Utility of Social Networks For Physicians and Life Sciences Companies. January 2011

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1 Utility of Social Networks For Physicians and Life Sciences Companies January 2011

2 What is Sermo? Largest online physician community 117,000+ members (1 in 5 practicing US physicians) All physicians are verified and credentialed 400,000 post views (discussions) per month 1 Million comments, 50,000 posts, 3.5 million votes Physicians discussing, debating and collaborating Sermo Confidential 2

3 Utility of Social Networks Survey Results Physician survey demographics Key insights Comparison of Sermo to other resources How physicians use Sermo How physicians want to interact with life sciences Appendix 3

4 502 Sermo Physicians Participated in the Survey Among surveyed physicians, 168 were high users (33%) and 334 were average users (67%). High users: spend > 2 hours per day online for their practice. Average users: spend < 2 hours per day online for their practice. Results are reported for the total sample, as well as for both subgroups. The average time spent online for their practice across all respondents was 2.7 hours. High users spent an average of 5.3 hours per day online for their practice. Average users spent only 1.4 hours. 4

5 Respondents Have Practiced for 10+ Years Since Residency Most respondents are at mid-sized practices (4 to 149 physicians). High users (34% of total) are more likely to be located at larger practices. High users have been practicing for less time: They have been in practice for an average of 10 years, versus 13 years for average users. Practice Size (# of Physicians) Mean Years Practicing Total (n=502) High (n=168) Avg (n=334) Q1. Which best describes your practice size? / Q4. How many years since your residency? 5

6 Physicians Practice Across the US The largest number of surveyed physicians practice in the South (30%), though almost as many are in the Northeast (27%). High users are more likely to be in the Northeast (35%), while average users are more likely to be in the South (33%). Geographic Distribution of Physicians Region Total (n=502) High users (n=168) Avg users (n=334) South Northeast West Midwest No info 1 1 Other 1 1 Q5. In which state do you practice? 6

7 Physicians Represent Many Specialties A large minority of survey respondents (45%) specialize in either family medicine or internal medicine. Other common specialties include pediatrics, emergency medicine, and oncology. Q3. Please indicate your specialty. Specialty High Users (n=168) Low Users (n=334) Total (n=502) Allergy & Immunology Anesthesiology Cardiology Dermatology Emergency Medicine Endocrinology Family Medicine Gastroenterology Hospice/Palliative Infectious Diseases Internal Medicine Nephrology 2 2 Neurology Neurosurgery 1 1 Obstetrics/Gynecology Oncology, Radiation Ophthalmology Orthopedic Surgery Osteopathy 1 1 Otolaryngology Pathology Pediatrics Physical Med & Rehab Psychiatry Pulmonology Radiology Rheumatology Surgery Urology 1 1 7

8 High Users Spend 6+ Hours Online for Their Medical Practice Most Sermo users spend one or two hours per day online for their medical practice. Among high users, almost one-third spend six or more hours online. Hours spent online daily for medical prac3ce (% of physicians) High users (over 2 hours, 33% of physicians) Avg. users (0-2 hours, 67% of physicians) Q6. Over the last 12 months, about how many hours per day do you estimate you've spent online for your medical practice 8

9 Physicians Spend Twice as Much Time Online at the Office vs. Home The average physician spends 1.6 hours online at the office versus 0.9 hours at home specifically for medical use. Regardless of whether physicians are high or average users, they are most likely to be at the office when online for their medical practice. Average Hours Spent Online in Each Setting Q7. Of the hours per day you typically spend online for your medical practice, please break it down by these settings. 9

10 Utility of Social Networks Survey Results Physician survey demographics Key insights Comparison of Sermo to other resources How physicians use Sermo How physicians want to interact with life sciences Appendix 10

11 Value of Sermo to Physicians and Life Sciences Sermo Value to Physicians Physicians are comfortable finding medical information on Sermo; many use it for this purpose as much or more often than Google. Doctors prefer physician-only social networks for their medical practice over recreational networks (e.g., Facebook). Sermo is particularly useful when doctors have difficult patient cases or need information about new therapies. Reaching out to other physicians on Sermo has led doctors to change treatment decisions. Sermo Value to Life Sciences Physicians are interested in interacting with life sciences companies on physician-only social networks. Sermo could substitute for sales representative visits and in-person educational events even for doctors who limit sales reps. 11

