CONFERENCE MEDIA ANALYSIS January 2018
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CONFERENCE MEDIA ANALYSIS January 2018 1 CONFERENCE MEDIA ANALYSIS | January 6 - 16, 2018 3 Report Objective & Methodology 4 Executive Summary 7 Conference Media Analysis News Media Performance Social Media Performance News Media Coverage by Topic Spotlight on Neuroscience Other Notable Conference Themes 12 Merck at JPM18 Overview News Media Performance Social Media Performance Quality of Coverage Influencers 17 Methodology Detail 2 CONFERENCE MEDIA ANALYSIS | January 6 - 16, 2018 Preface J.P. Morgan held its 36th Annual Healthcare Conference (the “Conference or JPM18”) on January 8-11, 2018. Cision, and its analytics and information services division, Cision Intelligence, sought to understand the major media stories generated during the conference, the volume and quality of news and social media related to those storylines, and the companies and speakers producing the greatest media reach and engagement. This report is an independent research initiative completed by Cision, based solely on its software-based monitoring of broadcast, online, and social media where stories, companies, and speakers participating in the conference were identified. Although no participant, nor J.P. Morgan sponsored nor endorsed this work, we showcased Merck to highlight a deeper company-specific review. Cision retains all rights to this material. Scope & Methodology Although the Conference was held January 8-11, we monitored broadcast and online news, as well as social media from January 6-16, 2018. We filtered the monitoring to approximately 120 major national, regional, and investor-focused outlets. And, because Twitter was the most dominant social channel, we excluded activity on other social platforms as non-material. We monitored media activity for 22 pharmaceutical companies, yet limited the report analysis to nine (9) companies with the greatest activity, namely Allergan, Celgene, Eli Lilly, GSK, J&J, Merck, Pfizer, Sanofi, and Teva. For each relevant story and company, we human-scored multiple attributes as quantitative proxies for quality, such as sentiment/tone (on a proprietary 7-point scale from very negative to very positive), prominence within the article, quoted executives, references to innovation, and references to financial announcements or commentary. The team assembled the raw data to then understand comparative story count volumes; audience reach (actual views based on advanced machine learning algorithms); social volume and news article engagement on social media; the most influential journalists and outlets based on reach and end-reader engagement; and share-of-voice (SOV) across many of these metrics and story quality attributes, such as tone. Lastly, we highlight our Quality Score, a weighted brand reputation index that reflects a weighted score across relevant story attributes; the higher the Quality Score, the more impactful the story. See slide 18 for additional information about our methodology. 3 CONFERENCE MEDIA ANALYSIS | January 6 - 16, 2018 Executive Summary – JPM18 Highlights Major Story Lines • Tax Reform was a timely and significant theme for the meeting. Coverage emphasized that the new policy is good for the pharmaceutical business, while other coverage questioned whether it’s good for patients. • In advance of the conference, Pfizer’s exit from Alzheimer’s/Parkinson’s R&D was widely covered, and media followed up with other industry leaders to get their perspectives. Overall, the industry is portrayed as remaining committed to research in that area moving forward. • Drug Pricing was discussed in coverage about tax reform, but also in coverage of competitiveness in the pharma industry, and interviews with pharma executives. • Other themes included gender inequity in the pharmaceutical industry, the need for industry disruption, and Bill Gates’ keynote. 4 CONFERENCE MEDIA ANALYSIS | January 6 - 16, 2018 Executive Summary - Competitive Performance Share of Story Count Share of Social Posts Share of News Engagement • J&J led share of voice in news and social mentions overall, though saw the lowest share of stories with a primary focus during the conference. Much of the social conversation was driven by owned content. • Pfizer led among stories with a primary focus and saw the highest number of news story shares to social media, though this was largely due to a high percentage of negative coverage. • GSK and Celgene followed Pfizer in terms of primary coverage, respectively, though GSK’s primary coverage was far more favorable than Celgene’s. Celgene followed J&J in social post volume. • Merck ranked 6th among companies tracked at JPM18 in terms of story count overall, 7th for stories with a primary focus, and 5th in social media content. 