Life Sciences Strategy 2020

The Life Sciences market isn’t just growing—it’s evolving. Everywhere in the industry, companies are working to make sense of uncertainty and rapid change and reinvent the ways they serve their customers. And everywhere a challenge or an opportunity

presents itself, Deloitte is positioned to playa critical role. As we chart our own courseto 2020, we will grow along with the industry we help propel. When everyone is working for a cause, moving in the same direction comes naturally.

Knowing our clientsWorking together to transform the journey of care

Moving forward to a larger role—and greater rewardsA fast-growing share of a fast-growing global market—and opportunities across all of our businesses

All signs point the same way: forward A passion to drive patient impactA passion to help clients succeedA passion to grow our global business

The life sciences sector is growing almost twice as fast as global GDP.

Our experience across the global health care landscape helps life sciences companies drive change that matters—through innovative and highly implementable solutions.

The addressable market for life sciences professional services is growing. 2015 addressable market $24.9B projected by 2020— 6 percent growth

Our revenue is poised to grow with it. Deloitte FY16 revenue Expected LS revenue by FY20 (9.9% CAGR) Expected LS market share by FY20

2015

$2.0T

$2.7T

$12.6B $2.8B

11.6% 15.1% 12.3% 4.5%

$1.9B

$0.7B$0.2B

$5.7B $4.5B

Americas EMEAGlobal Asia-Pac AmericasGlobal EMEA Asia-Pac2020

Knowing where our clients are headedAnd connecting our strengths to our clients’ needs

Our sector strategy is to be the most influential life sciences professional service provider through innovation, a collaborative working style, and comprehensive capabilites that we bring to our clients’ most critical needs.

Aspirations Priorities

Talent

Issues anddifferentiators

Solutions andinvestments

Positioning

Businesses

Outcomes

Differentiators

Clients

Forward-looking investments in solutions and offerings

Emerging solutions

Experimental pilot solutions

Targeted aquisitions

Innovation and new offerings will be vital—by 2020, half our revenue will come from solutions we’re building today while the other half will come from our foundational (current) offerings.

By using the system of resources we’ve built just for them.

Setting our priorities…Choosing our targetsAchieving global revenue growth of 9.9% will require a relentless focus on nurturing current accounts and developing the next generation of key accounts.

Partner with life sciences companies to transform the journey of care

Issues

Target heart-of-the-business issues with emerging and experimental solutions

Address shifts in the Enterprise Technology landscape (e.g., S4H, Cloud, SFDC)

Leverage our unique competitive position: integration, cross-sector reach, top industry experts, breadth and depth, and global centers of excellence

Become the dominant player in BioPharma and MedTech

Expand market share in Generics, Distributors, and Foundations

Expand relationships with “Crown Jewel,” “Strategic,” and MidCap clients

Invest selectively in “industry disruptors”

Solutions, Offerings, & Eminence

Explore targeted acquisitions to strengthen capabilities such as regulatory, compliance, cyber, and supply chain

Acquire and develop Life Sciences PPMDs in target markets

Promote a global theme of "Working for a Cause"

Focus Audit on early stage and mid-market clients

Expand Distribution and Generics footprint

Leverage Consulting, Risk and Financial Advisory, Audit and Tax solution investments

Become the dominant service provider in the Regulatory market

Processes/systems

Build out “emerging” and “pilot” offerings (e.g., Real World Evidence (RWE), Value Based PMI, and IoT)

Increase investments in eminence, marketing,and training

Expand global demand generation capabilities

Nurture a global life sciences community

Expand the number of Global "LCSP-ready PPMDs"

Collaborate with the health care sector to capture ecosystem opportunities

Create virtual CoEs and regional/global offering champions

People Talent

Roll out consistent global communications and learning platforms

Build deeper expertise in Therapeutic Areas and R&D

Geographies

Focus on the United States, the United Kingdom, Switzerland, Japan, Germany, China, France, Belgium, India, Brazil, Southeast Asia, and Mexico

Continue to expand annuity offerings such as CIS by Deloitte, ConvergeHEALTH Safety,and ConvergeHEALTH Miner

ConvergeHEALTH Safety™

Cloud-based management and analytics tools that improve pharmacovigilance through inquiry response, safety surveillance, quality and compliance management, and others

ConvergeHEALTHPatient ConnectA patient services and care management platform that helps companies deliver effective patient support and engagement

CIS by DeloitteHealth care compliance, risk, and technology-driven managed services solutions that help manage financial, operational, and reputation risk

Outcomes-based contractingAn analytics solution that delivers outcomes-based contracting with customized outcomes measurement for products and therapeutic areas

Precision WellnessA cognitive engagement app that collects data for testing patient engagement hypotheses and measures impact on behavioral outcomes

• Enterprise and cyber risk• Financial advisory

• Regulatory• Supply chain managed services

Not just more people—the right people, in the right places, with a shared vision.

