Future of Health & Wellbeing
Key trends and business opportunities
Danilo Mazzara
Trento, April 10 2014
2
Key trends and business opportunities
I. Global trends in the Healthcare
II. Digital Health convergence
III. Key opportu...
3
Key trends and business opportunities
Innovation in the Healthcare Industry highly impacted our quality of life, over
th...
4
Key trends and business opportunities
Although we live more, Chronic Diseases prevalence have been rising in all
countri...
5
Key trends and business opportunities
 4 BLN $ market
since the first
launch in 1998
Global dysfunction erectile market...
6
Key trends and business opportunities
Illustrated trends, generate a dramatic increase of the global healthcare
expense ...
7
Key trends and business opportunities
50
55
60
65
70
75
80
85
9.0004.5004.0003.5003.0001.0005000
USA
UK
Turkey
Russia
Ni...
8
Key trends and business opportunities
To deal with current challenges, leading Life Sciences players have been
redefined...
9
Key trends and business opportunities
I. Global trends in the Healthcare
II. Digital Health convergence
III. Key opportu...
10
Key trends and business opportunities
Every business is a technology business, "SMAC" technologies are driving the
chan...
11
Key trends and business opportunities
New technology waves are coming with significant grow in the mid-term
85,3
23,7
+...
12
Key trends and business opportunities
Sequenced human genome cost
Digital Health is the next wave of industry convergen...
13
Key trends and business opportunities
Connected Health is the end state vision enabling the whole healthcare
ecosystem ...
14
Key trends and business opportunities
Google Glass in the operating room
Brain control
There are several examples of ne...
15
Key trends and business opportunities
Customers have moved online
…are more connected & interactive…
…are in control of...
16
Key trends and business opportunities
Digital Healthcare is reshaping the whole "Patient Experience", they can
share th...
17
Key trends and business opportunities
I. Global trends in the Healthcare
II. Digital Health convergence
III. Key opport...
18
Key trends and business opportunities
Innovation is a key priority in the Healthcare, Start Up can have a key roles in
...
19
Key trends and business opportunities
Leading breakthrough innovation in the Healthcare comes from true life
experience...
20
Key trends and business opportunities
Healthcare affordability is the top priority, new treatment need to show both
cli...
21
Key trends and business opportunities
Customer ask for services, market niches where flexible and fast companies
can ea...
22
Key trends and business opportunities
Healthcare is a global market but strictly regulated at Country and Regional
leve...
23
Key trends and business opportunities
Long time and big investment are needed to be in the market, plan your
efforts co...
24
Key trends and business opportunities
I. Global trends in the Healthcare
II. Digital Health convergence
III. Key opport...
25
Key trends and business opportunities
Summary
Summary
1.Big and growing Market
2.Needs and for improvement
3.Technology...
Thank you !
danilo.mazzara@accenture.com
Danilo Mazzara
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Future of Health & Wellbeing - Key trends and business opportunities

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Global trends in the Healthcare and key business opportunity for new ventures

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Future of Health & Wellbeing - Key trends and business opportunities

  1. 1. Future of Health & Wellbeing Key trends and business opportunities Danilo Mazzara Trento, April 10 2014
  2. 2. 2 Key trends and business opportunities I. Global trends in the Healthcare II. Digital Health convergence III. Key opportunities for new venture IV. Summary Global Trends in the healthcare industry Agenda
  3. 3. 3 Key trends and business opportunities Innovation in the Healthcare Industry highly impacted our quality of life, over the last 50 years we have gained 12 years more and by 2050 4,3% of total population will have more than 80 years Life expectancy at birth total years (OECD Countries) 80,0 67,9 1960 17,8% Today World 1,4 1,5 3,7 4,8 2,1 6,8 1,6 6,4 7,2 7,4 11,4 4,3 14,5 16,7 20502011 Population over 80 years on total population (World and selected Countries in %) Source: Elaboration on OECD data, 2014 Global trends in the Healthcare
  4. 4. 4 Key trends and business opportunities Although we live more, Chronic Diseases prevalence have been rising in all countries (industrialized, middle income, low income), surpassing infections as a disease burden among adults  Chronic disease, refers to disease lasting three months or longer  Can be prevented trough an healthy "life style"  In USA an Europe , from 70% to 80% of total healthcare cost are related to chronic diseases management Global trends in the Healthcare 11% 10% 9% 6% 5%6% 5% Lung cancers Ischemic heart Desease Stroke Lower Respiratory infections COPD Diarrhoea desease 4% HIV/AIDS Diabet mellitus Road Ingiury Prematury 2011 28 24% 21% 11% 5% 5% 4% 4% 27 2000 21% 20% 13% 4% 4% The 10 leading causes of death in the world (distribution by causes) Chronic Diseases Chronic Disease on the top10 leading death causes 46% 49% Source: Elaboration on World Health Organization, 2014
