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AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view
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AAL Investment Forum 2010 - Life Sciences and ICT from a VC point of view

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Dr. Nissim Darvish, Orbimed Advisors, Israel …

Dr. Nissim Darvish, Orbimed Advisors, Israel

http://www.aal-invest.eu/page/speaker-profiles-nis

Published in: Health & Medicine
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  • 1. 1 Life Sciences and ICT from a VC point of view Click to edit Master subtitle style Nissim Darvish, MD, Odense Denmark Ph.D., Senior document does not constitute an offer of securities. Such an offer will only be made by means of a Confidential Memorandum This Managing Director to be furnished to investors at a later date. The manager may make changes to this document without notification. © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 2. The Communications Revolution 2 World Wide Web NASA Illinois (1993) Cellular Bell Labs (1972) 201 Internet ARPANET 0 (1970) Wireless Telegraphy Marconi Morse (1896) Telephon (1873) y © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL Bell
  • 3. e-Health-or the Marriage of ICT and Healthcare: The HICT 3 • e-health = Healthcare practice which is supported by electronic • processes and communication (Source: Wikipedia) HICT can be • ICTBetter quality of carethe can improve translate 1. speed and the automation of the information management 2. More efficient use of scarce resources (1) 3. Better quality of life patients (capturing, transmissionprofessionals 4. Better quality of life Healthcare , processing and storage) in a secure, scalable and efficient way. 5. Better Financials 1 Redundancy and inefficiency account for 25-40% of cost (eHealth taskforce report 2007-EC) © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 4. HCIT Drivers Du Jour 4 • The Patient/Consumer pressure will dramatically change the delivery of healthcare • The abundance of information and data will have to be organized in a useful way for decision support for medical staff and patients • Medical knowledge and medical decisions have to be available in primary care/home settings and at the point of care • Integrated care with the emphasis on systems of care ex. Kaiser, in the US and Torbay in the UK to compete with other Integrated care givers • The need for increasing healthcare provider efficiency and reducing cost © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 5. HCIT-Basket of applications 5 Asset Disease Management Management Monitoring E-Pharma HCIT Patient Medical Records Equipment © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 6. Entrepreneurs – Venture Capital 6 Entrepreneurs create and build value based on opportunity and personal motivation to innovate. Venture capitalists provide the currency for entrepreneurs to build their ideas into valuable companies © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 7. Entrepreneurs – Venture Capital 7 VCs are RETURN SENSETIVE © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 8. VC Lifescience Investment 1995-2010 YTD 8 Series2 Series1 $Billion % from Total 10 VC 40 9 9.1 35 8 7.7 8 7.5 30 7 6.3 6.4 6.2 25 6 5.7 $Billion $B % LS 5.3 5.3 5 4.7 20 4 15 3.5 3.4 3.2 3 2.4 10 2 1.7 1 5 0 0 YTD 07 95 96 97 98 99 00 01 02 03 04 05 06 08 09 10 19 19 20 20 20 19 19 19 20 20 20 20 20 20 20 20 Year Series2 1.7 2.4 3.2 3.5 4.7 7.5 5.7 5.3 5.3 6.3 6.4 7.7 9.1 8 6.2 3.4 Series1 24 23 23 18 9 8 15 26 28 29 28 29 30 28 34 © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL 30 Year
  • 9. HCIT and Related Services Private Capital Raising 9 Only10% of the investments in LS go to HCIT © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 10. HCIT Market 10 • The healthcare information technology market is estimated to be $53.8 billion by 2014, growing at a CAGR of 16.1%. The market is expected to grow mainly due to: • electronic medical records, • electronic health records • computerized physician order entry system The main driving element for global healthcare information • Non clinical systems. technology market is the changing government regulations and government initiatives to bring down the healthcare costs. © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 11. The 3P model for HCIT Investment 11 Patients Physicians/ The three fundamental Practitioners elements of healthcare ICT investment: practitioners, patients, and processes. All three are of equal importance and should be Processes prerequisites to funds HCIT. •Adapted from Cisco Internet Business Solutions Group © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 12. HCIT-Basket of applications 12 Asset Disease Management Management Monitoring E-Pharma HCIT Patient Medical Records Equipment © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 13. Patient Records- Electronic Records 13 © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 14. EU GPs using a computer during consultation, in % (EC Study 2007) 14 100 Random 100 samples of 90 95 94 94 93 6,789 GPs in 92 29 countries 80 84 81 77 76 70 73 72 72 66 66 65 60 64 59 59 56 54 50 47 40 30 32 27 20 21 20 18 10 11 8 3 0 AT EU27 RO UK DK CZ NO BG NL BE FR ES HU PT LU SE MT PL LT EE SK DE CY EL LV IS IT IE FI SI Source: