Biomet

1
Biomet
2007 Company Report Card (Orthopedic
Surgeons) Prepared by Valid Results, Inc.
2
Introduction

• The Company Report Card is a concise overview of
  medical device manufacturers performance in a
  variety of critical areas.
• The results are based on primary Voice Of the
  Customer research that is replicated and
  published annually.
• The Company Report Cards are offered free of
  charge and may be copied, distributed and
  presented. (May not be sold. Please cite Valid
  Results, Inc. and our www.GetValidResults.com
  website when distributing or presenting)
• For questions or additional information, please
  do not hesitate to contact us at 1-877-998-2543
  or info_at_GetValidResults.com

3
Contents

• Summary of Methodology
• Final Grades
• Sales Rep Grade
• Professional Education Grade
• Company Performance Perceptions Grade
• Experience Use Grade
• Theory of featured measures
• Detailed Research Methodology
• Derivation of Grades
• About Valid Results

4
Summary of Methodology

• 102 randomly selected orthopedic surgeons were
  recruited to participate in an internet based,
  self-administered questionnaire.
• Grades were determined according to performance
  relative to other orthopedic medical device
  manufacturers featured in the study. This is
  referred to as norm referenced grading and is
  commonly used to compare performance within a
  single environment.
• Letter grades were derived for each of the 14
  featured companies, utilizing the responses from
  the questionnaire. Each company received a grade
  A through F for each subject area, as well as an
  overall Final Grade.
• 2-As were given
• 3-Bs were given
• 4-Cs were given
• 3-Ds were given
• 2-Fs were given
• (14 total grades given for each subject area, one
  grade for each company)
• Each companys grades in the four areas were
  combined into a Final Grade.
• Note For more specific methodology information
  regarding data collection, analysis and grading,
  please refer to slides 12 13 of this report.

5
Report Card Biomets Final Grades
6
Sales Rep Grade

• The Sales Rep Grade is based on 2 measures
• The frequency of sales rep visits (coverage and
  penetration)
• The perceived quality of the visits

• What next? What can Biomet do to increase its
  Sales Rep Grade?
• Increase the percentage of orthopedic surgeons
  who have seen a rep at least 1 time in the
  previous year (expand coverage)
• Increase the number of times surgeons have seen
  Biomet reps in the last year (penetration)
• Improve the perceived quality of the rep visits
  by presenting new and/or valuable information
  during the visit
• Questions about your companys grade? Please call
  toll-free 877-998-2543 or email us at
  info_at_GetValidResults.com

7
Professional Education Grade

• The professional education grade is based on 2
  measures
• The percentage of surgeons who attend a companys
  event
• The perceived quality of the professional
  education program

• How can Biomet improve its Professional Education
  Grade?
• Biomet can directly improve its Prof Ed Grade
  two ways
• By increasing the number of orthopedic surgeons
  attending your companys Prof. Ed. events
• By increasing the quality of these events as
  perceived by surgeons
• Questions about your companys grade? Please call
  toll-free 877-998-2543 or email us at
  info_at_GetValidResults.com

(1)The average rating is based on a 5-point
scale where 1poor and 5excellent
8
Performance and Perceptions Grade

• The performance/perception grade is based on 2
  groups of measures
• The importance of featured considerations in
  influencing surgeons' preferences
• The perceived performance of companies on the
  featured considerations
• (1 low importance / poor performance and 5
  high importance / excellent performance)

9
Performance and Perceptions Grade

• The areas of greatest opportunity for improvement
  at Biomet are product quality, clinical data and
  surgeon support.
• Biomet is meeting or exceeding orthopedic
  surgeons expectations in training, innovation,
  pricing and business assistance therefore, there
  is less opportunity in these areas.

• How can Biomet improve its Performance
  Perceptions Grade?
• The simple answer is to improve in one or more
  of the areas listed above. It is not always
  clear, however, how to select the best areas on
  which to focus.
• What are some of the methods for prioritizing the
  best areas for improvement?
• A company may want to consider focusing on the
  areas perceived by surgeons to be most important.
  Another method is to focus on areas with the
  greatest gap between importance performance. A
  third is to decide based on a comparison of
  Biomets scores and gaps relative to competitors.
  
• Questions about your companys grade? Please call
  toll-free 877-998-2543 or email us at
  info_at_GetValidResults.com

10
Experience and Use Grade

• The Experience and Use grade is based on a single
  measure with 4 categories
• Unaware
• Aware but never used
• Currently use
• Used in the past but have discontinued

• How does Biomet improve its Experience Use
  grade?
• There are several ways to increase performance in
  Experience Use.
• Continue to create awareness among surgeons
• Convert surgeons who are aware of your company
  into Current Users
• Prevent Current Users from discontinuing
  products and/or convert surgeons who discontinued
  back into Current Users.
• Questions about your companys grade? Please call
  toll-free 877-998-2543 or email us at
  info_at_GetValidResults.com

11
Theory of Featured Measures

• The path diagram on the left presents the
  associative relationships among the featured
  measures and their impact in determining the
  overall value of a company. The correlation
  coefficients in parenthesis indicate the strength
  of each relationship.
• The general factors (Surgeon Benefits, Market
  Benefits and Product Characteristics) are
  significant predictors of Overall Value for a
  specific company. The strength of association
  between these 3 factors and the featured measures
  (orange boxes) is very high.
• It is theorized that surgeons perception of a
  companys Overall Value is a key determinant for
  use of the companys products, therefore the
  greater the Overall Value of a company, the more
  the companys products are used.

(.863)
(.561)
(.821)
(.518)
(.522)
(.682)
(.530)
(.825)
(.367)
(.693)
(.562)
(.508)
(.113)
(.500)
(.742)
(.729)
12
Detailed Research Methodology

• Sample
• The sample is comprised of 102 surgeons, randomly
  selected from a database of 16,000 AMA
  Board-Certified orthopedic surgeons.
• Substantial honoraria was offered for
  participation in order to reduce nonresponse
  bias.
• Measurement/Data collection
• The data was collected via internet, utilizing a
  self-administered questionnaire.
• Validation
• The measurement instrument was developed and
  pre-tested with the assistance of surgeon
  consultants.
• All questions were pretested for reliability and
  subjected to post data collection reliability
  analysis.
• Telephone validation of the internet responses
  was completed on a minimum of 10 of the final
  sample.
• Reporting / Analysis
• Follow-up depth interviews were conducted on a
  sub-sample of selected participants for
  clarification and additional insights.
• Multiple standard analytical methodologies were
  utilized to derive the summary statistics.

13
Derivation of the Grades

• Grades for each company were determined according
  to performance relative to other orthopedic
  medical device manufacturers featured in the
  study. This is referred to as norm referenced
  grading and is commonly used to compare
  performance within a single environment.
• 14 letter grades of A through F were assigned for
  each featured subject area
• 2-As were given
• 3-Bs were given
• 4-Cs were given
• 3-Ds were given
• 2-Fs were given
• Each companys grades in the four areas were
  combined into a Final Grade.

F
D
C
B
A
14
About Valid Results

• At Valid Results we are here to ensure our
  clients excel by providing the best and most
  useful business intelligence available.
• Unlike other research companies, Valid Results is
  continuously measuring and analyzing your market.
  Our commitment to proactive, independent research
  allows us to integrate our own voice of the
  customer data with your custom initiatives and
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  results.
• Since 2000, we have been providing full service,
  quantitative research services to the medical
  device industry. If you would like additional
  information about our services please visit our
  website
• www.GetValidResults.com
• If you would like to speak with us personally,
  please call 1-877-998-2543.