Ey medica-media-forum-2011-pharma 3


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„ePatient/Health 2.0: Schlüsselfaktor für neue, zukunftsfähige Geschäftsmodelle der Life Sciences Industrie“
Impulsreferat von Matthias Wartenberg, Executive Director Advisory Service LifeScience, Ernst & Young, Eschborn

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Ey medica-media-forum-2011-pharma 3

  1. 1. ePatient/Health 2.0:Key factor fornew sustainablebusiness modelsin Life Science IndustryHealth 3.0
  2. 2. Ernst & YoungPublications Progressions 2011: Beyond borders 2010 Pulse of the industry Building Pharma 3.0 E&Y’s 24th annual 2010 New organizational biotechnology report Medical technology report capabilities and radically reveals how firms are 2010. Firms will need to enhanced business responding with business revisit key elements of processes to succeed in strategies, new funding their business models. Pharma 3.0. sources and creative deals. Prescriptions series Life sciences insights Taking wings Life Sciences topics Emerging markets Indian CRO/CMO market The Smoke Detector® Business Risk Report New Horizons Life Sciences risk topics 2010 US provider care Cash on prescription Sales and marketing Top of mind Working capital code matrix Healthcare US and EMEA technologyPage 2 © Ernst & Young – All Rights Reserved
  3. 3. Pharma 3.0 Progressions 2010 ► “If”, “when” and “why?” ► Launched in February 2010 ► Tremendous media coverage ► Based on interviews with 30 executives from the pharma industry and from “non-traditional” players ► Multiple conversations across ecosystem Progressions 2011 ► “What”, “how” and “where?” ► Launched in Feb 2011 ► Focused on implementation ► Based on interviews with 37 executives from the pharma industry and from “non-traditional” playersPage 3 © Ernst & Young – All Rights Reserved
  4. 4. Pharma 3.0From pharmas’ perspective Drivers of ► R&D productivity ► Health care reform change ► ► Patent cliff Globalization ► ► Health IT Consumerism ► Demographics ► Value mining ► Pricing & reimbursement Business Models Value Pharma 1.0 Pharma 2.0 Pharma 3.0 proposition Blockbuster drugs Diversified drug portfolios Healthy outcomes Customer Payor Physician PatientPage 4 © Ernst & Young – All Rights Reserved
  5. 5. meamedicaSource: www.meamedica.dePage 5 © Ernst & Young – All Rights Reserved
  6. 6. patientslikemeSource: www.patientslikeme.comPage 6 © Ernst & Young – All Rights Reserved
  7. 7. Pharma 3.0The health outcomes ecosystem Providers IT Information Physicians companies Social media CROs Academia Health records Medical Pharma Patients technology Telecom Biotech Med device Governments Food Insurers Retailers Consumer electronics Pharma 1.0 (drugs) Pharma 2.0 (diversified drug portfolios) Pharma 3.0 (outcomes)Page 7 © Ernst & Young – All Rights Reserved
  8. 8. Pharma 3.0 is happeningeHealth Roche – InterComponentWare Novartis – Proteus Biomedical The Financial Times Source:www.bloomberg.com Source: www.scripintelligence.com Bayer – Nintendo UCB – PatientsLikeMe Source: www.bayerdidget.co.uk/ Source: www.patientslikeme.comPage 8 © Ernst & Young – All Rights Reserved
  9. 9. Pharma 3.0 in emerging marketsLeapfrogging to 3.0 ? Mature markets Emerging Markets ► R&D productivity ► Healthcare reform ► Changing Pharma 2.0 ► Patent cliff ► Health IT regulations ► Branded generics ► Globalization ► Consumerism ► Local industry ► Innovative drugs ► Demographics ► Value mining ► Health IT ► Supply platform ► Pricing and ► Consumerism Pharma 3.0 reimbursement ► Collaborations Pharma 1.0 Pharma 2.0 Pharma 3.0 Diversified drug Pharma 1.0 Blockbuster drugs portfolios Healthy outcomesPage 9 © Ernst & Young – All Rights Reserved
  10. 10. A rapidly changing ecosystem A progress report Developing core competenciesPage 10 © Ernst & Young – All Rights Reserved
  11. 11. Pharma 3.0 repository220 initiatives enabling health outcomes Education ► Educational website ► Blogs Disease ► Patient support programs Managing patient management ► On-line communities outcomes Adherence and ► m-Health compliance ► Medical devices ► Data management Decision support ► Smartphone apps Education ► Educational websites Health Expanding ► Educational programs outcomes access Disease ► Healthcare delivery management ► Innovative distribution Financial ► Patient support programs assistance Meeting unmet Open ► R&D initiatives medical needs innovation ► New venturesPage 11 © Ernst & Young – All Rights Reserved
  12. 12. There’s an app for thatInvestments in smartphones soar in 2010 2006–09 2010Source: Ernst & Young. Charts show number of pharma company initiatives by type, as identified by Ernst & Young.Page 12 © Ernst & Young – All Rights Reserved
  13. 13. Patients - Apps Source: appstore by apple: www.apple.comPage 13 © Ernst & Young – All Rights Reserved
