![Page 1: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/1.jpg)
The Generic Market Industry
The future of the generic industry.How it impacts your business today.
Saturday March 9th 2013
![Page 2: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/2.jpg)
The Future
Today low cost generics give much needed access to yesterdays drugs
Tomorrow it will take much more to significantly improve the health of millions
![Page 3: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/3.jpg)
Key Messages
Do not seek to be only the best generic company
Invest 10 times more in R&D than manufacturing
Seek out disruptive technologies that could change your company & the industry
Think about tomorrow when you consider business decisions for today
![Page 4: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/4.jpg)
Yesterday's model
Integration. Scale. Breadth.
Teva. Mylan. Actavis (Watson). Sandoz. Hospira
- International expansion to improve profitability in USA- First-to-launch generates most profits- Operational 'machines' for stock market
[Actavis, fishing company to global leader. Sandoz run like army. Teva strength exploitation]
![Page 5: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/5.jpg)
The Future
Today low cost generics give much needed access to yesterdays drugs
Tomorrow it will take much more to significantly improve the health of millions
![Page 6: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/6.jpg)
Yesterday's Success Model
Integration. Scale. Breadth.
Teva. Mylan. Actavis (Watson). Sandoz. Hospira
- International expansion to improve profitability in USA- First-to-launch generates most profits- Operational 'machines' for stock market
[Actavis, fishing company to global leader. Sandoz run like army. Teva strength exploitation]
![Page 7: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/7.jpg)
Generic Industry Overview
![Page 8: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/8.jpg)
Global EBITDA Growth 2011-2013
Generic Industry Overview
![Page 9: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/9.jpg)
Case Studies
Brazil Apotex- Invested $40m 2002-2006
- Bought facility, Corporate brand entry- ANVISA influenced to delay MA approval
- Built new manufacturing facility ($25m)- Local competition destroyed prices and profits
- Partnered with EMS & sold facility
CIPLA UK- Exclusive partner lacked knowledge of key products
- Regulatory delays removed 1st mover advantage- Partner ran out of cash for clinical studies
- CIPLA Europe plan put back 4-5 years
![Page 10: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/10.jpg)
Case Studies
Dr Reddy's US - Tactical market entry process:
API>CMO>License>Partnership>DirectSimple>Complex, >Risk, >Investment
- “Tagged along” with agent & client = knowledge and contacts- 20 year project
Celltrion- Founded 2002, $5,4bn market cap 2013
- First CMO client 2005, Co-development 2006, FDA approval 2007 (Hospira)- Stock Exchange listing 2008
- Global business development team 2009- First own biosimilar approved 2012 in Korea- India, Brazil expected next, Europe planned
![Page 11: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/11.jpg)
Today's Success Model
Differentiation. Focus. Gap analyis
Fast growth stars:- Momenta: Formulation technology- Alvogen: Emerging market focus- Antares: Biosimilar devices- Reliance Lifescience: Biosimilar focus- Celltrion: First mover advantage
Future Failure?- Sagent: Basic portfolio. Virtual model challenge.
![Page 12: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/12.jpg)
Top Drug Patent Expiration’s
Generic Industry Overview
![Page 13: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/13.jpg)
Top Biologic Therapy Areas - Global Sales 2011
Generic Industry Overview
![Page 14: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/14.jpg)
Tomorrow's Success Model?
Technology. Data. Services
Changes coming:- Dr & Pharmacy interaction (CISCO + vending machine)- Reimbursement criteria (UK NICE performance only)- Personalized medicine (biomarkers & diagnostics)- Intelligent patients (mobile apps)- Big Data (Proteus pill & Splunk)
Where does current generic company fit?
![Page 15: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/15.jpg)
Tomorrow's Success Model?
Timeline <5 years <10 years < 15 years
Pharma focus
Small Molecule Large Molecule Prevention. Repair. Personalisation
Power Authority – Industry & Dr's
Payer – Government,
Insurance
Consumer – Selection, Funds
Efficacy 50.00% 75.00% >90%
Target Volume Value Performance
Gx Model
Pure Gx Gx + Biobetter Services & Systems
Patient acquisition
Rx Model
Patent Life Patent Cliff
Core Capabilities Brand Relationship
Sustainability
Focus Manufacturing R&D Marketing Technology Service
![Page 16: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/16.jpg)
Patient Power
Trends:- Manufacturer transparency (quality, ethics, performance) [clothing, reviewing, EU regs]
- Brand relationships (experiential, 2-way, global) [Treato social, Walmart trust, Mylan & Apotex)
“I love my drug company; improves my life every day”
![Page 17: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/17.jpg)
The Numbers
Market Opportunities:
1) Fully Integrated Small Molecule $250m CDMO/LICENSING
+ Sales & Marketing $1b Global
2) Large Molecule R&D $100m + royalties+ Clinical $500m + royalties+ Sales & Marketing $3b Global
3) Tech, Services & Products $10b ?! China only ?!
