Dynamics Impacting the Future of Healthcare
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Transcript of Dynamics Impacting the Future of Healthcare
Dynamics Impacting the Future of Healthcare
Wendy Mayer & John CusumanoWorldwide Innovation & Business Technology
April 10, 2015
• ‘One size fits all’ medicines• Office-based, primary care
physicians dominate the value chain
• Shots-on-goal R&D model• Fee-for-service treatment
paradigm
• Primary care and specialty medicines
• Large and small molecules• Organized payers, providers
dominate the value chain• Evolution to evidence-based
medicine
• Precision medicine• Real-world and evidence-
based information complements clinical data
• Digitization of healthcare information and dialogue
• R&D collaboration as a core capability
The Biopharmaceutical Industry Continues to Evolve
Yesterday Today Tomorrow
2
Five Key Drivers That Are Shaping Healthcare and Pharma
Future of Healthcare
Medical /
Scientific
Social
TechnologicalPolitical &Economic
Demographic
3
An Aging Population and Growing Emerging Markets Are Shaping the Demographics of the Future
The World’s Population Is Aging at an Unprecedented Rate
Most of the World’s Population Growth Is in Emerging Markets2
= 0.1B people
Developedcountries
Developingcountries
2013
2050
1950 1975 2000 2025 20500
500
1,000
1,500
2,000
2,500Population
Aged 60 or over1(M
)
• Stress on health and pension systems
• Greater emphasis on long-term geriatric care and late-life diseases
• Urban population and middle class growth will change market dynamics
Implications for the future
Sources: 1) United Nations; 2) The World Bank; 3) IMS Health audited sales data and Market Prognosis September 30, 2013.
4
Social Media and Consumerism Are Shaping the Future of Healthcare
Consumers Are Using Social Media for Health-related Matters
Expectations of Accessibilityand Quality of Health Services
Are Rising
Active Internet Searches may be a Thing of the Past
• Patients will be empowered, involved participants
• New tools will continuously find and display relevant information
24%
29%
32%
42%
Other patients’ experiences
Health related videos / images
Health related consumer reviews
Family / friends health experiences
Recommended for YouConsumer Forums
Consumer Ratings Sites
Healthcare Companies
Ratings Agencies
Non-profit Orgs.
Gov’t / StateAgencies
Implications for the future
Sources: 1) PriceWaterhouseCoopers “Social media likes healthcare” April 2012.
5
Social
Trademarks are the property of their respective owners and used for information purposes only
• Pool of partners and competitors is changing
• Mobile health and sensors will shift healthcare from episodic to continuous, vastly increasing the amount of data to inform diagnosis and treatment
Big Data, Sensors Are Shaping the Technology of the Future
The Use of Wearable Devices and Sensors Is Rapidly Increasing
Artificial Intelligence & Cognitive Computing Are Advancing
Data Companies Are Actively Pursuing the Healthcare Ecosystem
2011 2017
21
170
Sources: 1) Mobihealthnews, “ABI research: 30M wearable sensors shipped in 2012”.
6
Implications for the future
CAGR: 49%
Trademarks are the property of their respective owners and used for information purposes only
• Prevention and precision medicine will increasingly be focus areas
• Breaking science will enable new types of therapies
• The ecosystem will operate in a more networked fashion requiring non-traditional approaches to business development
Collaboration, Open Innovation, and Targeted Treatments Are Shaping the Science of the Future
Declining Innovation Productivity Has Led to Increased Collaboration1
New Medical Treatments Are Based on Genetic and Molecular Tests
A Deeper Understanding of Disease Pathways Is Emerging
2002 2004 2006 2008 2010 20120
10
20
30
40
50
60
Pharma Industry R&D SpendingNME Launches
Sources: 1) PhRMA 2013 Industry Profile, Thomson Reuters CMR International Pharmaceutical R&D Factbook, KMR analysis September 2012.
7
Implications for the future
Medical Science
Rising Costs Are Leading to Containment Measures and Healthcare Reforms around the World
US Healthcare Spending1 Policy Makers and Payers Gain Control over Prescribing Decisions
• Value and evidence based healthcare will be standard
• Value based on real world evidence not just clinical trial evidence
• Further consolidation of payers will increase their market power and facilitate greater transparency
Implications for the future
2006
2008
2010
2012
2014
2016
2018
2020
0
1,000
2,000
3,000
4,000
5,000
6,000
($B)
Physician
Pharmacist Patient
HTA Body Payer
Sources: 1) Centers for Medicare & Medicaid Services (CMS) “National Health Expenditure Projections 2011-2021”.