12 Sermo Leads Physicians to Change Medical Practice Overall, high and average users agree that Sermo is a good resource for medical information Both groups report that Sermo has led them to change their medical practice. However, high users are more likely to engage with online resources and they are more often influenced by the information provided online. They are also more likely to be cut off from traditional contact points such as sales reps. Physician Characteristics Comparison of Sermo to Other Resources Analysis of Sermo Usage High Users Use internet for their practice very often, with a large segment online for six or more hours per day and are likely to work in a larger practice A majority use Sermo as much or more often than Google to obtain medical information When in need of resources to complement published findings on new treatments, almost as many turn to Sermo as to their off-line colleagues More likely to limit/forbid sales rep visits Very willing to interact with pharmaceutical companies via Sermo A majority have changed their medical practice as a result of interactions on Sermo in the last year Almost two-thirds have used Sermo in the last month for a reason relating to their medical practice Average users Use internet only one or two hours per day for their medical practice and are likely to work in a mid-sized practice Less usage of any online resources, such as Sermo, Google, UpToDate, etc. More likely to prefer dinner meetings and conference exhibits over guest expert posts on Sermo Somewhat less likely to limit/forbid sales rep visits Only slightly less willing than high users to interact with life sciences companies via Sermo About a third have changed their practice as a result of Sermo in the last year Just under half have used Sermo in the last month for a reason relating to their medical practice 12

13 Utility of Social Networks Survey Results Physician survey demographics Key insights Comparison of Sermo to other resources How physicians use Sermo How physicians want to interact with life sciences Appendix 13

14 Journal Articles, Google and Sermo are the Most Popular Resources for Medical Information For most resources, the median values are similar for both high and low users indicating that most physicians visit these sites or perform these actions with similar frequency. The only exceptions are Google and UpToDate, which are both visited much more frequently by the high users. Median Number of Visits/Occurrences in the Last 12 Months Q10. Over the past 12 months, please estimate the number of times you have done each of the following. 14

15 Almost Half of Physicians Use Sermo as much or more than Google to Obtain Medical Information Usage of Sermo to Obtain Medical Information Q10. Over the past 12 months, please estimate the number of times you have done each of the following. 15

16 Physicians are Part of Other Social Networks in Addition to Sermo Facebook is the most popular, followed by Medscape Physician Connect and LinkedIn. Network popularity is generally similar across high and average users. Percentage of Physicians Using Each Social Network, Including Non-Medical Use Q8. What social networks are you on today? Please check all that apply. 16

17 For Medical Purposes, Physicians Rarely Turn to Recreational Sites No other single site approaches the popularity of Sermo for medical purposes although surveyed physicians had a wide variety of sites to choose from. The vast majority of Sermo members (87%) use the site as an information resource for their medical practice. When using social networks for medical purposes, physicians rarely use recreational sites such as Facebook or Twitter. Percentage of Physicians Using Each Social Network for Medical Practice Q9. Of the social networks you are on, which do you use to get information for your medical practice? 17

18 Most Valuable MD-Only Social Network is Sermo Almost all Sermo users (98%) agree that Sermo is among the three most valuable physician-only social networks that they use. Epocrates and Medspace Physician Connect rank second and third, though at a significant distance behind Sermo. % of Physicians Who Include Each Network in Their Top 3 Q15. Among physician-only social networks select the 3 you find most valuable. 18

19 Physicians Perceive MD-only Social Networks as far More Valuable than General Social Networks Average Value of Information Sources Q12. How valuable are the following information sources to your practice? [Scale 1 (not valuable) to 5 (extremely valuable) Confidential 6

20 Recreational Social Networks are Rarely used to Discuss Clinical Cases Sermo is the most popular site for physicians to discuss clinical cases (score of 3.5 on a scale of 1 to 5). Sermo users may also discuss clinical cases on other physician-specific networks, though they are much less likely to do so than on Sermo (score of 2.5 for these networks versus 3.5 for Sermo). Recreational social networks such as Facebook are rarely, if ever, used to discuss cases Likelihood of Discussing Clinical Cases on Each Site Q19. How likely are you to discuss clinical cases or your practice on these sites? Please use a scale from 1 to 5 where 1 is "Not at all likely" and 5 is "Extremely likely." 20

21 When Solving Cases, Physicians Perceive MD-only Social Networks as More Valuable than Other Sources Average Value of Information Sources for resolving difficult cases Q14. How valuable are these information sources when you have a difficult to solve case? 2010 Confidential 7

22 For Evaluating New Therapies Physicians Give Similar Scores to Most Information Sources Even when new therapies are involved, MD-only social networks are slightly more valuable than industry-sponsored education events. The relative ranks remain similar for all resources, including the strong preference for MD-only social networks over general social networks. Average Value of Information Sources for New Treatments Q13. How valuable are these information sources when there is a new treatment out? 22

23 Utility of Social Networks Survey Results Physician survey demographics Key insights Comparison of Sermo to other resources How physicians use Sermo How physicians want to interact with life sciences Appendix 23

24 Physicians Join Sermo to Connect With Colleagues Sermo s appeal as a physician-specific network is the most common driver behind participants decision to join. Over three-quarters (77%) cited the desire to connect with other MDs and/or get clinical advice from colleagues. Approximately one-third of physicians (32%) joined Sermo because it offers the opportunity to earn CMEs. % of Physicians Who Joined Sermo for Each Reason Q16. Why did you join Sermo initially? [Respondents can select more than once choice.] 24

25 Majority of Physicians Visit Sermo Once/Week The vast majority of physicians (over 90%) visit Sermo at least once per week. Over half (51%) visit Sermo once per day or more often. Almost a third of high users (30%) visit Sermo more than once per day. Frequency of Visits to Sermo in the Last 12 Months Over 90% visit at least once per week Q18. Over the last 12 months, about how often have you visited Sermo?

