Emerging Market Innovation:              GIL-              GIL-100 HC IndexAre your Strategies for Emerging Healthcare and...
Today’s Presenters         Reenita Das                                     Importance of Emerging         Senior Vice Pres...
Poll QuestionWhich emerging market are you considering entering next?•   BRICS- (Brazil, Russia, India, China, South Afric...
Importance of Emerging Markets to   Reenita Das           Healthcare                                                  4
Emerging Markets Contribute Almost 30% Revenue forLeading Pharmaceutical and Healthcare Companies                     GE  ...
Evolving Trends Across Emerging Markets CreateOpportunities for Healthcare Businesses • Aging population                  ...
Emerging Market Entry Strategies Need to Address a Mixof Several Business Issues                                      Prod...
Poll QuestionWhat is the biggest challenge you have faced when entering an emerging  market?•   No structured analytics to...
The GIL-100 HC Index   Dr. Vinod Aggarwal                                            9
Its all about Growth, Innovation and Leadership                                                  10
The GIL Index: Applying Methodologies to Establish TopInvestment and Sales Potential Across the Globe Systematic macro sca...
The GIL Index: Overview of Methodology                                         12
GIL HC 100 Index: Country Banding                     Top 100 countries were used as a base list (GDP> $20 billion)       ...
GIL- 100 HC Index: Top Countries from a SalesAttractiveness Standpoint                                    Best Practice   ...
GIL- 100 HC Index: Top Countries from an InvestmentAttractiveness Standpoint                                    Best Pract...
Case Study: India    GIL HC Sales Attractiveness Comparison                         GIL HC Investment Attractiveness Compa...
India: Regional Hub R&D and Pharmaceutical Manufacturing                   Rising middle class and per capita income      ...
Leveraging the GIL-100 Index   Greg Caressi          for HC                                              18
Navigating Economic Uncertainty by Leveraging Data-driven GrowthInsights                                      Emerging Mar...
Emerging Market Innovation (EMI) Value Proposition forHealthcare and Life Sciences                                        ...
Making all the Right Moves : Structuring your EmergingMarket Strategy     Companies are shifting toward emerging markets f...
Sample Analysis: Three-Phased Project ProcessPHASE I                                                           PHASE II   ...
Sample Analysis: Phase I Methodology – A Two-Staged   Filtering ProcessFirst filter*                       % Weight       ...
Sample Analysis: Top Four Country Opportunities100%90%                                     Reg. Quality80%                ...
GIL-100 Index WorkshopA ½ day onsite workshop session where a team of qualified and trained Frost & Sullivan facilitators ...
Follow Frost & Sullivan on Facebook, LinkedIn,SlideShare, and Twitter            http://www.facebook.com/FrostandSullivan ...
Your Feedback is Important to Us          What would you like to see from Frost & Sullivan?• Designing an Emerging Market ...
Q&A4675-90         28
For Additional InformationBritni Myers                 Reenita DasCorporate Communications     Senior Vice President,Healt...
The Frost & Sullivan Story  Emerging Research                 Growth Partnership            Visionary Innovation  1961–  1...
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Are your Strategies for Emerging Healthcare and Life Sciences Markets Innovative and Structured?

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To listen to the webinar that accompanies this slide presentation, please visit: http://www.frost.com/prod/servlet/analyst-briefing-detail.pag?mode=open&sid=273389839

A watershed year in the history of healthcare, 2012 also marked the transition of emerging markets to the pinnacle of a sound, global growth strategy. In fact, aggregate emerging market revenues are expected to grow at a compound annual growth rate (CAGR) of approximately 15 percent from 2012 to 2016. Frost & Sullivan projects that emerging market revenues will match mature market revenues by 2020, with almost a 50 percent share between the two groups. With price and margin pressures, there is significant outsourcing of applications from R & D, manufacturing, clinical trials, and support functions to many of these emerging markets. To address this rapidly expanding growth opportunity, Frost & Sullivan launches the Growth, Innovation and Leadership (GIL) 100 Index as a structured means to identify, evaluate and prioritize a country pipeline system, which will ensure unrelenting growth over the next five years.

