Innovation in pharma - Challenges and Opportunities - 3 May 2016
-
Upload
tim-jones -
Category
Health & Medicine
-
view
534 -
download
1
Transcript of Innovation in pharma - Challenges and Opportunities - 3 May 2016
WWW.INNOVATIONLEADERS.ORG
Innova&oninPharma:ChallengesandOpportuni2es
DrTimJones
Copenhagen|3May2015
WWW.INNOVATIONLEADERS.ORG
Thistalkprovidesanoverviewofsixarenasofrelevancetoimprovedinnova&onperformanceinthepharmasector
TheChangingPharmaInnova&onLandscape• Theprimarydriversofchangeforpharmaceu2calinnova2onWhoarethebestatInnova&on?• Mul2pledifferentviewsofwhoismostinnova2veThePhramaInnova&onLeaders• OurviewofwhoarethecompaniesweshouldbewatchingandlearningfromInnova&onImplica&ons• Insightsfromleadingprac2cetodaySomeInsightsfromOtherSectors• ExamplesofhowothersaremovingthedialConclusion:ProgressbutMoreOpportunity• Ques2onsandchallengesforthefuture
WWW.INNOVATIONLEADERS.ORG
Asasectorpharmaceu&calsisfacingfourprimarydriversofsectorchange,allofwhichimpactthewayitinnovates
Shareholderdemandtomaintainprofits
PressuretoreduceR&Dexpenditure
Fragmenta2onofsectorandcapabili2es
Increasedcollabora2onandopeninnova2on
WWW.INNOVATIONLEADERS.ORG
Tradi2onalPharmaFocus
Recently,theInnova&onfocusformanycompanieshasbeenoppositetotheirmaincustomers’longtermtargets
HealthLiving Preven&on Chronic Severe Cri&cal Death
PublicPolicyshiLstowellnessandpreven&on
Pharmafocusesonlowervolume,higherpricedcri&calmedica&on
GovernmentAgenda Innova2veRx
Source:StrategicNorth
WELLNESS ILLNESS
WWW.INNOVATIONLEADERS.ORG
AsR&Dspendincreases,newdrugapprovalsarenowrisingbuttherearegrowingconcernsabouthowtosustainthis
Source:h/p://info.evaluategroup.com/rs/607-YGS-364/images/wp15.pdf
WWW.INNOVATIONLEADERS.ORG
Improvingperformancehasbeenfocusedonfourprimaryleverswithraisingoutcomesimpactnowaddedtothemix
Source:PWC
WWW.INNOVATIONLEADERS.ORG
Toimproveinnova&onperformanceweneedtoagreetheissuesandunderstandwhatop&onsmaybemosteffec&ve
CoreIssues:
• Risinghealthcarecosts(>10%GDP)
• Drugdevelopmentnowover$4bn
• Customerexpecta&onsofvalue
• Businessmodelsforgrowthmarkets
• 70%costsduetoHONDAs(Hypertensive,obese,non-compliant,diabe&c,asthma&cs)
• Last70oncologydrugshaveaddedmedian6weeksofextralife
MainOp0onsToDate:
• Greatercollabora&onandsharing
• Moredata,analy&csanddiagnos&cs
• Real-worlddataondrugoutcomes
• LeveragethewiderR&Dnetwork
• Premiumofpersonalisa&on
• Morefocusonafewbigbets
We must recognise who are the most effective innovators and why so new approaches can be applied
WWW.INNOVATIONLEADERS.ORG
Iden&fyingthemostinnova&vepharmacompanyiscomplexastherearemul&pleviewsvyingfora^en&on
Examplesinclude:
• R&DSpend
• Patents
• Execu&veOpinion
• SalesGrowth
• %SalesfromRecentLaunches
• NCEvs.Biologicsvs.SmallMoleculePor`olio
• PressandPR
WWW.INNOVATIONLEADERS.ORG
TopR&DSpenders2016(PWC)focusesonthelargestfirms
#5 Roche
#9 Novar&s
#10 Johnson&Johnson
#11 Pfizer
