science backed success - perspectives on the future growth of natural medicines
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Science Backed Success Perspectives on the Future Growth of Natural Medicines
Gabriel PereraGeneral Manager, Transformationgperera@blackmores.com.au
University of OtagoThursday, 16th April 2009
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Our Agenda Today
Science Backed SuccessPerspectives on the Future Growth of Natural Medicines
• Natural Medicines – The Macro Environment
• A Bit About Blackmores – Our Research Activities and Support
• Future Growth – Part I: Key Trends to Consider
• Future Growth – Part II: Five Principles for Your Success
• Your Questions and / or My Case Studies
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• One aspect of complementary medicine that has changed dramatically in the last 10 years is the focus on
validation of products and their claims. This has been driven on all fronts – by regulatory bodies, health
professionals, consumers, and by complementary medicine companies seeking to gain a competitive edge.
• This drive to support traditional medicine claims with scientific underpinning is an enormous undertaking, often
frustrated by lack of Government funding and lack of available intellectual property protection.
• It is nevertheless an important undertaking, one finding resonance even within the scientific-academic community
judging by the ever-increasing number of publications on complementary medicine in the medical-scientific
literature.
• In Australia, the National Institute of Complementary Medicine (NICM) was established to provide leadership and
support for strategically directed research into complementary medicine and translation of evidence into clinical
practice and relevant policy to benefit the health of all Australians. The NICM initiative complements the
announcement in late 2006 of $5 million of National Health and Medical Research Council (NHMRC) Special
Initiative Research Grants for complementary medicine and the inclusion of complementary medicine in the 2007-
2009 NHMRC triennial strategic plan. The special initiative funding drew a strong response with 141 applications
from 37 institutions, demonstrating the high level of interest in complementary medicine research.
• Government support for the founding of NICM and other complementary medicine research initiatives is
consistent with international trends. The US government currently allocates approximately $120 (USD) million per
annum for complementary medicine research activities through the National Center for Complementary and
Alternative Medicine (one of the US National Institutes of Health (NIH)) and $300M per year is committed for CAM
research across all NIH centres.
The macro environment for natural medicines and related research has undergone 10 years of rapid international change.
Science Backed SuccessPerspectives on the Future Growth of Natural Medicines
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• Natural Medicines – The Macro Environment
• A Bit About Blackmores – Our Research Activities and Support
• Future Growth – Part I: Key Trends to Consider
• Future Growth – Part II: Five Principles for Your Success
• Your Questions and / or My Case Studies
Our Agenda Today
Science Backed SuccessPerspectives on the Future Growth of Natural Medicines
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• Blackmores’ research focus is mainly on clinical research
rather than basic science research. We work with
universities, hospitals or research institutes within Australia
and New Zealand.
• Budgets and research trials are planned within Blackmores’
business planning cycle. The company’s research focus is to
support the medium- to long-term goals of business
development and marketing. This has not always been an
easy task given the multitude of products found within the
Blackmores range and the numerous number of new
candidate products.
• Blackmores is proud to sponsor complementary medicine
research within Australia and feels its role in this area has
encouraged other companies to engage in complementary
medicine research as well.
Blackmores currently supports clinical (and some scientific) research into natural medicines, with product and funding.
Science Backed SuccessPerspectives on the Future Growth of Natural Medicines
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Blackmores’ research and innovation program has four strategic aims.
1. Provide impetus and support for NPD programme, and develop, acquire and protect proprietary “new to market” Intellectual Property for Blackmores.
2. Provide supportive evidence for and enable “new to firm” brand differentiation of current Blackmores SKUs.
3. Develop and grow global strategic alliances with industry, government, academic institutions, researchers and clinicians to gain unique commercial access to and support for “new to market” innovation for Blackmores.
4. Generate, categorise and provide access to information of value to the business through Blackmores’ knowledge base.
Proprietary NPD
Improve Current
Products / Marketability /
Processing
Gain / Develop Strategic Alliances through Support
Generate Information of
Value to Blackmores’ Knowledge
Base
Weighting = +++ Weighting = ++ Weighting = + Weighting = +
Unique or exclusive licence on IP protected ingredient or finished product.
Strong consumer proposition, market attractiveness.
Delivery systems, formulation, bioavailability, stability (technology), ‘new to firm’ clinical & scientific studies on existing products.
External party led development with therapeutic target and finished product possibilities.
Positive PR and associations for product promotion.
Basic + research, sponsorship, capability development – contributes to body of knowledge on a subject – may assist Blackmores’ promotion of products.
Science Backed SuccessPerspectives on the Future Growth of Natural Medicines
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Our Agenda Today
Science Backed SuccessPerspectives on the Future Growth of Natural Medicines
• Natural Medicines – The Macro Environment
• A Bit About Blackmores – Our Research Activities and Support
• Future Growth – Part I: Key Trends to Consider
• Future Growth – Part II: Five Principles for Your Success
• Your Questions and / or My Case Studies
8
Despite challenges in the current economic climate, the long-term fundamentals for the natural medicines (VHMS) industry remain strong.
Growing acceptance of complementary medicines
Ageing population dynamicsContinued growth in healthcare expenditure
1 2 3
Australia’s ageing population Australian healthcare expenditure
30,000
40,000
50,000
60,000
70,000
80,000
90,000
19
95
-96
19
96
-97
19
97
-98
19
98
-99
19
99
-00
20
00
-01
20
01
-02
20
02
-03
20
03
-04
20
04
-05
20
05
-06
A$m
0.0%
1.0%2.0%
3.0%4.0%
5.0%
6.0%7.0%
8.0%9.0%
10.0%
(%)Total Health Expenditure (LHS)
Ratio of Health Expenditure to GDP (RHS)
0.1
1.1
2.1
3.1
4.1
5.1
6.1
20
06
20
08
20
10
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Number of people 65 years and over (RHS)
Percentage of people 65 years and over (LHS)
m
Source: ABN AMROScience Backed SuccessPerspectives on the Future Growth of Natural Medicines
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The problems of overweight, stress, lack of energy and digestive health rank in the top-four health concerns of consumers worldwide.