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Are your Strategies for Emerging Healthcare and Life Sciences Markets Innovative and Structured?

  1. 1. Emerging Market Innovation: GIL- GIL-100 HC IndexAre your Strategies for Emerging Healthcare and Life Sciences Markets Innovative and Structured? © 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property ofFrost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
  2. 2. Today’s Presenters Reenita Das Importance of Emerging Senior Vice President Latin America and APAC, Healthcare Markets to HC Dr. Vinod Aggarwal Frost & Sullivan’s GIL-100 HC Chief Economist Index Greg Caressi Leveraging the GIL-100 HC Senior Vice President, NA, Healthcare Index 2
  3. 3. Poll QuestionWhich emerging market are you considering entering next?• BRICS- (Brazil, Russia, India, China, South Africa)• Emerging Latin America• Emerging Middle East and Africa• Emerging Asia Pacific• Emerging Europe 3
  4. 4. Importance of Emerging Markets to Reenita Das Healthcare 4
  5. 5. Emerging Markets Contribute Almost 30% Revenue forLeading Pharmaceutical and Healthcare Companies GE Cerner Group revenue in 2011 increased 29% in Over the past 3 years, it has implemented Latin America and 28% in China. 2012 GE turnkey projects in the UAE, Qatar, Saudi Healthcare revenue from emerging Arabia and Malaysia amongst other markets estimated at $5.6 billion emerging geographies PhilipsSales growth (CAGR) in Microsofthealthcare segment across Has set up the Technology for2007-2011 was 14.6% for growth Emerging Markets (TEM)markets and 6.2% for mature group with healthcare as a keymarkets area of research Pfizer Sanofi Y-o-Y growth in 2011 increased 10.6% in Sales from emerging markets grew emerging markets while growth declined by 1.6% 8.3% Y-o-Y in 2012 while total sales across other geographic segments increased a modest 0.5% Source: Frost & Sullivan analysis. 5
  6. 6. Evolving Trends Across Emerging Markets CreateOpportunities for Healthcare Businesses • Aging population • Equitable and affordable • Increasing incidence of healthcare chronic diseases • Early detection and • Higher lifestyle related diagnosis diseases Top 5 • Operational efficiency • Rising healthcare costs Healthcare Key Unmet • Sustainable business • Changing regulatory models environment Industry Needs • Competitive workforce Trends Emerging Opportunities • Biologics and biosimilars; Vaccines; Molecular diagnostics • Diagnostics imaging • Health Information Exchange • Technologies to support long-term care • Medical tourism 6
  7. 7. Emerging Market Entry Strategies Need to Address a Mixof Several Business Issues Product Infrastructural customization development Need for local Robust business partners and/ planning or networks Diverse challenges that can exist in an Emerging Regulatory Market Competition from challenges local players Risks in entering Emerging Markets • Financial risk • Risk to business continuity • Product risk • Risk to branding • Risk to corporate image • Market risk Source: Frost & Sullivan analysis. 7
  8. 8. Poll QuestionWhat is the biggest challenge you have faced when entering an emerging market?• No structured analytics to support investment strategy• Difficulty in evaluating sales opportunities• Insufficient information about emerging markets beyond BRIC• Lack of understanding of regulatory challenges 8
  9. 9. The GIL-100 HC Index Dr. Vinod Aggarwal 9
  10. 10. Its all about Growth, Innovation and Leadership 10
  11. 11. The GIL Index: Applying Methodologies to Establish TopInvestment and Sales Potential Across the Globe Systematic macro scanning a must for geographical expansion decisions and to prioritize countries with potential investment opportunities 11
  12. 12. The GIL Index: Overview of Methodology 12
  13. 13. GIL HC 100 Index: Country Banding Top 100 countries were used as a base list (GDP> $20 billion) Best Practice Leaders Countries that have moved up 11 places Achievers and above in the Countries that have sales/ investment moved up 6-10 attractiveness index places in the from their original Countries that have sales/investment GDP rank moved up 0-5 attractiveness index places in the from their original Sales/Investment GDP rank attractiveness index from their original GDP rankGIL rankings are compared with GDP rankings to arrive the range for delta. Based on delta values countries are classified intoAchievers, Leaders and Best Practice Countries. This process excludes countries with negative delta, GIL rankings less than GDPrankings. 13
