Winning in Pharmaceutical Emerging Markets with Analytics

WINNING IN PHARMACEUTICAL EMERGING MARKETS WITH ANALYTICS Bringing Pharmaceutical Emerging Markets into Focus The average cost to develop a new drug is between takes 12 years from discovery to market $4 billion fewer than 1 in 10 drugs that start human clinical trials make it to market and can be as much as $11 billion Given the enormous cost to develop a new drug, MATURE PHARMA MARKETS ARE STAGNATING TOTAL PHARMA SPENDING: Developed markets 2006 2016 73% 57% U.S. Japan Europe due mostly in part to expiring patents brand-name drugs PHARMACEUTICAL MARKETS Pharma Market Growth (2011-2012) vs. Market Size (2012) Emerging markets 35 Argentina', India?, China', Nigeria, Egypt, Saudi Arabia, Ukraine, Pakistan, Algeria, Vietnam, S. Africa, Indonesia, Thailand, Venezula, Poland, S. Korea, Russia, Turkey, Brazil 30 25 Growth 20 (%) 15 Mature markets 10 U.S., Canada, U.K., Italy, Spain, Germany, France, Japan 10 100 1,000 Pharma market size (in US$ billions) PHARMA GLOBAL SPENDING Rest of Europe Canada 2006 2006 (O 2% EU 5 S. Korea 2011 2011 O2% 2006 19% 2006 (1% 2016 5% 2016 2% 2011 17% 2011 1% Russia 2016 13% 2016 1% U.S. China 2006 41% Egypt India 2011 34% Japan 2016 31% 2006 10% 2011 12% Brazil Pharmerging 2016 O 10% Rest of World 2006 ) 14% 2006 6% 2011 20% 2011 7% 2016 30% Six top emerging markets-China, Russia, India, Brazil, South Korea, and Turkey- notching $5.8 billion in sales in 2011, up from just over $4.6 billion in 2010 2016 8% Global Pharm Market Value 2006-2016 in US$ billions |Emerging markets I Other markets 2/3 $1,190 billion $956 billion 30% of pharmaceutical sales growth will come from emerging markets, the equivalent of approx. $150 billion in new $658 billion 20% 14% 70% 80% 86% revenues 2006 2011 2016 A LOOK AT AN EMERGING MARKET CASE STUDY: AFRICA Africa accounts for 24% of the global disease burden 15% of the world's population & Population in 2010 Africa's middle class increased to 34% of the continent's Over the past ten years real income per person has increased by more population in 2010 to nearly 313 million people than 30% Lower Middle 34% Upper Pharma Growth $45 billion 20-30% of Africa's $30 billion opportunity in 2016 will be driven by the top 10 cities in the continent: $30 billion Algiers, Algeria $700 million $18 billion Alexandria, Egypt $600 million Casablanca, Morocco $1.6 billion Cairo, Egypt $1.8 billion 2013 2016 2020 Projected Compound Annual Growth Rate (CAGR): 14% Lagos, Nigeria $600 million 30% of the world's total mineral reserves: 60% of global cobalt deposits Pretoria, South Africa $800 million 40% of the world's gold Johannesburg, South Africa $1 billion Cape Town, South Africa $900 million 66% of world's diamonds Durban, South Africa $500 million East Rand, South Africa $600 million BIG DATA APPROACH Traditionally, introducing pharmaceuticals to a new market was a logistical nightmare. The cost due to proliferation and complexity of data was not sustainable TRANSFORM VISIONARY Iterative Business Innovation AUTOMATE INNOVATOR Systematized Action COMPETITIVE OPERATIONALIZE Ubiquitous Analytics Use LEADER ADVANTAGE PREDICT & OPTIMIZE PERFORMER Forecasts; Simulation; Prescription DIAGNOSE FOLLOWER Root Cause; Deep Detail MEASURE LAGGARD KPIS; Exceptions VALUE DESCRIPTIVE EXPLORATORY PROACTIVE CONTINUOUS REPEATABLE REAL-TIME UNDERSTANDING EMERGING MARKET STRATEGY, PRICING AND LAUNCH PLANNING: Identify Target Markets & Measure Market Performance Predict Emerging Markets & Operational-ize process 3. Transform through visualizations that clearly identify courses of action > Build market dynamic and demographic profiles by integrating data from various operational and marketing applications and data sources to identify target countries, segments and channels > Need to acount for national variations for form, strength, currency and market conditions to show performance > Work closely with local governments to allow for tiered pricing and other flexible approaches to establish value by considering local socioeconomics, disease areas, viable margins, and Determine under-represented or non-represented products and develop a pricing model for the different countries given diverse socio-economic/political conditions empower local markets to make their own decisions Utilize analytics to customize a company's product portfolio for each specific market's needs Glean information on what product gets prescribed or purchased by whom in each country (govt. agency, physician, etc.), also payer information THE WINNERS WILL BE THOSE WHO UNDERSTAND THE CHALLENGES OF THEIR MARKETS AND HAVE SMART GOALS THAT ALLOW FOR FLEXIBILITY. DOWNLOAD THE TIBCO DATASHEET: Presented by http://bit.ly/spotpharma O Spotfire NNOWSOURCING TIBCO Software Sources http://www.pharmexec.com/pharmexec/article/article Detail.jsp http://www.trust.org/item/?map=drugmakers-eye-africas-middle-classes-as-next-growth-market http://www.forbes.com/sites/matthewherper/2012/02/10/the-truly-staggering-cost-of-inventing-new-drugs http://www.scribd.com/fullscreen/132396458?access_key-key-28z7x46lwimw45titxx3&allow_share-false&show_recommendations=false http://www.economist.com/news/special-report/21572377-african-lives-have-already-greatly-improved-over-past-decade-says-oliver-august http://www.csmonitor.com/World/Africa/Africa-Monitor/2011/1019/Africa-Rising-Continent-s-income-to-triple-extreme-poverty-gone-by-2060