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Trend Report Driving Precision Performance: Capitalize on Your Commercial Potential with the Right, Relevant Data
Contents Contents 2 Driving Precision Performance Introduction 3 Targeting the Right Markets: Portfolio optimization 17 Identifying the Right Influencers: Provider alignment 26 Making the Right Connections: Precision engagement 36 Reaching the Right Patients: Patient population potential 48 Conclusions on Commercial Performance Best Practices: Precision insights and applications you can use 54 Endnotes, Expert Contributors To maintain the integrity and consistency of data and resulting analysis, all references to IMS data or QuintilesIMS data have been retained with mention of the IQVIA name as appropriate. 1
Introduction Introduction: Driving Precision Performance If the challenge of precision healthcare involves the proper treatment for a specific patient, the corresponding challenge for life science is focusing on the precise commercial approach to improve your performance. The right markets, the right physicians with the right communications, as conduits to the right patient populations. Continuously changing and widely varying environments are generating unprecedented complexities in pharmaceutical markets around the globe. No longer is there one national “… the corresponding challenge market or single definition of stakeholder. Global and local dynamics are always moving, for life science is focusing on the technologies constantly improving, and the pace of change only accelerating. precise commercial approach to While not a full compendium of solutions available to commercial life sciences users, this report is intended to provide a path to advancing precision and performance based on four improve your performance. The commercial drivers and the evolving trends of each. We’re constantly adding to the world’s right markets and the right largest curated healthcare data source. And, included here are many examples of how ongoing data investments are providing deeper, more precise perspectives into emerging physicians, with the right markets, evolving channels, new stakeholders and better answers to more questions. connections, as conduits to the Our goal is to help global, regional and local pharmaco leaders keep pace with these right patient populations.…” changes—and with additional trends to be explored in the future. Here, we provide insights into what really matters to you, improving commercial strategies, tactics and performance. We hope this report offers familiarity with the expanded information available to advance your commercial performance today and tomorrow. Kevin Knightly President, Information and Technology Solutions IQVIA *More Real World Insights (RWI) are available from IQVIA beyond that included in the reference patient data throughout this report. 2
Distribution Fragmentation Slower global spending Shifts to control costs by THE growth 9% RIGHTMARKETS product types, therapy, delivery, etc. In the UK, hospital share Hospital 10-year growth rate 4-7% Current trends are varying demand is growing while retail 13% 2007- 2016 for medicines and shifting the pharmacy is stalling 1% Globally, declining Retail importance of markets at all levels. Pharmacy to 4-7% by 2021 2015 2016 2017 2018 2019 2020 2021 Regional & local variances Multinational Share: China Provinces & Municipalities Pharmerging 4% Oncology, diabetes 350 $290B-$335B 325 markets slow & autoimmune 15 provinces/ Beijing 300 Tianjin diseases municipalities = Shanghai Major therapy areas drive 275 250 ~ 75% of China’s -2.5% Q4 2016 6 spending growth in Zhejiang have 225 pharma market developed markets MNC share: For top 3 therapy areas in $186B 200 Fujian ≥ 24% aggregate, expect rise of 175 Guangdong $104B - $149B by 2021. 2016 2017 2018 2019 2020 2021 *country-wide share Q1 2017 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Product Portfolio Evolution Biosimilar development actively pursued by many companies Global specialty 1,000 Niche HOWEVER, 900 20% market trends population % 54 800 18% 17 Sales and Growth 16% and Sales, LCUS$ Bn adalimumab 700 registered, Marketed) Growth LCUS$ (Phase III, Pre-reg / 600 14% 12% orphan 500 insulin glargine 5 10% drug Specialty Sales 400 8% markets of orphan 300 Traditional Sales 6% surge diseases etanercept 17 200 4% Specialty growth 100 2% have gaps in the pipeline infliximab 8 Total Global 0 0% and no drugs on market. pharma growth 2012 2016 4 Source citations for all of the above may be found in the IQVIA report Driving Precision Performance, module Targeting the Right Markets, Dec 2017 4
Targeting the Right Markets: Portfolio optimization The Right Markets While each geography is different, fluid market dynamics are changing the relative importance of regions, countries and markets—and requiring precise commercial strategies based on specificity and granularity to capitalize on shifting trends, therapies and markets. Evaluating and re-evaluating continuously Variation in Spending and Volume Growth Across Global Markets shifting markets at the national, sub-national 1,600 10% Exhibit M-1: and local level requires precise intelligence. 9% Spending and growth have shifted focus to volume-driven growth in pharmerging To asses and act on a myriad of competing 8% markets and specialty medicines. In the Growth Constant US$ 1,200 opportunities and challenges, you need 7% US, patent expiries and biosimilars will Spending US$Bn play a key role in the decline in spending increasing levels of detail specific to brands, 6% growth. However, the next five years sales territories and markets of interest. 800 5% expect a continued boom in innovation Yet demand for medicines varies across a range of diseases. 4% significantly across and within markets, 3% depending on trends in: 400 2% • Economic conditions 1% • Therapy areas 0 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 • Drug composition and Source: QuintilesIMS Market Prognosis, Spending Growth Sept 2016; IQVIA (QuintilesIMS) Institute, Oct 2016 • Distribution, amongst other things. Given emerging and shifting trends such Top 20 Pharmerging Markets Forecast Growth Dynamics as these, precise information with the 14 Forecast CAGR (2016-21) Exhibit M-2: right, relevant detail is critical to reaching 13 Bubble Size proportional to 2016 LCUS$ Sales Bangladesh BRICTM Leading pharmerging markets have seen your full potential and improving 12 $100bn Pakistan Egypt GDP growth slow over the past decade, Turkey Pharmerging Tier 3 commercial performance. 11 India resulting in a wide dispersion in growth as $20bn the CAGR overall falls into single digits. 10 Kazakhstan $7bn Nigeria Russia The outlook for spending growth is Slow Demand, Pharmerging Growth 9 Vietnam expected to moderate from 10% CAGR 8 Indonesia over the past five years to 6% - 9% Though the US remains the world’s largest 7 South Africa Algeria China through 2021. Pharmerging market, pharmerging countries will make 6 Mexico Chile Brazil Forecast Philippines CAGR: 7.4% Notes: At ex-manufacturer price levels, up nine of the top 20 markets by 2021, 5 Saudi Arabia Colombia not including rebates and discounts. with China continuing as number two. 4 Poland Contains audited and unaudited data; Current pharmerging markets include Brazil, 3 Argentina excluded due to hyperinflation. Pharmerging Historic 2 CAGR: 10.8% Russia, India, Mexico, Turkey, Bangladesh, Source: QuintilesIMS Market Prognosis, 1 Chile, Kazakhstan and the Philippines. 2 4 6 8 10 12 14 16 18 Historic CAGR (2011-16) Mar 2017 5