  14. 14. GIL- 100 HC Index: Top Countries from a SalesAttractiveness Standpoint Best Practice Leaders Achievers 14
  15. 15. GIL- 100 HC Index: Top Countries from an InvestmentAttractiveness Standpoint Best Practice Leaders Achievers 15
  16. 16. Case Study: India GIL HC Sales Attractiveness Comparison GIL HC Investment Attractiveness Comparison Note: 0 – 10 denotes the GIL Attractiveness Score, 0 being the lowest and 10 the highest; Source: Frost & Sullivan analysisA number of healthcare related initiatives have been proposed and some launched to improve overallhealthcare:• Universal Healthcare (UHC) in Rural and Urban Areas during 2012-2017• National Rural Health Mission (NHRM)• National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases and Stroke (NPCDCS)• National Programme for Healthcare of the Elderly (NPHCE)• Telemedicine 16
  17. 17. India: Regional Hub R&D and Pharmaceutical Manufacturing Rising middle class and per capita income Strong focus on R&D- partnering with research labs Pharmaceutical companies promoting drug discovery and innovation Middle Class Drug Discovery & Bulge Clinical Trials Research and Development 17
  18. 18. Leveraging the GIL-100 Index Greg Caressi for HC 18
  19. 19. Navigating Economic Uncertainty by Leveraging Data-driven GrowthInsights Emerging Market Innovation Global Economic Emerging Market Tracker- Insights and Workshops Other ServicesGrowth Monitor (EMGM) Trends (GET-IT)12 month access to: 12 month access to: • GIL-100 Index Workshop • Dedicated portal on • Quarterly updates on frost.com • Emerging Market OR economic trends and Growth-Executive • Country Pipeline System • Workshops at GIL opportunities Insights - BRICS OR • Integrated Emerging • ECG Workshops • Interactive Database - Emerging Markets Market Country Industry - Europe • Emerging markets • Ask the Expert/Briefings Forecasts and Decision - Africa and sales intensity Support Databases Middle East matrix (E) • Access to Chief Economist • Growth, Innovation, - Latin America • Country pipeline - Asia Pacific Leadership (GIL -100) system (C) - North America Index • GIL-100 Index (G) - Western Europe • Economic Insights - Rest of the World 19
  20. 20. Emerging Market Innovation (EMI) Value Proposition forHealthcare and Life Sciences Economic Insights • Economic insights are designed to leverage a systematic data foundation and develop valuable insights on growth trends that are currently impacting global markets • They delve into pertinent economic issues and present analysis and actionable insights that are imperative for impending business decisions Emerging Markets Medical Tourism GIL 100 Index 20
  21. 21. Making all the Right Moves : Structuring your EmergingMarket Strategy Companies are shifting toward emerging markets for manufacturing and also to penetrate high growth domestic markets Top Line Bottom Line • How should your company prioritize emerging markets Growth Growth beyond BRIC countries based on the factors most relevant to your company and products? • If I move manufacturing to India today, will I be able to Sales Growth Investment export cost-competitively five years from now? Attractiveness Drivers Attractiveness • Which countries make the most sense as manufacturing centers based on IP protection, labor costs and access to export markets?“We were delighted with the Macro-to-Micro perspective ?that Frost & Sullivan proposed as part of supportingour quest to develop a systematic Country Pipeline Tier II Poland, Malaysia,System. A data driven decision approach that typically Mexico, Philippineschallenges a "gut feel" approach to the next bigmarkets was important for us…” Tier I China, India, Brazil – Senior Management of a leading automation company 21