Our global network of people will power the journey

Promote cultural theme of Working for a Cause through global community

Continue to add deep expertise, including Therapeutic Areaand R&D

Acquire and develop PPMDs in target markets, particularlyin EMEA and AP

Foundational offeringsCurrent capabilities and offerings

Novo-NordiskAbbVieEli LillyTevaAbbott AllerganBaxterBiogenCelgene

EisaiUCB SAGileadMcKessonOtsukaSyngentaThermo FisherFDANIH

AlexionIncyteMallinckrodtGoogleHuman Longevity Inc.AppleJazz PharmaPhillipsSamsung

GE HealthOrexigenRegeneronbluebird bioAgiosVertexNonProfit & Patient Advocacy Organizations

AstraZenecaBayerGSKSanofiMedtronic

MerckTakedaPfizer

Crown jewels Strategic Disruptors

Grow the next tier of at least five new “crown jewels” with at least $100M annual revenue

Develop 10 program clients with at least $50M in annual global revenue

Invest in industry “disruptor” companies and develop relationships with cross-industry, early-stage, and non-traditional companies

Bristol-Myers SquibbJohnson & JohnsonNovartisRoche

How practitioners can make a difference

Together, we will be working for a cause

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For internal use only.

Operatingperformance• Productivity and efficiency• Assets and capacity• Base Erosion Profit

Sharing (BEPS)

Mergers andacquistions• M&A strategy• Post-merger integration• Corporate finance• Transaction and

diligence support

Core growth• R&D• Market access/pricing• Diversification• Innovation

Innovation andbusiness model• Business model

transformation• Digital enterprise• mHealth

Analytics• Predictive, commercial,

and safety analytics• Bioinformatics• Precision wellness• Manufacturing and supply

chain operations• Real World Evidence

Customer and consumer• Brand reputation• Connectivity• Loyalty• Market access/pricing • Diversification• Personalized medicine

Quality and regulatory• Product safety and

reliability• Service reliabilty• Cyber security• IDMP

What is the right acquisition strategy?

What therapeutic areas, products, technologies, and markets should we invest in?

How do we drive margin performance?

How can we accelerate our time to market?

How can we address the traction biosimilars are gaining? What evidence fuels analytics?

What analysis creates insight for action?

How will we develop a patient-centric approach?

How will we adapt to the changing regulatory environment?

Where is Deloitte investing around the world?Dedicated assets and Centers of Excellence strengthen our solution offerings, eminence, and ability to serve clients.

Note: This is a point in time list.

Examples of solutions are not exhaustive

How do we demonstrate value to payers, providers, and patients?

Deloitte emerging markets account for the remaining $2.1B in global spend

Academic and industry partnershipsMIT

Singularity University

Intermountain Health

Regenstrief Institute

M2Gen

Industry associations AdvaMed

BIO

GPhAs

CDISC

Regional BIO associations including BIONJ, IBIO,

BIOCOM, CLSA, MASSBIO, PABIO

ISPOR

ABPI

Assets/Life Sciences CoEEMEA Life Sciences Launch and Value CoEUK, France EMEA Life Sciences Digital CoEUKEMEA Integration and Separation CoESwitzerland, Germany EMEA Life Sciences R&D CoEUKEMEA Medtech CoEGermany

CORE (Centre for Regulatory Excellence for Life Sciences)UKUS Center for Health SolutionsUK Centre for Health SolutionsAPAC Life Sciences Regulatory CoESingaporeConvergeHEALTHUSTherapuetic Area Transformation CoEIndia

Life Sciences AWS Hosting CenterIrelandHealth Economics and Outcomes Research (HEOR) CoEBelgium NeuroScience InstituteGermanyCenter for Additive ManufacturingUSHartford Data Center/Advanced AnalyticsUS

Clients are evolving along with the health care environment. Deloitte can partner with life sciences companies to help them achieve their business goals.