While global spending will reach $1.5 Therapy Focus, Oncology-Driven Changing Product Profiles specialty, niche and orphan medicines, The Right Markets trillion by 2021, global spending growth is while emerging nations find value in less Spending growth in developed markets will Drug manufacturers have very different slowing from 9% in 2015 to 4% - 7% over expensive brands and options. be propelled by innovations in oncology portfolios today than in previous decades, the next five years (Ex. M-1). Spending (specifically immuno-oncology), diabetes requiring precise granularity previously Continued portfolio evolution is expected as growth will be driven by increased and autoimmune therapies (Ex. M-3). unavailable in some regions. Portfolios will pharmacos seek opportunity driven by a few pharmerging market volume, but the Diabetes treatments will evolve with more continue to evolve as gene editing key developments: slower growth illustrates a direct convenient formulations, combinations and techniques, microbiome use, regenerative • Specialty medicines and new correlation between medicine usage and delivery. Treatments for autoimmune cell therapies and the like advance into biologics surge affordability in some countries. diseases, including rheumatoid arthritis, the future. • Biosimilars and non-originals increase By volume, medicines consumed globally psoriasis, ulcerative colitis, Crohn’s disease R&D pipelines and demand in developing • Future cell and gene therapies advance will increase 3% annually through 2021, and related disorders will continue to rise in usage, with spending growth up 11% - 14%. countries suggest continued movement to • Niche population & orphan drug rise but volume growth is slowing too. Since 2011, pharmerging market volume grew 37.5% over five years as prosperity accelerated—verses 2% in the same Leading Therapy Areas Spending and Growth to 2021 (Constant US$Bn) period in all other markets. Exhibit M-3: Spending 2011–16 Spending 2016–21 Pharmerging market growth is expected Therapy Areas Key therapy areas driving spending and 2016 CAGR 2021 CAGR growth over the next five years will be led to slow to 4% through 2021, based on by oncology, reaching $120 – $135 billion declines in China’s economy. Countries Oncology 75.3 10.9% 120–135 9–12% in spending in major developed and pharmerging markets. projected to accelerate spending over the Diabetes 66.2 16.4% 95–110 8–11% next five years are Turkey, Mexico and Poland (Ex. M-2). Romania, Argentina AutoImmune 45.1 18.2% 75–90 11–14% Note: Includes 8 developed and 6 pharmerging countries: US, EU5, Japan, and Colombia are expected to grow by Canada, China, Brazil Russia, India, less than 5% through the year 2021. Pain 67.9 7.1% 75–90 2–5% Turkey, Mexico Though growth in developed markets will Cardiovascular 70.5 -2.5% 70–80 0–3% be driven by patented brands and Respiratory 54.4 3.4% 60–70 2–5% scientific advances, pharmerging markets will continue to be pushed by non-original Antibiotics & Vaccines 54.4 2.5% 60–70 2–5% brands (NOBs), accounting for 91% of pharmerging market volume and 78% Mental Health 36.8 -5.0% 35–40 -1–2% of spending. HIV 24.6 11.5% 35–40 6–9% Source: QuintilesIMS Therapy Prognosis, Sept 2016; IQVIA (QuintilesIMS) Institute, Oct 2016 Antivirals EX-HIV 33.2 38.1% 35–40 0–3% 6
Specialty Medications Surge Specialty Medicines Share of Spending Through 2021 (constant US $) The Right Markets Specialty’s share of spending continues to US EU5 Other major developed Pharmerging Exhibit M-4: rise from less than 20% ten years ago, to 50% Specialty spending will approach half of total spending in the US and Europe by 30% in 2016 and 35% by 2021. While the US 2021. In pharmerging markets, specialty still leads growth in specialty drugs, roughly 40% medicines continue but at lower shares— 82% of specialty sales growth is shared by 5% - 20% of spending. seven developed countries and China. 30% Globally, specialty medicines—more than 50% of which are small molecule—are 20% increasing (Ex. M-4, M-5, M-6). 10% Though prioritization may be based on commercial potential versus composition, 0% it’s curious to note the coming five-years will 2011 2013 2015 2017 2019 2021 2011 2013 2015 2017 2019 2021 2011 2013 2015 2017 2019 2021 2011 2013 2015 2017 2019 2021 see small molecules become increasingly important and biologics entering indications US US GermanyEU5 Italy Other major developed Australia Japan Others Brazil China UK Spain Canada Russia India France South Korea Other Pharmerging Source: IQVIA (QuintilesIMS) Institute, Oct 2016 Specialty Growth in Key Markets: Specialty Spending Growth Rising Faster than Total Global Market Percentage Growth 2015/16 Global specialty market trends Specialty: Sales and Growth Region Market Share 2016 1,000 20% US Exhibit M-5: Exhibit M-6: 900 18% 12.5% A few pharmerging countries In the last five years, specialty medicines JP DE also see growth in specialty 800 16% 16% have grown seven times faster than 13% 21.6% 7.2% sales, e.g. Turkey 20.1%, traditional therapies, with Hep C 700 14% Sales, LCUS$ Bn Brazil 17.2%, China 8.3% medications driving significant growth in 7% Growth LCUS$ and Mexico 4%. Of the top 600 12% 2014/2015. Specialty growth is heavily ES 30 markets, Poland is the 500 10% 4% concentrated in developed markets, and CA 13.0% only country with zero although re-balanced in 2016, it continues 10.1% specialty growth. 400 8% 4% to grow. 300 6% 1% 200 4% 1% AU FR 8.5% 100 2% 58.6% 54% 0 0% UK IT 2012 2013 2014 2015 2016 15.5% 26.1% USA EU5 Source: QuintilesIMS MIDAS, MAT Q4 2016 ALL OTHERS JAPAN Source: QuintilesIMS MIDAS, Specialty Sales Specialty growth ASIA / AUSTRALIA CHINA Positive Growth MAT Sept 2016 Traditional Sales Total Global pharma growth LATIN AMERICA AFRICA / MIDDLE EAST 7
