• Global Trends (Bio/Pharma)

• A brief summary of what we know but conveniently forget

• A tale of elephants, hippopotami and kiwis

• Discussion

AGENDAAGENDA

• Population growing older (industrialised countries)

• Population growing (non industrialised countries)

• New Technologies

• Advanced integrated communication

• Control of total healthcare costs

• Increased regulatory hurdles

• Longer time lines/less drugs/higher costs

Reduced Profits = Reduced share price

• Reduce Costs

- de-risk R & D

- merge (to cut)

- integrate bio informatics

Christian HahnChristian Hahn

Entwicklungshilfe

2005

• Increase output through M & A's

- marketing/sales

- additional indications

• venture into non reimbursed areas

• NZ Biotech Industry

- professionally managed

- government support is good

- infrastructure is ok

(Universities, CRIs, COEs)

but not co-ordinated!!!

• NZ does not compete with countries, it competes with cities

• Distance, size and history cannot be changed

• To compete globally, NZ needs to consolidate

$ FRST

Universities COEs CRIs Companies

NZTE

$

$ $

Is there a concept

Should we continue what we are doing now?

Are there alternatives?

TAITO

ROERIG+

+

+ + Warner Lambert

+ Wyeth+ Pharmacia

MACK

PFIZER

French/Richards + Beckmann + Allergan

Smith Kline & French Smith Kline

+

Beecham

MacLeans Norcliff+ +

Allen-Hanburys Burroughs Wellcome

Glaxo + +

Smith Kline

Beecham

SmithKline Beecham

GEIGY+ SANDOZ+ CIBA

+ Lek Pharma

+ Durascan

+ Sabex

+ Alcon

+ Chiron

+ Hexal

(US$ billion)

Sales Market Cap Employees

GSK 42 100 100,000

NOVARTIS 42 200 100,000*

PFIZER 75 120 82,000

* Estimated

““The Diary The Diary of a of a Loner”Loner”

John Isaacs

2005

(US$ billion)

Sales Market Cap Employees

NESTLE 80 140 283,000

KRAFT 42 80* 100,000*

GEN MILLS 15 21 40,000*

P & G 85 140* 140,000

* Estimated

New“Feeding Ground”

Food

• Higher Margin

• Know consumers

Drugs

• Compensate for price decreases

• Know science

Products

Health Sickness

Systems

Products

Health Sickness

Systems

“WELLNESS”

“WELLNESS”

“Create and maintain a healthy state of mind, body and soul

as long as it makes sense”

maintain health

avoid, delay getting sick

Product AreasProduct Areas

• Supplements, vitamins, minerals

• Omega 3 (heart, mind)

• Manuka honey

• Energy drinks

• Antioxidants and teas

• Weight reducers (melon extracts, vinegars)

• Sugar replacements (angel fruit)

• Bone support

• Etc

Birgit DiekerBirgit Dieker

“Navigare necesse est”

2005

• How does New Zealand fit?

• What can we do better than others?

• What can we leverage?

Our Flora/Fauna

Our image

Research InstitutesResearch Institutes

….. but where are the products

for the elephants and hippopotomi ??

Companies/ProductsCompanies/Products

A2 - Beta casomorphein

Fonterra - Lactoferrin/sphingomyelin

Biodiscovery - (too) many

BioVittoria - PureLo (but Chinese!)

BLIS - Strep Salivorius (throat therapy)

Vital Foods - Zyactinase (constipation)

Keratec - Functional Keratins

MigCo - Enzogenol (migraine)

New Image - Colostrum

ZyGem - Enzymes ex Antartica

Manuka Honeys ………………

Green Lip Mussel extracts ………………

Companies/ProductsCompanies/Products

Healtheries

Forest Herbs

Thompson’s Nutrition

Bioactive Technologies

………………

+

Diabetes

Blood Pressure

Incontinence ……

• Understand what is happening in the biotech space globally

• Know your limitations

• Choose areas of competition based on your strength, not your desires!

George GroszGeorge Grosz

“Eclipse of the Sun”

1926

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