Increased competition from generics, a growing pressure from payers to reduce costs, and a market in which a drug’s success is more closely tied to its performance are transforming the pharmaceutical and life sciences industry. As the healthcare industry transitions from treating existing illnesses to taking steps to prevent illness before it occurs. By leveraging technology and information traditional pharma business is adding value beyond the pill and emphasizing the need of strong partnerships and strategic alliances with the broader ecosystem

1. Health Care & Pharmaceutical Business
Key Challenges & IT value
Mauricio Campos Suarez
November 2016

2. Content
• Key Challenges
• The transformation
• IT role
Health Care & Pharmaceutical Business
Key Challenges & IT value

3. Pharma Key challenges
External factors
• Global exponential population growth
• Increase in life expectancy
• Increase of chronic diseases

4. Global
exponential
population
growth
https://www.census.gov/popclock/ UNITED 7Billion Actions

5. Global
increase in
life
expectancy
Increase of
chronic
diseases
http://www.who.int/kobe_centre/ageing/en/

6. Estimated Healthcare
utilization by 2030
< 65 years
> 65 years
0%
50%
100%
150%
200%
Polulation > 65
2030
Now
0%
50%
100%
150%
Chronic disease
2030
Now
Growth
Conservative, Diabetes prevalence will increase 165% between now and 2050
Source http://www.census.gov/
+ 500 million
people
+ 46 million
people (only US)

7. Pharma Key challenges
Internal factors
• Patents expiration
• Inefficiencies
• Pipeline shrink
• Internal Complexity/High Cost

8. New Molec1ule chances:
0,01 % success in 15
years
10 years exclusive
commercialization
Key challenges
Internal factors: R&D

9. Top Pharma
R&D budget
around u$s
150 bln
New medicines registration
New players
Big pharma
Equal to
around 50
countries
GDP together
Key challenges
Internal factors: R&D
http://unstats.un.org/unsd/snaama/dnllist.asp https://www.ft.com

10. The Transformation

11. Reinventing Pharma Business
Drive Efficiencies
Alliances Management
Perform
Innovate
Business Development
Transform

13. Leverage IT to accelerate the transformation

14. • 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

15. 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

16. 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

17. Influenza epidemics
prediction
• 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
Estimation based on internet searching data

18. 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

19. New players
The big majority of
technological
companies have a
HealthCare
division

20. Open Challenges to Start-ups

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