5 CONFERENCE MEDIA ANALYSIS | January 6 - 16, 2018 Executive Summary – Daily News + Social Drivers Story Count by Day GSK: Considering Buying Pfizer’s Consumer Celgene: Impact $7B Business Acquisition Allergan: Financial Forecast Merck: Thought Leadership Pfizer: Pulling Out of on Drug Pricing, Alzheimer’s Alzheimer’s/Parkinso n’s Teva: Executive Salary Cuts, and Layoffs Post Count by Day Pfizer: Announcement J&J: of New Genetic Celgene: #ChampionsOfScien Sequencing ce RTs Intent to Consortium Acquire Merck: Maria Bartiromo/Fox Impact Business Interview with CEO Biomedicines Ken Frazier Eli Lilly: Surpassed Merck in Revenue; Diabetes Pricing 6 CONFERENCE MEDIA ANALYSIS | January 6 - 16, 2018 Competitive News Media Performance Story Volume Comparison Prominence Mix Tone Mix Story Share of Company Audience % Primary % Pos % Neg Share Eng Highlights Count JPM18* Merck CEO Kenneth Frazier commenting on the tax overhaul’s impact on Merck 70 3.6M 11% 83% 0% 6K 10% the pharmaceutical industry, drug pricing, and Alzheimer’s research drove coverage. GSK’s interest in purchasing Pfizer’s Consumer Business and pulling out Pfizer 114 5.9M 49% 59% 30% 193K 16% of Alzheimer’s research contributed to a peak in coverage on January 8 and 9. CEO Brent Saunders touted the company’s booming Botox business and Allergan 44 1.6M 27% 73% 5% 174K 9% discussed the company’s 2018 financial forecast during JPM18. Bloomberg and CNBC interviewed Eli Lilly CEO David Ricks on drug Eli Lilly 86 4.5M 12% 77% 4% 12K 12% pricing and diabetes treatments. Interest in purchasing Pfizer’s Consumer Business and the CEO GSK 85 3.1M 44% 78% 0% 15K 12% reshuffling 40% of the management team led GSK coverage. On January 8, CEO Alex Gorsky stated that J&J should be worried about J&J 125 4.9M 4% 80% 1% 179K 20% Amazon disrupting their business. Sanofi and Alnylam restructuring their deal for Alnylam’s pipeline drugs Sanofi 30 648K 20% 50% 7% 4K 4% drove coverage throughout the conference. Teva’s Board of Directors cutting their salaries in half and eliminating 40 Teva 44 1.3M 68% 7% 9% 2K 9% manufacturing sites drove coverage on January 10. 7 Celgene’s intent to acquire Impact Biomedicines generated a peak in 7 Celgene 111 4.3M 32% 71% 15% 5K 16% coverage on the first day of the conference. *JPM18 = 705 stories captured from top tier media list CONFERENCE MEDIA ANALYSIS | January 6 - 16, 2018 Competitive Social Media Performance Twitter Volume Comparison Tone Mix Engagement by Day Unique Potential Share of Company Post Count % RT Post Eng Highlights Authors Reach JPM18* Merck’s social media conversation and engagement were in large part driven by Merck 292 78% 228 1.1K 3.1M 1% owned content and Fox/CNBC promotions of scheduled interviews with Ken Frazier. Regeneron announced a new genetic sequencing consortium in which Pfizer has Pfizer 325 67% 257 740 3.3M 1% been tabbed as a partner and will co-fund the work with a planned completion by 2022. Statements made by Brent Saunders on drug pricing and the strength of Botox’s Allergan 201 60% 148 522 1.4M 1% performance were positively received. He was the driving force behind over half of Allergan’s social media content. Dave Ricks’s discussion of drug pricing, tax reform, and more with Meg Tirrell of Eli Lilly 189 72% 131 464 2.3M 1% CNBC was prominently discussed. His comments on drug pricing were met with some criticism, particularly for Diabetes. Emma Walmsley shared her thoughts on being the first female CEO to lead a major GSK 273 82% 206 731 2.8M 1% pharmaceutical company in an interview with Meg Tirrell, and in widely shared pieces from STAT and Business Insider. J&J led in total posts, largely due to owned content launched throughout the event. J&J 1,138 82% 587 2.9K 10.7M 4% J&J shared 41 #ChampionsOfScience posts (a series on innovation and advancement) garnering nearly 500 retweets. The announcement that Sanofi and Alnylam will restructure their rare disease Sanofi 319 55% 213 519 2.6M 1% alliance drove the social conversation, with most of the focus on Alnylam re- acquiring the rights to patisiran. The “Teva Turnaround” was a prominent theme due to discussion of Kåre Schultz Teva 123 46% 93 142 500K 0% comments on past mistakes and plans to cut over 14,000 jobs and cut back $3B in spend in a large scale restructure. Celgene’s acquisition of Impact Biomedicines for $1.1B (up to $7B) accounted for 8 Celgene 560 68% 375 1,5K 5.2M 2% over 25% of their key metrics. The deal saw a mixed reception on social media, with 8 some feeling Celgene overpaid. *JPM18 = 31,683 Twitter posts CONFERENCE MEDIA ANALYSIS | January 6 - 16, 2018 Competitive Coverage by Topic Industry Core Topics Spotlight on Executives Spotlight on Financials Spotlight on Innovation • Merck saw the most original coverage of executives • Celgene saw the most financial-oriented coverage • Pfizer saw the most coverage with an “innovation” among competitors. CFO Robert Davis stating the following the announcement they plan to purchase theme, however this coverage was largely negative, company will continue to seek smaller acquisitions Impact Biomedicines, the release of their Q4 with coverage focusing on their announcement and CEO Kenneth Frazier’s interviews led to their earnings, and shares falling after their 2018 revenue they are ending research into new Alzheimer’s and lead in executive visibility during JPM18.