BioPharma Data Trends

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A presentation on the future of BioPharma data.

A presentation on the future of BioPharma data.

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  • 1. CONFIDENTIAL Copyright 2014 Nintai Partners All Rights Reserved. Permission Required Before Duplication. BioPharma Data: Strategic Trends & Market Opportunities
  • 2. CONFIDENTIAL Copyright 2014 Nintai Partners All Rights Reserved. Permission Required Before Duplication. Strategic Trends: Healthcare Data and Informatics Continues to Transform Healthcare Over the last several years, the breadth and depth of data and informatics available to healthcare has exploded. Reasons for this include regulatory pressure (CMS HITECH, Meaningful Use, etc.), technology adoption (EMR, CTMS, etc.), and data digitization (NDC supply chain, CPOE, etc.) All of these have created pressure to rethink strategy and redesign business processes to reflect these realities. BioPharma Pharmacies Managed Care Point-of Care Technology/Data Changes/Initiatives Strategic/BP Impact 1.  e-Prescribing 2.  Collaborative Drug Therapy Mgmt (CDTM) 3.  EHR Integration (Immunizations, Meaningful Use) 1.  Clinical Trial Mgmt Systems (CTMS) 2.  Sales/Promotion Tools (Multi-Channel) 3.  Supply Chain (NDC/ Cold Chain) 1.  Plan/Patient Modeling 2.  Formulary Management 3.  Codes, Grouping, and Billing 1.  Electronic Health Records (HER/EMR) 2.  Computer Order Entry/e-Prescribe) 3.  Clinical Decision Support (CDSS) BioPharma is utilizing data to transform its sales model and R&D efforts. Combined with strategic outsourcing, informatics is 2nd largest trend. As pharmacies grow further integrated upstream (PBMs) and downstream (POC), data and informatics are playing a key role in transforming pharmacy role in care Managed care are utilizing informatics to better integrate care and squeeze costs from the care delivery process. Patient care is better integrated. The digitization of clinical information has transformed both hospital and ambulatory care. ADEs and CAFs show downturn.
  • 3. CONFIDENTIAL Copyright 2014 Nintai Partners All Rights Reserved. Permission Required Before Duplication. Strategic Trends - Healthcare Affordable Care Act (ACA) Will Create Additional Strategic Changes With the passage of ACA there will be an evolving role for each of the major players in the healthcare delivery system. Accountable Care Organizations (ACOs) will be capable of replacing the traditional payer role of capitation. In addition, evidence based medicine (EBM) requirements will require a tremendous increase in the volume and integration of data. Last, electronic health record (EHR) Meaningful Use requirements will place great demand on patient data. Healthcare Information Providers (HIP) Clinical Decision Support (CDS) Point of Care Decision Making Hospital/Clinical Administration Drug Pricing & Formulary Status CPOE Support Computer Physician Order Entry (CPOE) Managed Care Organization Evidence Based Medicine (EBM) Patient Outcomes EMR/EHR Platform Supply Chain Data Pricing Data Rx Data Sales Data Longitudinal Data
  • 4. CONFIDENTIAL Copyright 2014 Nintai Partners All Rights Reserved. Permission Required Before Duplication. Strategic Trends - Healthcare International Markets Continue High Growth While spending has maintained a relatively slow/stable growth in the U.S. (3.9% 2009, 3.9% 2010, 3.9% 2011, 5.4% 2012), international growth remains robust. As seen below, growth in all major spending categories (overall healthcare, healthcare IT, and healthcare informatics) remain stronger than the US. It is important to note that some countries/regions (China, Turkey, India) lead with significantly higher rates. Total Healthcare Spending (2009 – 2012) Healthcare IT Spending (2009 – 2012) Healthcare Informatics Spending (2009 – 2012) 3.9% U.S. 6.2% Source: Healthcare IT International 8.2% 9.4% 8.4% 9.8%
  • 5. CONFIDENTIAL Copyright 2014 Nintai Partners All Rights Reserved. Permission Required Before Duplication. Strategic Trends - Pharmaceuticals No industry has survived by continually cutting their way to survival. The ultimate long term health of the industry will be driven by sustainable and profitable growth. To achieve this, R&D will need to increase productivity & IRR. Providing content with speed and quality needs to be combined with new sponsor decision models. Any new model must be able to achieve extraordinary results through customized internal process design. New relationships will need to be created – with incentives for both cost savings and corporate growth. These relationships will require more flexible and integrated business models along with shared risk. Three New Drivers Push Pharmaceuticals As pharmaceuticals look to create value in such a new environment, three key drivers will be necessary to compete. First, companies must find new ways to increase drug discovery and development (D3) to have drugs to market. Second, vendors will need to create new methods in sharing risk with their pharmaceutical clients. Last, companies need to find a way to utilize data and informatics to make quicker AND more informed decisions.
  • 6. CONFIDENTIAL Copyright 2014 Nintai Partners All Rights Reserved. Permission Required Before Duplication. Strategic Trends - Healthcare Pharmaceutical Model Is Evolving The last ten years has seen an enormous shift in the pharmaceutical model. The traditional sales model has been nearly eliminated (150K sales rep positions eliminated) and replaced with an MCO reimbursement model (driven by formulary, EMR order sets, etc.) demanding a new promotional model. At the same time, the blockbuster drug model has ended and replaced by an specialty orphan drug model. It is estimated that specialty drugs will be nearly 75% of all NMEs by 2020. Small Phase III CML Trial N = 1 Trial Attributes Product Attribute Orphan <$100M Revenue Drug Attributes Market Characteristics Drug R&D Cost Agile Low $230M - $280M Potential Patient Population Very Low 5,000 – 10,000 Drug Cost First Line Standard of Care Lower $50 Co-pay $1,080/dose Dates: 2026+ Personalized Agile Large Phase III Cardio Trial N = 6,600 Trial Attributes Product Attribute Blockbuster >$1B Revenue Drug Attributes Market Characteristics Drug R&D Cost High $850M - $1.1B Potential Patient Population High 16M – 31M Drug Cost First Line Standard of Care Low $3 Co-pay $.71/pill Dates: 1960 - 2006 Blockbuster Internal
  • 7. CONFIDENTIAL Copyright 2014 Nintai Partners All Rights Reserved. Permission Required Before Duplication. Potential Areas of Growth: BioPharma Data Market Rollup Rx Data Sales Data Lx Data Specialty Data Data Business Process Level of Effort (Lower is Better) Incremental Revenue (Higher is Better) Competition (Lower is Better) 9 6 8 2 5 4 4 3 8 5 8 8 9 2 5 Supply Chain 6 8 4 The traditional sources of data (such as IMS prescription data) are being swamped by the depth and breadth of new new data sources ranging from point-of-care clinical (such as EMR) to evidence based medicine to supply chain data.