  5. 5. 5 Key trends and business opportunities  4 BLN $ market since the first launch in 1998 Global dysfunction erectile market (%) Worldwide Aesthetic Market (in billions of dollars) K K Source: Allergan Annual Report, 2013 Source: Elaboration based on Evaluate Pharma and Med Tech  Cataracts is responsible of 50% of global blindness World cataracts procedures (mln) Alzheimer's disease or other dementias (mln on people global) Source: Elaboration on World Health Organization, 2014 Source: The Global Impact of Dementia, Alzheimer Disease International 2013 Live longer also means incurring in new aging related diseases and in addition to that, people expect a better quality of life in their "silver stage" 5,0 3,2 2,3 +10% 201720122009 135,0 76,0 44,0 +3% 205020302010 32,0 20,0 +5% 20202010 5 10 40 45100 OthersLevitraCialisViagraTotal Global trends in the Healthcare
  6. 6. 6 Key trends and business opportunities Illustrated trends, generate a dramatic increase of the global healthcare expense with deep pressures on public budget which absorbs around 60% of the whole cost +17,9% 2011 9,2% 1995 7,8% 7,8% 13,6% 6,8% 9,1% 17,9% 9,3% 42% 26% 54% 20% Pubblic Private Jap 100 80% USA 100 46% EU 100 74% World 100 58% Total expenditure on health on GDP (World and selected region) Healthcare per Payors (Government vs Private expenditure) Global trends in the Healthcare Source: Elaboration on World Health Organization, 2014
  7. 7. 7 Key trends and business opportunities 50 55 60 65 70 75 80 85 9.0004.5004.0003.5003.0001.0005000 USA UK Turkey Russia Nigeria Mexico Japan Italy Indonesia India Germany France China Canada Brazil In addition to overall healthcare cost increase is necessary to balance difference needs across the world, affordability in mature markets and the accessibility in the emerging ones 1.100 70 Health per capita cost (ppp in $) Lifeexpectancyatbirthtotalyears  Affordable in mature market  Access the emerging markets  Frugal innovation Country Population – 80 mln€ Global trends in the Healthcare Source: Elaboration on World Health Organization, 2014 Life expectancy and Health per capita expenses per Country
  8. 8. 8 Key trends and business opportunities To deal with current challenges, leading Life Sciences players have been redefined their strategic priorities, focusing on new growth opportunities and increasing operating model efficiency 1. Shifting global markets  New Markets - BRIC  New price points  New Supply chain models 2. Changing Product Portfolios 3. Customer Engagement Revolution 4. Changing cost base  Replace LOE Products  Rise of Ultra-specialty products based on biotech (e.g. orphan drugs  Rise of generics/ biosimilars  New services (e.g. Care Management)  New Customers  New Technologies  Multichannel engagement  SG&A challenges  Investment timelines  R&D Productivity Strategic Priorities Selected Example Global trends in the Healthcare NON EXHAUSTIVE
  9. 9. 9 Key trends and business opportunities I. Global trends in the Healthcare II. Digital Health convergence III. Key opportunities for new venture IV. Summary Agenda Agenda
  10. 10. 10 Key trends and business opportunities Every business is a technology business, "SMAC" technologies are driving the change and they are available to everyone anytime and everywhere Share of digital companies on…. Note 1. Source: Inter-Brands Source: Accenture Elaborations on market data, 2013 88% 84% 77% … Most Valuable Brands 100 23% … Market Capitalization 100 16% … Fortune 100 100 12% Technology Example (selected) Digital Health convergence 1 The rising of Digital Economy
  11. 11. 11 Key trends and business opportunities New technology waves are coming with significant grow in the mid-term 85,3 23,7 +29% 20182013 European App Economy1 (bln$) 3-D printing market2 (Printer sales, materials and associated services, bln$) Source: Gigaom Research, Sizing the EU app economy 2014 Nota 2. CNBC on Canalys data, April 2014 16,2 2,5 2013 2018 +45% Digital Health convergence SELECETD EXAMPLEThe rising of Digital Economy-new waves Source: CNBC on Canalys data, April 2014