typically treated by small molecules. To Specialty Biologics and Small Molecules Today and in the R&D Pipeline The Right Markets date, the small molecule versus biologics Global Pipeline (Jan 2017) Global Specialty Sales (2011-16) mix is relatively even. Yet, small molecules bn LCUS$ are more than half of expected future Biologic Small Molecule Exhibit M-7: CAGR % Today, the majority of specialty drugs are approvals (Ex. M-7). (2011-16) Preclinical 817 950 biologics, but looking at the pipeline, biologics make up less than half of all Phase I expected new medicines. Moreover, more Biosimilars & Non-Original Biologics +13% 484 614 53% than a quarter of the global pipeline is While the biosimilars market in the developed designated as orphan drugs. Phase II 582 809 world has been somewhat subdued, new opportunities exist for biosimilars and non- 59% Phase III 204 341 original biologics (NOBs). 47% (56%) Pre-reg/Reg 92 164 As patent expiries in developed markets 41% contribute to slower growth, areas attracting 2011 2016 Top 10 companies interest include monoclonal antibody share of specialty 2016 Source: QuintilesIMS Market Prognosis Q4 2016; oncologics, modern insulins and anti-TNF Specialty Biologic Specialty Small Molecule Total pipeline is 43% biologics IQVIA (QuintilesIMS) Institute Feb 2017 mAbs (a therapy area larger than all previous therapy areas with biosimilar Biosimilar Development is Being Actively Pursued by Many Companies competition put together) (Ex. M-8). Number of Biosimilar Companies Approval pathways for biosimilars, cleared 2016 Global Sales US$Bn (Phase III, Pre-reg / registered, Marketed) over the past decade, will continue to offset Exhibit M-8: branded growth and add to the credibility of adalimumab 18.7 17 Biosimilars are attracting companies, large biosimilars across major markets. The US, and small, based on global sales of greater insulin glargine 12.5 5 than $4.9 billion in 2016. Investments will EU5 and Japan currently support biologic accelerate market growth, with product expenditures and will be key for biosimilar etanercept 10.2 17 positioning and pricing as some of the most critical challenges. new opportunity. infliximab 8.6 8 Additionally, biosimilars will be available for rituximab 6.9 18 several of the leading autoimmune products by 2021, potentially allowing wider use with bevacizumab 6.4 13 lower spending. Two developed regions, trastuzumab 6.2 12 Japan and Europe, make up 92% of biosimilar sales currently, with uptake pegfilgrastim 4.9 19 slower in some major European markets. epoetin alfa 2.9 19 Source: QuintilesIMS MIDAS, Dec 2016 Seen by many as the start of a new wave, filgrastim 1.0 infliximab biosimilars have had inconsistent 16 8
impact following launch. Uptake so far A gene-editing technique, more powerful, Biosimilar Uptake, the Nordics Versus the UK The Right Markets has been cautious in most European rapid and less expensive than any infliximab biosimilar uptake, % share of volume in terms of treatment days countries—with exception of the Nordics previously invented, CRISPR-based (Ex. M-9). Tender systems in the Nordics therapies are expected to accelerate in the 100% Exhibit M-9: have led a to rapid uptake (up to 98% market in the next decade. In the case of In the Nordics, clinician acceptance has penetration) of biosimilars in comparison these completely new technologies, it is 80% been high, meaning safety and efficacy evidence for switching has largely been to EU5 countries. difficult to determine the impact each will accepted. Price reductions also became have on the specialty category. significant quickly and patients have not However, as biosimilars take their place in 60% objected to being asked to switch or start the industry landscape, commercial models CRISPR-based therapeutics and other on a biosimilar. for biosimilars need to adapt. Since they regenerative technologies could stretch 40% have the same clinical profile as branded (and potentially break) the current medicines, drug manufacturers need to better definitions of pharmacotherapy, having educate prescribers on the clinical benefits, device- or procedure-like characteristics 20% while focusing payers and funding entities and potentially creating a new class of on potential cost-savings. therapeutic, with its own regulatory, 0% financing and delivery challenges. Future Cell and Gene Therapies The speed of movement in the field also Norway Denmark Sweden Finland UK For high unmet need diseases, cell and means that very rapid development gene therapies are driving investments, should be expected in the next 5-10 years, infliximab as % of total anti-TNFs signaling confidence in newer technologies. with major pharmaco investments and 60% increasing numbers of companies involved. The first cell therapy cancer vaccine has been launched in the US and the first gene While offering huge potential, regenerative therapy treatment has been approved for technologies also pose significant use in Europe. Launching in August 2017, regulatory challenge. They could trigger 40% the first CAR-T treatment has also been competition between countries and approved in the US to treat children and institutions in terms of location of highly young adults with a recurrent form of the specialized centers of excellence, blood cancer, acute lymphoblastic leukemia. funding for these technologies and how 20% commercial return is realized. In addition to these new treatments, we’ll Source: IQVIA (QuintilesIMS), European Thought leadership - Biosimilar tracker, Jun 2017; IQVIA likely see the continued evolution of new While there will be further cell and gene (QuintilesIMS), Market Access, Biosimilars: platforms such as CRISPR, microbiomes therapy launches through the decade, 0% Learning from Europe, Mar 2016 and regenerative cell therapies. companies may find navigating valuation, 9
reimbursement, sales and manufacturing Potential in Niche and Orphan Drugs is Complex and Dynamic The Right Markets challenging as these therapies pose unique questions for players. High prices, Clinical Landscape for EU Orphan Indications with 1-10/20,000 prevalence reimbursement, market access, sales and Total 243 Indications training approaches and more will require strong and novel commercial models Exhibit M-10: Orphan disease drug approvals have which may be ambitious and complex to Only one approved treatment (e.g. increased dramatically in the EU, focused navigate. Hunter syndrome, Pompe disease, on oncology indications. Over a quarter of paroxysmal nocturnal hemoglobinuria) 20% the entire late stage pipeline is focused on the development of oncologics. Niche Population & Orphan Drug Focus Gaps in the pipeline and no 5% drugs on the market (e.g. Orphan drugs are on the leading edge of “Clustering” where multiple 54% congenital hypothyroidism or the specialty medicines trend, thus driving treatments exist for the same 9% osteochondritis dissecans) even further need for precision and detail. indication (e.g. PAH, CML, CF) With 6,000 to 8,000 rare diseases in existence and 30 million1 people in 11% Europe alone suffering from a rare Will start to see competition from Source: OrphaNet, SMA, IMS Health R&D Focus disease, collectively, rare diseases are not other ODs (e.g. Idiopathic Pulmonary June 2015, OD: Orphan Drugs, MA: Marketing Authorization (only including those with orphan really rare. Fibrosis, Multiple Myeloma, DMD) designation), PAH, pulmonary arterial hypertension; CML: chronic myeloid leukemia; Of this 11% in the pipeline, 31%* of products have 2+ CF: Cystic Fibrosis, DMD: Duchenne muscular These populations offer opportunity as products per indication, e.g. Uveitis, Ovarian Cancer, dystrophy; products for the most prevalent orphan indications (1-10/20,000) only 5% of orphan diseases have an Gastrointestinal Cancer, Pancreatic Cancer approved drug treatment option (Ex. M-10). They are also a commercially No Pipeline/No MA Pipeline Only MA (with Pipeline) MA (without Pipeline) Not Druggable or Asymptomatic 1http://www.eurordis.org/about-rare- attractive area due to patient advocacy, diseases medical breakthroughs, regulatory delivery options incentives and venture number of orphan drug approvals— Fragmented Distribution These include: capital investment. because together they represent a large Shorter shelf lives, cold supply chain • Different models for different product share of the medicines budget. In addition, many orphan drugs are requirements, parallel trade regulations and types and patient segments, with some biologics, which are less likely to have However, orphan drugs are increasingly other issues are requiring more flexible bypassing wholesalers entirely immediate competition from generic subject to price scrutiny and will require distribution across the globe. Several issues equivalents after patent expiration. Thus, strong justification for high price tags • New channels, including direct to patient are giving way to more fragmented channels, despite the relatively small market available moving forward. and adding to the precise metrics and • Increasing specialty drugs and for orphans, there has been a surge in the complexity of demand by distribution channel. delivery options 10
