During years, pharma companies have been trying to bring more value to patients and physicians by using mHealth. In this study we observed the consequences of a slow transition to digital on a leader in his sector (Novartis Vs Kodak). We also think that pharma companies need to move from mHealth to Digital Masters to bring the best value to all stakeholders. Some facts: Digital Masters outperform their peers* -26% more profitable than their average industry competitors -9% percent more revenue with their existing physical capacity -More efficiency in their existing products and processes -More Productivity (*): LEADING DIGITAL: Turning technology into business transformation, Havard Business Review press

1. 1
PHARMA COMPANIES
--------------------------
FROM MHEALTH TO DIGITAL
MASTERS
Joseph Pategou
International Strategy and Influence
joseph.pategou@skema.edu

2. 23/05/2016 2
SUMMARY
Objectives
I. Methodology
II. Mobile health market
III. Case Study: Novartis Vs Kodak
IV. Future Challenges & Opportunities
V. From Mhealth to Digital Masters
INFORMATION ABOUT THE AUTHOR
Appendix
Digital Economy – Joseph Pategou

3. 23/05/2016 3
OBJECTIVES
Digital Economy – Joseph Pategou

4. Identify the Mhealth Market
Identify the Challenges &
Opportunities
Identify the DNA OF DIGITAL MASTERS
23/05/2016 4
OBJECTIVES
Digital Economy – Joseph Pategou

5. 23/05/2016 5
METHODOLOGY
Digital Economy – Joseph Pategou

6. 23/05/2016 6
METHODOLOGY
 Primary data (Books, Statistic , Newspapers….)
 Interviews
• Qualitative method of interpretation
• Sample: 5 personnes
• 1 questionnaire of 7 questions
• Position of the Interviewees:
 Expert of mobile health
 Top managers from unions in the pharmaceutical Industry
France
Mr Guillaume Marchand
 President and Co-founder of Health dmd
Mr. Richard LERAT
 Chief of Staff of the Presidency of LEEM
Mr Lionel REICHARDT
 Founder of 7C's Health
 Pharmageek
Mr François-Régis Moulines
 Director of Communications and Public Affairs of
SNITEM
Mrs Claire Leblond
 Community Manager at SKEMA Business School
 Case Study : Novartis Vs Kodak
Digital Economy – Joseph Pategou
Sources: Appendix

7. 23/05/2016 7
METHODOLOGY
 Questionnaire
1.What is your definition of mobile health?
2.What is your view on offers and demands in this market?
3.What is the role of pharmaceutical companies on the French market?
4.Is there a regulation of the market for mobile health in France? If so, how do you rate this
regulation?
5.What is the place of France in this market on the global stage (turnover, market share etc.)?
6.What is the place of Novartis in the market for mobile health in France?
7.How will evolve the market of mobile health in the future (in 5 years and 10 years)?
Digital Economy – Joseph Pategou
Sources: Appendix

8. 23/05/2016 8
Mobile health market
Digital Economy – Joseph Pategou

9. The mobile Health corresponds to all services
related directly or indirectly to the health,
permanently available via a mobile device
connected to a network.
23/05/2016 9
Mobile Health Market
Digital Economy – Joseph Pategou
Sources: Appendix

10.  Global Market
 $ 2.4 billion in 2013
 $ 26.5 billion in 2017
 Europe $ 6.9 billion
 Asia-Pacific $6.8 billion
 North American $ 6.5 billion
 Four major countries in Europe
23/05/2016 10
Mobile Health Market
Rank Country
1 UK
2 Spain
3 France
4 Germany
Digital Economy – Joseph Pategou
Sources: Appendix

11. 23/05/2016 11
Mobile Health Market
 Health Applications
 100,000 mobile health applications (iOS and Android)
 60% for welfare and shape market
 40% for health professionals
 200 companies
 2,000 jobs
 7 out of 10 mobile users have not downloaded health application
because they haven't found
2013 IOS Android
Percentage of smartphone 22,2% 65,2%
Percentage of application 90% 10%
Digital Economy – Joseph Pategou
Sources: Appendix

12. 23/05/2016 12
Mobile Health Market
4-Punctual tools (example: translation of medical language and Géomedica)
 This market was boosted by the rise of smartphones and
application development.
Digital Economy – Joseph Pategou
Sources: Appendix

13. 23/05/2016 13
Mobile Health Market
 Helpers dominate this production activity
Digital Economy – Joseph Pategou
Sources: Appendix

14. 23/05/2016 14
Mobile Health Market
 Traditional healthcare players: It includes Pharma, Hospitals, health insurance
and Med-tech companies, representing 3,4% of the total number of app
publishers.
 App specialists: App specialists are small companies with 3-10 employees.
They have an app developer background and are familiar with the available
development tools. This group represents 14% of the total mHealth app
publisher community.
 Helper: Helpers are companies or individuals with the primary motivation of
publishing mHealth apps in order to help others and are typically small
companies of 3-10 employees. They represent 32% of the market.
Digital Economy – Joseph Pategou
Sources: Appendix

