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Going Commercial in Biotech: Human Resource Considerations

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Presentation on theme: "Going Commercial in Biotech: Human Resource Considerations"— Presentation transcript:

1 Going Commercial in Biotech: Human Resource Considerations
Brad Hartman, Vertex Pharmaceuticals 1

2 Introduction: Brad Hartman
Page  2

3 Going Commercial in Biotech: Overview
Foundation: Commercial Functions Overview Building a Commercial Team: Recruiting Best Practices Partnering with the Business: Opportunities to Maximize HR Impact HR Policies/Procedures: Commercial Areas of Focus Developing and Sustaining your Commercial Organization  Culture - how you create cross-functional connective tissue between your deeply rooted R+D departments with this new and very different commercial team, and why doing so is important 2.        Hiring – some of the business challenges in building a team from scratch, recruiting best practices, creative sourcing techniques, and what to expect from sales candidates 3.        HR Policies/Operating Procedures - the implications of having employees in different states, what are important employment and legal considerations,  and what will be required from a training/compliance standpoint 4.        Partnering with the Business - what will be on the minds of your management team, what challenges your commercial leaders will most likely face, and how HR can play a key role in enhancing the effectiveness of leaders 5.        Developing and Sustaining a Commercial Team Page  3

4 Commercial Organization: Functional Overview
Marketing Managed Markets Commercial Ops Medical Affairs Other Functions Responsible for overall strategy and direction of the product‘s brand Physician and Patient components Create materials for the field sales reps to use with customers Strong project management, vendor management, strategic thinking and leadership skills required Heavy interactions with Regulatory, Medical, and Legal deparments for approval of brand materials 4

5 Commercial Organization: Functional Overview
Managed Markets Marketing Commercial Ops Medical Affairs Other Functions Responsible for ensuring profitable access of product to patients Call on Managed Care Customers to promote advantages of product in accordance with approved FDA label (Health Economics and Product Benefits) Customers include: Federal/State (Medicare/Medicaid/DoD/VA) and Commercial Payers (National/Regional) Pricing and Contracting: Group that will implement and manage contracts with all payers and ensure government of best price for the product Managed Markets (MM) Marketing: Completely different messaging from other Marketing division. Knowledge of Field MM and MM customers essential. 5

6 Commercial Organization: Functional Overview
Marketing Commercial Ops Managed Markets Medical Affairs Other Functions Responsible for supporting in-house and field commercial functions with operations and analytics Can include*: Commercial Analytics/Field Effectiveness, Field Meeting/Event Planning, Fleet Services and Marketing Operations (if necessary). Responsible for the design and management of the Incentive Compensation Plan (*key area for partnership with HR) Plans and manages national and regional events for the Commercial organization (National Sales Meeting, Speaker Events, Conference Coordination) * Sales Training can report here as well * Market Research may report into Marketing 6

7 Commercial Organization: Functional Overview
Marketing Commercial Ops Medical Affairs Managed Markets Other Functions New Areas for Medical Affairs: Medical Information: Responsible for responding to customer and patient inquiries about the product (routine and complex) Field Medical – Medical Science Liaisons and Managed Care Liaisons Heavy interaction and healthy tension with Commercial Leadership team 7

8 Going Commercial: New Functions Overview
Marketing Managed Markets Commercial Ops Medical Affairs Other Functions Legal: Compliance, Employment Law Finance/Accounting: Revenue recognition, Financial Planning Investor Relations/Corporate Communications: New and different pressure from the Street HR: Employee Relations, Business Partner Needs IT: Commercial CRM, Corporate/Product/Patient Websites 8

9 Commercial Org Chart: High Level Overview (30-60 people)
VP/SVP, Commercial Executive Assistant Senior Director, Marketing Assoc. Director, Patient Marketing Marketing Coordinator Senior Director, Managed Markets Director, Managed Markets Operations Director, Trade and Distribution Assoc. Director, Payer Marketing Field MM Team VP, Sales Area Sales Director, East Area Sales Director, West Director, Sales Training Senior Director, Commercial Ops Director, Commercial Analytics Senior Manager, Market Research Manager, Field Meetings and Event Planning Commercial Ops + Event Coordinator Director, Program Management Page  9

10 Commercial Org Chart: High Level Overview (150-250 people)
SVP, Commercial Executive Assistant VP, Marketing Director, Patient Marketing Director, Professional/KOL Marketing Director, Patient Services VP, Managed Markets Director, Payer Marketing Senior Director, Health Economics Senior Director, Pricing and Contracting MM Field Leaders Director, Trade and Distribution VP, Sales Area Sales Director, East Area Sales Director, West Director, Sales Training VP, Commercial Ops Director, Field Effectiveness Director, Field Services Director, Marketing Operations VP, Business Information Director, Market Research Director, Competitive Intelligence Director, Program Management Associate Director, Program Management Page  10