In some markets, such as Italy’s blood Italy’s Blood Coagulation Market: Distribution Variances by Region The Right Markets coagulation market, distribution by product type has been implemented with some Direct Traditional Traditional Exhibit M-11: Valle D'Aosta Regions DPC2 In Italy, 70% of blood coagulation drugs go success. Within Italy, regional Local Health Distribution1 Hospital Retail directly to patients via LHA access. Within Authorities (LHA) have taken control of Trento Italy’s 20 regions, high variability exists, Abruzzo 81-100% 0-20% n/a 0-20% distribution, creating new models, impacting with some adopting direct channels more readily than others. patient access to medicines, especially Piemonte Lombardia Bolzano Friuli Basilicata 81-100% 0-20% n/a 0-20% Venezia more costly drugs, and driving highly Giulia Bolzano – variable adoption rates among regions. Veneto Provincia 61-80% 0-20% n/a 0-20% Autonoma Liguria The need for precision in distribution can Emilia Calabria 0-20% 0-20% 81-100% 0-20% be seen in both Calabria’s DPC channel Romagna Campania 81-100% 0-20% 0-20% 0-20% and Sardegna’s Direct Distribution where differing paths are used to bypass Emilia Romagna 81-100% 0-20% n/a 0-20% Toscana wholesalers in an attempt to control costs. Friuli Venezia 0-20% 0-20% 81-100% 0-20% DPC and Direct Distribution in Italian Marche Giulia markets are both options for implementing Umbria Lazio 0-20% 0-20% 81-100% 0-20% “Direct to Patient” distribution, yet each has Liguria 81-100% 0-20% 0-20% 0-20% a very different drug flow (Ex. M-11). Lazio Abruzzo Lombardia 81-100% 0-20% n/a 0-20% A longer-term shift to hospital distribution is the result of not only medical need, but Molise Marche 81-100% 0-20% n/a 0-20% continuing efforts to control specialty Campania Paglia Molise 0-20% 21-40% 61-80% 0-20% prescribing. Across Europe as in Italy, Sardegna budget concerns are driving efforts to Piemonte+Valle 81-100% 0-20% n/a 0-20% D'Aosta avoid wholesalers and pharmacy margins, Basilicata Source: IQVIA (QuintilesIMS) Regional Paglia 81-100% 0-20% n/a 0-20% Integrated Dataview, 2016 and gain greater influence in negotiating discounts and driving growth for hospital- Sardegna 81-100% 0-20% n/a 0-20% prescribed markets (Ex. M-12). 1Direct Distribution indicates distributing drugs Sicilia 81-100% 0-20% n/a 0-20% directly to patients through hospital pharmacies or Calabria dispensing structures managed directly by LHAs In other hospital markets, such as in China, Toscana 61-80% 21-40% 0-20% 0-20% and bypassing intermediaries to control costs. growth rate and share are highly varied 2 DPC is also direct to patient distribution on Trento - Provincia behalf of LHA, however drugs price and quantity by therapy area. Oncology maintains the Sicilia Autonoma 81-100% 0-20% n/a 0-20% are defined via tender offers between highest growth rate of key therapeutic areas manufactures and LHA without wholesalers or intermediaries, with distribution through Umbria 61-80% 0-20% n/a 0-20% there—as in many developed countries retail channels. (Ex. M-13). Veneto 61-80% 21-40% 0-20% 0-20% 11
In certain specialty therapies, using Hospital Pharmaceutical Sales Market Share vs. 10-year Value Growth (2007-2016) The Right Markets oncology again as an example, retail to Hospital Prescribed Share 2016 patient channels are growing. Consider Exhibit M-12: Australia, where approximately 45% of Austria 4% 9% 31% GROWTH GROWTH Longer-term shifts to hospital channels, oncologics are distributed directly to retail specifically in Europe, are shown in the pharmacies for patients. This requires the evolution of hospital prescription values across country markets. patient to assume responsibility for storage Belgium 1% 6% 38% GROWTH GROWTH and transport to the care delivery site and brings with it additional considerations in France 0% 4% 36% pricing, reimbursement and safety for GROWTH GROWTH pharmaceutical manufacturers. Germany 5% 5% 14% Delivery options also include precise and GROWTH GROWTH differing channels within a given country. In Brazil, where Pharmacy Benefit Managers Italy -1% 12% 61% are considered a channel, a significant GROWTH GROWTH decline related to economic slowdown has caused manufacturers to review Spain 0% 10% 51% GROWTH GROWTH investments in discount programs, sometimes eliminating them completely or 1% 13% 49% reducing the number of products in the UK GROWTH GROWTH 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: IQVIA (QuintilesIMS), at ex-manufacturer Retail Hospital Value market share price levels, not including discounts and rebates, Growth % = 10-year growth rate (2007-2016) MAT Sept 2016 20% China Hospital Market: MAT2017Q1 Share Exhibit M-13: Value Share and Growth 14% MAT2017Q1 Growth Rate Key therapeutic areas account for 65% of Rate by Therapy Area 15% China’s hospital market. 11% 11% 9% 10% 8% 6% 5% 5% 5% 4% 4% 2% 3% Source: QuintilesIMS, Hospital Audit (>=100 beds), 17M4 0% 12
programs. Also high unemployment is Brazil Distribution Fluctuations The Right Markets reducing the number of people insured, Q2 2016 Q3 2016 Q4 2016 Q1 2017 therefore lives covered in these programs, 0% Exhibit M-14: -3% thus reducing PBM demand (Ex. M-14). -4% In Brazil, PBM tracking for specific -9% products and markets provides unique -5% In some regions distribution is a function of -12% views of non-visible physicians (+ range) only seen within granular prescription data local versus multinational manufacturer for this country. -10% (MNC). In China, MNCs have more market share contribution in municipalities and Source: QuintilesIMS, at ex-manufacturer price -15% coastal developed provinces. Of the PBM levels, not including discounts and rebates, MAT Sept 2016 Chinese provinces, 15 provinces/ municipalities, coastal plus the land-locked China’s Local and Multinational Company Share by Region and by Therapy Chongqing province, account for more than 65% of the country’s pharma market. Exhibit M-15 & M-16: LOCAL Across China’s provinces, MNC market Therapeutic focus across China is also share continues to creep upward year over MNC varied by MNC and local companies (Ex. M- year, from 23.8% in 2016 to 24.1% for the same Q1 period 2017, with variances in 15, M-16). growth rate by therapy focus. Regardless of the manufacturer or MNC share: distribution channel, success in complex 24.1% markets requires precision insights—sub- Q1 2017 national views, regional intelligence and local detail to manage demand and ensure the right products reach the right people at 25% the right type of care setting. MAT Q1 2017 MNC/Local 20% 15% 10% 5% 0% Source: QuintilesIMS, Hospital Audit (>=100 beds), 17M4 -5% -10% -15% TA MAT17Q1 Share in Local TA MAT17Q1 Share in MNC TA Growth Rate in Local TA Growth Rate in MNC 13
