Responses of Pharma to a changing climate …with a focus on the Canadian market

Nat BourreMarketing 4 Health Inc.www.pharmaceutical-marketing-coach.com

York University, Schulich School of Business, February 25 2009

Snapshot of today’s pharma industry

• Patent expiries

• Weak pipeline

• R&D challenges

• Filing challenges

• Promotional restrictions

• Payer influences

• Corporate cost cutting measures

A peak at pharma in 5 years

The market will continue to grow *

Ref.: The Chronicle of Healthcare Marketing, ‘The next five years in Pharma’. December 31 2008.

* Between now an 2012

5,10%

2,10%

14,10%

0,00%

2,00%

4,00%

6,00%

8,00%

10,00%

12,00%

14,00%

16,00%

Canadian pharmaceutical market sector

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Canadian Pharma Industry Ethical brands Generic copies

year

Mergers and Acquisitions

• Pfizer and Wyeth

• Roche’s bid for Genentech

• GSK expects to make further acquisitions in 2009

• Win-win for pharma and biotech – new products for pharma and funding for biotech

Co-promotions

Ref.: Nat Bourre. http:www.pharmaceutical-marketing-coach.com

Enter generic market

• Maintain molecule market share with brand + generic version

Outsourcing

• R&D• Manufacturing• Sales

‘Between 2003 and 2008, the amount of outsourcing grew from 26% to 36% and it is estimated this

number will increase to 50% by 2012.’

Ronnie Miller (OPMA, Jan 2008)

Promotions

• More patient-focused vs. brand-focused

• Use of internet– Health 2.0, e-detailing

• Evolving promotion guidelines (industry association and in-house)

Stakeholder Rx influence

• Greater payer influence (public and private)

• Greater pharmacist influence

• Greater consumer influence

Specialty Products

Year 2000

Biotechnology9%

Conventional / Unclassif ied91%

Year 2012

Biotechnology22%

Conventional / Unclassif ied78%

Ref.: Evaluate Pharma. World Preview 2012. June 2008.

Globalization

Ref.: Michael Steiner et al. The Continuing Evolution of the Pharmaceutical Industry: Career Challenges and Opportunities. December 2007.

• Developing countries– Market potential– Outsourcing potential

The future of pharma is bright

‘If you don’t like something, change it. If you can’t change it, change your attitude.’

Maya Angelou

Opportunities in pharma?

YES

Expertise to build a pharma career

• Sales

• Market research

• Government affairs / Private payer managers

• Regulatory expertise

• Co-promotion partnership management

• Marketing

• Agency

Highly-valued skill sets

Ref.: Michael Steiner et al. The Continuing Evolution of the Pharmaceutical Industry: Career Challenges and Opportunities. December 2007.

• ‘Ability to manage decentralized intellectual capital resources’

• ‘Ability to work in joint ventures and across divisions, cultures and countries’

• ‘Ability to integrate an understanding of intellectual property laws, scientific expertise and business strategy’

Highly-valued skill sets

Ref.: Michael Steiner et al. The Continuing Evolution of the Pharmaceutical Industry: Career Challenges and Opportunities. December 2007.

• ‘Ability to spur creativity while managing commercially’

• ‘Knowledge and insight on the decision-making dynamics of payers’

• ‘Expertise in the functioning and decision-making of regulatory agencies’

• ‘Human resource skills to help transform pharmaceutical companies’

Nat BourreMarketing 4 Health Inc.

www.pharmaceutical-marketing-coach.com

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