  14. 14. Beyond diabetesInvestments diversify across disease segments in 2010 2006–09 2010Source: Ernst & Young. Charts show number of pharma company initiatives by type, as identified by Ernst & Young.Page 14 © Ernst & Young – All Rights Reserved
  15. 15. The ecosystem advancesInitiatives by Pharma companies 78% increase in number of 3.0250 initiatives200 ► Smartphones lead the way150 ► Moving beyond diabetes into broad spectrum of disease states100 ► More holistic approaches to 50 improving outcomes 0 2006 2007 2008 2009 2010 About 220 Pharma 3.0 initiatives were launched by Pharma companies between 2006 and 2010Page 15 © Ernst & Young – All Rights Reserved
  16. 16. The ecosystem advancesInitiatives by non-Pharma companies Samsung $ 2.8b Electronic health equipment Nestle $ 0.5b Health and wellness products for diabetes, obesity, etc. Pepsico $ 2.5b Drinks/snacks inspired by Traditional Chinese Medicine Health innovation initiative GE $ 6.0b (improve care for more people at lower cost) TELUS $ 0.8b Social network for Canadian patients to manage health Non-pharma companies are investing much more: at least US$20 billionPage 16 © Ernst & Young – All Rights Reserved
  17. 17. Getting to 3.0 A road map for change Developing core competenciesPage 17 © Ernst & Young – All Rights Reserved
  18. 18. Pharma 3.0Enhanced core competencies to enable health outcomes Pharma 1.0 and 2.0 Pharma 3.0 R&D Manage Connecting patient information outcomes Manufacturing Health Expand Radically collaborative outcomes access innovation Regulatory Drugs and Meet unmet efficacy Multiple business medical M&S insights models needsPage 18 © Ernst & Young – All Rights Reserved
  19. 19. Connecting informationConnect Providers IT Information Physicians companies Social media CROs Academia Health records Medical Pharma Patients technology Telecom Biotech Med device Governments Food Insurers Retailers Consumer electronicsPage 19 © Ernst & Young – All Rights Reserved
  20. 20. Connecting informationConnect Big data Delivering New Examples of non-traditional capabilities outcomes business intelligence sources ► R&D functions but also „ To track, store and analyze from external data Healthcare technologies relationships becoming e.g., IBM is developing Manage „ To develop care tools and health insight-enabled increasingly data rich interventions atfor thepoints in patient Providers IT Information processes key medical ► Exponential increase in outcomes companies the cycle of care part of as industry as a Physicians the quantity of data being Social three-year, $100 million created media program CROs Health Aggregators Telemedicine Academia The internet of things records „ To aggregated data using (mobile health) common language and turn Health records ► Connected and context Pharma Patients Medical data into insights technology Expand technologies aware Patient registry platform access ► Generation of real time data Biotech Med Building solutions Telecom Special pharmacy device Social media Closed gardens „ To develop insightful solutions Governments from data Commercial partnerships ► Data increasingly been Food aggregated in closed, Insurers Examples: proprietary systems Meet Retailers Consumer electronics Information strategy ► Bayer Diabetes Care- Nintendo (Gameboy ► Need to negotiate access unmet „ As a new approach to IT medical diabetes reader) to, collect and analyze needs different kinds of data „ IT will► LifeScan (J&J)-Apple and be about informing (iPhone Glucometer app) in various forms driving 3.0 strategyPage 20 © Ernst & Young – All Rights Reserved
  21. 21. Radical collaborationCollaborate Pharma 1.0 & 2.0 Pharma 3.0 e-health IT Bio tech Diagno stics Devi- Bio- ces tech Med tech Telecom PE Payor Provider CRO Aca- Pharma dem. Pharma Payor Govt MOC Payors IT Med tech Payor Devi- ces IT Patient Social VC org mediaPage 21 © Ernst & Young – All Rights Reserved
  22. 22. Radical collaborationCollaborateDeliveringNew businessoutcomes Rigorous process for R&D models Pharma 1.0 & 2.0 Pharma 3.0 „ Pharma will develop large ► …require a Manage different portfolios of business model patient approach to innovation experiments e-health outcomes ► No single entity will have IT Bio tech the full complement of skills, expertise and insights to Diagnostics New approaches to IP develop innovative Devices „ Pharma will need to Telecom to learn Biotech outcomes-based business Med tech contribute assets and IP into models Payor new models that they do not PE entirely control Expand A broken system Provider access Payor CRO Pharma Academ. Pharma ► Innovation will need to be Govt Community engagement disruptive ► A focus on outcomes is „ A key driver of success will be providing a catalyst for IT the ability to engage with Med tech disruptive innovation MOC Payors customers and developers in Payor ► Assets are in place, need Meet fundamentally different ways. unmet to combine them Devices „ Open partnering and open IT medical Patient needs Social media innovative process, VC org crowdsourcingPage 22 © Ernst & Young – All Rights Reserved