TARGETING THE RIGHT PHARMERGING MARKET: Indonesia The Right Markets The challenges of this unique Asian market and its new healthcare policy, combine with its increasingly elderly population, a high prevalence of infectious diseases and growing incidence of chronic diseases to boost Indonesia’s pharmaceutical sector. However, diversity abounds throughout this island nation as do requirements for precise market information. Indonesia, the world’s fourth most populous human, economic and geographic diversity. market (+7.49% year-to-year, according to However, the ranking of key attributes country, is also one of the most ambitious in Today, 150 million people are packed into 2016 IQVIA market indicators). differs by city. Thus, local geography and terms of healthcare. In 2012, the central Java, an island with the size of England, specialty play a role as expectations differ This concentration has ongoing implications government declared it would provide while the remaining 100 million Indonesians within countries and across markets. When for pharma commercial models locally as affordable healthcare to all of its 250 million are spread across some 7,000 islands over assessed according to specialty, GPs, well. Saturated physician schedules require citizens within seven years. Known as the a distance of 3,000 kilometers. Thus, Internist and Pulmonologist, say honesty is every minute spent during a medical Jaminan Kesehatan Nasional, this effort healthcare access is significantly limited for the most important attribute, though GPs representative visit to count. In urban was launched in 2014 with the potential to the majority of Indonesians in rural areas. also want pharma representatives to be Indonesia, honesty and product knowledge become the world’s largest social health “Updated with the most recent information.” While this dynamic was identified years ago are seen as important attributes of a pharma insurance program. Anesthesiologists want reps to be and supposedly addressed with compulsory field representative, as reported in a “Knowledgeable on the disease area,” and The clock is ticking and turning the plan service and other incentives, it continues QuintilesIMS medical representative “Knowledge on own product” is the most from will to reality presents particular and has resulted in intensified competition satisfaction survey in late 2016. important attribute for Oncologists. challenges in a country of tremendous within the steadily growing pharmaceutical Urban Indonesia: Location Impacts Physician Requirements on Pharma Medical Representatives Jakarta Bandung Surabaya Semarang Medan Exhibit M-A: 87 100 98 100 83 Medical representatives are one of the most Honest, does not oversell important assets for pharmacos across 95 62 83 90 Indonesia, yet it is becoming more difficult Knowledgeable on own products 100 to gain attention due to intensified competition. Thus honesty, follow up and 100 66 79 66 97 Always follows up on agreed actions/reliable product knowledge are now differentiators and are generally most important to The best possible level of service 80 88 86 78 63 physicians in urban Indonesia. Deliver key information within limited time 93 53 88 62 100 Source: QuintilesIMS, Medical Representative Satisfaction Survey, Dec 2016 Knowledgeable on disease area 61 78 94 73 82 Updated on latest information 74 57 77 82 86 14
Portfolio Optimization: The Right Markets Implications & impacts for life sciences management Addressing commercial challenges by market requires increasing depth, precise dimensions and granular measures across geographic breadth and segment depth. Here are a few things to consider in assessing and adopting differing strategies for each market. Global / Regional / HQ Brand / Franchise / Marketing Sales Operations Leaders Market Research Director / Directors and Leaders and Sales Directors Business Intelligence 1) Weigh pharmerging markets with granularity. It’s easy to 1) Harmonize sub-national with national insights. Sales 1) Recognize that not all markets are represented equally. recommend balancing geographic markets, yet difficult in operations, targeting, territories and more, are specific to Data used routinely in developed countries are seldom practice. Strategies that work in one emerging market may regions, cities or other local geographies. Using the right available in all countries equally, and not all regions within a not work in another, and not all regions of a country grow at national and sub-national data is important, yet local given country react similarly. Understand the local nature of the same rate. It may be better to define precise thresholds views should roll up to harmonize global and local the data you need and look to a partner who can help you by market level or therapy area on volume growth, performance with minimal discrepancies and with resources and insights that enable informed decisions. regulation elements, competitive landscape, etc., to maximum accuracy. maximize profitability. 2) Utilize secondary insights to make PMR go further. 2) Align incentive compensation design and strategy. Data Supplement or substitute primary market research (PMR) 2) Drive market precision. Aim for local specificity as niche and metrics should incent the behavior you want. Matching with secondary or syndicated information to guide and populations, orphans drugs, specialty medicines and pricing data granularity with incentives can increase the consistency improve primary results. PMR coupled with secondary data options require insights regarding sub-national anomalies in how territory and national sales performance is reported can help better define research requirements and focus on and intricacies. Appropriate data can help track, trend and and can lead to greater confidence in home office or efficiency and efficacy in attaining results. size opportunities, but local views should harmonize headquarters’ views. with global. 3) Leverage data and analytic expertise. As a resource for 3) Build networks and partnerships that leap beyond internal operations, MR and BI can provide greater impact 3) Prioritize product profiles. Winning strategies depend internal hurdles. Local players can act as the commercial by moving well beyond descriptions and interpretations of on precisely the right information for your R&D pipeline, arm to leverage distribution and sales capabilities that past performance by entering the realm of predictive and geographic presence, appetite for risk and willingness to deliver strong top-line results. Research options of existing prescriptive analytics. Look for these embedded with rich invest. At the highest level, you need information that helps entities (affiliations, partners or M&As) to build geographic data assets to enable advanced forecasting, specialty and prioritize countries, set portfolio priorities and evaluate cover and portfolio breadth that ensures the right balance of therapy level understanding, machine learning and other investments in commercial structures to support your assets and expertise. advanced analytics. company’s current and future products. + Country or Local Directors and Leaders 15
