BioPharma Data Trends

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BioPharma Data: Strategic Trends & Market Opportunities


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.


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



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%


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.



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


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.

BioPharma Data Trends

Healthcare

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