Mirena marketing strategy Åbo Akademi October 2004

Mirena marketing strategy Åbo Akademi, October , 2004 Kei Heikkilä-Stenvik Corporate Development page October 2003 KHS

The product concept A new class in contraception combining the favourable effects of OCs and copper IUDs • efficacy comparable to female sterilisation • acts locally • good compliance • long term method • reversible • positively benefits women’s health Corporate Development page October 2003 KHS

Background Development work started in late 70’s together with the Population Council Professor Tapani Luukkainen and his team engaged in the work First publication in 1977 by Dr. Nilsson Strong Leiras involvement started in early 80’s, with Phase III studies First regulatory approval in Finland in 1990 First launch outside Scandinavia in the U. K in 1995 Currently approx. 3 Mio users in some 80 countries Corporate Development page October 2003 KHS

Commercialisation - trial and error I First launch in Finland in 1990 l l l Profiled as an IUD with extra benefits for women with bleeding disorders, pricing accordingly Launching in Scandinavia with broader positioning through own subsidiary offering international distribution to big players with poor success II Second attempt - Creation of a JV with Pharmacia l l Broader positioning strong usage of Nordic clinical data and opinion leaders challenge to get buy-in from the Pharmacia organisation 1996 Huhtamäki decides to sell Leiras, JV is dissolved Corporate Development page October 2003 KHS

Commercialisation contd. III In 1996 Schering AG acquires Leiras l l New opportunity for Mirena Good fit in the company contraceptive portfolio Global marketing, sales and distribution network in place Local organisations know the fertility control market Challenge: To sell in the product concept internally!!! l l l Re-launch in UK, Belgium and Switzerland, launches throughout Europe 1997 -2000 FDA approval in 2000 Sales in 2002 ex. Schering 137 Mio EUR, among top-10 corporate products, double digit growth expected 2003 -2004 Corporate Development page October 2003 KHS

Contraception for the 21 st Century “ The most significant advance in reversible contraception since the invention of the pill” “MIRENA rewrites the book about intrauterine devices” John Guillebaud Professor of Family Planning and Reproductive Health, Medical Director, Margaret Pyke Centre, London, UK Corporate Development page October 2003 KHS

The contraceptive options - competitive products Short term: Condoms, diaphragm, spermicidies, natural methods Medium term: pills (OC’s), injections, patches, rings Long term: IUD’s, implants, sterilisation, Mirena Corporate Development page October 2003 KHS

Our market: the fertile women Contraceptive use by age-groups 100% OTHER METHODS 80 60 NO METHOD 40 20 PILL USERS 0 16 Corporate Development page October 2003 KHS 20 25 30 35 40 44

Female life stages Corporate Development page October 2003 KHS

SWOT analysis - contraception Corporate Development page October 2003 KHS

Mission To create a new segment in the contraceptive market to meet the needs of adult women, who currently have a limited number of suitable contraceptive options available Corporate Development page October 2003 KHS

Market analysis and market research Quantitative data: Demographics, contraceptive use etc. Qualitative research for profiling professional audience Qualitative research for profiling potential end-users Pricing studies - Willingness to pay Corporate Development page October 2003 KHS

Positioning Method of choice primarily for women who have been pregnant Corporate Development page October 2003 KHS

Why for those who have been pregnant? • Experience of no menstruation • More likely to accept a long-term method -->Want to space their family -->Family may be complete, but sterilisation not wished • Dissatisfied with other methods of contraception • Easier to insert - wider cervical canal Corporate Development page October 2003 KHS

Marketing strategy Provider push - Consumer pull First l Providers: Targeted pre-launch and launch activities to key audiences, launch-meetings, Opinion leader endorsement, strong sales force engagement Then l End-users, the women: Strong PR efforts planned at country level supported by international product management, Happy-users stories, opinion leader endorsement Corporate Development page October 2003 KHS

MIRENA® age segmentation in 2000 Corporate Development page October 2003 KHS

Current use of MIRENA® in Europe Corporate Development page October 2003 KHS

MIRENA® - SUCCESS FACTORS • Creation of an IUS category • Strong position in contraception, the main indication. Future success of the new indications will depend on the establishment in fertility control Life-cycle management strategy Corporate Development page October 2003 KHS

MIRENA® - SUCCESS FACTORS • Insertion and counselling workshops • Clinical studies, insertion & counselling trial • Local opinion leader support • Service level: insertion training & replacement system • Reimbursement - good or bad Corporate Development page October 2003 KHS

MIRENA® - SUCCESS FACTORS • Pan-European branding concept & campaign Brand name/logo & symbol Colour environment Visual identity Core statements Corporate Development page October 2003 KHS

