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BI Business Development

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A project to expand the business of BI in USA. Marketing Idea

Published in: Business, Health & Medicine
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BI Business Development

  1. 1. Me and Mine Team 4 Hai Do, Hari Bysani, Helina Solomon, Olamiji Sofela, Vipul Sonavane
  2. 2. Agenda  Insights  Market Analysis  Current Resources  The M&M fit  Impact  Contact points  Conclusion 3
  3. 3. Insights Customers 4
  4. 4. Insights Customers Burden of Health Legislation 5
  5. 5. Insights Margaret – 50     On Micardis® Recently diagnosed with diabetes At a risk of stroke She is worried Pete - 45 and Suzan – 40  Pete on Tradjenta®  Suzan is taking medication for hypertension. 6
  6. 6. Market Analysis - Getting into specifics Disease focus Diabetes Stroke Hypertens ion  Can co-exist in a single patient  Similar hereditary, environmental and other modifiable risk factors 2 or more family members therapy 1 person with multiple diseases Drug access and Discount packages 7
  7. 7. Market Analysis - Situation Doctor - Patient interaction.  One dimensional  Focus on one patient at a time  Frequent clinic visits  Patients need more and more support 8
  8. 8. Current Resources - What BI has Placement:  Product innovator  Market leader Product:  Aggrenox, Micardis, Pradaxa, Twynsta  Jentadueto, Tradjenta Partners:  Insurance company  Healthcare provider  Distribution channels  Other partners 9
  9. 9. Business Model What we have? What we can do? • Diabetes 6 • hyperten sion drugs • stroke Penetrative Pricing & campaigns Platforms What we can get? Develop • New Market • Loyalty • Brand value 10
  10. 10. The M & M Fit Me And Mine - A family loyalty program Events Discount Me & Mine Newsletter Partnerships 11
  11. 11. The M & M Fit Events  Health Talks  Diagnostic Campaign  Health Activities  Health Campaign Events Discou nt Me & Mine Partner ships Newsl etter 12
  12. 12. The M & M Fit Discounts  Discount on 6 medicines  Base discount for current customer  Additional discount for family Events members Discou nt Me & Mine Partner ships Newsl etter 13
  13. 13. The M & M Fit Partnership  Partnerships with supermarkets selling healthy food  Reward program  Partnerships Fitness centers  Discounts Events Discou nt Me & Mine Partner ships Newsl etter 14
  14. 14. The M & M Fit Newsletter  Information about disease  Disease specific diets  Diet Tips  Exercise tips Events Discou nt Me & Mine Partner ships Newsl etter 15
  15. 15. Impact PotentialMarket statistics  Population with more than one disease 7.14% or 16 million patients  Capturing just 1% , will be $36M revenue generated by M&M program Diabetes 8.3% Stroke 2.6% Hypertension 30.6% 16
  16. 16. Impact Stakeholders  Less visits to clinics  Long term support Doctors  Value-add for customers  Customer loyalty Pharmacist  Monetary benefits  Increase in customer base Insurers 17
  17. 17. Contact Points Existing channels  Pharmacists  Insurance companies  Non-profits  Existing patient assistance programs Industry  Upgrade existing savings card users  Training doctors (CME)  Educational centers Media  TV and Radio  Social Networking websites  Health mobile apps
  18. 18. Conclusion Target - One family (person) multiple diseases - One disease multiple persons Offering - Me and mine Costs: - $ 4.7 million Revenue generated: - $36M (1% of potential customer) - Long term effects - How ‘do’ able is this? 19
  19. 19. Thank you. 20
  20. 20. Support Slides 21
  21. 21. IMPACT Summary: - The U.S. Pharmaceutical Market Size = $319B - CAGR of 2.7% for the five-year period 2011 – 2016 - Expensive R&D (19%) and with B.I. (23.5%) - “Patent cliff” effect that Generic Drug producers with the Price lower than 90 percent. Effect: -In 2012, IRR = 7.2%, against 7.7 and 10.5 in two preceding years. -Estimated IRR = 7% in the future – barely covering cost of capital. -According, McKinsey’s report, average small molecular drug has NPV = - $65M
  22. 22. Three diseases and Products Three diseases and sales in 2012: * Diabetes - Tradjenta (expiry – April 24, 2017) – Sales: $151M * Hypertension - Micardis (expiry – Jan 7 , 2014) – Sales: $640M * Stroke - Predaxa (expiry – Feb 18, 2018) – Sales: $440M B.I Market share: - Diabetes: 0.5% (Tradjenta) - Hypertension: 3.1% (Micardis) - Stroke: 1.6% (Predaxa) 23
  23. 23. Word-of-Mouth or Family Solution Word-of-mouth: • At 59 percent, the majority of word-ofmouth conversations occur at home, whether offline or online. • Offline conversations occur most among females, those with a higher education, older consumers and married respondents or those living with a partner. • Online conversations are more likely among males and younger consumers. 24
  24. 24. How to measure the effect of solution? Financial Analysis: • The NPV and IRR are decreasing because the cash flows decline significantly after “Patents Cliff”. • What should we do to maintain or increase the these ratios?  Increase the cash flows (before or after “Patents cliff”) By Family Solution: - Approach effectively to new customers, - Family solution enhances the customers relationship that decreases the “chunk rate”, - This is the mutual benefit because customer will get discount with high quality product and the company is able to “lock – in” customers, - We increase the cash flows after and even before “Patent cliff”. 25
  25. 25. Overlapping Market Segments Percentage of the U.S. population: - Diabetes: 8.3% - Hypertension: 30.6% - Stroke: 2.6% -Diabetes + Stroke: 2.01% -Diabetes + Hypertension: 5.53% -Hypertension + Stroke: 2.0% -Diabetes + Hypertension + Stroke: 0.8% -Overlapping part: 7.14% or 16million patients -Assume capture 1% of overlapping part for new hypertension patients = 160k new customers x $255 = $36M Diabetes Stroke Hypertension 26
  26. 26. McKinsey Report 27
  27. 27. Report Analysis Small molecules, history estimated for average drug: Cash Flows CASES Before Patent Cliff After Patent Cliff Normal case 0 0 63 96 155 236 272 294 318 370 450 569 642 64 6 -1751 0 0 63 96 155 236 272 294 318 370 450 569 642 193 58 17 5 -1751 Solution case -1751 0 0 76 115 186 283 326 353 382 444 540 683 770 231 69 21 6 SUMMARY: ITEMS NPV Normal case Solution case ($250.43) ($196.05) $114.94 IRR 7.5% 8.1% 10.2% % Decline After Patent Cliff 10% 30% 30% % Increase Before Patent Cliff 20% 28

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