This document discusses strategic trends in the healthcare industry, with a focus on opportunities around data and informatics. It notes that healthcare data has expanded significantly due to regulations, technology adoption, and data digitization. This has transformed business processes across biopharma, pharmacies, managed care, and point-of-care. International healthcare markets continue to see higher growth than the US. The pharmaceutical model is also evolving from large trials and blockbuster drugs to smaller trials and specialty/orphan drugs. The document identifies potential growth areas around aggregating different types of healthcare data.

1. CONFIDENTIAL
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All Rights Reserved. Permission Required Before Duplication.
BioPharma Data:
Strategic Trends & Market Opportunities

2. CONFIDENTIAL
Copyright 2014 Nintai Partners
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Strategic Trends: Healthcare
Data and Informatics Continues to Transform Healthcare
Over the last several years, the breadth and depth of data and informatics available to healthcare has
exploded. Reasons for this include regulatory pressure (CMS HITECH, Meaningful Use, etc.), technology
adoption (EMR, CTMS, etc.), and data digitization (NDC supply chain, CPOE, etc.) All of these have
created pressure to rethink strategy and redesign business processes to reflect these realities.
BioPharma Pharmacies
Managed
Care
Point-of
Care
Technology/Data
Changes/Initiatives
Strategic/BP
Impact
1. e-Prescribing
2. Collaborative Drug
Therapy Mgmt
(CDTM)
3. EHR Integration
(Immunizations,
Meaningful Use)
1. Clinical Trial Mgmt
Systems (CTMS)
2. Sales/Promotion
Tools (Multi-Channel)
3. Supply Chain (NDC/
Cold Chain)
1. Plan/Patient
Modeling
2. Formulary
Management
3. Codes, Grouping,
and Billing
1. Electronic Health
Records (HER/EMR)
2. Computer Order
Entry/e-Prescribe)
3. Clinical Decision
Support (CDSS)
BioPharma is utilizing
data to transform its
sales model and R&D
efforts. Combined with
strategic outsourcing,
informatics is 2nd largest
trend.
As pharmacies grow
further integrated
upstream (PBMs) and
downstream (POC), data
and informatics are
playing a key role in
transforming pharmacy
role in care
Managed care are
utilizing informatics to
better integrate care
and squeeze costs from
the care delivery
process. Patient care is
better integrated.
The digitization of
clinical information has
transformed both
hospital and ambulatory
care. ADEs and CAFs
show downturn.

3. CONFIDENTIAL
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Strategic Trends - Healthcare
Affordable Care Act (ACA) Will Create Additional Strategic Changes
With the passage of ACA there will be an evolving role for each of the major players in the healthcare
delivery system. Accountable Care Organizations (ACOs) will be capable of replacing the traditional
payer role of capitation. In addition, evidence based medicine (EBM) requirements will require a
tremendous increase in the volume and integration of data. Last, electronic health record (EHR)
Meaningful Use requirements will place great demand on patient data.
Healthcare
Information
Providers (HIP)
Clinical
Decision
Support (CDS)
Point of Care
Decision Making
Hospital/Clinical
Administration
Drug Pricing &
Formulary Status
CPOE
Support
Computer
Physician Order
Entry (CPOE)
Managed
Care Organization
Evidence
Based Medicine
(EBM)
Patient
Outcomes
EMR/EHR Platform
Supply Chain
Data
Pricing
Data
Rx
Data
Sales
Data
Longitudinal
Data

4. CONFIDENTIAL
Copyright 2014 Nintai Partners
All Rights Reserved. Permission Required Before Duplication.
Strategic Trends - Healthcare
International Markets Continue High Growth
While spending has maintained a relatively slow/stable growth in the U.S. (3.9% 2009, 3.9%
2010, 3.9% 2011, 5.4% 2012), international growth remains robust. As seen below, growth in
all major spending categories (overall healthcare, healthcare IT, and healthcare informatics)
remain stronger than the US. It is important to note that some countries/regions (China, Turkey,
India) lead with significantly higher rates.
Total Healthcare
Spending (2009 – 2012)
Healthcare IT
Spending (2009 – 2012)
Healthcare Informatics
Spending (2009 – 2012)
3.9%
U.S.
6.2%
Source: Healthcare IT
International
8.2%
9.4%
8.4%
9.8%

5. CONFIDENTIAL
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Strategic Trends - Pharmaceuticals
No industry has survived by continually cutting their way to
survival. The ultimate long term health of the industry will be
driven by sustainable and profitable growth. To achieve
this, R&D will need to increase productivity & IRR.
Providing content with speed
and quality needs to be
combined with new sponsor
decision models. Any new
model must be able to
achieve extraordinary results
through customized internal
process design.
New relationships will need
to be created – with
incentives for both cost
savings and corporate
growth. These relationships
will require more flexible and
integrated business models
along with shared risk.
Three New Drivers Push Pharmaceuticals
As pharmaceuticals look to create value in such a new environment, three key drivers will be necessary to
compete. First, companies must find new ways to increase drug discovery and development (D3) to have
drugs to market. Second, vendors will need to create new methods in sharing risk with their
pharmaceutical clients. Last, companies need to find a way to utilize data and informatics to make quicker
AND more informed decisions.

6. CONFIDENTIAL
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Strategic Trends - Healthcare
Pharmaceutical Model Is Evolving
The last ten years has seen an enormous shift in the pharmaceutical model. The traditional sales model
has been nearly eliminated (150K sales rep positions eliminated) and replaced with an MCO
reimbursement model (driven by formulary, EMR order sets, etc.) demanding a new promotional model.
At the same time, the blockbuster drug model has ended and replaced by an specialty orphan drug
model. It is estimated that specialty drugs will be nearly 75% of all NMEs by 2020.
Small Phase III
CML Trial
N = 1
Trial
Attributes
Product
Attribute
Orphan
<$100M Revenue
Drug Attributes Market
Characteristics
Drug R&D
Cost
Agile Low
$230M - $280M
Potential Patient
Population
Very Low
5,000 – 10,000
Drug Cost
First Line
Standard of Care
Lower
$50 Co-pay
$1,080/dose
Dates: 2026+
Personalized Agile
Large Phase III
Cardio Trial
N = 6,600
Trial
Attributes
Product
Attribute
Blockbuster
>$1B Revenue
Drug Attributes Market
Characteristics
Drug R&D
Cost
High
$850M - $1.1B
Potential Patient
Population
High
16M – 31M
Drug Cost
First Line
Standard of Care
Low
$3 Co-pay
$.71/pill
Dates: 1960 - 2006
Blockbuster Internal

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Potential Areas of Growth: BioPharma Data
Market
Rollup
Rx
Data
Sales
Data
Lx
Data
Specialty
Data
Data Business Process
Level of Effort
(Lower is Better)
Incremental Revenue
(Higher is Better)
Competition
(Lower is Better)
9 6 8 2 5
4 4 3 8 5
8 8 9 2 5
Supply
Chain
6
8
4
The traditional sources of data (such as IMS prescription data) are being swamped by the
depth and breadth of new new data sources ranging from point-of-care clinical (such as EMR)
to evidence based medicine to supply chain data.