Health Care & Pharmaceutical BusinessKey Challenges & IT value

Mauricio Campos SuarezNovember 2016

Content• Key Challenges• The transformation• IT role

Health Care & Pharmaceutical BusinessKey Challenges & IT value

Pharma Key challengesExternal factors

• Global exponential population growth• Increase in life expectancy• Increase of chronic diseases

Global exponential population

growth

https://www.census.gov/popclock/ UNITED 7Billion Actions

Global increase in

life expectancy

Increase ofchronic diseases

http://www.who.int/kobe_centre/ageing/en/

Estimated Healthcare uti-lization by 2030

< 65 years> 65 years

Polulation > 650%

50%

100%

150%

200%

2030Now

Chronic disease0%

20%40%60%80%

100%120%140%

2030Now

Growth

Conservative, Diabetes prevalence will increase 165% between now and 2050

Source http://www.census.gov/

+ 500 million people

+ 46 million people (only US)

Pharma Key challengesInternal factors

• Patents expiration• Inefficiencies• Pipeline shrink• Internal Complexity/High Cost

New Molec1ule chances: 0,01 % success in 15

years

10 years exclusive commercialization

Key challengesInternal factors: R&D

Top Pharma R&D budget around u$s

150 bln

New medicines registration

New playersBig pharma

Equal to around 50 countries

GDP together

Key challengesInternal factors: R&D

http://unstats.un.org/unsd/snaama/dnllist.asp https://www.ft.com

The Transformation

Reinventing Pharma Business

Drive EfficienciesAlliances Management

Perform

InnovateBusiness Development

Transform

Leverage IT to accelerate the transformation

• Information as a key asset

• Outcome based HealthCare, Predictive Analytics

• “Broadening horizons”• Non-traditional Pharma Players &

Startups partnership

• “It’s all about our patients”

• e-Patient

• “You will not always see the doctor”• Telemedicine & Technologic solution

to reduce HC costs

Business model

development

Add value & build trust

Insights management

Technology Ecosystem

Collaboration

Pharma Transformation: IT Value

Beyond the pill

Shortage of up to 200,000 doctors by 2020 in US only

By 2020 the estimation is to move 40% of health care to the home

Global telemedicine market expected to reach close to USD 48.10 billion in revenue by 2019

E-Patient

ePatients are the individuals who are equipped, enabled, empowered and engaged in their health and health care (HC) decisions. Envisioning HC as an equal partnership between e-patients and HC professionals and systems that support them

e-Patients.net

Digitally enabled solutions are becoming critical to serving both parties’ (Payors, Patients) needs

Influenza epidemicsprediction

• Google prediction (in black) • Actual flu cases (in red) Source Nature.com

+ 90 million people (US) search in Internet their health problems

Big data revolution in healthcare

EXAMPLE

Estimation based on internet searching data

Big data revolution in healthcare

Payors and governments have an ever sharper focus on managing costs while delivering improved patient outcomes, putting an even greater onus on pharma companies to demonstrate the value of their drugs in the real world—not just in randomized controlled trials—if they are to retain market access and premium pricing

New players

EXAMPLEThe big majority of technological companies have a HealthCare division

Open Challenges to Start-ups

EXAMPLES

More about this at….http://www.globalchange.comhttp://www.gapminder.orghttp://www.silverbook.orghttp://www.census.govhttp://www.mckinsey.com/industries/pharmaceuticals-and-medical-products/our-insights/the-road-to-digital-success-in-pharmahttps://hbr.org/2013/09/value-based-health-care-is-inevitable-and-thats-good