Mutuals Health Forum

Rachael Scott, EY

!!

Effective Rehabilitation AFM Health Forum

4th February 2015

A sector, which is characterised by “change”

New business models/ patient-centricity

Digital/ data analytics as enablers

Digital/ Data

Consolidation/ portfolio restructuring

M&A

Convergence/ collective impact

Value-based pricing

Pricing

Medical devices Bio-pharma

Precision medicine

Specialty drugs

Virtual trials/ adaptive trials

Patient reported outcomes

Patient-empowering technology

Remote monitoring

Reverse innovation

Strategic partners to buyers (hospitals) Transparency/ Trust

Page 4

Compliance with treatment regimes is a real problem for both Insurers, Payors and Lifesciences companies

35

40

40

55

55

60

60

Bipolar

Diabetes

Hypertension

AIDS

Schizophrenia

Cancer

Transplant

Global Adherence rates for key diseases in %, 2009

Source: adherence rates from Boehringer Ingelheim’s Medication Adherence report and New England Journal of Medicine

New approaches to R&D

Medicine + Behavioural economics

Preventive care as opposed to sick care

Bundling services

Collective impact

Chief Patient Officers

Lifesciences companies are responding through Patient Centricity

The top pharma companies have

65 apps in the Apple and Google Play app

stores on average

Digital is enabling companies become

patient-centric

Smart lens for continuous glucose monitoring

Sensor-embedded pills to track adherence

Glucometer synchronized with an iPhone

Mobile platform to integrate data from different wearables/sensors

Enabled by digital technologies…

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EuResist – Healthcare Payors & Lifesciences working together to better manage HIV

Objectives 1.  Integrate information databases on

genotype-drug response correlations

2.  Develop and validate predictive engines

3.  Combine different engines and make it publicly available

Outcomes 1.  Largest HIV database with 50,000 patients

2.  EuResist prediction engine with 76% accuracy developed from three engines

3.  Roll-out of web-based tool EuResist Satellite DB

What is EuResist ? EuResist is an international project designed to improve the treatment of HIV patients by developing an integrated European system for computer-based clinical management of antiretroviral drug resistance.

►  It was started in 2006 and is a part of the Virtual Physiological Human framework, funded by the European Commission.

Page 8

Data used to create a new standard of care improves outcomes for patients

Traditional ART treatments may not focus on anticipated resistance from different viral genome types

HIV Patient Diagnosed Treatment with best

suited drugs

Directly input patient data, create a resistance profile and decide upon the

best course of treatment using web tool

HIV Patient - Continuous monitoring – lower chances of relapse

New standard of care Less chance of resistance and relapse Shortens therapy duration

All Rights Reserved – EY 2014 AstraZeneca — Patient Centricity & Diabetes

Diabetes – one of the worlds fastest growing diseases with multiple co-morbidities

Sources: IDF Atlas 6° Edition

# of people with diabetes (20-79 years)

mn, increase 13-35 (∆%)

Europe 2013 2035 CAGR

56.3 68.9 0.9%

World 2013 2035 CAGR

380 590 1.9%

South East Asia 2013 2035 CAGR

72.1 123 2.3% Africa

2013 2035 CAGR

19.8 41.4 3.3%

Middle East & North Africa

2013 2035 CAGR

34.6 67.9 3.0%

South & Central America

2013 2035 CAGR

24.1 38.5 2.1%

North America & Caribbean

2013 2035 CAGR

36.7 50.4 1.4% Western Pacific 2013 2035 CAGR

138.2 201.8 1.7%

Different dynamics between mature and emerging markets

All Rights Reserved – EY 2014 AstraZeneca — Patient Centricity & Diabetes

Diabetes – one of the fastest growing disease areas globally with multiple co-morbidities

Opportunities in the diabetes care (pharma) market

►  Unmet need for therapies

►  offering long-term efficacy

►  reducing the risk of hypoglycemia

►  offering weight loss

►  demonstrating clinical cardiovascular benefits

►  targeting diabetic complications

►  Shifting focus toward patients’ overall physical well-being and the need to address comorbidities

►  Trend toward greater individualization of treatment plans, challenging the traditional step-wise approach

Key opportunities

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