11 Overview of Field Functional Areas
Field Managed Markets Field Medical Sales Different Areas of Field Managed Markets Regional Account Managers: Responsible for calling on Regional Payers (ie BC/BS of MA) and negotiating profitable access for the product post-approval. National Account Managers: Responsible for working with large, nation wide payers (ie Aetna, Cigna, Wellpoint) and negotiating profitable access for the product post-approval. Specialty Pharmacy Account Managers: Responsible for calling on Specialty Pharmacy customers (ie CVS Caremark), negotiating profitable access, and securing appropriate patient services to support the product. Trade and Distribution*: Responsible for calling on Wholesalers and Retail Pharmacies and negotiating profitable distribution channels for the product post-approval. *could be internal function of Managed Markets team depending on product channel needs 11 11

12 Overview of Field Functional Areas
Field Managed Markets Field Medical Sales Field Medical Affairs: Roles and Responsibilities Medical Science Liaisons: These individuals are scientific ambassadors for Vertex to Healthcare Providers (HCP’s) to provide detailed scientific information on our product and the disease state, respond to Medical Information and off-label requests, and serve as a conduit for investigator initiated research studies Managed Care Liaisons: These individuals are scientific ambassadors for Vertex to Managed Care organizations (Regional, National, and Specialty Pharmacy) to provide detailed scientific information on our product and the disease state, respond to Medical Information and off-label requests. 12 12

13 Overview of Field Functional Areas
Field Managed Markets Field Medical Sales Field Sales: Roles & Responsibilities Sales Reps: Responsible for calling on Healthcare Providers (HCP’s) in assigned territory to promote the product within the approved FDA label using key messages and materials from Marketing. Sales Management: Leadership/Management of 8-10 reps with responsibilities for a particular region of the country. Other Potential Field Sales Functions: Treatment Educators: Nurse Practitioners or Physician Assistants responsible for educating mid-levels and groups of patients on what to expect with the new treatment, how to use the product (injection training), and side effect management. Field Reimbursement Specialists: Most often seen with expensive biologic treatments in a buy & bill environment. Responsible for calling on Office Managers, Nurses/Care Coordinators and/or Pharmacy Directors to ensure the treatment is properly coded, billed and reimbursed within an office or hospital setting. 13 13

14 Building out a Commercial Team: Recruiting Best Practices
Interview Process Design: Behavior Event Interview (BEI) Model for Field Sales Defining Your Candidate Profile & Sourcing Techniques Recruiting Operations and Offer Process Recommendations

15 IInterview Process Design: BEI Selection Method
Easy to see and develop Necessary for top performance but not sufficient Skill Knowledge Social Role Harder to see and develop Characteristics that lead to longer term success Self Image Traits Motive

16 What is a Competency? Demonstrated characteristics of an individual that have repetitive capability and predict the likelihood of successful performance in a given job, role, organization, or culture. Page  16

17 IInterview Process Design: BEI Selection Method
10+ Years Pharma GI Sales Experience, Multiple Presidents Clubs 10+ Years Pharma GI Sales Experience, Multiple Presidents Clubs Skill Knowledge Expert Social Role Helping Patients I help doctors treat patients more effectively I am the best Self Image Confidence Resilience Trait Curiosity Empathy Personal Achievement Motive Being a Resource For Customers

18 Overview - Field Force Competencies
Fearless Pursuit of Excellence – Business Acumen Business Acumen is the ability to combine analytic skill with judgment to create business plans with competitive advantage to inform current and future decision-making. This is about understanding the business, connecting the dots, being proactive and providing strategic value. Dimension: Degree of Proactivity in Planning for the Future 18

19 Sales Force Selection Process Overview
Phone Interview with HR and/or Hiring Manager 1st Round Interview (Territory based): Face to face with Hiring Manager and HR only 2nd Round Interviews (Regionally based): At least 3 Finalists per territory go through: Territory Business Analysis Presentation – 20 minutes Behavioral Event Interview (Panel) hours Hiring Manager Meeting – 30 minutes VP of Sales/Commercial Meeting – minutes Page  19

20 Defining Your Target Candidate Profile
Amgen Pfizer/Wyeth Abbott J&J (Centocor) UCB $$$$$$$ KOL and Employee Referrals Are THE KEY! Specialty Pharma Reps Hospital/Account Reps Buy and Bill Crohn’s, IBD TNF- α biologic exp What are similar products? Similar customer call points? Relationship driven market? Related disease states? Biogen Genzyme Genentech Gilead EMD Serono CSL Cephalon GI Specialty Sales Exp Biologics Experience Hospital/Account Reps Specialty Pharma Reps Page  20

