The document discusses accelerating innovation in ophthalmology. It notes that innovation requires focusing on patient needs, organizing for success, and making thoughtful choices regarding product innovation, disruptive platforms, delivery models, and other areas. Specific examples are provided of Alcon's innovations in cataract surgery, glaucoma surgery, vitreoretinal surgery, refractive surgery, and retinal pharmaceuticals. Alcon's collaboration with Google on non-invasive sensors and microchips is also mentioned as a potential disruptive platform.

1. 1 | Harvard Club | Jeff George | September 24, 2014
Accelerating Innovation in Ophthalmology
OIS@AAO Keynote, October 16, 2014
Jeff George

2. 2 | OIS@AAO Keynote Speech | Jeff George | October 16, 2014 | Confidential - Business Use Only
Innovation requires a three-pronged approach
Focus on patient and customer needs
Organize for success
Make thoughtful choices

3. 3 | OIS@AAO Keynote Speech | Jeff George | October 16, 2014 | Confidential - Business Use Only
Ophthalmology has tremendous unmet need
1.7BILLION
with
Presbyopia
with
Glaucoma
20MILLION
Blind from
Treatable
Cataracts
25MILLION
with AMD
67MILLION
Patients and Customers

4. 4 | OIS@AAO Keynote Speech | Jeff George | October 16, 2014 | Confidential - Business Use Only
Alcon’s mission is built on patient needs
“To provide
innovative products
that enhance quality
of life by helping
people see better”
Patients and Customers

5. 5 | OIS@AAO Keynote Speech | Jeff George | October 16, 2014 | Confidential - Business Use Only
Three key factors underscore the
growth potential in eye care
High unmet need
in emerging
markets
Aging
population
Exciting scientific
and technological
innovation
Patients and Customers

6. 6 | OIS@AAO Keynote Speech | Jeff George | October 16, 2014 | Confidential - Business Use Only
However innovation is not cheap—
especially in eye care
Cost per patient for clinical trials
USD, thousands
10
CNS Transplant Pain
14
19
11
Endo/Metab
16
Inf Dis Derm
10
22
12
CVBlood
16
8
Ophtha Onco
*Costs per patient includes all costs related to a single patient such as procedures, personnel costs, travel reimbursement. Site costs are not included.
Source: PAREXEL Biopharmaceutical R&D Statistical Sourcebook, 2011/2012
Patients and Customers

7. 7 | OIS@AAO Keynote Speech | Jeff George | October 16, 2014 | Confidential - Business Use Only
Organization
Building a successful innovation organization
requires several key ingredients
• Passion for
results
• Will to win and
‘can-do’ mindset
Performance
drive
• Clear vision of
where to go …
• . . . and how to
get there
Vision
• Strong technical
and scientific
capabilities
Capabilities
• Fast pipeline
decisions
• Clean processes
• Cross-functional
alignment
Culture and
org model

8. 8 | OIS@AAO Keynote Speech | Jeff George | October 16, 2014 | Confidential - Business Use Only
Alcon optimizes its investment structure
to support continuous innovation
Key tenets of
Alcon’s
investment
approach
Focus on therapeutic area,
not a specific technology
$1Bn R&D spend per year, agnostic
to internal or external innovation
Wide array of partnerships
Organization

9. 9 | OIS@AAO Keynote Speech | Jeff George | October 16, 2014 | Confidential - Business Use Only
Innovation requires making thoughtful choices
Delivery
Model
Product
Innovation
Disruptive
Platforms
Thoughtful Choices

10. 10 | OIS@AAO Keynote Speech | Jeff George | October 16, 2014 | Confidential - Business Use Only
Cataract innovation
Surgical Planning
Femtosecond
Laser
Clinical Plan Treatment
Intra-operative
Aberrometry
Operate
The transaction is subject to closing conditions, including anti-trust approval.
Product
Innovation

11. 11 | OIS@AAO Keynote Speech | Jeff George | October 16, 2014 | Confidential - Business Use Only
Laser &
Trabeculoplasty
Minimally Invasive
Glaucoma Surgery
(MIGS)
Filtration Procedures
Shunt/ Valve
Procedures
MicroPulse® Laser
Therapy
Ahmed™ Valve
Surgical Glaucoma innovation
Improved laser
technologies
Greater reproducibility/
faster recovery
Less invasive/
earlier intervention
Standard of care for
advanced disease
Product
Innovation

12. 12 | OIS@AAO Keynote Speech | Jeff George | October 16, 2014 | Confidential - Business Use Only
Vitreoretinal innovation
High Speed
Vitrectors
MIVS
Instrumentation
Digital Screening
Systems
Intraoperative
Diagnostics
1. Rizzo S, et al. Comparative study of the standard 25-gauge vitrectomy system and a new ultrahigh-speed 25-gauge system with
duty cycle control in the treatment of various vitreoretinal diseases. RETINA 31:2007-2013, 2011.
Membrane Peeling
Planning Treatment
Product
Innovation

13. 13 | OIS@AAO Keynote Speech | Jeff George | October 16, 2014 | Confidential - Business Use Only
Retina Pharma innovation
Fovista®
Wet AMD/ DME/ RVO
Geographic Atrophy
Intravitreal Injection Topical
Vitreomacular Adhesion
Wet AMD Wet AMD
Wet AMD
Current treatments Potential future treatments
Product
Innovation

14. 14 | OIS@AAO Keynote Speech | Jeff George | October 16, 2014 | Confidential - Business Use Only
Portable, low cost
refractor
Virtual reality headset
for Amblyopia
Telescopic contact
lens for AMD
Accommodating
lens
Refractive innovation
Product
Innovation

15. 15 | OIS@AAO Keynote Speech | Jeff George | October 16, 2014 | Confidential - Business Use Only
• Strengthens Alcon’s leadership in contact lenses and intraocular lenses
• Involves non-invasive sensors, microchips, and other miniaturized electronics
• Focuses currently on diabetes and presbyopia
Alcon’s collaboration with Google could
transform presbyopia and diabetes care
Disruptive
Platforms

16. 16 | OIS@AAO Keynote Speech | Jeff George | October 16, 2014 | Confidential - Business Use Only
Alcon Phaco Development Program
creates access to latest technology
Comprehensive and sustainable cataract care
• Promoting use of phacoemulsification (gold standard)
• Investing in organizational resources and innovation
• Introducing standardized training
Results to date
• Launched in China, India, Vietnam, and Russia
• Over 1,400 doctors trained
• Over 500,000 phaco procedures
Delivery
Model

17. 17 | OIS@AAO Keynote Speech | Jeff George | October 16, 2014 | Confidential - Business Use Only
What can we do to further accelerate innovation?
3D Printing
Computer
Simulations

18. 18 | OIS@AAO Keynote Speech | Jeff George | October 16, 2014 | Confidential - Business Use Only
Think what’s possible!
Focus on patient and customer needs
Organize for success
Make thoughtful choices