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Beyond the Regulatory Process:
Creating a Market for Biosimilars


                      Gil Bashe
                      Executive Vice President
                      MakovskyHealth
                      212.508.9672
                      gbashe@makovsky.com        1
The long-term issue for biosimilars will be market
penetration. That is and will remain the heart of the
biosimilar challenge in Europe and in the US… as for how
biosimilars will get to patients after that: I’m not sure if
there’s a model yet.




                             Ronny Gal, Analyst
                             Bernstein and Company


                             May 19, 2009
                                                               2
Snapshot US
Laws and Regulations                        Payer Perspective
March 2010: biosimilars must be             No „„A‟‟ rating in FDA‟s Orange Book.
subject to at least one clinical trial to
demonstrate safety and efficacy

Analytical studies that demonstrate         Pharmacists or hospitals may not
that the biological product is highly       substitute automatically a biosimilar for
similar to the reference product
notwithstanding minor differences in        brand.
clinically inactive components

FDA can determine that some of these
data are unnecessary

Administration route, dosage form, and
biological product strength are the
same as the reference product

12 years market exclusivity to
innovator.


                                                                                        3
Snapshot Europe
Laws and Regulations                   Payer Perspective
EMEA requires extensive testing        Decision of interchangeability of
                                       biosimilars and innovator made by
EMEA takes a case-by-case              individual member states
approach
                                       France, Spain and Netherlands ban
Biosimilars are required to undergo    pharmacists from substituting a
post-marketing monitoring just like    biosimilar version if a physician has
new innovative biologies               prescribed the original

Requires “differences between the
similar biological medicinal product   UK has not banned substitution;
and the reference medicinal            however, has said it doesn‟t expect it
product are justified by appropriate   to occur.
studies”

10 years of market exclusivity for
innovator.


                                                                                4
Different Market Dynamic From Generics

Market Share Generics   Market Share Biosimilars




                                                   5
Shifting Operations from Process to Patient



Current focus of biosimilar companies is on regulatory
process, overcoming legal hurdles, approval,
manufacturing and product distribution channels




Consider all of the day-to-day operational logistics and
create buy-in from managed care, physicians and patients



                                                           6
Connecting the Confidence Continuum

                  Patient/caregivers


  Government                             Prescribers




 Payers          Biosimilar Conversion           FDA/EMEA




          KTLs                           Specialty distribution

                      Media
                                                                  7
Case Study 1-rhGH
                           The Case for Patient Support

•   Five patent-protected products dominate
    US market
•   FDA approves Omnitrope for US market
    in 2006
•   KOLs concern for safety and compared
    growth effect
•   Omnitrope 2007 sales - $7MM - just
    0.3% of rhGH market

1. No data
2. No patient support services
3. No comparable device vehicle




                                                          8
Case Study 1-rhGH
•   OmniSource patient support program
    created
•   Save As You Grow coupon program
•   Approval for two doses in pen applicators
•   In the US, the brand has overtaken
    Teva‟s Tev-Tropin as leading follow-on
    human growth hormone, while more than
    30% of naïve patients in Europe are now
    being treated with Omnitrope

    As a company, we over-estimated the
    importance of price alone. Healthcare
    stakeholders [doctors, payers and
    patients] care about cost when other
    things are equivalent.
          Ameet Mallik, Global Head Sandoz Biopharmaceuticals
                              November 22, 2010




                                                                9
Case Study 2 – Hospira
           The Case for Data
       •   Retacrit was studied to show it is comparable with the
           reference medicine, Eprex/Erypo, in experimental models and
           in humans
       •   Rigorous Phase III clinical trial demonstrating comparable
           efficacy and safety between epoetin zeta and the reference
           product, epoetin alfa, when administered SC in patients with
           end-stage renal failure on chronic haemodialysis
       •   CHMP concluded, in accordance with EU requirements,
           Retacrit has been shown to have a comparable quality, safety
           and efficacy profile to Eprex/Erypo
       •   12% market share in 2010 (Hospira Q4 2010 earnings call)

           We've been growing faster than the market, and we really
           believe we can continue to grow faster than the market, I see
           that going on for an extended period of time.
                                      Chris Begley, CEO, Hospira
                                               September 30, 2009

1.   Data for prescribers and payers-almost 1,000 patient years
2.   Clear messages on cost savings for payers
3.   Clear messages on government advocacy
4.   Patient safety and support initiatives
                                                                     10
Biosimilar Conversations in Social Media




                                           11
Elements for Brand Uptake

        Corporate Reputation

        Scientific Process

    Legal and Regulatory Capacity

            Quality GMP

         Regional Approval

          KOL/Advocacy

           Patient Support
              Services




                                    12
What separates one company from the next is that we’re
not treated like the customers that we are, but like actual
                          patients.




