BTS • Overview I Business Acumen

www.bts.com • Copyright © 2015 BTS

The pharmaceutical industry is shifting. BTS’s Pharmaceutical Business Simulation is designed to help companies navigate through the evolving sector. The program provides a holistic view of the industry and employs an experiential, self-discovery approach to learning that places participants in a number of challenging, realistic scenarios. By reasoning through these scenarios, participants draw on their experiences as well as those of their peers to learn and adopt the behaviors that will enable them to manage their business more successfully.

The Program at a Glance

As a one-day experience, teams are challenged to run a fully integrated biotherapeutic company that discovers, develops, manufactures, and commercializes therapies for significant unmet medical needs. The simulated company’s long-term goals include bringing new products to market, becoming a leader in growth market revenues, maximizing profitability and increasing employee engagement. Throughout the board-based simulated experience, teams receive feedback and analysis of results to demonstrate the outcomes of various strategies and to create a fun, competitive learning environment.

Key Issues Covered in the Simulation

Through three simulation rounds, participants compete in teams, draw on their experience, and confront macroeconomic and microeconomic challenges as they practice real-world decision-making in a risk-free environment.

The Pharmaceuticals Business SimulationNavigating an Evolving Industry Ecosystem

BTS • Overview I Business Acumen

www.bts.com • Copyright © 2015 BTS

The following key topics and tradeoffs are covered within the business simulation:

• Funding R&D to bring new product to market• Gaining regulatory approval for new drugs• Competing with generics once off patent• Attracting and retaining the best scientists• Meeting patient needs at an affordable rate• Managing health care legislative challenges

Target Audience

The Pharmaceuticals Business Simulation is intended for two primary audiences:

• Individual contributor to Director-Level employees within the pharmaceuticals business

• Organizations with major clients operating in the industry Workshop Objectives

Upon completion of the Pharmaceutical Business Simulation, participants will be able to:

• Make better business decisions in-context with the FDA approval process, patient needs, and overall profitability.

• Leverage cross-functional networks so that the benefits of collaboration can be recognized through improved company performance.

• Articulate the link between business decisions, actions and consequences on business results.

Implementation and Customization

The Pharmaceuticals Business Simulation includes know-how sessions, debriefs, group discussions, problem solving exercises and action-oriented team activities for further reinforcement. To maximize relevance and ensure application, the simulation can be highly customized to meet a client’s specific business objectives and strategic priorities. Customization includes nearly all aspects of the simulation including, terminology, business structure and issues, key performance indicators, and learning objectives.

The Pharmaceuticals Business Simulation can be used as a standalone program or supplemented with additional solutions to reinforce the skills most critical to a company’s specific needs. To achieve the full impact of the design, the recommended implementation process includes pre-work, a pre-meeting with managers, the core workshop, and rigorous post-program coaching.

Experiential Learning that Delivers Key Results

Through the Pharmaceutical Business Simulation, participating employees recognize the drivers of key performance indicators and have an overall big picture understanding of the industry, the company and the critical interrelationships. The best practice is for participant’s managers

BTS • Overview I Business Acumen

www.bts.com • Copyright © 2015 BTS

to meet with the participants ahead of the session, so they can draw a line of sight to the intended outcomes and manage accountability for application on the job. Armed with improved capabilities and actionable items, participants accelerate results once back on the job.

About BTS

BTS focuses on the people side of strategy, working with leaders at all levels to help them make better decisions, convert those decisions to actions and deliver results. At our core, we believe people learn best by doing. For 30 years, we’ve been designing fun, powerful experiences™ that have profound and lasting impact on people and their careers. We inspire new ways of thinking, build critical capabilities and unleash business success. It’s strategy made personal.

For more information, please visit www.bts.com.

Knowing The Business - Pharma Edition

Efficacy

10

5

6

7

8

9

1

2

3

4

0

Safety

10

5

6

7

8

9

1

2

3

4

0

Promotional Effectiveness

105 6 7 8 91 2 3 40

Employee Engagement

100%

90%

62%

80%

70%

Time to Market

Delay Accelerate

-100

-2 -4 -6 -88 6 4 210 78%

76%

74%

82%

88%

86%

84%

92%

94%

96%

98%

62%

60%

78%

66%

64%

GEN_PHA_BD_003

GNT_KTB_CC_001

Year 1 – Quarter 1

Consequence Card

Year 1 – Quarter 2

Consequence Card

GNT_KTB_CC_001GNT_KTB_EC_005

EventCycle 3, Event 13

Event Card

GNT_KTB_EC_005

Discovery Research

IND Review

Phase I clinical trials

Phase II clinical trials

Phase III clinical trials

Manufacturing

Product Launch

Patient Treatment

Commercialization

RESOURCE MANAGEMENT

Cycle 11:

2:

3:

Cycle 24:

5:

6:

Cycle 37:

8:

9:

STRATEGIC INITIATIvES

PP&E LT Debt

Manufacturing

Materials

MaterialsLabor

Adjustments Adjustments

Production Finished GoodsStorage & Shipping

Adjustments

ContractManufacturing

Adjustments

INCOME STATEMENT

REvENUE

New Product

Promotional Effectiveness

Core

Total Revenues

Growth

COS

R&D Core

R&D Growth

Legal, G&A

Total Expenses

Interest Expense

Net Income before taxes

M&S

Targets

CommercializedPortfolio

Production Process Improvements

Cycle 1 Cycle 2 Cycle 3

Starting level

Additional levels

Ending levels

Core Research & Development

Growth Research & Development

research & DeveloPMent

CASH

GNT_KTB_CC_001

Year 1 – Quarter 1

Consequence Card

Year 1 – Quarter 2

Consequence Card

GNT_KTB_CC_001GNT_KTB_EC_005

Product Revenue &R&D

Cycle 3, Event 13

Event Card

GNT_KTB_EC_005

GNT_KTB_CC_001

Year 1 – Quarter 1

Consequence Card

Year 1 – Quarter 2

Consequence Card

GNT_KTB_CC_001GNT_KTB_EC_005

ConsequenceCycle 3, Event 13

Event Card

GNT_KTB_EC_005

GNT_KTB_CC_001

Year 1 – Quarter 1

Consequence Card

Year 1 – Quarter 2

Consequence Card

GNT_KTB_CC_001GNT_KTB_EC_005

OptionCycle 3, Event 13

Event Card

GNT_KTB_EC_005