MIRENA® - SUCCESS FACTORS Communications strategy & product info & counselling Provider (physicians, nurses, midwives) PUSH • Health benefits of MIRENA® Consumer PULL lay communications/PR activities • More than a contraceptive method Make women talk about MIRENA® ! Corporate Development page October 2003 KHS

MIRENA® - SUCCESS FACTORS • Full understanding of the MIRENA® product concept and positioning throughout the organisation (management, marketing, medical and sales functions) MIRENA® is more than a contraceptive method - It is a life style for a modern woman Corporate Development page October 2003 KHS

MIRENA® - THREATS • Dilution of fertility control message. Menorrhagia (excessive menstrual bleeding) sells on its own - no promotion is needed • Endometrium protection(HRT-Hormone replacement therapy) indication launched too early. Strong position in contraception to be gained first ! • Training of the new inserter and insertion technique not properly organised • Competitive product Implanon(contraceptive implant) positioned against MIRENA® Corporate Development page October 2003 KHS

Ideal Method of Choice MIRENA® is an ideal method of contraception for many women, because it offers women • highly effective • easy-to-use contraception with the additional benefit of making periods lighter, shorter and less painful, thus making the woman feel better Not only for women with heavy bleeding - ALL WOMEN ! Corporate Development page October 2003 KHS

MIRENA® LCM-strategy • Continue emphasis in the Fertility Control segment • Explore new opportunities by tailored communication to subsegments: a) Contraception after delivery Short medium term b) Reversible long-acting contraception instead of sterilisation c) Repeated use of MIRENA® --> 2 nd segment usage d) Contraceptive options in late reproductive years • Prepare introduction into the HRT market Medium to long Long term or transition from carefree contraception period-free HRT • Therapeutical options Corporate Development page “surf into menopause” October 2003 KHS

MIRENA® as a long-acting contraceptive option after delivery • In EU alone, there are some 4. 04 million deliveries annually • The time after delivery is often the time when contraceptive options are revisited, and this provides a window of opportunity for MIRENA®. • The woman’s expectations of a contraceptive method at this point of time are: - High efficacy --> an immediate new pregnancy may be hazardous for health of mother or child. - Ease of use --> nothing to remember during hectic life of new mother - No interference with lactation - Reversibility --> so that when the time for a wanted new pregnancy comes nothing interferes with fertility The product profile of MIRENA® fits well to these expectations Corporate Development page October 2003 KHS

MIRENA® instead of sterilisation when family is completed • In EU alone some 312. 000 sterilisations are performed annually • In the U. S this figure is 700. 000 • Why do women opt for sterilisation? Women want an effective contraceptive method that they do not need to think about Yet - Sterilisation is not always 100% - Things in life may change, regrets may occur - Sterilisation has no positive impact on menstrual bleeding MIRENA® could offer a highly effective, fully reversible easy-to-use method with the added benefit of decreased menstrual bleeding and pain. Corporate Development page October 2003 KHS

MIRENA® in late reproductive years • In Europe alone there are some 54 -55 million women in the age group 40 -50 years • Contraception is recommended until 6 -12 months after the menopause • Yet 14%, 23% and 40% of abortions performed in UK, DE and FR respectively are in the age group 35 -50 What are the contraceptive need of women in this age group? Method needs to be highly effective Method preferably to have low systemic hormonal effect Method should ideally have a decreasing impact on menstruation Method should ideally not have an impact on sexual spontaneity MIRENA meets these needs and in addition offers an opportunity to start estrogen replacement when menopausal symptoms occur. Corporate Development page October 2003 KHS

Key communication objectives • MIRENA® is a first line choice for women looking for long-acting contraceptive protection • MIRENA® is an ideal method when contraception after childbirth is considered • MIRENA® is the optimal contraceptive choice for women in late reproductive years --> MIRENA® offers freedom for today’s women “Freedom from fear of getting pregnant” “Freedom from fear of forgetting” “Freedom to change your mind” “Freedom from the nuisance of menstruation” FREEDOM TO DO WHAT YOU WANT AND WHEN YOU WANT Corporate Development page October 2003 KHS

Key learning ÄIdentifying the right market - a need to be fulfilled ÄKnowing your customer - what added value will you offer them ÄCreate your strategy and then stick to it ÄPricing - What is the market willing to pay ÄInternal “sell-in” and organisational commitment ÄThe credibility of the concept - Do not oversell! ÄBe consistent in your communication; build a brand use the right tools to strengthen it ÄLife-cycle management strategy - be proactive ÄBelieve in what you do and never get tired of repeating your message!!! Corporate Development page October 2003 KHS