Source: Health Focus International
Other key trends include:
• Digestive Health
• Feel the Benefit
• Weight Management
• Energy
• Free-From / All-Natural
• Functional Foods
• Children’s Nutrition
• Healthy Snacking
• Targeting Ultra-Loyal Consumers
• “Premiumisation”
Consider: could you create a trend / establish a “new” need?
Science Backed SuccessPerspectives on the Future Growth of Natural Medicines
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Our Agenda Today
Science Backed SuccessPerspectives on the Future Growth of Natural Medicines
• Natural Medicines – The Macro Environment
• A Bit About Blackmores – Our Research Activities and Support
• Future Growth – Part I: Key Trends to Consider
• Future Growth – Part II: Five Principles for Your Success
• Your Questions and / or My Case Studies
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The future growth of natural medicines will be science-backed. If you intend to succeed, consider five key principles.
1. Good IP is hard to find - Truly valuable IP can be hard to come by – considerations around “inventive step” and international landscape FTO must be understood early. Unique compounds and / or research are highly desirable, but…not always. Protect your work before opening dialogue.
2. Maximise Bang for Buck - speed to market of natural medicine Co c.f. MNC budget, proliferation and growth – is your discovery a natural medicine, or are you better to target biotech / pharmaceuticals with a drug candidate? If you have limited money and time, this principle is very important!
3. Turn-Key is Best – Market and business-ready is (generally) critical for success – package and shape your work – if you don’t know how, get some help! Your network and contacts can be very useful in helping shape your thinking – but keep your wits about you. What is your financing model, what is your revenue model, how much cash will you require to get to turn-key readiness?
4. Translate to Proliferate – Who is your customer and who is your customer’s customer (there’s a difference!) Where is the customer need, where is the consumer need? How are you satisfying these needs in a better, faster, cheaper, smarter way than current market precedents? To be understood, you must first seek to understand.
5. Prove It! - A good idea is not enough – be honest with yourself - if you have no real IP (or even if you do) demonstrate consumer need / scientific / clinical validation.
Science Backed SuccessPerspectives on the Future Growth of Natural Medicines
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Our Agenda Today
Science Backed SuccessPerspectives on the Future Growth of Natural Medicines
• Natural Medicines – The Macro Environment
• A Bit About Blackmores – Our Research Activities and Support
• Future Growth – Part I: Key Trends to Consider
• Future Growth – Part II: Five Principles for Your Success
• Your Questions and / or My Case Studies
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Your Questions: Three (Optional) Short Case Studies
• Evogen®
• Evolution Q10™
• Macu-Vision®
Science Backed SuccessPerspectives on the Future Growth of Natural Medicines
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Appendices
Science Backed SuccessPerspectives on the Future Growth of Natural Medicines
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Example for illustration purposes only.
Prospective projects are evaluated on strategic, commercial & technical considerations and given a pass or fail “R&D Score”.
Example for illustration purposes only.
Science Backed SuccessPerspectives on the Future Growth of Natural Medicines
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Projects that “pass” proceed to a detailed R&D Project Brief. Those that “fail” are captured in our R&D Idea Vault for future reference.
Opportunity identified - internal
/ external
Opportunity identified - internal
/ external
CDA / MOU signedResearch collectionCDA / MOU signedResearch collection
Research Pack provided to R&D
WIP Group
Research Pack provided to R&D
WIP Group
R&D WIP Group completes R&D Score
on new opportunity
R&D WIP Group completes R&D Score
on new opportunity
PASSPASS FAILFAIL
Allow 2 weeksAllow 2 weeks
Project and materials logged R&D Idea Vault
Project and materials logged R&D Idea Vault
Allow 1 weekAllow 1 week
Project Sponsor appointed by
R&D WIP Group
Project Sponsor appointed by
R&D WIP Group
Cross-Functional Team
Designed
Cross-Functional Team
Designed
Project Brief Completed
Project Brief Completed
Project Brief reviewed and
authorised
Project Brief reviewed and
authorised
PASSPASS FAILFAIL
Allow 1 - 2 weeks
Allow 1 - 2 weeks
Allow 1 - 2 weeks
Allow 1 - 2 weeks
Max Time Elapsed 4 - 5 weeks
(25 days)
Max Time Elapsed 4 - 5 weeks
(25 days)
Science Backed SuccessPerspectives on the Future Growth of Natural Medicines
Example for illustration purposes only.
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The R&D Project Brief ‘short-cuts’ the NPD approval process, provides input for a business case and moderates hit-and-miss on projects.
The Project Brief covers: Strategic Theme / Fit Project Sponsor / Project Manager R&D Score R&D Recommended Course of Action R&D Investment Summary Primary and Secondary Project Objectives Preliminary Market Attractiveness Assessment Consumer Proposition Channels Project Rationale Project Scope – what’s in, what’s out IP Assessment Partnership and / or Commercial Terms (if any) Technical and Regulatory Assessment Supply Chain Assessment Financial Reward vs. Risks – high level analysis Project Plan / Timelines – high level analysis
Example for illustration purposes only.
Science Backed SuccessPerspectives on the Future Growth of Natural Medicines
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