26 64% of physicians have changed a treatment based on Sermo Interactions Number of Changes to Treatment and/or Clinical Practice Caused by Sermo Over 40% changed a treatment at least once this year. Q23. Has Sermo ever led you to change a treatment or clinical practice? 2010 Confidential 8

27 Sermo Leads Most Physicians to 2 nd or 3 rd Line Therapies Sermo leads most physicians to consider new 2 nd or 3 rd line therapies: Approximately half of all respondents (52%) report that this has been a result of interactions on Sermo. For high users, even more physicians (60%) have considered new 2 nd or 3 rd line therapies because of Sermo. A relatively large fraction (13%) have done so six or more times. High users are more likely to take action based on Sermo interactions than low users, but the overall pattern of actions is similar. Number of Times Interactions on Sermo Have Led to Actions Total (n=502) High Users (n=168) Low Users (n=334) Interactions on Sermo have led over half of physicians to consider a new 2 nd or 3 rd line therapy. Q24. Please estimate how many times interactions on Sermo have led you to *Specifically, treatment that was previously unknown or not considered. **Such as acupuncture or massage.

28 Physicians Frequently Turn to Sermo for Reasons Related to Medical Practice In the last month, over half of physicians (53%) always or often used Sermo for reasons relating to their medical practice. These reasons include: Getting clinical advice from colleagues Discussing/resolving patient cases Getting advice on reimbursement or practice management Discussing new treatments with colleagues Learning about clinical trials High users are especially likely to use Sermo often for these reasons (65%). Percentage of Physicians Who Always/Often Used Sermo for Their Medical Practice in the Last Month Total (n=502) High Users (n=168) Avg Users (n=334) Q17. Think about the last month What have you done on Sermo? 28

29 Majority of Physicians View Sermo as a High Value Resource for Medical Practice For most activities on Sermo, at least half of physicians rate the site valuable or very valuable (score of 4 or 5 on a scale of 1 to 5). The vast majority of physicians rate Sermo as a high-value resource for one or more activity related to medical practice: Over 80% of physicians give Sermo a rating of valuable or very valuable for these uses. High users are somewhat more likely to find value in Sermo, especially for talking to colleagues about new treatments and journal articles. Percentage of Physicians Who Find Sermo Valuable or Very Valuable for Each Activity *Includes all activities except market research and socializing Q20. Please rate the value of these different ways of using Sermo today. [Scale of 1 to 5 where 1 = not valuable at all and 5 = very valuable. ] 29

30 Sermo Rated Most Useful to Complement Published Sources Sermo is a valued resource for many different purposes; a wide variety of activities were rated as most useful by the respondents. On average, each physician characterized three activities as most useful. High users cited more most useful activities than average users, with one major exception: Average users are even more likely to value Sermo as a complement to published sources such as journals and UpToDate. Activities for which Sermo is Most Useful to Physicians Q21. How is Sermo most useful to you? Please check all that apply. 30

31 Physicians Prefer Colleagues on Sermo over Industry Activities When asked which resources are the best complement to published findings on new drugs and treatments, respondents strongly preferred their colleagues on Sermo over industry activities such as dinners, scientific liaisons (MD/PhD), or sales reps (44% versus 34%, 29%, and 18%). High users turn to their colleagues on Sermo almost as often as their off-line colleagues (52% versus 51%). Best Resources to Complement Published Findings for New Drugs or Treatments Q22. Which peer-to-peer interactions best complement published findings when understanding a new drug or treatment? Please check all that apply. 31

32 Utility of Social Networks Survey Results Physician survey demographics Key insights Comparison of Sermo to other resources How physicians use Sermo How physicians want to interact with life sciences Appendix 32

33 74% of Physicians Perceive Sponsored Educational Events as Most Useful on Sermo Percentage of Physicians for Whom Pharmaceutical Company Interactions on Sermo Are Perceived as Useful Q26. Which of these pharmaceutical company interactions on Sermo WOULD BE useful to you? Check all that apply Confidential 9