  23. 23. Multiple business modelsOperate Key Partners Key Activities Value proposition Customer Customer Relationships Segments CXOs R&D, M&S Detailling to to Drugs to Physician Non traditionals Connecting information to Communities to eHealth Collaboration Health outcomes (patient, families, Payor IT Multiple business physicians) Health insurance Telecom models Prevention Managed care Technology Diagnosis Government Retailers Key Resources Treatment Channels NGO Academia Vertically integrated Adherence Detailling + value chain, IP Self-management to Patients to Integrated care Engagement + Extraprise (payor, patient, HCPs, Direct to patient Physicians Clinical and customer insights Retailers) Cost Structure Revenue Streams Classical COGS drug price x volume to to Shared, leveraged Health outcomes based Capitation, Fee for service, Risk sharingPage 23 © Ernst & Young – All Rights Reserved
  24. 24. Multiple business modelsOperateKey PartnersA multiplicity Key Activities Value proposition Customer rigorousCustomer A and systematic approach Relationships Segmentsbusiness modelsR&D, M&SCXOs Detailling „ Use commercial trials toto to Drugs to develop and experiment Physician► Diverse new value Connecting informationNon traditionals to around newto offerings Communities propositionseHealth Collaboration Health outcomes (patient, families, PayorIT Heterogeneous customer► Multiple business physicians) Health insuranceTelecom base models Prevention Manage a portfolio of Managed careTechnology Diagnosis► Diverse and new Key Resources Treatment partners Government Channels NGORetailers channelsAcademia Vertically integrated Adherence Detailling „ Investing in+ long-term potential value chain, IP Self-management to of some relationships, partner► Emerging enabling Patients technologies to Integrated care Engagement around specific challenges, + Extraprise (payor, patient, bring together complementary HCPs,► A need to experimentClinical and customer Physicians Direct to patientskills and needs insights Retailers) Manage performanceA shift to solutions „ …of developing and scaledCost Structure► Allowing to unbundle Revenue Streams initiatives knowledge from product „ Function as a value addedClassical COGS drug price x volume► With models private equity firmto to incorporating servicesShared, leveraged Health outcomes based and customer insights Capitation, Fee for service, Risk sharingPage 24 © Ernst & Young – All Rights Reserved
  25. 25. Building Pharma 3.0Six business processes Pharma 3.0 Connecting Radical Multiple business success in Pharma 3.0 competencies for information collaboration models Three core Extracting value out of large Innovative collaborations with Building and managing a volumes of data from diverse, non-traditional partners to co- portfolio of innovation models unfamiliar sources create value for each other and the ecosystem Business model development: systematically experimenting with new models that should be created or enhanced Community engagement: engaging to add personalized value and build trust Business processes Information strategy: empowering IT to guide 3.0 strategy Performance management: measuring and communicating 3.0 value drivers Capital strategy: adapting the capital agenda for Pharma 3.0 initiatives Governance, risk and controls: embracing (and managing) risk in 3.0 initiativesPage 25 © Ernst & Young – All Rights Reserved
  26. 26. Thank you !Page 26 © Ernst & Young – All Rights Reserved
  27. 27. Contact Details Matthias Wartenberg Director Advisory Services Ernst & Young GmbH Mergenthalerallee 3 – 5 65760 Eschborn, Germany phone +49 6196 996 16693 mobile +49 160 939 16693 Email matthias.wartenberg@de.ey.comPage 27 © Ernst & Young – All Rights Reserved
  28. 28. Ernst & YoungAssurance | Tax | Transactions | AdvisoryAbout the global Ernst & Young organizationThe global Ernst & Young organization is a leader in assurance,tax, transaction and advisory services. It makes a difference byhelping its people, its clients and its wider communities achievetheir potential. Worldwide, 152,000 people are united by sharedvalues and an unwavering commitment to quality.The global Ernst & Young organization refers to all member firmsof Ernst & Young Global Limited (EYG). Each EYG member firm isa separate legal entity and has no liability for another such entity’sacts or omissions. Ernst & Young Global Limited, a UK companylimited by guarantee, does not provide services to clients.For more information, please visit www.de.ey.com.“Ernst & Young” and “we” refer to Ernst & Young GmbHWirtschaftsprüfungsgesellschaft.© 2011Ernst & Young GmbHWirtschaftsprüfungsgesellschaftAll Rights Reserved.