15. 23/05/2016 15
Mobile Health Market
 Medical specialists: Medical specialists leverage their medical know-
how to develop mobile apps. They represent 20% of the market.
 Fitness specialists: This group of app developers represents around
10% of the total mHealth app developer community. The typical
company size is 11-100 employees.
 Connecters: This group of mHealth app publishers represents 18% of
the total mHealth app developer community.
Digital Economy – Joseph Pategou
Sources: Appendix

16. 23/05/2016 16
Mobile Health Market
 Pharma app publishers can be clustered into three groups:
 Niche players (Use apps in order to promote their core products to healthcare professionals)
 Still Trying (Publish many apps but so far have not been really successful)
 First Success
 Leading Pharma companies
 6.6 million downloads since 2008
 1 million active users since 2008
 Pharma companies app portfolios’ performance is disappointing
 The raison of this situation:
 The app portfolios are not globally available
 The app portfolio is built around the core products of the Pharma companies and
not around the actual market demand
 No cross-referencing and common and recognizable design
Digital Economy – Joseph Pategou
Sources: Appendix

17. 23/05/2016 17
Mobile Health Market
 In terms of demand
France
 7 million health mobile users have looked for health information in 2013
 22% have downloaded apps.
 52.9% of mobile user’s health with chronic illness want their doctor to advises them
mobile health applications
Europe
 185 million Europeans will benefit from mobile health in 2017
 € 99 billion save on health spending
In terms of regulation
 The market of mobile health is not controlled or regulated
 Action plan 2012-2020, adopted by the European Parliament
• Clear legal framework to ensure the development and adoption of applications
Digital Economy – Joseph Pategou
Sources: Appendix

18. 23/05/2016 18
Case Study:
Novartis Vs Kodak
Digital Economy – Joseph Pategou

19. 23/05/2016 19
Novartis
Digital Economy – Joseph Pategou

20. 23/05/2016 20
Novartis: Vision on the Mobile Health
Michele Angelaccio
Head, Mobile Strategy and
Innovation
Novartis
"Through solutions such as mobile health, we intend to
make a major change in the way in which care is
delivered and to increase access to health services."
“Also looking to expand its mobile health services
from healthcare monitoring to virtual healthcare”
Digital Economy – Joseph Pategou
Sources: Appendix

21. 23/05/2016 21
Place of Novartis in this market
 Active companies in the field of digital
 Some facts :
 Novartis won the PharmaSuccess Award Marketing Excellence in 2013
 In 2013, Novartis is the digital company of the year
 Novartis won the PharmaSuccess Award Marketing Excellence in 2014
 Partnership with Google
 2013 Novartis organized an ‘mHealth Challenge’ a 48-hours development
marathon in the heart of Silicon Valley in the United States, aimed at
identifying a novel way to use mobile technology to address a major
health challenge.
Digital Economy – Joseph Pategou
Sources: Appendix

22. 23/05/2016 Digital Economy – Joseph Pategou 22
Place of Novartis in this market
 Novartis in the still trying group
Sources: Appendix

23. 23/05/2016 23
Kodak
Digital Economy – Joseph Pategou

24. 23/05/2016 24
The case of Kodak: The example that Novartis is not following
Created in 1880 in Rochester, by George Eastman, Kodak was able to make it easy and
cheap, the photography, previously expensive and complex activity.
In the early 1990s, the company will opt for a slow transition to digital; in addition, the
technology seems uncertain and costly. Kodak is quickly overtaken by Sony, Canon and
even the Fuji in the digital photo.
Market leader, Kodak missed the turn of digital, which has transformed the world of
photography. This missed opportunity will lead the company to bankruptcy.
Novartis, digital company in 2013, understood that mobile Health is transforming the
pharmaceutical industry. She did not miss his appointment with the mobile health as Kodak
with the digital photography.
Digital Economy – Joseph Pategou
Sources: Appendix

25. 23/05/2016 25
Future Challenges &
Opportunities
Digital Economy – Joseph Pategou

26. 23/05/2016 26
Future Challenges
1. The first one is to win the trust of patients
Pharma companies are fighting an uphill battle in many ways. One is that, as
technologies like mobile devices bring healthcare into patients’ homes, patient trust
becomes more important than ever. And pharmaceutical companies generally aren’t as
trusted as physicians or even insurers.
A Deloitte survey last year found that although people trust doctors and academic
centers most, the next most trusted entities are companies like WebMD, then Google search
results. At the bottom of the list are pharma and other types companies.
A more recent study, by Makovsky Health, found that only around 35% of consumers
would trust a disease website sponsored by a pharmaceutical company, and 16% said they
would never visit a disease website sponsored by a pharma company.
2. The second one is the ability to take risk
Pharma companies is historically extremely risk-averse, when you introduce a new
factor, it inherently increases risk. In a business that is focused on reducing risk, then those are
things that life sciences companies are going to stay away from. In the business of mobile
health will always need to take risk to be the best.
3. The last challenge
Ability to produce relevant apps for patients, for that, they need to develop a customer
culture.
Digital Economy – Joseph Pategou
Sources: Appendix

