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International Congress and Convention Association
The Pharmaceutical Industry:
What’s Happening?
Carol Krugman, CMP, CMM
Krugman Group International, Inc.
St. Petersburg, Florida, USA
44th ICCA Congress & Exhibition,
Tuesday 8 November 2005
iccaworld.com
Session Overview
Pharmaceutical Meetings
Background/overview
What has changed/is changing?
What does this mean to all of us?
What do we do now?
Types of Pharma Meetings
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Open symposia at congresses
Closed symposia at congresses
Free/standing symposia
Investigators meetings (pre-/post approval)
Advisory Boards
Key Opinion Leaders (KOLs)meetings
Local meetings (dinner)
Internal company meetings
– Marketing, medical, sales, etc.
There Will Always Be
Pharma Meetings
• Only way to insure correct adherence
to study protocols – compliance,
credibility of data
• Only legal way to communicate
product information to MDs prior to
regulatory approval
• Major source of continuing
professional education for health
care personnel
Pharma Alphabet Soup
• CME (Continuing Medical Education)
• ACCME (www.accme.org)
Accreditation Council for Continuing
Medical Education
• PhRMA Code
(www.PhRMA.org/publications)
• SOX (Sarbanes-Oxley law)
A Tale of Two Pharmas
1985 …
…2005
1985
New Product
Pre-Launch
1985 Costs Covered
Weekend Meeting
• Honorarium/per diem
• Airfare for attendee + spouse/guest
• Ground transfers
• 2 night hotel (5 star)
• All meals for attendee and guest
• Golf/other recreation
• Spouse/guest program
• Gift
2005
2005 Costs Covered
Weekend Meeting
• Honorarium/per diem
• Airfare for attendee + spouse/guest
• Ground transfers
• 2 night hotel (5 star)
• All meals for attendee and guest
• Golf/other recreation
• Spouse/guest program
• Gift
What Has Caused
The Change?
• Regulatory environment
• Economy
Causes of Change
• Government regulation
– SOX (Sarbanes-Oxley)
– PhRMA Code, ACCME guidelines
• Expense reduction
– Procurement and strategic sourcing
initiatives throughout corporation
CIC Economic Impact Study
(September 2005)
Corporate meetings/events
US$ 40.3 billion (33%)
Consolidation
• Already in effect with regard to
corporate travel – airlines, hotels
• Volume buying, preferred suppliers,
master contracts
• Old relationships may or may not
be helpful
• New relationships in flux as
definition of “client” shifts
Who is your client today?
Who will be your client tomorrow?
(Will you have a client tomorrow?)
Corporate Planner
• Salaried employee
• May or may not have title of
“meeting planner”
• May or may not spend 100% of
time planning meetings
• May or may not outsource to
independent planners or others
Independent Planner
• PCO equivalent
• Self-employed individual or owner
of own company
• Client base includes corporate,
association, other independents
• Plan meetings 100% of the time
Travel Manager
• Salaried employee or in-house
mega-agency implant
• Travel agent background
• Survived consolidation
• Increasing responsibility for
planning meetings (NBTA White Paper
on Strategic Meetings Management)
Procurement Executive
• Salaried employee
• Usually in finance department
• Minimal/no experience or
exposure to meetings
• Objective – save $$
• Consolidate and centralize costs
• Meetings are a commodity
“Third Party”
• Research hotel space/rate
availability
• Present options/recommendations
• Negotiate contract
• Receive commission on space/rates
• No further involvement in program
Who Is Your Client?
New Entrants/
New Philosophy
• Preferred supplier lists
• Minimum requirements to qualify
“Bigger is better”
• Volume pricing
• Lower margins
• “Take it or leave it”
What This Means
• Business as usual is no longer
business as usual
• The old rules and relationships
no longer apply
• US and European multinationals in
the vanguard – the rest of the world
will follow
What Do We Do?
• Understand and embrace the change
– it will not go away!
• Use established relationships to
assist in forming new ones
• Be prepared to change your business
model, services and pricing
• Join/stay current with MPI initiatives
and education (www.mpiweb.org)
GCCOE white papers
What Do We Do?
BE PROACTIVE!
• Become “PhRMA PhRIENDLY”
• Know the rules
• Get creative – go after the new
market instead of bemoaning the
loss of the old one
• Explore strategic alliances
Questions to Consider
• What does this have to do with
associations?
• What does this have to do with
destinations?
• What does this have to do with me?
Remember Darwin?
“It is not the strongest species
that survive, nor necessarily the
most intelligent, but rather the
ones that are
most responsive to change.”
International Congress and Convention Association
Thank you!
44th ICCA Congress & Exhibition,
Tuesday 8 November 2005
iccaworld.com