8
20% of GDP
To Capitalize on These Drivers, Pfizer Developed a Clear Strategic Path Guiding The Journey ahead
Fix the innovative core and generate medicines that profoundly impact
health
1
Create an ownership culture
4
Make the right capital allocation decisions to maximize value and
enhance shareholder return
2
Earn greater respect from society
3
Our Purpose: Innovate to bring therapies to patients that significantly improve their lives…
…we will deliver on Our Mission: To be the premier, innovative biopharmaceutical company
Guided by the Four Imperatives…
9
9
Delivering Against Imperative #1
Fix our innovative core and generate medicines that profoundly impact health
We’ve Transformed Our R&D Model to DeliverKey Elements of Productivity
• Reduced R&D spend
• Focused in core areas
• Research Unit / Business Unit collaboration
• Empowered Chief Scientific Officers
• Centers for Therapeutic Innovation (CTI)
• Development and commercialization partnerships
• Business Development investments
• Precision Medicine capabilities
• Bioinnovation hubs in Cambridge, MA, San Fracisco, CA, San Diego, CA, and Cambridge, UK
Greater Focus & Rigor Strategic Externalization Differentiated Innovation
Quality of Output Probability of Success Speed Cost
11
Delivering Against Imperative #2
Make the right capital allocationdecisions that maximize value and enhance
shareholder returns
Deployment of Capital and Operating Expenses to Highest Value Opportunities
• Advance the highest value R&D programs within defined budget
• Continuous improvement of Pfizer Global Supply to maintain competitive cost of goods
• Drive operational efficiencies and commercial model transformation to increase the value from every dollar spent
• Dividends and buybacks to deliver value to shareholders
Allocation of Vital Resources
13
Evolution of the Commercial Model
Recalibrating Pfizer’s Go-to-Market Model
Past
Rely on High Fixed-cost
Field Force
Use a flexible mix of efficient channels, increasing our digital capabilities
Focus Mostly on Physicians
Engage with the entire healthcare community to support quality outcomes
Communicate Product
Information
Demonstrate evidence of value using real world data and Big Data as well asclinical trial data
Future
14
All content subject to consultations with works councils, trade unions and employee representatives as required by local law
mHealth trends
Global wearables market to reach by 2020$25B
BEYOND THE PILLIntegrated products and services that
work across the care continuum to engage patients/caregivers/providers and deliver improved health outcomes.
Patient Engagement and
Adherence
Making Products Easier to Use and
Understand
Closed Loop Monitoring
Digital Therapies
g
Bigger graph, move arrow right, shrink text left, no mHeALTH under graph, DIGITAL health, new icon for digital therapyIntegrated products and services that
work across the care continuum to engage patients/caregivers/providers and deliver improved health outcomes.
Patient Engagement and
Adherence
Making Products Easier to Use and
Understand
Closed Loop Monitoring
Digital Therapies
BEYOND THE PILL
Delivering Against Imperative #3
Earn greater respect from society
What Is Corporate Responsibility?
Responsible Research andDevelopment
The Environment / Sustainability
Governance and Compliance
ProductQuality
Transparencyand Integrity
Access To Medicines
…the way Pfizer operates and is held accountable for conducting business
responsibly
18
Delivering Against Imperative #4
Create an ownership culture
Our ‘Ownership Culture’ Is Helping to Transform Pfizer
Own the Business
Win in the
Marketplace
No Jerks… Let’s
Discuss Behaviors
Impact ResultsTrust in
One Another
“I believe our culture can become a key sustainable advantage as we work to make Pfizer the premier, innovative biopharmaceutical company.”
– Ian Read, 2012 Annual Review
20
‘Dare to Try’ Program Approach
is about encouraging an entrepreneurial mindset, where all colleagues are empowered to explore and test new ideas via experiments.
EmbedCapability
To foster a culture of entrepreneurship that
goes beyond the training and workshops
LaunchExperiments
To accelerate profitable growth
through ‘Dare to Try’ challenge workshops
21