empirica: ICT and eHealth use among GPs in Europe 2007, Bonn April 2008 © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 15. % GPs Connected to Secondary Healthcare (hospitals and/or specialist) 15 100 90 80 70 60 50 40 30 20 10 0 27 Y FR O EE ES IE LV PL SE IS LU U Z T AT PT BG O BE K E SI FI EL L SK K LT IT N C M C D D U H R N EU © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 16. % Connectivity to Health Authorities 16 Health authorities 100 90 80 78 70 60 64 50 51 40 30 29 20 21 17 17 18 18 10 16 15 13 13 13 13 11 11 11 10 9 7 7 7 5 5 5 4 4 3 3 1 0 EU27+2 EU27 NO RO CY DK UK DE HU BG MT CZ NL PT AT EE ES BE FR LU SE SK LT LV PL EL IS IE IT SI FI Source: empirica: ICT and eHealth use among GPs in Europe 2007, Bonn April 2008 © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 17. % Link to insurers (reimbursers) 17 Admin data with reimbursers routinely 100 90 80 70 60 50 48 40 45 43 30 26 20 23 21 19 19 10 15 15 15 14 13 10 8 8 5 5 5 4 4 3 3 3 3 2 2 1 1 0 0 0 NO HU UK CY EU27 EU27+2 LT CZ IT RO LU DK SE EE SK DE BE ES NL AT PT MT FI BG FR IE IS LV PL SI EL Source: empirica: ICT and eHealth use among GPs in Europe 2007, Bonn April 2008 © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 18. For HCIT – Electronic Records to work ? 18 • Infrastructure and Technical challenges • Secure/reliable wireless connection • Battery • Errorless sensors • Business model • Cost • Interoperability • Privacy and confidentiality • Workforce • Incentive: Doctors/patients/payers/hospitals • Government priorities are driving the change © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 19. HCIT Median Deal Valuation 19 © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 20. Medical Equipment – Medical Devices 20 © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 21. Wireless Medical Devices 21 ECG Temp Blood Pressure Patient Web Viewer Weight Glucose Oxy meter Swallowable pill Cellula r Physician DECT Proprietar y Wireless Monitoring Center LAN © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 22. In-stent Stenosis 22 • Self Monitoring Stent: Detect restenosis Measure Blood Pressure Continuously Worldwide Coronary Stents Market 7. 5 5. 0 2. 5 Report #C245, "Worldwide Coronary Stents Market, 2008-2017," published May 2009 by MedMarket Yogesh Gianchandani and his team at the University of Michigan . Diligence © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 23. Closed Loop Devices 23 • Automatic dosing control based upon measured result • Improved accuracy • Benefits also to pharmaceutical trials Applications Asthma flow meter / inhaler Diabetes glucose meter /injection devices Cardiac Rhythm management © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 24. Key Healthcare Industry Segments 24 Medical Devices Pharma/Biotech HC Services and HCIT % Volume ($) 18% 72% HC-Services 8% 1997-2010 E-Health 2% Drivers for M&A – Rise of emerging – Expiring drug patents – Regional consolidation markets; areas for – Increasing demand for – Huge demand for quality growth and low cost products, services and healthcare and increased manufacturing technology from healthcare spending – Acquisition to extend emerging markets core competencies – Global competition Level of Moderately fragmented Highly concentrated with Highly fragmented with the With the 50 largest over 50% of the market 50 largest companies Consolidation generating only 15% of total Companies generating held by 15 multinational market revenue 60% of total market companies revenue © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 25. Healthcare M&A 2007-2009 25 M&A International Inc report , Fall © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL 2009
  • 26. Ageing and ICT 26 • Social • • 80+ population: doubles until 2050 • • 60+ population: from 20% in 1995 to 25% in 2020 • • 50+ population: 21% has severe vision/hearing/dexterity problems • • Today 4 working for 1 retired, in 2050 only 2 working for 1 retired • • Cost of pensions/health/long-term care: up by 4-8 % of GDP (2025) • • Shortfall of care staff Economy • • Wealth and revenues in Europe of persons over 65 is over 3000 B€ • • Smart homes market will triple between 2005 and 2020 • • Early patient discharge by tele-health: reduced cost of 1,5 B€ p.a. (DE) • • Tele-care technology at home: Empowerment of elderly and efficiency • gains of 25% (UK) • • Telecare market >5 B€/year by 2015 in Europe © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 27. Summary 27 The healthcare IT is dynamic growing sector IT solutions can radically improve efficiency and productivity There are different segments within HCIT, each one of this sector possess different value and challenges In the future, we expect to see: – Greater levels of integration between devices – An increasing presence of ‘application © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL
  • 28. 28 Click to edit Master subtitle style Odense Denmark Nissim Darvish, MD, Ph.D., Senior document does not constitute an offer of securities. Such an offer will only be made by means of a Confidential Memorandum This Managing Director to be furnished to investors at a later date. The manager may make changes to this document without notification. © 2010 OrbiMed Advisors, LLC. All Rights Reserved. CONFIDENTIAL

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