34 Physicians Would Replace Many Activities with Sermo Events Approximately one-third of physicians would be likely or extremely likely to replace many types of activities with Sermo live/archived events (score = 4 or 5 on a scale of 1 to 5). The only events which physicians are somewhat less interested in replacing are KOL meetings. While scores are generally similar for high and average users, high users are more interested in replacing KOL meetings with Sermo live/archived events (36% versus 25%). % of Physicians Who Would Be Likely or Extremely Likely to Replace Activities with Sermo Live Events Q27. If you could, which of these would you be likely to replace with a Sermo live event (which you could attend online at your convenience)? [Score = 1 to 5, where 1 = not at all likely and 5 = extremely likely. ] 34

35 Even no see physicians would interact with Life Sciences companies on Sermo Total (n=502) No limit on sales rep visits Limit/ forbid sales reps Would not participate 81% Would participate on Sermo instead of dinner or sales reps Avg users (n=334) High users (n=168) 79% 85% Q11. Do you have a limit on the time that a pharmaceutical sales representative can engage with you? Q28. If pharmaceutical companies wanted to interact with you on Sermo rather than through in-person dinners or sales reps, would you participate? 2010 Confidential 11

36 Many Physicians Consider Guest Expert Posts More Useful than Dinner Meetings Over one-third of physicians (33%) consider guest expert posts on Sermo to be useful or very useful (score = 4 or 5 on a scale of 1 to 5). Physicians consider dinner meetings and guest expert posts on Sermo to be similarly useful or very useful (37% for dinner meetings and 39% for expert posts on Sermo). Conferences/exhibits are the only activities which are more widely viewed as useful. Among high users, guest expert posts on Sermo are considered even more useful than dinner meetings (43% versus 38%). % of Physicians Who Rate Interactions as Useful or Very Useful (Avg. Score) Q25. Please rate the usefulness of these interactions with pharmaceutical companies. [Score of 1 to 5, where 1 = not useful at all and 5 = very useful. ] 36

37 Utility of Social Networks Survey Results Physician survey demographics Key insights Comparison of Sermo to other resources How physicians use Sermo How physicians want to interact with life sciences Appendix 37

38 Practicing US Physicians vs. Sermo Member Base Specialty Specialty Total US Patient Care (#) Sermo Members (#) Total US Patient Care (%) Sermo Members (%) 723, , % 100.0% Allergy & Immunology 3, % 0.8% Anesthesiology 40,073 5, % 5.2% Cardiology 21,082 3, % 2.9% Dermatology 10,488 1, % 1.7% Emergency Medicine 28,863 6, % 5.6% Family Medicine 89,874 16, % 14.0% Gastroenterology 11,634 1, % 1.6% Internal Medicine 145,047 17, % 15.4% Neurology 13,245 2, % 2.6% Neurosurgery 5, % 0.2% Obstetrics/Gynecology 41,036 6, % 5.3% Oncology, Radiation 4, % 0.5% Ophthalmology 17,664 2, % 2.4% Orthopedic Surgery 23,818 2, % 2.1% Otolaryngology 9,778 1, % 1.4% Pathology 16,463 1, % 1.3% Pediatrics 70,726 11, % 9.8% Physical Med & Rehab 7,446 1, % 1.3% Psychiatry 38,225 6, % 6.1% Psychiatry, Child 6, % 0.3% Pulmonology 9,350 1, % 1.1% Radiology 32,292 3, % 3.2% Surgery, Colon & Rectal 1, % 0.1% Surgery, General 36,344 5, % 4.4% Surgery, Plastic 6, % 0.4% Surgery, Thoracic 4, % 0.2% Surgery, Transplant % 0.0% Surgery, Vascular % 0.2% Urology 10,274 1, % 1.5% Top 10 Primary Specialties (% of Population) More than 68 specialties represented among almost 115,000 doctors* Note: *Sermo member data current as of July, Total US Patient Care data source: AMA Physician Master file, 2008 edition. 20% 38

39 Practicing US Physicians vs. Sermo Member Base Age and Gender US Physician Gender Breakdown Sermo Gender Breakdown Median age of US physicians is 49 years 1 Median age of Sermo member base is 48 years 2 Notes: 1. Practicing US Physician demographic information based on AMA data as of May, Total population = 742,259 members in administration, direct patient care, medical research, medical training, and resident practice categories. Age information for 736,920 members from ages 21 to 80 (99%). Gender information for 741,445 members (100%). 2. Sermo demographic info current as of July, Total population = 114,951. Valid age information for 109,475 members (95%). Gender information for 101,438 members (88%). 39

40 Practicing US Physicians vs. Sermo Member Base Geographic Distribution Notes: 1. Practicing US Physician demographic information based on AMA data as of May, Total population = 742,259 members in administration, direct patient care, medical research, medical training, and resident practice categories. Regional information for 632,877 members (85%). 2. Sermo demographic info current as of July, Total population = 114,951. Regional information for 104,705 members (91%). 40

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