Sales & Prescription Data Availability by Region The Right Markets Precision data can positively impact global, regional and local markets and business results EUROPE Sales & Prescription ARMENIA DENMARK ITALY NORWAY SWEDEN Data Types AUSTRIA ESTONIA KAZAKHSTAN POLAND SWITZERLAND AZERBAIJAN FINLAND KYRGYZSTAN PORTUGAL TURKEY BELARUS FRANCE LATVIA ROMANIA UK Retail, dispensed Rx BELGIUM GEORGIA LITHUANIA RUSSIAN FED UKRAINE BOSNIA GERMANY LUXEMBOURG SERBIA UZBEKISTAN Dispensed Rx at BULGARIA GREECE MACEDONIA SLOVAKIA NORTH AMERICA CROATIA HUNGARY MOLDOVA SLOVENIA prescriber level CZECH REP IRELAND NETHERLANDS SPAIN CANADA Movement of packs PUERTO RICO USA and prescriptions All major channels: Retail, Mail, Hospital, Clinics, Long-term Care, HMOs, Others MIDDLE EAST & AFRICA Sourced from pharma, ALGERIA LEBANON wholesalers, institutions EGYPT MOROCCO FR. WEST AFRICA* ASIA-PAC SAUDI ARABIA LATIN AMERICA GHANA SOUTH AFRICA AUSTRALIA NEW ZEALAND Direct & indirect sales JORDAN TUNISIA BANGLADESH PAKISTAN ARGENTINA DOMINICAN REP. KENYA UAE CHINA PHILIPPINES BRAZIL ECUADOR KUWAIT Daily, weekly, monthly, HONG KONG SINGAPORE BOLIVIA MEXICO CENTRAL AMERICA PERU *FRENCH WEST AFRICA: Benin, Burkina Faso, INDIA SRI LANKA quarterly frequencies Cameroon, Chad, Congo, Gabon, Guinea, INDONESIA TAIWAN CHILE URUGUAY Ivory Coast, Mali, Niger, Senegal, Togo JAPAN THAILAND COLOMBIA VENEZUELA KOREA VIETNAM National, sub-national *CENTRAL AMERICA: Costa Rica, El Salvador, MALAYSIA Honduras, Guatemala, Nicaragua, Panama Multiple attributes 16
Identifying the Right Influencers: Provider alignment 17
New faces drive treatment Specialists concentrate by market Quebec and Atlantic provinces show higher prescribing THE RIGHTINFLUENCERS 4 10 rates from non-traditional writers than national PHYSICIANS IN BALTIC REGION per capita average of 0.57 PRACTICE IN OF 8 SPECIALTIES Broad changes are impacting healthcare Pediatrics, Obstetrics & Gynecology, Cardiology, Neurology, professionals globally—though how Psychiatry, General Surgery, Ophthalmology, Orthopedics these play out depend largely NFL 0.73 on the local landscape. ESTONIA 38% IN 8 SPECIALT IES QC PEI US Nurse Practitioners & 1.02 0.73 Physician Assistants NB NS doubled Rxs written in the LATVIA 36% IN 8 SPECIALT IES 0.94 past 5 years. x2 0.66 & = 22% of LITHUANIA 38% IN 8 NP PAs US HCPs SPECIALT IES Canada’s non-traditional prescribers expanding (healthcare professionals) 5yrs. New influences abound Transparency & compliance intensifying HCPs are on the move Physicians in Turkey and Tunisia illustrate Increasing regulations ensure ethical interactions IMS Health Confidential rapid and regular shifts in care delivery sites 67% physicians with physicians 74% hospitals Q1 2016 41 DISCLOSURE TEMPLATES Global growth in Disclosure Reporting vs Integrated Delivery Networks affiliated with majority of US providers Q1 2017 72 DISCLOSURE TEMPLATES Tunisia ~17% Shift in 1 year period (2015 to 2016) Turkey ~19% 18 Source citations for all of the above may be found in the IQVIA report Driving Precision Performance, module Identifying the Right Influencers, Dec 2017 18
The Right Influencers Identifying the Right Influencers: Provider alignment Across the globe, the profiles of healthcare professionals are fluctuating significantly over relatively short time periods, requiring precision information and alignment with the right prescribers. While healthcare delivery depends on a country's structure, economy and politics, a few common trends are changing the faces of prescribers globally—though how these play out depend largely on the local landscape. For those delivering care on the front lines, • Regulatory compliance and transparency Canada’s Expanded change is not new. Yet, it underscores a is spreading, requiring precise depth and Non-Traditional Prescribing Practices complex challenge for those attempting to breadth to manage specificity in a manner precisely track the details and definitions of that harmonizes both. this quickly shifting group. Based on our experience with healthcare professional The Changing Definition of (HCP) data in more than 100 countries, Healthcare Professional including more than 15 million HCPs, the Safe, appropriate medication traditionally YT NFL following trends are having pronounced NT requires treatment by a physician. However NU 0.73 impact on pharmaco commercial models emerging markets often have a pronounced and are making precision alignment with the lack of doctors in some regions, and even right HCPs an imperative. developed markets are experiencing physician shortages. BC MB PEI • Definitions of healthcare professional 0.51 AB 0.22 QC 0.73 are broadening. The definition of care 0.31 SK As a result, many countries have 1.02 0.63 ON delivery has expanded to embrace new introduced legislation expanding 0.41 types of clinicians as the global physician prescribing authority to non-physician NB NS shortage grows, patients demand more HCPs. These non-traditional prescribers 0.94 0.66 and technology alternatives take hold. (NTPs), including nurses, pharmacists, • HCPs are on the move. In response to physician assistants, paramedics, midwives policy and market forces, physicians and and others, are filling the demand and other HCPs are switching affiliations and showing marked growth in many countries. NTP specialties in growing numbers, creating Prescriptions an increasingly dynamic marketplace. In Canada, an evaluation of NTP growth per Capita • New influences abound. New shows differing provincial legislation is 0.9 - 1.0 Exhibit O-1: stakeholders, policy makers, payers and resulting in a varied landscape. In Ontario, 0.7 - 0.8 Quebec NTPs have the highest written prescriptions average at just organizations are increasingly mandating nurses are drivers of NTPs. While in over one (1.02) per capita. The Atlantic provinces (NFL, PEI, NB, 0.5 - 0.6 what doctors can prescribe, yet HCPs Quebec, pharmacists have seen the largest NS) have higher per capita NTP prescribing than the national 0.3 - 0.4 average of 0.57, reviewing July 2015 –June 2016 MAT. are asked to take a more active and NTP growth (Ex. O-1). 0 - 0.2 Source: IQVIA (QuintilesIMS) OneKey, Jun 2016 accountable role than they have in the past. 19
