launch)
• 30% drop off rate in filling
0 prescriptions 1,000 patients
Sep-12 Oct-12 • Formulary status achieved in
November 2012 (Aetna)
• Price for 1 30-day supply is $160, avg.
co-pay is $62
• Strong PBM partnerships through REMS
program
• Currently in the trial phase as VIVUS
has achieved awareness goals through
PR an detailing (A-T-U)
Source: VIVUS Q3 Conference Call, Seeking Alpha
FOR STUDENT/INSTRUCTOR USE ONLY © 9

10. Company Analysis
• Qsymia only drug in disease category
• Qsymia is currently in clinical trials to address sleep apnea and
Diabetes
• VIVUS lacks diverse product offerings (only 2 products)
• Contract sales force for Qsymia
• Clear messaging of Qsymia to physicians
• Positive relationships with physicians in disease state
• Operating at a loss due to Qsymia commercialization expenses
• Strategic partnerships with contract suppliers to encourage steady
product of API
• Lacking comprehensive complementary service for Qsymia
• Weak company recognition/reputation
Source: VIVUS Website
FOR STUDENT/INSTRUCTOR USE ONLY © 10

11. Overall Internal Analysis
Strengths Weaknesses
• REMS program • 30% Patient Drop off rate
• AETNA formulary coverage due to price
achieved • Less than 5,000 patients
• Already in trial phase since prescribed Qsymia since
launching in September 2012 launch
• Strategic partnerships with • Operating at a loss due to
suppliers commercialization
• Clear messaging with • Qsymia is only drug in
Qsymia disease state
• Strong operations and • Lacking diverse product
infrastructure portfolio
FOR STUDENT/INSTRUCTOR USE ONLY © 11

12. Customer Analysis
Payer
- Outcomes oriented, rewards efficacy
- Progressive and seeks innovation
- Likely to provide formulary coverage based due to
trend in weight management
Prescriber
Patient
- Outcomes oriented physicians with
high influencing potential - Cardiometabolic patients seeking
healthy weight management
- Treat weight related cardiovascular
and metabolic co-morbidities - Chronic weight issues
- High anti obesity prescribers and high - Non-cosmetic orientated
co- morbid prescribers - Need resources, support and lifestyle
(hypertension, high cholesterol and modification in order to be successful
diabetes)
-Early adopters of innovative products
FOR STUDENT/INSTRUCTOR USE ONLY © 12

13. Competitor Analysis
Market Share as of 9/2012 Competitor Analysis
Anti-Obesity Risk/Benefit Comparison Profile
Alli
Direct Alli Xenical Belviq
Competitor:
Xenical Brand Name
Indication Obesity Obesity Healthy
Adipex
Management Management Weight
Management
Phentermine
compounds Safety Profile Good Good Good
Diethylpropion Efficacy High High Low
Profile
Dosing 60mg 120mg 10mg
• Major Threats include:
• Generic Competiton
• Overall sales in category declining
• OTC indirect competitors erode sales
FOR STUDENT/INSTRUCTOR USE ONLY © 13

14. Environmental Analysis
Threat of New Product Entry
- Strong anti-obesity pipelines in
pharmaceutical companies
Overall industry rating:
- More dual combination therapies LOW
RATING: MEDIUM
Degree of Competitive Rivalry
- Competes directly with newly approved
Threat of Substitution Belviq
- No substitute product in - Competes directly against Alli (largest
weight management market share)
category
RATING: LOW
RATING: LOW
Buyer Power
- Mail-order pharmacies allow
Supplier Power consumers to choose to fill the
script
- Few suppliers of API
- Price is fixed at $160 for 30-day
RATING: HIGH supply
-Cannot bargain low cost until
formulary coverage is gained
RATING: LOW
FOR STUDENT/INSTRUCTOR USE ONLY © 14

15. Environmental Analysis
Category Trend
Customer • Wellness oriented
Economic • Rising medical costs
associated with obesity
Government • Providing grants to support
prevention
Political • Changing subsidized meals
for obese children
Regulatory • US and EU taking anti-
obesity drugs off market for
safety reason
Technological • Increase in technology
leads to increasing sedentary
lifestyle
FOR STUDENT/INSTRUCTOR USE ONLY © 15