  12. 12. 12 Key trends and business opportunities Sequenced human genome cost Digital Health is the next wave of industry convergence as shown by a number of initiatives both from Tech and Life Sciences players Today 1.000 $ 2000 3 Bln$ Time for sequencing 10 Years 3 days Life Sciences Players' Initiatives Tech Players' Initiatives Google reportedly investing hundreds of millions into its new life extension company, Calico Apple iWatch will be mainly about health monitoring The Breakthrough Prize in Life Sciences is founded by A. Levinson, S. Brin, A. Wojcicki, M. Zuckerberg and P. Chan, and Y. Milner to recognize excellence in research aimed at curing intractable diseases and extending human life Merck Emerges As Top Funder Of Digital Health Start-Ups GE Healthcare … $2 billion investment over 5 years …. in software and analytics to better help our customers manage the operational complexity of the healthcare systems Johnson & Johnson (J&J) has launched the Digital Health Masterclass (DHM) programme to help drive growth in the next generation of digital health businesses SELECTED EXAMPLE Digital Health convergence ource: Accenture Elaborations on market data, 2013
  13. 13. 13 Key trends and business opportunities Connected Health is the end state vision enabling the whole healthcare ecosystem to collaborate to improve efficiency and effectiveness  Information and data sharing across several healthcare players  Access trough multiple channels (e.g. Electronic Health Records, Mobile Health,…)  Boost compliance to the treatment to reduce related costs  Increase efficiency and effectiveness of the healthcare outcomes Connected Health Model Key priorities Digital Health convergence Connected Health vision and key priorities
  14. 14. 14 Key trends and business opportunities Google Glass in the operating room Brain control There are several examples of new technologies both in consumer and specialized healthcare Wearable devise Digital Health convergence Groupon 25% coupon related to health and well being SELECTION
  15. 15. 15 Key trends and business opportunities Customers have moved online …are more connected & interactive… …are in control of more information… …and are increasingly mobile… Customers (People, Patients and Physicians) are ready for the digital revolution Health is the #1 Search topic 60% say it influenced a treatment decision 76bn Searches a month >50% say online information impacts their prescription Physicians spend 8hrs/wk online (< 2.5 hrs with reps) 96% of Physicians use the web for health, medical and prescription information …Of which > 300 mln in China alone (inc by 33% year on year) 68% of US physicians join physician-only social networks >1bn Social Media users worldwide… >80% of doctors have smart phones 800m mobile Internet users Mobile web to exceed fixed access by 2014 >20.000 health-related iPhone apps >60% of doctors actively use apps Digital Health convergence Source: Accenture Elaborations on market data
  16. 16. 16 Key trends and business opportunities Digital Healthcare is reshaping the whole "Patient Experience", they can share their experiences and access to more than 20K apps trough mobile Digital Health convergence Prevention Information Diagnosis Treatment Recovery (Relapse) Patient journey Key Functionalities  Focus on factors associated with overall wellness: Healthy eating, Weight management Fitness,…  Locate physician or healthcare facility  Rate and review physicians  Appointment reminders  Reference for common symptoms  Diagnosis based on data inputted/question answered  Communication with Professionals  Order medications from the phone  Medication reminder supporting compliance  Emergency and first aid information  Condition management information Selected Leading Example Source: IMS Institute, Patient Apps for Improved Healthcare, October 2013
  17. 17. 17 Key trends and business opportunities I. Global trends in the Healthcare II. Digital Health convergence III. Key opportunities for new venture IV. Summary Agenda Agenda
  18. 18. 18 Key trends and business opportunities Innovation is a key priority in the Healthcare, Start Up can have a key roles in driving the change as shown by the huge investment by VC "I have a dream" attitude Patient first but then Payers From "Product" to "Services" Think global but act local Be credible and take your time 9,2% X 2,7 VC Invesment** 25,0% Global Market Cap* 10,6% GDP Share of Healthcare sector on …. Key success factors for a Start-Up 1 2 3 5 4 Key opportunities for new venture Source: Accenture Elaborations on market data * Based on Global Standard and Poor's ** Based on USA and Europe (NVCA, EVCA)
  19. 19. 19 Key trends and business opportunities Leading breakthrough innovation in the Healthcare comes from true life experiences, people had the passion to solve "unmet needs" Global Orphan drugs market (mln $) 127,0 83,0 28,0 20122004 2018 +11%  From 6,6% to 15.9% of total prescription business "I have a dream" attitude1  Leverage your network to find the stimulations and good idea  Partner with Healthcare Professionals to add technology on top of clinics  Build a true story around your solution Invatec (leading Italian med tech)  Acquired by Medtronic for 350 mln $ in 2010  "Recognized for developing novel devices …. in collaboration with physicians" Key opportunities for new venture Source: Elaboration based on Evaluate Pharma and Med Tech and Company Press Release