The Right Influencers In the US, Nurse Practitioners (NPs) and continue and be seen in other EMEA US Liberal and Limited Prescribing Practices by State Physician Assistants (PAs) have more than countries as well (Ex. O-3). Exhibit O-2: doubled the prescriptions written over the 25% 24% In the Asian region, Indonesia’s HCP High / Med NP Prescribing Authority Low NP Prescribing Authority Many US states have expanded past 5 years. Nationally, NPs and PAs make prescribing authority for Nurse concentrations are geographic in nature, Practitioners (NP), especially those with up 22% of the HCP workforce, however not challenging the central government’s 20% 19% significant HCP shortages. More than 17% with equal prescribing authority in all states. of states have fully expanded prescribing proposal to provide universal healthcare to its authority to NPs, though in some states The expansion of US prescribing authority 16% citizens by 2019. National coverage presumes prescribing remains restricted. has also begun in other HCP types, e.g. physicians will be co-located with patients. Yet 15% 13% psychologists, pharmacists and naturopaths 12% 12% across Indonesia, the distribution of doctors is (Ex. O-2). 10% 10% highly unequal, with specialists concentrated 10% 10% On the other side of the Atlantic, in the largest cities. Comparing the doctor 8% 7% e-prescriptions and generics are impacting ratio of 5:1 for general practitioners and 25:1 6% doctors’ prescribing power and increasing the for specialists in Bali versus Jayapura 5% role of pharmacists especially for reimbursed illustrates the inequity. Thus healthcare MS NM AZ AL drugs across Europe. In the Baltic region, access is significantly limited for the majority DC LA 0% Source: US Census Bureau, Dec 2015; IMS Lithuanian pharmacists play a leading role in of rural Indonesians. Health, Xponent, Jan 2016; Healthcare Relational Services, IQVIA (QuintilesIMS) deciding which product is actually dispensed. Looking at representative countries where NP % of TRxs Written NP % of Healthcare Professional Workforce Institute, Mar 2016; HSRA, Dec 2015 And in Latvia, generics only are prescribed for the percentage of HCP movement is in the newly diagnosed patients. double digits shows significant shifts in a Concentration of Specialties in the Baltic Region relatively short time. Notably, nearly 25% of HCP Shifts and Concentrations 25% Exhibit O-3: physicians in the Baltic region have shifted Though overall stability holds given the Given healthcare reform across the globe, over a one year period, with others in the ESTONIA 38% in number of specialists versus traditional it’s not surprising physicians and HCPs EMEA region also showing considerable 8 Specialties physicians over the past five years, deeper insights show concentration in eight are looking to medical specialties for movement (Ex. O-4). While physicians 37% specialties. In the coming years, the role of professional development, as well as move the most, nurses, pharmacists, specialists in the Baltics will likely continue stability and quality of life. midwives and dentists shift with regularity. 30% to increase as a result of increasing patient populations and innovative therapies. In terms of specialty concentrations, the As these represent only year-over-year LATVIA 36% in 8 Specialties Family / Internal numbers in the Baltics illustrate a growing deltas, it is reasonable to assume changes Medicine will compound with time, and therefore 34% trend. Though Estonia has roughly half the 8 Specialties = population of Lithuania, both have nearly 4 in increase the requirements for precision 32% Pediatrics, Obstetrics and Gynecology, 10 physicians concentrated in eight specialty alignment with HPCs and their Cardiology, Neurology, organizations. LITHUANIA 38% in Psychiatry, General areas. This leaves Lithuania with a little over 8 Specialties Surgery, Ophthalmology, one-quarter of its physicians in all other Orthopedics Source: IQVIA (QuintilesIMS) OneKey. Apr 2017 specialities combined—a trend expected to 29% All other specialties 20
The Right Influencers Healthcare Influences Grow Although these can be overruled by Most US states have seen HCPs in certain regions of the US, where they are individual doctors, often usage and increasingly affiliated with IDNs since 2010 expanding to payer roles as they become While individual patients and physicians treatment patterns vary from region to (Ex. O-5). Ten states have experienced powerful catalysts for change. may still make treatment decisions, they do region, providing evidence of influence from growth in HCP/IDN affiliations of 10% or so now under the influence of multiple Outside western countries, HCP affiliations regional provider administrators, policy greater in the last five years. In the US, 67% stakeholders—many of whom are growing are less structured, but links to hospitals, makers, pharmacy benefit managers and of all physicians are part of an IDN, as are considerably in number and clout. clinics and practices illustrate local payers (both private and public). Entities, 74% of all US hospitals. IDNs influence intricacies. In a Baltic example again, half of Physicians have options when prescribing such as Accountable Care Organizations protocols with direct “class level” prescribing all Latvian doctors work in Opencare Clinics treatments, however recommended protocols, and Integrated Delivery Networks (IDNs) in controls and indirect bottom-up conditions and an additional 21% practice in both clinics pathways and formularies rely on top-down the US, are shifting power and requiring the that impact brand pull through. IDNs often and hospitals. Yet, Estonia’s hospital-only administrative mechanisms. industry to better align commercial vary influence by disease and differ in doctors are the highest portion in the region. approaches with these new influencers. “control” levels across the regions the central Meaning, a large and growing number work IDN serves. Some IDNs are more prevalent Percentage of HCPs on the Move in One Year (2015/2016) Affiliations of HCPs with Integrated Delivery Networks Sample of High Change Rate Data Continues to Grow in Most US States Exhibit O-4: Exhibit O-5: Baltic Median 2015 55% Affiliated to IDNs All HCPs (LV, LT, EE) Tunisia Turkey Greece Looking at just year 20% Looking at a five-year over year data, the change, 76% of US Physician 24.15% 17.08% 18.77% 14.90% movement of HCPs is VT MT states increased the sizeable and most 15% MS ND level of HCP affiliation significant within the CT AR Nurse 18.66 1.10 2.04 6.46 WV ME to IDNs. This growth % Change in IDN Affiliation, 2010 to 2015 ID physician category. WY supports IDN efforts to This constant WA Pharmacist 8.67 2.45 2.21 5.41 10% increase negotiating movement produces an MO DC power with insurers, increasingly dynamic IN Midwife 14.97 7.22 1.33 2.68 PA OH leverage economies of marketplace for life 5% CO KY OK KS scale and drive pay for science companies NJ GA NY I Dentist 10.58 5.74 10.63 3.14 NCNE IA performance initiatives. MD DE focusing on VA SC NH MA AZ CA HI professionals in TN FL OR MI Paramedic 8.21 0 2.49 3.11 0% WI changing markets. AL RI NM NV UT SD MN Administrative 0.64 11.46 0.72 7.79 LA -5% TX AK Other 5.40 0 0.47 3.26 Source: IQVIA Veterinary 0.00 - 9.22 0.21 -10% (QuintilesIMS) Healthcare 35% 45% 55% 65% 75% 85% Organizational Services; Source: IQVIA (QuintilesIMS) IQVIA (QuintilesIMS) TOTAL MKT SHIFT 19.26% 13.25% 12.35% 10.60% OneKey, Mar 2017 Institute, Mar 2016 % of HCPs Affiliated to IDNs, 2015 21