16. Overall External Analysis
Key Opportunities Key Threats
• Emphasis on outcomes • Increasing innovation leads
• Weight management, not to obsolescence
cosmetic • Competing messages
• Emphasis on addressing co- • Strong pipelines for anti-
morbidities obesity medications
• Overall message: wellness • Economies of Scale
• Prevention is rewarded • Rising costs of healthcare
• Healthcare Reform • EU and US heavily scrutinizing
encourages pharmaceutical anti-obesity products and with
intervention in guidelines drawing some from market
FOR STUDENT/INSTRUCTOR USE ONLY © 16

17. SWOT Analysis
Strengths Weaknesses
• Clear messaging of • Lacking diverse brand
Qsymia to physicians portfolio (high risk)
• REMS program • 30% drop off rate in
• Already in trial phase patients filling Rx
• Qsymia is only drug in
disease state
Opportunities Threats
• Emphasis on addressing • Generic competition
co-morbidities and declining sales
• Wellness orientation growth in anti obesity
• Encouragement of market
pharmaceutical • Antiquated perception
intervention in guidelines (“cosmetic”)
for treatment • Economies of Scale
FOR STUDENT/INSTRUCTOR USE ONLY © 17

18. Critical Success Factors
1. Improving Payer (Formulary) Coverage
2. Improving drop-off rate
3. Shift perception of anti-obesity drugs
4. Efficacy Profile
5. Support Programs
FOR STUDENT/INSTRUCTOR USE ONLY © 18

19. Strategic Objectives
Creating comprehensive Improving drop-off rate
Shift perception of Anti- support program that
from patients not filling their
obesity drugs encourages compliance and
patient success prescription for Qsymia
Qsymia is an adjunct to diet
Patients need support in order to Expanding Trial so that it will
and exercise and for reach weight loss goals become usage
maintaining a healthy weight
New 30 day trial pack of
“Be Well” Public Service
“Qsymia Full Circle” Qsymia and Rewards
Campaign
Program
Market Customer Environment
FOR STUDENT/INSTRUCTOR USE ONLY © 19

20. Strategic Initiative 1
“Be Well” Public Service Campaign
• Overwhelming perception that
pharmaceutical drugs in this disease are
“quick-fixes”, “miracle workers”, and for
cosmetic purposes only
• Trend is that consumers are becoming
more health conscious and wellness
concerned
• This will result in patients utilizing
pharmacotherapy as an adjunct to
maintaining healthy weight
FOR STUDENT/INSTRUCTOR USE ONLY © 20

21. Strategic Initiative 1
“Be Well” Objective
Increase awareness by 15% to those who
would be willing to try a weight loss pill by
2016.
 Those who want to use a pill: 15% of total
obesity population (4,105,500 people)
FOR STUDENT/INSTRUCTOR USE ONLY © 21

22. Strategic Initiative 1
“Be Well” Public Service Campaign
FOR STUDENT/INSTRUCTOR USE ONLY © 22

23. Strategic Initiative 1
Additional Tactics to Leverage Healthy
Weight Management Market definition
Digital Marketing
• Unbranded website roll-out
• Unbranded banner advertising
• Unbranded online video advertising
• Health site (WebMd) partnerships
Public Relations
• Publishing behavioral studies/market research
attitudes surveys of patients taking Qsymia for
healthy weight management
FOR STUDENT/INSTRUCTOR USE ONLY © 23

24. Strategic Initiative 2
“Qsymia Full Circle”
• The Q&Me® Program already offered by Qsymia lacks some
important features including:
• access on smart phones
• entertainment, interaction
• monitoring metrics and rewards
• social networking
• food recommendations
• Deploy a mobile application
“Qsymia Full Circle” at point of Q…Full Circle
prescription being written using iPhone app
ScanCode Technology located on
patient brochures
FOR STUDENT/INSTRUCTOR USE ONLY © 24

25. Strategic Initiative 2
1. Scan Barcode on back
“Qsymia Full Circle”
of patient literature
Q-nnect with your
Q-mmunity™
Qsymia Full
Circle
Hey gang! I’m food
shopping right
now. Any
suggestions on
which convenience
meals I should get?
Check the Lean
Cuisines that are
“Q-Sine” labeled!
I like the chicken
fettuccine!
FOR STUDENT/INSTRUCTOR USE ONLY © 25

