BI Business Development

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

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  • Change the picturesSo we first analyzed the healthcare space. What are the underlying factors that influence health seeking behavior. And we surveyed many Americans, and came to realise that firstly, many elderly didn’t want to know their health status. Its almost as if they had an “ignorance is bliss” attitude (animate words to appear as elaborates). Secondly healthcare was something that was very intimate; and people were only genuinely influenced by their inner circle, well besides their healthcare providers ofcourse. So we are looking at family members here. Thirdly, the patients are becoming increasingly aware about issues and more assertive in behavior, as a whole the market is becoming more discerning when seeking advice.
  • Then we looked a little more downstream of the customer; sort of what were the experiences after getting all the advice. And we noticed two issues that are inter-related, insurance and cost. Now to illustrate this issue, lets meet Margaret. (play video)
  • Then we looked a little more downstream of the customer; sort of what were the experiences after getting all the advice. And we noticed two issues that are inter-related, insurance and cost. Now to illustrate this issue, lets meet Margaret. (play video)
  • Ok, so we know that Hypertension and Diabetes are rather closely inter-related and 2 out of 3 diabetics have hypertension. And in both diabetic & hypertensive patients, there is an increased risk of having a stroke. So there’s a sizeable amount of the population that are currently being treated for more than one of these chronic illnesses. Furthermore, these conditions have familiar predisposition so there may be more than 1 patient in the family.
  • Traditionally, doctors only treat the patient. They don’t engage the family. There is a one-dimensional interaction and the patient. The patient needs to change their eating habits, exercise regime and other lifestyle choices. However, they lacks the support that is needed to best treat the disease. And then there’s the added financial expenses. So the burden of health wears heavy on the patient.
  • But what can BI do for them? Well, firstly and perhaps most importantly, BI has the 6 drugs that treat these diseases. Secondly they have partners in the industry, non-profit organisations such as the American Diabetes Association. And a current distribution channel – healthcare providers, pharmacists and distributors.
  • And they all fall into place in the Me & Mine programme. The family loyalty programme designed to maximise the efficacy of treating a disease. It provides an ecosystem for patients to receive information, alleviates financial cost, holds events for family members to get involved in lifestyle changes and introduces complementing businesses.
  • Inside core
  • BI Business Development

    1. 1. Me and Mine Team 4 Hai Do, Hari Bysani, Helina Solomon, Olamiji Sofela, Vipul Sonavane
    2. 2. Agenda  Insights  Market Analysis  Current Resources  The M&M fit  Impact  Contact points  Conclusion 3
    3. 3. Insights Customers 4
    4. 4. Insights Customers Burden of Health Legislation 5
    5. 5. 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
    6. 6. 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
    7. 7. 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
    8. 8. 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
    9. 9. 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
    10. 10. The M & M Fit Me And Mine - A family loyalty program Events Discount Me & Mine Newsletter Partnerships 11
    11. 11. The M & M Fit Events  Health Talks  Diagnostic Campaign  Health Activities  Health Campaign Events Discou nt Me & Mine Partner ships Newsl etter 12
    12. 12. 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
    13. 13. 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
    14. 14. 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
    15. 15. 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
    16. 16. 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
    17. 17. 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
    18. 18. 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
    19. 19. Thank you. 20
    20. 20. Support Slides 21
    21. 21. 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
    22. 22. 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
    23. 23. 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
    24. 24. 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
    25. 25. 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
    26. 26. McKinsey Report 27
    27. 27. 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

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