2. Novartis is a leader in Healthcare and a major investor in Ireland,
employing over 1,500 people across 4 sites
• 1,134 manufacturing and development jobs in
Ringaskiddy and Alcon
• Commercial offices based in Dublin in Beech Hill
Office Campus and Elm Park Office Campus
Source: Novartis data on file 2014
3. Novartis is committed to bringing research to Ireland
• Novartis Commitment to
clinical trials in Ireland
- 25 clinical trials
- Involving over 1,100 Irish
patients
• In Neurology, Dermatology,
Ophthalmology, Cardiology,
Oncology . . .
• . . in partnership with 20 Irish
hospitals
Source: Novartis data on file & Infographic 2014
4. Powerful trends are changing the healthcare landscape
4
1
billion
Population
will increase by
>500
million
Additional
50+ year olds
2 0 1 5 - 2 0 2 5
70%
of all illnesses
Chronic
diseases
Source: Projections from UN; WHO
5. Powerful trends will change the Irish healthcare landscape
5
356k
(8%)
Irish Population
will increase by
>390k
(27%)
Additional
50+ year olds
2 0 1 6 - 2 0 2 6
70%
of all illnesses
Chronic
diseases
Source: CSO data M2F2 Assumptions
6. Healthcare spending to double1
Healthcare spending will double as a result
6
1 Projected Global Healthcare Spend, expressed in nominal terms
Source: Economist intelligence Unit, World Bank, Global Insights, BMI, OECD, McKinsey Strategy & Trend Analytic Center
2x
2 0 1 5 - 2 0 2 5
7. + 15%
+ 22%
-7 %
80
100
120
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Prices of Prescribed Medicines Relative to Health Sector Prices & the
Economy -- Consumer Price Index (Base Jan 2005=100)
CPI
Health
Prescribed drugs
Price of Medicines over the last 10 years have
declined versus overall CPI and Healthcare.
8. Societal Impact of Innovation in medicines extends
beyond Patent Life
| Presentation Title | Presenter Name | Date | Subject | Business Use Only8
years
benefit to societycompany revenue
benefit to society
Company Investment
annual
net
benefit
launch patent expiry
Examples (WHO List of Essential Medicines)
• artemether+lumefantrine (malaria)
• deferoxamine (haemoglobinopathies)
• levodopa+carbidopa (parkinson)
• terbinafine (fungal diseases)
• triclabendazol (antischistosomals & antitrematode)
+
20
Company Impact
Societal Benefit
9. Moving to a model focused on OUTCOMES
9
Treating signs & symptoms
Hypertension, blood
sugar levels
Focus on overall clinical outcomes
Less heart failure exacerbations,
fewer hospital admittances
Today
Product plus offering
The product + measures to enhance
outcomes: diagnostics, telehealth
technology, apps
Product offering
The product itself
Selling medicines & devices
Customers with fixed budget
for pharmaceutical and device
spending
Partnering for better health
Partnering with customers to achieve
good clinical outcomes against
sustainable healthcare spending
Tomorrow
`
12. 12148223-28 NVS External stakeholder presentation v26Jan2015.pptx
Outcomes orientation allows creation of greater value in
healthcare systems
Population-specific
Starting point is to focus
on improving patient
outcomes
Better quality of care is
often less expensive
over the long-term
Better quality care at
equal or lower cost leads
to higher value in the
system
Improve outcomes Reduce overall costs Increase financial sustainability
Cost of delivering the outcomes
Health outcomesSustainable
Health Care =
13. 13148223-28 NVS External stakeholder presentation v26Jan2015.pptx
Government
/payor
Other suppliers
IT
Device
Pharmaceutical
industry
Improved
Outcomes
Physicians
GPs
Specialists
Patients
Patients
Caregivers
Providers
Hospitals
CHCs
Partnership & Collaboration Key
An outcome based system will benefit all participants
14. 14148223-28 NVS External stakeholder presentation v26Jan2015.pptx
Call for action
Outcomes are the path to sustainable healthcare
We can all help in different ways
Novartis is eager to help and change our role