#14 Merck
#16 Sanofi-Aven&s
#19 GSK
#20 AstraZeneca
Source:h/p://www.strategy-business.com/feature/00370?gko=e606a
WWW.INNOVATIONLEADERS.ORG
MostInnova&ve(Forbes)-Salesgrowth/innova&onpremium
#3 AlexionPharmaceu&cals
#4 RegeneronPharmaceu&cals
#7 Incyte
#10 BioMarinPharmaceu&cal
#15 VertexPhamaceu&cals
#12 AspenPharmacare
#20 ShanghaiRAASBloodProducts
#31 ValeantPharmaceu&cals
#40 Perrigo
Source:h/p://www.forbes.com/innovaMve-companies/list/
WWW.INNOVATIONLEADERS.ORG
MostInnova&ve(EvaluatePharma)–%Salesinlast5yrs
Source:h/p://info.evaluategroup.com/rs/607-YGS-364/images/wp15.pdf
1. BristolMyers
2. JohnsonandJohnson
3. GSK
4. Bayer
5. AstraZeneca
6. Abbvie
7. Roche
8. Sanofi
9. Pfizer
10. Novar&s
WWW.INNOVATIONLEADERS.ORG
BCG’sMostInnova&veCompanies2016(execsurvey)
#8 Gilead
#11 Bayer
#17 Biogen
#20 JohnsonandJohnson
#24 Amgen
#30 Roche
#44 Pfizer
Source:h/ps://www.bcgperspecMves.com/most-innovaMve-companies-2015/
WWW.INNOVATIONLEADERS.ORG
Top10by#Patents(MarksClerk)
1. JohnsonandJohnson
2. Novar&s
3. Bayer
4. Roche
5. Pfizer
6. Sanofi
7. Merck
8. GSK
9. AstraZeneca
10. EliLillySource:h/p://www.marks-clerk.com
WWW.INNOVATIONLEADERS.ORG
BloombergIntelligence(Por`olioview)
Company NCE Biologics SmallMolecules Innova&onScore
BristolMyers 6 3 3 30.0
Roche 9 7 2 28.7
AstraZeneca 14 5 9 24.1
AbbVie 6 1 5 23.7
GSK 10 4 6 22.9
Sanofi 12 8 4 21.0
Novar&s 18 5 13 19.9
EliLilly 10 7 3 19.5
Merck 20 8 12 18.9
NovoNordisk 5 2 3 18.4
J&J 3 2 1 18.3
Pfizer 11 4 7 16.5
Bayer 3 1 2 9.3
Source:h/p://www.bloomberg.com/professional/blog/emea-pharmaceuMcals-outlook-2015/
WWW.INNOVATIONLEADERS.ORG
FastCompanyMostInnova&veCompanies(Press/PR)
#16Novocure
#17Bristol-MyersSquibb
#18Amgen
EmeraldTherapeu&cs
Enteromedics
CorgenixMedicalCorp
Source:http://www.fastcompany.com/most-innovative-companies
WWW.INNOVATIONLEADERS.ORG
Theseperspec&vesprovideindividualpiecesofthepuzzlebutnonegiveaholis&cviewoninnova&onperformance
CompanyCapabili&es
Innova&onInput Innova&onOutput
CompanyData
ExternalPercep&ons
WWW.INNOVATIONLEADERS.ORG
Since1998,wehavebeenanalyzingandsharingaviewofinnova&onprowessinthepharmaceu&calsector
WWW.INNOVATIONLEADERS.ORG
FortheInnova&onLeadersanalysis,welookatara&oofinnova&onimpacttotheresourcesbeingdeployed
Eachalgorithmisbasedon: Innova&onOutput
Innova&onInput
CompanyCapabili&es
Innova&onInput Innova&onOutput
Together this provides what we believe to be the most accurate assessment of current innovation impact
WWW.INNOVATIONLEADERS.ORG
Ourmodelanalysesthe1500largestcompaniesin25sectorsandsystema&callyselectsthetopinnovators
25Innova2onLeaders
Singlecompanyforeachsector
75Companies
25Sectors1500Companies
Largestcompaniesacross25sectors
25mostinnova2on-focusedsectors
Top3companiespersector
22
Quan2ta2veAnalysisThroughoutProcess
WWW.INNOVATIONLEADERS.ORG
Since2002,apor`oliobasedontheInnova&onLeadersanalysisoutperformedmajorindicesbyasignificantmargin