27. 23/05/2016 27
Future Opportunities
1. Pharmaceutical companies will be closer to patients and will understand the
needs, expectations and will be able to produce Blockbusters.
2. It is an opportunity for pharmaceutical companies to improve their image
through the development of application which help patients.
3. This revolution may allow pharmaceutical companies to become key
players in the prevention of diseases.
4. MHealth will become a new level of growth (Turnover).
Digital Economy – Joseph Pategou
Sources: Appendix

28. 23/05/2016 28
PHARMA COMPANIES: FROM
MHEALTH TO DIGITAL MASTERS
Digital Economy – Joseph Pategou

29. 23/05/2016 29
Pharma Companies: From mHealth to DIGITAL MASTERS
Pharma companies must become DIGITAL MASTERS*
The DNA OF DIGITAL MASTERS
 Digital Capabilities
 Know where and how to invest in the digital opportunity
 The size of the investment is not as important as the reason and the
impact
 Leadership Capabilities
 Top-down leadership
 Strong governance and coordination
• Setting direction
• Building momentum
• Ensuring that the company follows through
Example: Chief digital officer (CDO) or Chief information officer (CIO)
(*): LEADING DIGITAL: Turning technology into business transformation, Havard Business
Review press
Digital Economy – Joseph Pategou

30. 23/05/2016 30
Pharma Companies: From mHealth to DIGITAL MASTERS
Reasons to become digital masters
 Digital Masters outperform their peers*:
 26% more profitable than their average industry competitors
 9% more revenue with their existing physical capacity
 More efficiency in their existing products and processes
 More Productivity
(*): LEADING DIGITAL: Turning technology into business transformation, Havard Business
Review press
Digital Economy – Joseph Pategou
Sources: Appendix

31. 23/05/2016 31
Information about the author
Regulatory issues on the development of Biosimilars – Joseph Pategou
I am fascinated by healthcare and the experience of many
companies to develop new types of drug with the aim of saving
lives around the world.
Main topics of passion in the healthcare:
- Strategy
- Digital
- Innovation
- Biosimilars
If you want to know more, please contact me:
joseph.pategou@skema.edu
M. Joseph Pategou

32. 23/05/2016 32
APPENDIX
Digital Economy – Joseph Pategou

33. 23/05/2016 33
Reference
1. Bilan économique du LEEM (les entreprises du médicament) / édition 2014
2. Livre Blanc 2013-Télémédecine 2020 Modèles économiques
3. Livre vert sur la santé mobile- Commission Européenne
4. Research2Guidance-mHealth App Developer Economics 2014
5. Pwc-L’émergence du mHealth : un levier de croissance
6. Pwc- Socio-economic impact of mHealth An assessment report for the European Union
7. Syntec Numerique-Télémédecine 2020 faire de la france un leader du secteur en plus forte croissance de la e-
santé
8. http://mobihealthnews.com/35895/novartis-mobile-health-strategy-poised-to-move-from-tracking-to-virtual-care/
9. http://www.01net.com/editorial/626092/ios-versus-android-comparaison-nest-pas-forcement-raison/
10. http://mobihealthnews.com/32420/10-digital-health-startups-that-
pivoted/http://www.novartis.com/newsroom/feature-stories/2014/06/mHealth-a-revolution-in-healthcare.shtml
11. http://www.novartis.com/innovation/focus-on-patient-outcomes/index.shtml
12. http://www.novartis.com/innovation/focus-on-patient-outcomes/remote-monitoring.shtml
13. http://mobile-health.fr/2014/06/weecare-temoignage-de-novartis/
14. http://europa.eu/rapid/press-release_IP-14-394_fr.htm
15. http://www.healthdatachallenges.com/challenges/database/novartis-mobile-health-challenge/
16. http://www.mmm-online.com/avatar-wins-hearts-at-novartis-mhealth-challenge/article/321705/
17. https://itunews.itu.int/fr/1632-Dialogue-de-Geneve-la-sante-sur-mobile.note.aspx
18. http://lemondedelaesante.wordpress.com/2012/07/31/le-remplacement-du-stethoscope-par-le-mobile-est-il-
pour-demain/
19. http://lemondedelaesante.wordpress.com/2013/03/05/la-m-sante-doit-elle-evoluer-pour-permettre-une-
adoption-generalisee/
20. http://research2guidance.com/why-pharma-companies-have-no-substantial-impact-on-the-mhealth-app-
economy/
Digital Economy – Joseph Pategou