SERVICE WITH CHARACTER TO CREAT CUSTOMER VALUE IN INDONESIA PHARMACEUTICAL INDUSTRY PART 1

Moch Kurniawan

THE CREDIT SUISSE EMERGING CONSUMER SURVEY 2013

Credit Suisse Emerging Consumer Survey 2013, IMF, EIU, UN

2014 GLOBAL HEALTH CARE SECTOR OUTLOOK

www.deloitte.com/2014healthcareoutlook

INDUSTRY BACKGROUND

• Health care industry accounts for 15% of GNP As populations in the Western world age, this is proportion is likely to

grow Medicare drug benefit is expected to cost ~ $ 500 billion over the next

10 years Prescription drugs account for 10% of all health care spending The World Health Organization states that health expenditure per

capita in ASEAN is around 4 percent of GDP

• Huge marketing expenditure – this industry is the highest spender on Sales force (~ $ 10 billion) Media advertising (~ $ 5 billion) Promotions (~ $ 11.5 billion) Marketing spend is 2.5 times spend on R&D spend for the top 9 pharma

firms

Plenary Session, Choice Symposium, Estes Park, Colorado June 8, 2004Stephen Lock , The Economist March 17 2014

ASIA IS THE NEW CENTER OF GRAVITY FOR MULTINATIONAL COMPANIES

• Asia is no longer just a booming sales market or low-cost manufacturing center. It's the place where many business units are now headquartered.

• Shifting business leaders – In 2011, Philips moved its global HQ for

domestic appliances from Amsterdam to Shanghai, and Rolls-Royce shifted its global marine business HQ from London to Singapore.

– Also in 2011, Bayer relocated its general medicine business unit to China.

– GE moved its x-ray equipment HQ from Wisconsin to Beijing in 2011 and its global marine business HQ to Korea in 2013.

– P&G moved its global beauty care business unit from Ohio to Singapore in 2012.

http://csi.mckinsey.com/Home/Knowledge_by_region/Asia/Asia_center_of_gravity.aspx

An Elderman White Paper : The State of Healthcare in South East Asia

SOUTHEAST ASIA: HEALTHCARE AND HOSPITALS

http://www.ihe-online.com/feature-articles/southeast-asia-healthcare-and-hospitals/index.html

FEW MEGA TRENDS WE CANEXPECT TO TRANSFORM THE INDUSTRY OVER THE NEXT

FIVE TO SEVEN YEARS

Diagnostics and prediction usurp primary dollars from therapeutics: Services become paramount rather than product per se

Convergence of the food, retail and healthcare industry

Mega consolidation along the supply and delivery chain: Hospitals can learn from the Wal-Mart's of the world as healthcare becomes consumerized

The consumer as the eventual CEO in a world where healthcare is anywhere, any time

ttp://www.forbes.com/sites/reenitadas/2014/02/19/the-re-imagination-of-health-care

TOP 4 HEALTHCARE PREDICTIONS FOR 2014 - ASIA

Frugal Innovation is the Way Forward, High Tech Does Not

Mean High Cost

Aggressive Cost Cutting of Pharmaceutical Drugs and

Transparency in Pricing

Strong Movement Toward Value Chain Consolidation to

Increase Efficiency

High Penetration of Mobile Technology is Enabling

Transition of Care to the Home

http://www.forbes.com/sites/reenitadas/2014/01/31/top-4-healthcare-predictions-for-2014-for-asia

TOP ISSUES AND TRENDSAging population and chronic diseases• Current growth rate of the older population, at 1.9 percent, is significantly higher than that of the total population at 1.2 percent.• Chronic diseases are, by far, the leading cause of mortality in the world, representing 63 percent of all deaths

Cost and quality• United States spends $8,508 per person on health care, nearly $3,000 more per person than Norway, the second-highest spender.• 23 percent of U.S. adults and 13 percent of adults in France either had serious problems paying medical bills or were unable to pay them• 1.7 million patients develop infections while in the hospital, and 99,000 die as a result in the U.S

Access to care• More than one billion people worldwide lack access to a health care system• There will be a shortage of 230,000 physicians across Europe in the near future• The number of caregivers in 36 countries in Africa is inadequate to deliver even the most basic immunization and maternal health services• Uneven distribution of caregivers is also a problem. Developed countries increasing, but emerging markets struggling to keep up

Technology• Advances in health technologies and data analytics can help facilitate new diagnostic and treatment options but need to contain these new expenditures by restructuring

care delivery models and promoting more efficient use of resources• Adoption of new digital health information technologies (HIT) is driving change in the way physicians, payers, patients and other sector stakeholders interact• Electronic medical records (EMRs)• Telemedicine• Mobile health (mHealth) applications• Electronic medical prescriptions

• Need to focus on security, privacy and patient safety in addressing new technology.

www.deloitte.com/2014healthcareoutlook

WINNING COMPANIES IN THIS NEW MARKET WILL MARRY THE YIN AND YANG

Winning the battle for consumer healthcare : Science vs the marketers | AT Kearney market research and analysis

FOUR DEFINING ELEMENTS OF THENEXT GENERATION PATIENT

Appetite for personalized information and real-time

feedback

Active participation in care and treatment

Focus on convenience and on-demand services for busy lives

Value-hunting through comparison shopping

PwC Health Research Institute | Customer experience in the pharmaceutical sector: Getting closer to the patient | November 2013