![Page 18: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/18.jpg)
Impact on Today
Connect vision with deals and investments
Small Molecule: Foreign revenueLearning! - Big Pharma, LandscapeRelationships – Marketing, Dist, Payors etc
Large Molecule: Emerging market accessManufacturing technology progressClinical experiencePatient centric innovation (side affects,
compliance, cost)
![Page 19: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/19.jpg)
Market Entry Planning
Considerations
- Reason for international activity- Commitment- Time horizon- Alignment with domestic operations- Opportunity to transfer knowledge- Profitability & shareholders
- Start and end point- Investment- Capability- Risk tolerance
![Page 20: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/20.jpg)
Market Entry Planning
Considerations (2)
Value proposition: Best vs cheapest
Cheapest:- To the end (Teva)- Manufacturing assets- Domestic operations
Best:- R&D / Technology / IP- First with product
![Page 21: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/21.jpg)
Looking ahead
What should be looked at now?
Gx is “Red Ocean” business!What could be the “Blue Ocean”?
Breakthrough Innovation & Rapid Disruption- What could happen in the generic industry?
![Page 22: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/22.jpg)
Innovation & Disruption
Could the pharma industry really change?
Traditional industries can be dramatically changed Traditional players can be wiped out – e.g
- Data storage devices; tapes, CDs, zip drive- Music industry; MP3, internet promotion, Youtube- Travel agents; internet comparison websites- Bookstores; Amazon.con & Kindle- GPS devices; smartphones- Credit card machines?; Google wallet, Square
![Page 23: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/23.jpg)
Innovation & Disruption
Breakthrough Innovation & Rapid Disruption
“Pharmaceuticals are too highly regulated”- Banking? - Education? - Government? - all changing!
Environment for rapid disruption:- Mobile phones- Cloud computing- Social Media- Global economics
![Page 24: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/24.jpg)
Innovation & Disruption
New adoption model
![Page 25: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/25.jpg)
Innovation & Disruption
What are realistic generic industry 'game changers'?
Disintermediation of supply chain
- Currently: Patient – Pharmacy – Distributor – Manufacturer
- Future? Patient – Logistics - Manufacturer Online PharmacyElectronic Prescription & Smartphone ordering
- Why? Patient medication & health tracking (Nike band)Insurance company data collectionIncreased margin for manufacturer (priceline.com)
![Page 26: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/26.jpg)
Innovation & Disruption
What are realistic generic industry 'game changers'?
Compliance systems
- Currently: Bottle/blister of pills + patient memory- Waste – Cost of non-compliance - <data
- Future? Smart dose dispensing devicesCompliance pill (like Proteus)Compliance centres for expensive treatments
- Why? <Cost to payers>Treatment success
![Page 27: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/27.jpg)
Innovation & Disruption
Will you lead, follow or be lost?
Idea Watch - Harvard Business Review: March 2013
“The only thing keeping most big companies from creating new categories is their lack of imagination – their inability to see beyond what they're selling today”
Disruption survival strategies: - See it coming & try diversification“Find seers who can predict the future with insight and clarity”
![Page 28: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/28.jpg)
Innovation & Disruption
Ideas for leading
- “Big data”: China has cities the size of countries!- Distribution systems: Scale, access, security (Rpharm)- Software 'App' development: Dedicated industry incubator [Blueprint Health, Rock Health, BD BioVentures] – Export credit for downloads?!
- Industry Investment Co': Pfizer/Lilly/Abbott Venture Funds- Virtual IP development: University+API+FDF+Clinical+Marketing- Invest/partner emerging R&D: >China revenues + learn- Chief Innovation Officer: CISCO free consulting
![Page 29: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/29.jpg)
Summary
Do not seek to be only the best generic company
Invest 10 times more in R&D than manufacturing
Seek out disruptive technologies that could change your company & the industry
Think about tomorrow when you consider business decisions for today
![Page 30: The future of the generc pharma industry & how it impacts business today](https://reader033.vdocuments.mx/reader033/viewer/2022052504/547d510ab47959c0508b48ce/html5/thumbnails/30.jpg)
THANK YOU!