CompoundAnnualGrowthRate:14%,StdDev:20%,Alpha:12,Beta:0.74
WWW.INNOVATIONLEADERS.ORG
2015/6Innova&onLeadersanalysisprovidesadifferentviewofwhoarethemosteffec&veinnovatorsinpharma
1 Gilead
2 AbbVie
3 JohnsonandJohnson
4 Biogen
5 Amgen
6 Roche
7 NovoNordisk
8 Sanofi
9 Merck
10 Novar2s
11 BristolMyers
12 Pfizer
13 EliLilly
14 GSK
15 AstraZeneca0.00# 20.00# 40.00# 60.00# 80.00# 100.00# 120.00#
AbbVie#
Amgen#
Astra#Zeneca#
Biogen#
Bristol#Myers#
Eli#Lilly#
Gilead#
GSK#
Johnson#and#Johnson#
Merck#
NovarGs#
Novo#Nordisk#
Pfizer#
Roche#
Sanofi#
2012#
2013#
2014#
2015#
Pharmaceu&cals:Innova&onLeadersAnalysis2012-2015
WWW.INNOVATIONLEADERS.ORG
Acrossleadingpharmacompanieswecanseeanumberofinnova&onshiLsalreadytakingplacetovarieddegrees
Broadeningaccess
• Rethinkingpricingandusinggenericspartnershipsmoreproac&vely
Increasingcollabora0on
• Don’tdoeverythinginternally–widespreadadop&onofopeninnova&on
Predic0vedataanalysis
• Integra&nggenomics,gene&cs,longitudinalandphenotypicaldata
OpeningupofIP
• Sharing‘failed’moleculedatawithacademiaandpublicdepositories
Businessmodelinnova0on
• Embracingmobilepla`ormsformonitoring,diagnos&csandadvice
WWW.INNOVATIONLEADERS.ORG
Access:Narayanahasprovenits$1500cardiacsurgerymodelinIndiaandisnowtakingthisinterna&onally
WWW.INNOVATIONLEADERS.ORG
DeeperCollabora0on:TheSunShotprojectharnessedmasscollabora&onandinnova&onprizestoaccelerateprogress
WWW.INNOVATIONLEADERS.ORG
Predic0on:TheLAPDcombinesmul&plepublicandprivatedatasetstopredictwherecrimeismostlikelytohappen
WWW.INNOVATIONLEADERS.ORG
IP:Facedwithlimitstoreach,standard-serngviapatentpoolsandsharedIPisbecomingamodelforC21stIP
WWW.INNOVATIONLEADERS.ORG
Businessmodels:Anumberofalterna&veapproachestosuccessfulvaluecrea&onhavebeenproveninrecentyears
Licensing/sharingIPacrossthewholeindustry
Payingforoutcome(powerbythehour)nottheproduct
Usingreal-&medynamicpricingtoop&misedemand
Crea&ngcommercial,focusedmass-collabora&onpla`orms
WWW.INNOVATIONLEADERS.ORG
Whilerecentmoveshavehelpedimprovesomeapproachestopharmainnova&on,therearemoreopportuni&esahead
• FacedwiththeR&Dproduc&vitycrisis,someinthesectorhaveresponded
• Moreopeninnova&onandwidercollabora&onaregainingtrac&on
• Emergingtechnologiesindataanalysisandgenomicswillhaveimpact
BUT
• Comparedtoothersectors,thefailureratesares&llshockingtomany
• Averagecostpermoleculeiswayover$4bn
• Theprevailingleadershipmindsetiss&lllargelybasedonC20thprac&ces
• Asustainablebusinessmodelforpreven&onisyettoemerge
• Whenwillthethe‘decadeofvaccines’occur?
• Newmodelsproveninotherindustriesareyettobeadoptedandadapted
WWW.INNOVATIONLEADERS.ORG
Formoreinforma&ononthisanalysis
Websites:
Innova2onLeaders www.innova2onleaders.org
GrowthChampions www.growthchampions.org
Twi^er: @innova2onldrs
Slideshare: hbp://www.slideshare.net/2mjones72
Dr.TimJones&m.jones@innova&onleaders.org+44780175505484BrookStreetLondonW1K5EH