21 Sourcing Techniques for Commercial
Linkedin Sourcing Tricks: Keyword1 Company1 -inurl:jobId intitle:linkedin ["Linked in Subsidiary" city] (i.e. Biotech, Boston) Will generate lists of employees from target companies in target locations Many ATS Systems will allow you to port LinkedIn information directly into your system Using of company, etc you can then proactively hunt down top reps from other firms Candidates will often have a full list of Presidents Club award winners in their brag books – another great source for top tier candidates! Page  21

22 Recruiting Operations and Offer Process Recommendations
HUGE opportunity to impact nation-wide talent pool’s view of Human Resources and corporate employment brand Automated scheduling notes for interviews and regret letters to applicants or phone screen no’s from ATS system. Hiring manager should call all first & second round no’s. Regional based interviews will minimize need for candidate flights and reduce overall costs. Expect to reimburse for gas and tolls Standardize % base raise for sales force with flexibility only for those below the salary range Will need to offer sign-ons to cover quarterly bonus loss or significant stock vesting. Page  22

23 Partnering with the Business:
Opportunities to Maximize HR Impact

24 Key Opportunities for Human Resources in the Commercialization Process
Organizational Design and Planning Incentive Compensation Launch Planning & Coordination On-boarding Sales Training Field Employee Communication People Programs Page  24

25 Corporate Policies and Procedures:
Commercial Areas of Focus

26 Corporate Policies and Procedures: Commercial
Compliance, Compliance, Compliance!! Car Allowance/Fleet Policy AND T&E Policy Updates Harassment Policy/Code of Conduct Updates AND Training On-boarding and Off-boarding Procedures Performance Improvement Framework California State Employment Laws Earned Wage Laws Incentive Compensation Policy Recent Sales Force Overtime Case Law Page  26

27 Image Layouts – Polaroids
Developing and Sustaining Your Commercial Organization 27 27

28 Developing and Sustaining Your Commercial Organization
Talent Development Program People Reviews Career Paths Mentorship Programs Rotational Assignments Leadership & Management Development Page  28

29 APPENDIX Page  29 29

30 Creating Connective Tissue Through On-boarding
Human Resources Strategy illustration Past Future Research and Development Commercialization On-boarding Program Building Connections Get Research Involved! Reps love to spend time with your scientists and this will help break down sales stigmas. Take new hires into the labs and show them what’s going on in R+D under the hood! Cross-functional Training Have participants from across the organization and new hires participate in a cross-functional all-day training to help create connective tissue across functional areas Executive Team Participation

31 People Review Potential Performance Building Strong Leading
(Use this as a framework to think through where you see direct reports based on your assessment of their current performance level (see definitions in appendix) & potential) Building Strong Leading High Promotable 2 or more levels over time Potential Promotable 1 level over time Grow in Place Low Low High = Key Talent Performance = Potential Concern (Consider Results & Values)

32 How can we utilize people programs that live out these values
Innovation is Our Lifeblood “We” Wins Fearless Pursuit of Excellence How can we utilize people programs that live out these values and deliver substantial value for our business?

33 What is a “Field Ride Along” and Why should we do this?
Simply defined: In-house employees, therapeutic/disease state experts, and senior leadership spending a day in the field (“riding along”) with our CREW team members and visiting with customers. Purpose: To create powerful employee experiences, build cross- functional connective tissue within the organization, and to differentiate Vertex in the eyes of customers. Key Objectives: To help customers better understand who Vertex is and what our culture is all about Continue to deliver on the “One Company, One Culture” theme with our employees and our customers Drive cross-functional learning between in-house and field employees through immersion in real world experiences

34 Three Phases of the Field Ride Along Program
Phase I: “The Pilot”: internal employees (non-research personnel) travel with field employees to meet customers Phase II: Phase I Executive Team/HCV Experts: Connect Senior Leadership across the organization and Vertex HCV scientific experts with top customers through a strategic framework Phase II Vertex Field Ride Along Program Phase III Phase III: “One Company, One Culture”: Field Ambassadors paired with each field employee spend one day in the field meeting with customers and learning about each other.

35 Field Podcast: Summary
Simply-Identified: The “Field Podcast” is a radio-show styled interview with different key stakeholders in Commercial, Research and Development, and other areas throughout the company. Program was designed off the existing “ET Coffee Session” concept where executives share information about themselves and their thoughts on the business with employees in a live setting. Purpose: To provide a sense of connection between the field and corporate personnel in an intimate, informal, and entertaining format while also being informative and educational Key-Objectives: Providing key commercial and corporate updates that directly impact the field employees Allowing Field employees a chance to submit questions to senior leaders and hear candid responses Humanizing the Group Leaders by making them more relatable and less intimidating while maintaining respectability Entertaining the listeners in a low-key, candid, and funny setting without mandatory time requirements away from the field.