The Right Influencers only where specialty therapies are used and Practice Location Differences Across Growth in Disclosure Reporting: patient access is often limited (Ex. O-6). the Baltic Region Increased Geographical Coverage and Templates In other developed markets, stakeholder 80 72 Estonia Countries Templates influences are extremely complex as noted 70 64 Estonia 40% 39% 19% 3% in this UK example (Ex.O-7). For a 60 pharmaco building a business case for an Japan Canada intravenous iron anemia service, the Latvia 50 44 Latvia 50% 25% 21% 4% 41 39 37 37 38 difficulty was discovered in trying to follow the 40 payment flow within the National Health 30 Service (NHS). Lithuania Lithuania 44% 31% 22% 2% 20 Following primary market research, efforts 10 uncovered that it wasn’t clear which NHS 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 entity was responsible for paying for Only Opencare Clinics Only Hospital Q1 2016 Q2 2016 Q3 2016 Q4 2016 different elements of the service. Influencer Opencare Clinics and Hospital Other Mapping highlighted the need to precisely Exhibit O-8: Exhibit O-6: The evolution of countries and templates over the past 12 months shows transparency identify the key stakeholders and From one-quarter to more than one-third of Baltic region physicians practice only in mandates growing significantly. Templates list the required information manufacturers must influencers of these health services to hospitals settings, influencing patient therapy starts and follow up. disclose on the transfers of value between the healthcare industry and HCPs/HCOs. maximize the probability that therapeutic Source: IQVIA (QuintilesIMS) OneKey, Mar 2017 Source: IQVIA (QuintilesIMS) OneKey, Mar 2017; AggregateSpend360 interventions would reach patients. UK NHS Institutional & Professional Stakeholders: Intravenous Anemia Service Transparency in HCP / HCO Reporting Regional payer Local health economies Exhibit O-7: Across the globe, regulatory and compliance bodies Clinical Commissioning Groups (CCGs) Within the single-payer system of the requirements stem from similar universal CCG Lead Decision making on NHS, the influence of newly generated cost effectiveness, goals of ensuring ethical contact and CCG leads commission services from provider NHS Trusts affordability constraint stakeholder entities or empowered professional groups can change rapidly interaction with HCPs and Healthcare Local healthcare NHS Hospital trusts balanced against and be difficult to follow. Often payer patient outcomes at a Organizations (HCOs). provider population level bodies make the final determination on Formulary Committee Chief Pharmacist funding of services within the NHS. Though mandates differ by country, as do Chief pharmacists shed light on following the money between the Trust and CCGs policy change frequency, interactions with Internal NHS Trust Blood Transfusion Clinical Lead HCPs/HCOs increasingly require tracking, hospital departmental Lead Clinical Scientists straddle across the decision making domains between monitoring and reporting with both local management the patient and business process levels for anaemia clinics specificity and regional breadth. A quick Patient-level health view of the past four quarters shows how professional Anaesthetists Haematologist Decision making in Collaboration and respect to direct significantly the number of required interactions Anaesthetists are often named influence decisions Key stakeholder for determining patient care Source: IQVIA (QuintilesIMS) UK Market Access anaemia leads at NHS Trusts selection of therapy internal analysis, Jun 2017 templates has grown and indicates the increasing number of countries requiring Key decision making body Decision making for reimbursement Decision making for market access Influencer of prescribing Prescribers disclosure reporting (Ex. O-8). 22
IDENTIFYING THE RIGHT RUSSIAN INFLUENCERS: Local provider turmoil in action The Right Influencers The Russian National Healthcare system has experienced upheaval since the move from the old Soviet Union's system. National changes have driven HCP turnover, by facility and by specialty. Morphing still, physicians continue to deal with government regulations and this shifting infrastructure. Post-Soviet 1990s Russian healthcare was began to experience financial troubles leading In 2015, another new regulation required As Russian HCPs become more outcome- financed by federal and regional budgets that to the “May 2012 Decrees,” providing for patients to align to a medical institution focused, medicine choice, prescribing and reimbursed hospitals, but did not cover costs. privatization of state health services and and doctor (or a paramedic in rural areas). treatment recommendations will evolve as The bulk of reimbursements went to doctors physician salary increases by as much as In this move to manage mergers, closures well. However, as patient alignment as state employees. However, incentives for 200% by 2018. or expansions based on patient flow, increases, physician time has become performance improvement and efficiency— hospitals and clinics were financed on a precious—allowing about 12 minutes per The majority of Russia’s regions were and improved population health—were per capita basis and physician payment patient per visit. This is reducing medical required to take unpopular measures, lacking given the low per capita health based on the number of people “attached” representative access to HCPs and resulting in elimination of 35,000 beds, and spending (and physician salaries) in to each physician. increasing the number of physicians closure of 76 clinics and 306 hospitals. comparison to developed countries. refusing rep visits. Thus, global and local Other actions included out-staffing, creating With 97% of insured Russians attached to a life sciences organizations are looking to By 2011, the Russian healthcare system was specialty hospitals, merging clinics and doctor, the Ministry of Health now believes remote detailing technology and other converted to single-channel insurance, with reducing staff, resulting in significant its groundwork is strengthening doctor communication channels they had no government financing. Hospitals soon turnover in the Russian HCP base. responsibility for patient health outcomes. previously avoided. Shifting HCPs in Russia Based on Government Restructure %HCPs on the Russia: Top 5 HCP Specialties Exhibit O-A: move (1 year) 8,000 Exhibit O-B: As a result of system upheaval, many GPs dismissed in 2013/2014 switched to a By 2014, general practitioners and Child and Youth Allergology 16.69% 6,000 pediatricians began finding new specialty. By 2015, a new pattern emerged, though specialties continue to employment, though not at a rate that shift even today. 4,000 matched earlier dismissals. Only Angiology 15.38% specialists found employment at a higher rate than previous dismissals. 2,000 Dialysis 14.57% 0 2013 2014 2015 Urology 13.57% -2,000 Source: IQVIA (QuintilesIMS) OneKey, Jun 2017 Source: IQVIA (QuintilesIMS) OneKey, Apr 2016 Child Gastroenterology 13.25% -4,000 GP Pediatricians Specialists 23
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