Responses of Pharma to a changing climate … with a focus on the Canadian market Nat Bourre Marketing 4 Health Inc. www.pharmaceutical-marketing-coach.com York University, Schulich School of Business, February 25 2009

Snapshot of today’s pharma industry Patent expiries Weak pipeline R&D challenges Filing challenges Promotional restrictions Payer influences Corporate cost cutting measures

Patent expiries

Weak pipeline

R&D challenges

Filing challenges

Promotional restrictions

Payer influences

Corporate cost cutting measures

A peak at pharma in 5 years

The market will continue to grow * Ref.: The Chronicle of Healthcare Marketing, ‘The next five years in Pharma’. December 31 2008. * Between now an 2012

Mergers and Acquisitions Pfizer and Wyeth Roche’s bid for Genentech GSK expects to make further acquisitions in 2009 Win-win for pharma and biotech new products for pharma and funding for biotech

Pfizer and Wyeth

Roche’s bid for Genentech

GSK expects to make further acquisitions in 2009

Win-win for pharma and biotech

new products for pharma and funding for biotech

Co-promotions Ref.: Nat Bourre. http:www.pharmaceutical-marketing-coach.com

Enter generic market Maintain molecule market share with brand + generic version

Maintain molecule market share with brand + generic version

Outsourcing R&D Manufacturing Sales ‘ Between 2003 and 2008, the amount of outsourcing grew from 26% to 36% and it is estimated this number will increase to 50% by 2012.’ Ronnie Miller (OPMA, Jan 2008)

R&D

Manufacturing

Sales

‘ Between 2003 and 2008, the amount of outsourcing grew from 26% to 36% and it is estimated this number will increase to 50% by 2012.’

Ronnie Miller (OPMA, Jan 2008)

Promotions More patient-focused vs. brand-focused Use of internet Health 2.0, e-detailing Evolving promotion guidelines (industry association and in-house)

More patient-focused vs. brand-focused

Use of internet

Health 2.0, e-detailing

Evolving promotion guidelines (industry association and in-house)

Stakeholder Rx influence Greater payer influence (public and private) Greater pharmacist influence Greater consumer influence

Greater payer influence (public and private)

Greater pharmacist influence

Greater consumer influence

Specialty Products Ref.: Evaluate Pharma. World Preview 2012. June 2008.

Globalization Developing countries Market potential Outsourcing potential Ref.: Michael Steiner et al. The Continuing Evolution of the Pharmaceutical Industry: Career Challenges and Opportunities. December 2007.

Developing countries

Market potential

Outsourcing potential

The future of pharma is bright ‘ If you don’t like something, change it. If you can’t change it, change your attitude.’ Maya Angelou

‘ If you don’t like something, change it. If you can’t change it, change your attitude.’

Maya Angelou

Opportunities in pharma? YES

YES

Expertise to build a pharma career Sales Market research Government affairs / Private payer managers Regulatory expertise Co-promotion partnership management Marketing Agency

Sales

Market research

Government affairs / Private payer managers

Regulatory expertise

Co-promotion partnership management

Marketing

Agency

Highly-valued skill sets ‘ Ability to manage decentralized intellectual capital resources’ ‘ Ability to work in joint ventures and across divisions, cultures and countries’ ‘Ability to integrate an understanding of intellectual property laws, scientific expertise and business strategy’ Ref.: Michael Steiner et al. The Continuing Evolution of the Pharmaceutical Industry: Career Challenges and Opportunities. December 2007.

‘ Ability to manage decentralized intellectual capital resources’

‘ Ability to work in joint ventures and across divisions, cultures and countries’

‘Ability to integrate an understanding of intellectual property laws, scientific expertise and business strategy’

Highly-valued skill sets ‘Ability to spur creativity while managing commercially’ ‘Knowledge and insight on the decision-making dynamics of payers’ ‘Expertise in the functioning and decision-making of regulatory agencies’ ‘Human resource skills to help transform pharmaceutical companies’ Ref.: Michael Steiner et al. The Continuing Evolution of the Pharmaceutical Industry: Career Challenges and Opportunities. December 2007.

‘Ability to spur creativity while managing commercially’

‘Knowledge and insight on the decision-making dynamics of payers’

‘Expertise in the functioning and decision-making of regulatory agencies’

‘Human resource skills to help transform pharmaceutical companies’

Nat Bourre Marketing 4 Health Inc. www.pharmaceutical-marketing-coach.com Contact me on LinkedIn, Twitter (@pharmacoach), and FaceBook. Become a fan of ‘ Pharmaceutical Marketing Coach’ On FaceBook.