Survey Shows Leading Pharmaceutical Manufacturers Are Improving Product Launches and Forecast Accuracy by Using Untapped Sources of Daily Sales Data

Edge Dynamics' Survey Reveals Significant Benefits of Having and Using More Timely Channel Data

REDWOOD CITY, Calif.—June 5, 2007 – Edge Dynamics, the leading provider of dynamic demand management solutions for the life sciences industry, today released the results of an industry-wide survey in which respondents said the ability to sense changes in demand sooner would deliver significant benefits: 56 percent believe this capability would improve new product launches and 76 percent see an opportunity for better forecast accuracy. Approximately three quarters of the 42 survey respondents, representing 30 companies, reported that it takes their organizations at least a week to sense changes in demand. In marketing-related functions, only 24 percent were even aware that real-time channel data exists that can significantly improve demand-sensing and response. At a time when many pharmaceutical manufacturers are searching for ways to increase margins, the study results suggest that manufacturers may be overlooking important data sources for which they already pay.

Recent research by the respected analyst firm, AMR Research, revealed that life sciences executives believe the ability to respond to changes in demand will become the most important criteria for product supply success by 2012 and that the second largest performance gap in product supply is seen as the ability to forecast demand.

"Life sciences companies have enjoyed decades of strong growth because of a range of effective new treatments for a variety of diseases," reported Hussain Mooraj, research director, life sciences, in a recent AMR Research article. "However, the potential for growth and profitability is now uncertain as the industry faces an unprecedented number of challenges and uncertainties. These hurdles include pricing pressures, the cost of new products, a heightened regulatory environment, and continual business integration as a result of a spate of mergers and acquisitions (M&As)." As a consequence, life sciences companies need to find new ways to achieve greater growth and profitability. According to the industry survey by Edge Dynamics, one data source that can significantly improve demand-sensing and response remains largely unknown and untapped. As a result of distribution agreements with wholesalers, most pharmaceutical manufacturers have purchased access to detailed channel sales, inventory and activity data. This data is typically delivered by an electronic standard known as EDI on a daily or weekly basis – up to six weeks faster than alternative data sources.

The survey revealed that 100 percent of trade and commercial operations staff surveyed were familiar with this data compared with only 24 percent of sales, marketing and market research staff. Not surprisingly, use of the data was correlated with knowledge of the data.

In-depth interviews with leading pharmaceutical manufacturers revealed compelling examples of how manufacturers can realize significant business value today by fully leveraging this channel data across their organizations. The stated benefits include:

• More successful product launches
• Improved product availability – fewer stock-outs and expedites, fewer returns
• Faster read on uplift resulting from marketing campaigns
• Insight into sales ranking and trending of downstream customers
• Detection of potential diversion

"The survey results support what we're hearing from customers. The sales and marketing professionals we've met have been excited to learn that a largely untapped source of valuable and timely sales data exists elsewhere in their organizations. The ideas for how they could use the new data to improve launches and campaigns just start flowing," said Richard Prest, chief strategy officer, Edge Dynamics. "The key to extracting value from this data is a combination of education and data enrichment. Our new MarketEdge solution provides both the necessary enrichment and the flexibility to provide next-day market feedback in formats people want to use."

Edge Dynamics also formally announced Edge Dynamics Release 4, the newest release of its flagship Dynamic Demand Management Suite. This suite now includes MarketEdge, a significant new addition to the Edge solution that will provide a comprehensive range of functionality specifically designed for brand management, marketing, market research and sales professionals within life sciences companies. For more information about this industry-leading solution: http://www.edgedynamics.com/News/Press_Releases/News_PressReleases_070530Release4.asp

June 7th Webinar Will Detail Survey Results and Best Practices
Edge Dynamics is sponsoring a free Webinar on June 7th at 2pm EDT detailing the results of its recent survey on awareness and adoption of channel data within pharmaceutical manufacturers. The Webinar will also provide case studies and examples of the benefits being enjoyed by a number of leading manufacturers who are leveraging channel data for use by sales, marketing and supply chain teams. To register for free: https://www.cbinet.com/Events/register.cfm?confCode=EC07052&field=register

About Edge Dynamics
Edge Dynamics is the pioneer and leading provider of dynamic demand management solutions to the life sciences industry. Used daily by five of the top ten U.S. pharmaceutical manufacturers, Edge Dynamics on-premise and on-demand solutions enable manufacturers to sense channel demand, find business exceptions that matter and optimize operational performance in real time. Commercial Operations, Sales, Marketing, Supply Chain and Finance gain unprecedented insights into product launches, marketing campaign effectiveness, forecast accuracy, channel sales and inventory and contract and regulatory compliance. For more information, visit www.edgedynamics.com, send email to

Contact:
Scott Bauman
Greenough Communications
(617)275-6518

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