Summary
When asked if 2005 had been a good year, AbelsonTaylor president Dale Taylor replies that they have many reasons to be happy. Revenues increased by about 15% over 2004, the consumer division is gathering momentum, and he feels "fortunate to have not lost any significant brands for quite a while." Dorland Global Health Communications restructured from three business units to two for efficiency's sake after the end of the first quarter last year. Revenues were up slightly to $23 million compared with $22 million in 2004, and Rita Sweeney, president and COO, believes the agency is well positioned for continued growth. After growing by a phenomenal 70% in 2004 and pulling in $9 million, Wishbone ITP's revenue increased again last year, to $11 million -- despite the loss of 30% of its business when King Pharmaceuticals halted promotion of Sonata and when AstraZeneca reclaimed Zomig from MedPointe. The top 40 biggest advertising agencies and networks in the pharmaceutical industry are presented.
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The Top 40
AbelsonTaylor
Continued growth with key wins in both professional and DTC workWhen asked if 2005 had been a good year, AbelsonTaylor president Dale Taylor replies, "we're happy." Indeed, his agency has many reasons to be happy: Revenues increased by about 15% over 2004, the consumer division is gathering momentum, and Taylor feels "fortunate to have not lost any significant brands for quite a while."In late 2004, part of the agency was sold to 11 employees, which has also proved positive for the agency. "I think the agency runs a lot better than before," Taylor says. "Together they're a lot better managers than I am. Things I should have been doing and didn't, now they do. As the agency gets bigger, it's much better to have some of those burdens shared."The agency continued to partner with Omnicom's Diversified Agency Services to extend global reach, and Taylor is also pleased with the ongoing relationship, calling it a "good partnership."Last year's wins include Vesicare, a treatment for overactive bladder from Astellas-GlaxoSmithKline, and Astellas' Vernakalant for Arrhythmia (not yet launched); Benicar, an anti-hypertensive from Sankyo/ Forest; Sankyo-Lilly's stroke-prevention drug Prasugrel (not yet launched); hematology drug Soliris from Alexion Pharmaceuticals; and Rituxan, for NHL lymphomia from Genentech/Biogen-Idec.Perhaps the biggest story for AbelsonTaylor has been the growth of its consumer roster. In 2005, the firm won the DTC accounts for Takeda's insomnia treatment Rozerem, and added Amgen's oncology brands, NeuIasta and Aranesp, at the beginning of this year-for all three products, AbelsonTaylor already held the professional accounts. The agency landed its fourth DTC account this year from Zimmer, for its reconstructive impact called Gender Solutions High-Flex Knee.Taylor notes that his agency did not have to pitch for half of the 20-plus brands it was assigned in the past 18 months. "Maybe clients have started to realize that the pitching process is not a good predictor of long-term success," he says. "A great first date doesn't necessarily make a great marriage. They are tending to work with agencies they are familiar with, or they depend on references. It's not just existing clients, and it's not unique to AbelsonTaylor-I've heard it from other agencies."Though he hired 37 people last year and has added 29 since January 1 (making a total of about 300), Taylor says staffing is the agency's biggest challenge. "Located in Chicago, we don't have the big talent pool," he says. "The other side of that is once people come here they tend to stay. There aren't 20 other agencies trying to lure them away. We do occasionally hire from other agencies. We 've also become very good at building staff from within-training, developing skills and promoting."Retention means team longevity, which helps business. "One reason companies change agencies is because teams change," Taylor says. "We have the same set of key individuals on brands for many years."The proliferation of partnered brands on AbelsonTaylor's roster is a trend that Taylor sees continuing. "We have eight in-house," he says. "In one case we had three partners-Genentech, OSI and Roche in Europe for Tarceva [a lung cancer treatment]. It takes a different kind of diplomacy. Transparency is the important thing. The worst thing is to have the perception that you're playing favorites. It's deadly. There has got to be simultaneous consensus and information sharing. It's more the norm in the industry, and agencies are going to have to cope with it."-Tanya LewisAT THE HELMDale Taylor, president and CEOPERFORMANCERevenues up around 15% over 2004HIGHLIGHTSSeveral account wins, including Vesicare, Benicar and RituxanDTC division gaining momentum-roster includes Rozerem, NeulastaandAranespReaping the benefits of a new ownership structureCHALLENGEHiring staff-Chicago location limits the size of the available talent poolFor contact details, service offerings and client roster, see Agency MoZ, page 133"Maybe clients have started to realize that the pitching process is not a good predictor of long-term success"-Date TaylorAxis Healthcare CommunicationsEyeing acquisitions following a good year of revenue-buildingAxis Healthcare Communications CEO Neil Matheson has moved aggressively in recent years to address public perception of the pharmaceutical business. "Everybody is passionate about medicine and the industry, but you can only go so long hearing the criticism before you start to get jaded," Matheson notes. "What I've been trying to do is make sure the people who work for me know that they work in a proud business that's worthy of respect. At the end of the day, these companies improve patients' lives and mostly do good."Matheson points to a recent Gallup Poll, in which the American public ranked the pharma business about even with the tobacco and oil industries in terms of mistrust. Such perceptions, he suggests, have been furth...See the full content of this document
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