                           Kevin R. Kline, Patient

                            February 17, 2009



                                                              13
Questions?




             14
Gil Bashe
Executive Vice President
   MakovskyHealth
     212.508.9672
gbashe@makovsky.com




                           15

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Biosimilars Gil Bashe 2 28 11 Final

  • 1. Beyond the Regulatory Process: Creating a Market for Biosimilars Gil Bashe Executive Vice President MakovskyHealth 212.508.9672 gbashe@makovsky.com 1
  • 2. The long-term issue for biosimilars will be market penetration. That is and will remain the heart of the biosimilar challenge in Europe and in the US… as for how biosimilars will get to patients after that: I’m not sure if there’s a model yet. Ronny Gal, Analyst Bernstein and Company May 19, 2009 2
  • 3. Snapshot US Laws and Regulations Payer Perspective March 2010: biosimilars must be No „„A‟‟ rating in FDA‟s Orange Book. subject to at least one clinical trial to demonstrate safety and efficacy Analytical studies that demonstrate Pharmacists or hospitals may not that the biological product is highly substitute automatically a biosimilar for similar to the reference product notwithstanding minor differences in brand. clinically inactive components FDA can determine that some of these data are unnecessary Administration route, dosage form, and biological product strength are the same as the reference product 12 years market exclusivity to innovator. 3
  • 4. Snapshot Europe Laws and Regulations Payer Perspective EMEA requires extensive testing Decision of interchangeability of biosimilars and innovator made by EMEA takes a case-by-case individual member states approach France, Spain and Netherlands ban Biosimilars are required to undergo pharmacists from substituting a post-marketing monitoring just like biosimilar version if a physician has new innovative biologies prescribed the original Requires “differences between the similar biological medicinal product UK has not banned substitution; and the reference medicinal however, has said it doesn‟t expect it product are justified by appropriate to occur. studies” 10 years of market exclusivity for innovator. 4
  • 5. Different Market Dynamic From Generics Market Share Generics Market Share Biosimilars 5
  • 6. Shifting Operations from Process to Patient Current focus of biosimilar companies is on regulatory process, overcoming legal hurdles, approval, manufacturing and product distribution channels Consider all of the day-to-day operational logistics and create buy-in from managed care, physicians and patients 6
  • 7. Connecting the Confidence Continuum Patient/caregivers Government Prescribers Payers Biosimilar Conversion FDA/EMEA KTLs Specialty distribution Media 7
  • 8. Case Study 1-rhGH The Case for Patient Support • Five patent-protected products dominate US market • FDA approves Omnitrope for US market in 2006 • KOLs concern for safety and compared growth effect • Omnitrope 2007 sales - $7MM - just 0.3% of rhGH market 1. No data 2. No patient support services 3. No comparable device vehicle 8
  • 9. Case Study 1-rhGH • OmniSource patient support program created • Save As You Grow coupon program • Approval for two doses in pen applicators • In the US, the brand has overtaken Teva‟s Tev-Tropin as leading follow-on human growth hormone, while more than 30% of naïve patients in Europe are now being treated with Omnitrope As a company, we over-estimated the importance of price alone. Healthcare stakeholders [doctors, payers and patients] care about cost when other things are equivalent. Ameet Mallik, Global Head Sandoz Biopharmaceuticals November 22, 2010 9
  • 10. Case Study 2 – Hospira The Case for Data • Retacrit was studied to show it is comparable with the reference medicine, Eprex/Erypo, in experimental models and in humans • Rigorous Phase III clinical trial demonstrating comparable efficacy and safety between epoetin zeta and the reference product, epoetin alfa, when administered SC in patients with end-stage renal failure on chronic haemodialysis • CHMP concluded, in accordance with EU requirements, Retacrit has been shown to have a comparable quality, safety and efficacy profile to Eprex/Erypo • 12% market share in 2010 (Hospira Q4 2010 earnings call) We've been growing faster than the market, and we really believe we can continue to grow faster than the market, I see that going on for an extended period of time. Chris Begley, CEO, Hospira September 30, 2009 1. Data for prescribers and payers-almost 1,000 patient years 2. Clear messages on cost savings for payers 3. Clear messages on government advocacy 4. Patient safety and support initiatives 10
  • 11. Biosimilar Conversations in Social Media 11
  • 12. Elements for Brand Uptake Corporate Reputation Scientific Process Legal and Regulatory Capacity Quality GMP Regional Approval KOL/Advocacy Patient Support Services 12
  • 13. What separates one company from the next is that we’re not treated like the customers that we are, but like actual patients. Kevin R. Kline, Patient February 17, 2009 13
  • 15. Gil Bashe Executive Vice President MakovskyHealth 212.508.9672 gbashe@makovsky.com 15