Bringing medicines to low-income markets
•Download as PPT, PDF•
1 like•741 views
Presentation by Solveig Haupt, Endeva made at the Euro-Africa Health Investment Conference, March 26 - 27, 2013, London, United Kingdom.
Recommended
Recommended
More Related Content
What's hot
What's hot (19)
Similar to Bringing medicines to low-income markets
Similar to Bringing medicines to low-income markets (20)
More from PharmaAfrica
More from PharmaAfrica (13)
Recently uploaded
Recently uploaded (20)
Bringing medicines to low-income markets
- 1. 1 Bringing Medicines to Low-income Markets Solveig Haupt Solveig Haupt, endeva
- 2. Building knowledge 2 What are the key challenges and promsing approaches of business models that aim to serve patients in low income markets with medicines? Data collection • Literature research • Identification of >100 case studies with business model character • Interviews with 30 experts Analysis • Analysis of case studies based on research protocol • Inductive appoach: Clustering of results to develop framework • Organisation of data along the framework Results
- 3. A market of US$ 158.4 billion 3
- 4. 4 billion underserved people 1.7 billion people without access to essential medicines as defined by WHO • • 50% of population in India and Africa 95% of essential medicines are patent-free „Poverty Penalty“ • High medicine prices (tariffs, markups through middle men) • Expired, counterfeited or out-of-stock drugs Health system often substandard • Missing or inefficient infrastructure and health care providors 4
- 5. Challenges 5 •Lack of Data •Lack of Legal/Regulatory Environment •Lack of Physical Infrastructures •Lack of Health Infrastructure •Lack of Education and Knowledge •Lack of Access to Financial Resources
- 6. The 4As +1 tool 6 Success Formula Adapted Value Proposition + Value Network
- 7. Adapted Value Proposition Through „ 4As“ Acceptance Understanding market context and adapting products Awareness Information and Education Availability Distribution and Dispension Affordability Pricing and Financing instruments 7
- 8. With Support Of Innovative Value Networks • Public sector • Private sector • Innternational organizations • Bilateral donors • Private foundations • Micro-finance institutions und Micro-insurer • NGOs • Academia 8
- 11. Availability: VillageReach & VidaGas, Mozambique 11
- 12. Source: Sanofi Affordability: Sanofi and DNDi 12
- 13. Thank You 13
Editor's Notes
- Good afternoon and thank you very much for inviting me to this panel discussion. My name is Solveig Haupt and I am an associated expert with Endeva, a consulting and research institute based in Berlin with the mission to progress private enterprise solutions for development. What I will be sharing is drawn from My own experience in the field working back then for Pfizer Pharmaceuticals in Bd to develop a maternal health pilot with Prof Yunus Grameen Org and the report we recently finished in collaboration with many partners on looking at business models or promising approaches that could turn into a BM analyzing over 100 case studies and conducting 30 interviews. And apologiye in advance for those of you who attended the earlier session today where I showed the same results but more in detail.
- Focus was on business models. However, we did not only look at examples of big pharma companies, but also at social enterprises, NGOs that employ a business approach, MFIs, franchise pharmacies. Also, it soon became obvious that one actor cannot do this on his own – but that an ecosystem of partners is needed to make BMTLIM happen Business models or business model components Also: BM of NGOs, MFIs other private actors
- When thinking of sustainable BM we first need to understand th market. Although they are spending 160$ billion on health care and about 57 billion of this amount for medicines they are still underserved and often not get good quality for what they pay or pay more as shown in the next slide
- They either have no access, especially the lower segments within the BoP pyramid, they pay more or get low quality meds or can only receive care in a suboptimal health care system. Especially the latter one is also one of the biggest challenges for pharmaceutical manufacturers planning to conduct business in these markets... Comparing international reference prices, median prices for drugs in developing countries are 2.7 times higher in the public sector and 6.3 times higher in the private sector than in developed countries. (World Medicine Situation Report) Überleitung: Ich denke, dass wir die erste Leitfrage nach einem Markt mit Ja beantworten koennen. Also fragt man sich, warum dieser riesige und wachsender Markt am „Sockel der Einkommenspyramide“ noch nicht erschlossen wurde?
- These are the most common challenges we have been told by companies and that I certainly experienced myself. Physical infrastructure: Companies find it difficult to reach low-income patients, especially in rural villages. Road conditions are often poor, and some villages are not reached by road at all, or are accessible for only part of the year. Logistics providers are often unavailable. Health centres and medical equipment are non-existent or very rudimentary. Energy needed to keep vaccines cool is in short supply. Power outages are frequent. And although more and more people have access to mobile phones, it is still hard to reach some people, and points of Internet access are still miles away for most.
- Given these challenges It becomes clear that the existing BM of pharma copanies wonÄT really work. We found that enterprises that appear to be successful adapted their value proposition and network. We summarized this in the 4Aplus 1 Tool. Remembering the four Ps from your marketing classes, the BoP market has a different dynamic...
- Acceptance: market insights like meds or vaccines that dont need refrigeration or dont need to be taken with food Awareness: health literacy understanding the symptoms and when to see a doctor or how to take meds or how to identify counterfeit meds Availability: making sure the meds reach remote areas and are dspensed by qualified staff Affordability: too high prices of meds, lack of health insurance but also lack of credit for pharacists to stock meds
- the Plus 1 stands for the partners it needs to be done with. Health systems are very complex and cannot be handled by one actor. Also here companies need to look for new and unusual partners as these actors differ partially from the ones in high income markets. The following slides show some interesting and innovative examples but there are more in the full report that you can download under....
- Verify meds and detect counterfeits
- 09:45 – 10:15 Auf anfangsphase konzentrieren Wie habne sich partner gefunden? Was gab es für reigungsverluste? Unstimmigkeitne? Probleme? Was lief gut? Warum für partner entschieden? Dynamik – hat sie sich mit der zeit verändernt?