  20. 20. 20 Key trends and business opportunities Healthcare affordability is the top priority, new treatment need to show both clinical and economic benefits  Provide strong fact to show incremental benefit compare to existing treatment  Consider the whole indirect cost related to disease management (eg. care gIver)  Be able to deal with multiple stakeholders (Clinical and Buyers)  Innovative pricing scheme based on value sharing Patient first then Payers2 Key opportunities for new venture  Between 2008 and 2011, 17 out of the EU’s 28 member states have slashed their public spending on healthcare due to austerity policies Hospital Solutions, a new business focused on developing novel partnerships with hospitals to provide services directly related to hospital operational efficiency. September 2, 2013 Same trends can be observed in USA and Emerging Markets (eg. India recent cuts by 10% the 2014–15 the government) EU Member with public healthcare budget cut (100=28) 61% 29% Source: Company Press Release
  21. 21. 21 Key trends and business opportunities Customer ask for services, market niches where flexible and fast companies can easily differentiates from established players  Don't replace Healthcare Professionals but partner with them to provide a better patient experience  Find with new concept to address emerging issues: • Pharmacy of the Future • Patient Mobility • Gender • Migrants • Compliance From "Product" to "Services"3 Key opportunities for new venture -50 -45 -40 -35 -30 -25 -20 -15 -10 -5 0 5 Adherence support Lifestyle coaching and training Nurse support via phone Access to clinical trials Physician referrals Access to patient support forums Measurement tracking and alert Financial assistance Product information Rewards program 0 20 15 10 65 60 55 35 30 25 In-home nurse support Patient received (%, Reversed Axis) Patientswants Patient demand for services vs. Services already delivered by Pharma Co.1 Note1. Accenture and Coleman Parkes Research, online survey of 2.000 respondents in the US between September and October, 2013 Launch of a New Business Focused on Comprehensive, Evidence-Based Weight Management Interventions in the U.S. December 20, 2013
  22. 22. 22 Key trends and business opportunities Healthcare is a global market but strictly regulated at Country and Regional levels, key partnerships are needed to accelerate route to market Market Authorization Regulation Authority Price control Pharmacy Chain Advertising for RX Payer AIFA AIFA Yes No No Public BFARM IQWIG No No No Statutory Health Funds NICE NICE No Yes No Public FDA FDA No Yes Yes Ins./ Public Regulatory specifics across Country in Prescription drugs (Selection) EMA  Licensing and strategic alliances with global players to reach more complex market  Multichannel distribution which includes Direct sales and Distributor  Communication and promotion mix to deal with multiple stakeholders 4 Think global but act local Key opportunities for new venture Source: Accenture Elaborations on market data
  23. 23. 23 Key trends and business opportunities Long time and big investment are needed to be in the market, plan your efforts consistently, find the right skills mix and look for sustainable partners Time for approval Medical Device (USA vs EU in months) Cost new drugs (median RD cost/new drugs in bln $) 5,3 1,8 0,4 1 2-3 > 3 7,0 31,0 11,0 54,0 EUUSAEUUSA 510K/CE MarkPMA/CE Mark 5 Be credible and take your time Key opportunities for new venture 4) Launch 3) Pre Launch 12 Elapsed (months) 24 -30 6-12 3-6 Key milestones • Therapies effectiveness in the animal • Prototype • Therapies effectiveness in human • Supply chain validation • CE Registration • FDA approval • Operating model released 2) Clinical Trial and supply chain in planning 1) Pre- clinical 5 mln € investment needed before launch Real example on med tech start up # drugs per company Source: Elaboration based on Forbes, 2013 Source: USA National venture capital Association (NVCA)
  24. 24. 24 Key trends and business opportunities I. Global trends in the Healthcare II. Digital Health convergence III. Key opportunities for new venture IV. Summary Agenda
  25. 25. 25 Key trends and business opportunities Summary Summary 1.Big and growing Market 2.Needs and for improvement 3.Technology as key enable to succeed VC Invesment** X 2,7 25,0% Global Market Cap* 10,6% GDP 9,2% Share of Healthcare sector on …. Source: Accenture Elaborations on market data * Based on Global Standard and Poor's ** Based on USA and Europe Venture Association
  26. 26. Thank you ! danilo.mazzara@accenture.com Danilo Mazzara

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