Operations Review - SALES, MARKETING & MEDICAL (SMM)

The SMM division provides outsourced sales, marketing and medical services to the global healthcare industry. In 2012, divisional revenue grew by 7% to €214 million and operating profits of €21 million were 2% ahead of 2011.



Locations
North America
Canada, United States

South America
Argentina, Brazil

Europe
Austria, Belgium, Czech Republic, Denmark, Finland,
France, Germany, Ireland, Italy, the Netherlands,
Norway, Portugal, Spain, Sweden, Switzerland,
Turkey, UK

Asia
Japan, Hong Kong

% of Group Operating Profit

24%

2011: 26%

Sales Marketing

Operating Profit

€20.6m

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+2%

2011: €20.1m

Revenue

€214m

Profit Bar Chart
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+7%

2011: €199m



Strategic Priorities

INTEGRATE PHARMEXX, DRUG SAFETY ALLIANCE (DSA), SYNOPIA RX AND WATERMEADOW INTO THE ASHFIELD GROUP

LOOK AT FUTURE OPPORTUNITIES IN JAPAN, USA, SPAIN AND CANADA

SUSTAIN ORGANIC GROWTH

RE-BRAND AND POSITION THE DIVISION AS PARTNER OF CHOICE FOR PHARMA

“IN CONTRACT SALES OUTSOURCING WE HAVE CONTINUED TO STRENGTHEN OUR POSITION AS MARKET LEADER IN THE UK AND IRELAND AND HAVE GROWN OUR BUSINESS IN THE US. ”

In contract sales outsourcing we have continued to strengthen our position as market leader in the UK and Ireland and have grown our business in the US. The total number of sales representatives in these markets is declining, but the proportion being outsourced is increasing as the pharmaceutical industry seeks a more flexible and cost effective means of promoting their products. We have achieved strong growth in our nurse-led services business in the UK and Ireland and generally with smaller and more specialised pharmaceutical companies in the US who prefer our more flexible and focused approach. Both of these areas provide further growth opportunities going into 2013.

In September 2012, we assumed control of all parts of the Pharmexx group of companies not subject to ongoing competition clearance. On 9 November 2012, the outstanding competition clearance was received and the acquisition was completed on 20 November 2012. Pharmexx is a multi-country contract sales business with operations throughout Europe and in Canada and Latin America. This acquisition significantly strengthens our contract sales business, positioning us as a major international service provider and provides a platform around which we can cross-sell our marketing and medical services to a wide range of clients in multiple jurisdictions. We are currently implementing a detailed integration plan and putting our processes and procedures in place in the acquired business to improve efficiency, expand business development capability and increase margins.

To add further to our global contract sales offering we have just entered into a commercial arrangement with a major Japanese contract sales and research organisation to provide contract sales services in Japan (the second largest pharmaceutical market in the world). A number of projects have already been secured through our existing pharma relationships and an active business development programme is in place in a market where we see great potential.

Our medical affairs business has also had another very good year. Growth in our US business has been added to by a profitable first year’s trading in the UK. Business wins have been achieved in the areas of medical affairs, patient adherence and medical telesales.

The acquisitions, late in the year, of Drug Safety Alliance (DSA) and Synopia add significantly to our medical affairs offering both in the US and as a basis for a wider international offering. DSA along with our existing business will allow us to provide an integrated call centre and case processing product safety service. Synopia adds market access services to our offering to clients in the US market.

Our events management business is now the number one global event management company serving the healthcare sector. The business has delivered good revenue growth over the last year and been very successful winning new business, with 42 new clients added over the period. In the last year the business has managed more than 1,700 meetings and events in 47 countries, looking after over 145,000 delegates.

Our healthcare communications and consultancy business had another good year with revenues and profits ahead of last year. This offering was enhanced with the acquisition of Watermeadow, a healthcare communications business with offices in Oxford, Manchester and New York. The acquisition increases the scope and scale of our medical writing business to over 200 people and widens our pharmaceutical client base. We are now one of the leading global healthcare communications and consultancy businesses and are well positioned for growth in the coming years.

Sales Marketing at work