26. Strategic Initiative 2
“Qsymia Full Circle”
Terrific! Looks
delicious! Thanks
again for your help!
No prob! Enjoy !
Alliance with Nestle’s Lean Cuisine
Product Line
FOR STUDENT/INSTRUCTOR USE ONLY © 26

27. Strategic Initiative 3
New Qsymia Trial Pack and Rewards
Program
• Drop off rate when filling prescriptions for Qsymia is
30%
• Price is too high for some patients
• Lack of formulary coverage does not enhance the
desirability of our pricing strategy
• Leveraging existing trial use encouraging switch
to usage
• Entice patients with chronic weight issues with co-
morbidities present
• Goal: Decrease drop-off rate by 5% between
patients getting script and not filling it, by end of
year 1
FOR STUDENT/INSTRUCTOR USE ONLY © 27

28. Strategic Initiative 3
New Qsymia Trial Pack and Rewards
Program
• Existing 14-day trial
program from Qsymia’s
website
• New 30 day trial back
will demonstrate greater
efficacy
• Patients will be
encouraged to continue
to stay on Qsymia after
the 30 days to continue
seeing positive results
FOR STUDENT/INSTRUCTOR USE ONLY © 28

29. Strategic Initiative 3
Additional Tactics for Improving
Compliance
• Qsymia Qoins® reward positive behavior when patients are
logged into their Full Circle mobile application or desktop online
username
• Frequency of updating physical activity log
• Posting/sharing healthy recipes
• Adhering to weight loss goals by completing biometric
screenings
• Rewards can add up within a range and redeemed for these
following prizes:
Coupons at
Discounted Gym
Qsymia Coupon Wegman’s
Memberships
Supermarkets
FOR STUDENT/INSTRUCTOR USE ONLY © 29

30. Metrics
Strategy #1:
• Converting users from cosmetic OTC diet pill use to healthy
weight management Qsymia use
• Track Amount of Traffic to unbranded websites and how
many people registered to receive information about Qsymia
• Track impressions on unbranded advertisements for the “Be
Well” and healthy weight management campaigns
Strategy #2:
• Track number of downloads of Full Circle application from
App Store and Google Play
• Track frequency of users using application
• Track effectiveness of POS barcode scanning
Strategy #3:
• Track number of prescriptions through PBMs and REMS
program
FOR STUDENT/INSTRUCTOR USE ONLY © 30

31. Budget
Assumptions ongoing
Ongoing Marketing cost estimates Year 1 Ongoing as % of year 1
Advertising
Push $1,000,000 $1,000,000 100
Pull $12,000,000 $6,000,000 50
Total advertising $13,000,000 $7,000,000
Promotion
Developmental support program $200,000 $0 0
L&L $600,000 $300,000 50
Production support $2,000,000 $2,000,000 100
Training and promo $500,000 $500,000 100
Direct mail $200,000 $200,000 100
Total Promotions $3,500,000 $3,000,000
PR
Medical education $3,500,000 $1,750,000 50
Press release $800,000 $800,000 100
Total PR $4,300,000 $2,550,000
Market Research $600,000 $600,000 100
SF allocation $1,491,000 $1,491,000 100
Product management $255,000 $255,000 100
Total Budget $23,146,000 $14,896,000
FOR STUDENT/INSTRUCTOR USE ONLY © 31

32. Forecasting
Year 1 Year 2 Year 3 Year 4 Year 5
Method 1
Number of Americans with BMI between
25 and 30 78,200,000 78,200,000 78,200,000 78,200,000 78,200,000
x 35% actively trying to lose weight 27,370,000 27,370,000 27,370,000 27,370,000 27,370,000
x 15% who are comfortable using diet pill 4,105,500 4,105,500 4,105,500 4,105,500 4,105,500
10% who might purchase Metabical in
Year 1
adding 5% each subsequent year 410,550 615,825 821,100 1,026,375 1,231,650
plus 60% buy a second package 246,330 369,495 492,660 615,825 738,990
plus 20% of these buy a third package 49,266 73,899 98,532 123,165 147,798
Sales 706,146 1,059,219 1,412,292 1,765,365 2,118,438
FOR STUDENT/INSTRUCTOR USE ONLY © 32

33. FOR STUDENT/INSTRUCTOR USE ONLY © 33