36 Field Podcasts: Concept Outline
15-20 min Podcast with key stakeholders Radio-style Interview with 3 segments (General Outline) Intro/Get To Know Introduction Quick professional background Some personal background Business Topic Discussion Interviewee’s reflections, opinions and insights on their business arena Q&A from field employees Overall goal is a fun, upbeat, entertaining, and interactive experience that provides useful business information and personalizes leaders from across the company to the field Continues “One Company, One Culture” theme by introducing the field to leaders from across the company

37 Advantages For Listeners:
Podcast is pre-recorded and posted on Navigator for streaming: No mandatory attendance – no time commitment Will not take away from time spent in the Field Opportunity to get own questions answered from a Group Leader Opportunity to learn about a Group Leader with whom the listener may not regularly interact For Interviewees: Short Interview Minimum time taken away from key stakeholders to participate Opportunity to hear from the Field and learn first hand what information is valuable to them

38 Compliance, Compliance, Compliance: Why is it Important?

39 Two Major Areas of Compliance Concern
Pre-approval promotion of prescription products Food, Drug and Cosmetic Act False Claims Act Providing kickbacks to HCPs to use or prescribe our products Federal Anti-kickback Statute State Laws restricting payments to HCPs requiring reports of spending per HCP Physician Payment Sunshine Act

40 Underlying Purpose of these Rules
Information on safety and efficacy available before product approval may be incomplete Practitioners can develop potentially harmful misconceptions about the product Can create unrealistic expectations and inappropriate demand by physicians and patients

41 Other Compliance Considerations
Grants, HCP payments, and other interactions: If not executed properly, can create kickback and off-label promotion risks Commercial and Medical Affairs interactions in the Field are not allowed (no dual calls or introductions). Other Commercial/Medical restrictions apply (off-label questions, conference booths) Additional rules based on State laws & institutional restrictions don’t necessarily need a sign in sheet, but do need to capture all attendees

42 Consider the Risks Legal/Regulatory
You’re in a fishbowl – “Bad Ad” Program, competitors, DOJ Think how several independent activities can result in a big problem Possible impact: criminal, civil, legislative, SEC or FDA filing Reputation/Credibility Perceived conflict of interest Lots of attention with investors, press, customers, advocates, FDA

43 Fleet Survey - United States (all industries)
Page  43

44 Car Allownace/Fleet Policy Considerations
Different Car Allowance Levels (eg management vs reps) Points System for Driving Infractions? Evaluating Risk/Infractions pre-hire vs post-hire DUI = Termination? Post-conviction or immediate? Requirements for Accident Reporting Tax Implications for Employees (over certain mileage reimbursement $) Transfer to Internal Role Corporate Insurance Implications Offer Letter Language on Car Allowance/Fleet Vehicle Page  44

45 Potential Career Paths for Field Commercial Functions
VP Snr FTM TAM NAM NAE Snr Dir FTM MM Dir SAM SAE Key TE = Treatment Educator TS = Therapeutic Specialist KAS = Key Accounts Specialist FTM = Field Training Manager TAM = Trade Account Manager TEM = Treatment Educator Mgr RAM = Regional Account Mgr SAM = Specialty Pharm Mgr RSM = Regional Sales Mgr RAE = Regional Acct Exec SAE = Specialty Pharm Exec NAM = National Account Mgr ASD = Area Sales Director NAE = National Account Exec KAS RAM RAE ASD Exec TS TS DM RSM Senior TE TE TEM Grade Grade Grade Grade Grade Grade Grade Page  45 Grade 8

46 Field Mentorship Outline
Goal: Create real-time, on the job learning experiences and a well outlined training guide to enable key talent to be in a better position to seize future career opportunities in different job functions. Mentorship Opportunities by Function: (Target # of Opportunities for a Calendar Year) Regional Account Manager (5-6) Training (2) Key Accounts Specialist (2) Regional Sales Manager (3-4) Marketing (3-4) Therapeutic Specialist (2-3) Selection Criteria ? Mentorship Framework for each Function: Key Learning Objectives Page  46

47 Rotational Assignments Outline
Goal: Give Key Talent new and challenging work experiences through a 2-4 month rotational assignment in a different commercial function in order to keep them fully engaged and to prepare them for future career development opportunities. Rotational Assignments by Function: (Target # of Total Opportunities for Calendar Year) Marketing (6-8) Training (3-4) Commercial Operations (3-4) Internal Managed Markets (3-4) Therapeutic Specialist (5-6) – larger # due to high # of reps in rotational assignments Business Information(?) (1-2) Selection Criteria? Logistics/Travel Policy? Page  47

48 Do You Have Any Questions?
Page  48

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