Presentation held at the occasion of the 2017 European Pharma Market Research Conference: How and where does innovation happen? What can the pharmaceutical industry learn from other industries?

1. 42 IS THE ANSWER.
NOW WHAT EXACTLY IS YOUR QUESTION?
Michael Pröschel
Head Northern Europe and General Manager Germany
Vifor Pharma
October 24th 2017
MARKET RESEARCH IN THE CHANGING BIOPHARMACEUTICAL WORLD

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3. © M Pröschel - Market Research in the Changing Biopharmaceutical World Oct 24, 2017 3
INNOVATION AHEAD
BMW Group Investor Factbook, September 2017 , PAD: Partially Automated Driving, HAD: Highly Automated Driving, FAD: Fully Automated Driving

4. © M Pröschel - Market Research in the Changing Biopharmaceutical World Oct 24, 2017 4
INNOVATION AHEAD
Daimler Corporate Presentation Q2 2017

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INNOVATION AHEAD
How a company
enables
innovation
Proprietary
processes that
creates value
Basic features,
Performance and
functionality
Extended systems
that surround your
offering
How you service
your customers
How you connect
your offerings to
your customers
How you express
your offering’s
benefit to the
customer
How you create
an overall
experience for
your customers
Enterprise
structure and
value chain
How the
enterprise makes
money
Source: Doblin – 10 ways to Innovate

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Source: Doblin – 10 ways to Innovate
INNOVATION AHEAD

7. © M Pröschel - Market Research in the Changing Biopharmaceutical World Oct 24, 2017 7
Source: Doblin – 10 ways to Innovate
INNOVATION AHEAD
But: Less than 2% of innovations produce more than 90% of value

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INNOVATION AHEAD
BIOPHARMACEUTICALS
P4P
HCP Patient

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INNOVATION AHEAD
CONVERGENCE

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CONVERGENCE
AS WE KNOW IT
In the life sciences industry, convergence is defined as the integration of two or more core technologies (diagnostics, devices, and/or drugs) to create an improved health care product.

11. © M Pröschel - Market Research in the Changing Biopharmaceutical World Oct 24, 2017 11
CONVERGENCE AHEAD
DRIVEN BY DIGITALIZATION AND DATA
P4P
Digitalization & Data (mining, management, connectivity, analytics, algorithms, AI)
P4P
“Directed”

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CONVERGENCE AHEAD
NETWORKING IN THE DIGITAL SPACE

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CONVERGENCE AHEAD
FROM FITNESS TRACKER TO HIGH-END BIOSENSORS

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CONVERGENCE AHEAD
”DIRECTED” P4P
Lab data
Dosing recommendation
plus iv iron, Erythropoietin supply
>70% adherence required
Algorithm
Outcomes (Hb levels)
Fixed fee per patient

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CONVERGENCE AHEAD
INTEGRATED PATIENT MANAGEMENT (CHF PATIENT)
ONE
NON-
INVASIVE
DEVICE
(eg in your
Car)
Hyperkalemia
Potassium
Fluid Retention
“body weight change”
other
Biomarkers & Devices
Cardiovascular
Blood pressure
BNPs / Phosphate
Sodium / Glucose
Iron Defficiency
Tf saturation
Hepcidin
Hb
Patient Self Monitoring
Patient Monitoring Service
Proactive patient support
Application for
Data Collection,
Analysis
& Monitoring
Education/
Coaching
+ Dr Google
Dr Watson
Patient
eDoctor
Dr Google
Dr Watson
+
Medicine /
Treatment
Hospitals
Pharmacies
Labs & Pharma
Companies
+ Payer
Health Cost
+
REAL TIME

16. © M Pröschel - Market Research in the Changing Biopharmaceutical World Oct 24, 2017 16
CONVERGENCE AHEAD
DIGITAL TREATMENTS
Source: Financial Times June 5th 2017
“Which will be the first
pharmaceutical company that does
not produce a single drug?”
Tim Kneen
Executive President, Merck

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INNOVATION AHEAD
BEING PREPARED FOR WHAT DOES NOT EXIST YET
BMW Group Investor Factbook, September 2017

18. © M Pröschel - Market Research in the Changing Biopharmaceutical World Oct 24, 2017 18
INNOVATION AHEAD
THE PATH YOUR COMPANY IS TAKING…
… DEFINES HOW MUCH YOUR MARKET RESEARCH IS CHANGING.
Supplier of good drugs
P4P
“Directed”
Supplier of better outcomes

19. © M Pröschel - Market Research in the Changing Biopharmaceutical World Oct 24, 2017 19
THE ANSWER TO THE ULTIMATE QUESTION