  22. 22. Sample Analysis: Three-Phased Project ProcessPHASE I PHASE II PHASE III Evaluate and weight/ Evaluate top countries for An interactive strategy rank 30 target countries market expansion development sessionBROAD ASSESSMENT OF TOP 30 COUNTRIES STRATEGIC FIT ASSESSMENT AND GROWTH for market expansion on between Frost & Sullivan DEEP DIVE ANALYSIS OF TOP COUNTRIES and Client to Growth Opportunity: Prioritize and select the Population Density OPPORTUNITY WORKSHOP Available customer base best countries for growth based on capabilities, fit Business Milieu and external Diabetes Epidemiology Business setup requirements, Taxation, opportunities. Labor Laws, etc. Corporate Environment Economics Ease of doing business, corruption Generate a roadmap for perception, trading and infrastructure target countries and Market Analysis market entry strategies in Healthcare Spending Value chain analysis, customer analysis Phase IV and competitive landscape Growth Prospects Infrastructure Market sizing and forecasts, market trends Country Risks Other Political, economic and financial risks 22
  23. 23. Sample Analysis: Phase I Methodology – A Two-Staged Filtering ProcessFirst filter* % Weight 30 CountriesPopulation Density; per sq km 15Diabetes cases 20Total Healthcare Expenditures Second filter* % Weight 10Per Capita Private vs. PublicPer Capita Imports from US of 5 3 – 6 Countries Pay / Economics TBDSurgical Appliances and Supplies Regulatory% of Total Healthcare Spending TBD 5 Processfrom Out-of-Pocket Logistics TBDInnovation Ecosystem 10 Reimbursement /Estimated # of Physicians 5 TBD EconomicsPrivate Healthcare Expenditure as Total 100 15% of GDPGovernment Effectiveness 5Regulatory Quality 10Total 100 1 – 2 Countries* Metrics Used for First Pass Country Assessment** Metrics Used for First Pass Country Assessment (With Specific Sub-Components to be Determined) 23
  24. 24. Sample Analysis: Top Four Country Opportunities100%90% Reg. Quality80% Govt Effectiveness70% Pvt. HC Exps per Capita # Physicians60% Innovation Ecosystem50% Out-of-Pocket HC Spending40% Per Capita US Imports30% HC Exps Per Capita20% Diabetes Cases10% Population Density 0% #1 #2 #3 #4 24
  25. 25. GIL-100 Index WorkshopA ½ day onsite workshop session where a team of qualified and trained Frost & Sullivan facilitators and analystconduct presentations and guide clients on how to prioritize growth opportunities and define growth strategies.Workshop requirements & content must be defined and agreed in advance. Macro Micro GIL-100 Index ½ Day Workshop Detailed Country Investigation In Scope Not In Scope 25
  26. 26. Follow Frost & Sullivan on Facebook, LinkedIn,SlideShare, and Twitter http://www.facebook.com/FrostandSullivan http://www.linkedin.com/companies/4506 http://www.slideshare.net/FrostandSullivan http://twitter.com/frost_sullivan 26
  27. 27. Your Feedback is Important to Us What would you like to see from Frost & Sullivan?• Designing an Emerging Market Strategy?• Creating a Country Pipeline Systems?• Emerging Market Economic & Industry Indicators• Strategic Scenario Planning?• Interactive – Ask the Experts?• Other? Please inform us by “rating” this presentation. Frost & Sullivan’s Growth Consulting can assist with your growth strategies 27
  28. 28. Q&A4675-90 28
  29. 29. For Additional InformationBritni Myers Reenita DasCorporate Communications Senior Vice President,Healthcare Asia Pacific and Latin Americabritni.myers@frost.com Healthcare rdas@frost.comGreg Caressi Dr. Vinnie AggarwalSenior Vice President, Chief EconomistNorth America Economic Research & Analyticsgcaressi@frost.com vinnie.aggarwal@frost.com 29
  30. 30. The Frost & Sullivan Story Emerging Research Growth Partnership Visionary Innovation 1961– 1961–1990 1990– 1990–Today Today– Today–Future 1961 1990 TodayPioneered Emerging Market Partnership Relationship& Technology Research with Clients Visionary Innovation• Global Footprint Begins • Growth Partnership Services • Mega Trends Research• Country Economic Research • GIL Global Events • CEO 360 Visionary Perspective• Market & Technical Research • GIL University • GIL Think Tanks• Best Practice Career Training • Growth Team Membership • GIL Global Community• MindXChange Events • Growth Consulting • Communities of Practice 30
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