A project to expand the business of BI in USA. Marketing Idea

2. Me and Mine
Team 4
Hai Do, Hari Bysani, Helina Solomon, Olamiji Sofela, Vipul Sonavane

3. Agenda
 Insights
 Market Analysis
 Current Resources
 The M&M fit
 Impact
 Contact points
 Conclusion
3

4. Insights
Customers
4

5. Insights
Customers
Burden
of
Health
Legislation
5

6. Insights
Margaret – 50




On Micardis®
Recently diagnosed with diabetes
At a risk of stroke
She is worried
Pete - 45 and Suzan – 40
 Pete on Tradjenta®
 Suzan is taking medication for
hypertension.
6

7. Market Analysis - Getting into specifics
Disease focus
Diabetes
Stroke
Hypertens
ion
 Can co-exist in a single
patient
 Similar
hereditary, environmental
and other modifiable risk
factors
2 or more
family
members
therapy
1 person with
multiple
diseases
Drug
access and
Discount
packages
7

8. Market Analysis - Situation
Doctor - Patient interaction.
 One dimensional
 Focus on one patient at a time
 Frequent clinic visits
 Patients need more and more support
8

9. Current Resources - What BI has
Placement:
 Product innovator
 Market leader
Product:
 Aggrenox, Micardis, Pradaxa,
Twynsta
 Jentadueto, Tradjenta
Partners:
 Insurance company
 Healthcare provider
 Distribution channels
 Other partners
9

10. Business Model
What we have?
What we can do?
• Diabetes
6
• hyperten
sion
drugs
• stroke
Penetrative
Pricing
&
campaigns
Platforms
What we can get?
Develop
• New Market
• Loyalty
• Brand value
10

11. The M & M Fit
Me And Mine
- A family loyalty program
Events
Discount
Me &
Mine
Newsletter
Partnerships
11

12. The M & M Fit
Events
 Health Talks
 Diagnostic Campaign
 Health Activities
 Health Campaign
Events
Discou
nt
Me &
Mine
Partner
ships
Newsl
etter
12

13. The M & M Fit
Discounts
 Discount on 6 medicines
 Base discount for current customer
 Additional discount for family
Events
members
Discou
nt
Me &
Mine
Partner
ships
Newsl
etter
13

14. The M & M Fit
Partnership
 Partnerships with supermarkets
selling healthy food
 Reward program
 Partnerships Fitness centers
 Discounts
Events
Discou
nt
Me &
Mine
Partner
ships
Newsl
etter
14

15. The M & M Fit
Newsletter
 Information about disease
 Disease specific diets
 Diet Tips
 Exercise tips
Events
Discou
nt
Me &
Mine
Partner
ships
Newsl
etter
15

16. Impact
PotentialMarket statistics
 Population with more than one disease
7.14% or 16 million patients
 Capturing just 1% , will be
$36M
revenue generated by M&M program
Diabetes
8.3%
Stroke
2.6%
Hypertension
30.6%
16

17. Impact
Stakeholders
 Less visits to clinics
 Long term support
Doctors
 Value-add for customers
 Customer loyalty
Pharmacist
 Monetary benefits
 Increase in customer base
Insurers
17

18. Contact Points
Existing channels
 Pharmacists
 Insurance companies
 Non-profits
 Existing patient assistance programs
Industry
 Upgrade existing savings card users
 Training doctors (CME)
 Educational centers
Media
 TV and Radio
 Social Networking websites
 Health mobile apps

19. Conclusion
Target
- One family (person) multiple diseases
- One disease multiple persons
Offering
- Me and mine
Costs:
- $ 4.7 million
Revenue generated:
- $36M (1% of potential customer)
- Long term effects
- How ‘do’ able is this?
19

20. Thank you.
20

21. Support
Slides
21

22. IMPACT
Summary:
- The U.S. Pharmaceutical Market Size = $319B
- CAGR of 2.7% for the five-year period 2011 – 2016
- Expensive R&D (19%) and with B.I. (23.5%)
- “Patent cliff” effect that Generic Drug producers
with the Price lower than 90 percent.
Effect:
-In 2012, IRR = 7.2%, against 7.7 and 10.5 in two
preceding years.
-Estimated IRR = 7% in the future – barely
covering cost of capital.
-According, McKinsey’s report, average small
molecular drug has NPV = - $65M

23. Three diseases and
Products
Three diseases and sales in 2012:
* Diabetes - Tradjenta (expiry – April 24, 2017) – Sales: $151M
* Hypertension - Micardis (expiry – Jan 7 , 2014) – Sales: $640M
* Stroke - Predaxa (expiry – Feb 18, 2018) – Sales: $440M
B.I Market share:
- Diabetes: 0.5% (Tradjenta)
- Hypertension: 3.1% (Micardis)
- Stroke: 1.6% (Predaxa)
23

24. Word-of-Mouth or Family
Solution
Word-of-mouth:
• At 59 percent, the majority of word-ofmouth conversations occur at
home, whether offline or online.
• Offline conversations occur most
among females, those with a higher
education, older consumers and
married respondents or those living
with a partner.
• Online conversations are more likely
among males and younger
consumers.
24

25. How to measure the effect of
solution?
Financial Analysis:
• The NPV and IRR are decreasing because the cash flows decline
significantly after “Patents Cliff”.
• What should we do to maintain or increase the these ratios?
 Increase the cash flows (before or after “Patents cliff”)
By Family Solution:
- Approach effectively to new customers,
- Family solution enhances the customers relationship that
decreases the “chunk rate”,
- This is the mutual benefit because customer will get discount
with high quality product and the company is able to “lock – in”
customers,
- We increase the cash flows after and even before “Patent cliff”.
25

26. Overlapping Market
Segments
Percentage of the U.S. population:
- Diabetes: 8.3%
- Hypertension: 30.6%
- Stroke: 2.6%
-Diabetes + Stroke: 2.01%
-Diabetes + Hypertension: 5.53%
-Hypertension + Stroke: 2.0%
-Diabetes + Hypertension + Stroke: 0.8%
-Overlapping part: 7.14% or 16million
patients
-Assume capture 1% of overlapping
part for new hypertension patients
= 160k new customers x $255 = $36M
Diabetes
Stroke
Hypertension
26

27. McKinsey Report
27

28. Report Analysis
Small molecules, history estimated for average drug:
Cash Flows
CASES
Before Patent Cliff After Patent Cliff
Normal
case
0
0
63
96
155
236
272
294
318
370
450
569
642
64
6
-1751
0
0
63
96
155
236
272
294
318
370
450
569
642
193
58
17
5
-1751
Solution
case
-1751
0
0
76
115
186
283
326
353
382
444
540
683
770
231
69
21
6
SUMMARY:
ITEMS
NPV
Normal case
Solution case
($250.43) ($196.05) $114.94
IRR
7.5%
8.1%
10.2%
% Decline After
Patent Cliff
10%
30%
30%
% Increase Before Patent Cliff
20%
28