Bio Taiwan 2009 Final Presentation Reenita Das

1

A Paradigm Shift in Healthcare: Changing Business Models and the Impact of Technology

Presented By: Reenita Das

Senior Vice President, HealthcareFrost & Sullivan

2

A Changing LandscapeA Changing Landscape

© 2008 Frost & Sullivan, All rights reserved www.frost.com

Global

Healthcare

Conclusion

Emerging Trends and Impact on Technology

Setting the Context

© 2008 Frost & Sullivan, All rights reserved www.frost.com©2009 Frost & Sullivan, All rights reserved www.frost.com 4

Healthcare industry for the next decade

Medicine of the past

Medicine of the future

Paradigm Shift in Healthcare

© 2008 Frost & Sullivan, All rights reserved www.frost.com©2009 Frost & Sullivan, All rights reserved www.frost.com

Healthcare is challenged by three interlocking crises that make present healthcare systems unsustainable:

Rising Costs

Changing Demographics

Quality of Care

15% of patients admitted to hospital

suffer an adverse event.

8% of adverse events result in death.

6% of adverse events result in

permanent disability.

10-20% of all adverse events is caused

by medication errors.

10-15% of hospital admissions occur

because providers do not have access

to previous care records.

20% of laboratory tests are requested

because the results of previous

investigations are not accessible.

The Size of the Problem – Quality

Cost

Demographics Quality

Cost

Demographics Quality

Interlocking Crises that Make Healthcare Ever Changing


Economic Perspective: Healthcare Spending Set to Double

By 2050 Healthcare spending will double, claiming 20 – 30% of GDP

Public Per Capita Spending – India : $ 12, Vietnam : $ 42


MANUFACTURER PROVIDER

Technology…….Enables it

Economics………………Require it

Demographics………….Demand it

PATIENT/CONSUMER

Technology is The Central Solution Driver Accelerating Change

Addressing demographics

Virtual patient monitoring tools/ home monitoringPatient education programs fostering preventative mindsetTelemedicine

Addressing rising costs

Large volume, low cost manufacturing (e.g basic medicines/ vaccines)Contract manufacturingBiopharmaceuticals

Reduction of errorsEarly diagnosis and targeted treatmentEliminate unaccountable variations in practice across the country/region

Addressing qualityAddressing quality

Technology is The Central Solution Driver Accelerating Change


Global

Healthcare

Conclusion

Emerging Trends/ Impact on Technology

Setting the Context


DiagramDiagramChanges in the Global Pharmaceutical Environment Require Pharmaceutical and Biotech Companies to Adapt to Changing Business Models

Pre 2005Pre 2005

Blockbuster Model

20152015

Niche Drugs and R&D

20202020

Integration & Supply Chain

Integrated packages of products and services

Patient monitoring & compliance

Pharma and medical devices providing sophisticated and efficacious solutions

Integration of pharma, diagnostics, medical devices, patient monitoring and healthcare IT

Preventative Healthcare & Wellness

Astounding growth in the vaccines industry

Marketing of Value Added Services

Genomics and proteomics expected to reduce R&D times

‘In life testing’ will take over the current clinical trial process. Continuous data monitoring can be done by the regulators during the testing process. Clinical trials will eventually become shorter

Supply chain functions will evolve to a revenue generating model. Products and services will be marketed through the supply chain

Just in time manufacturing, novel delivery methods and direct to consumer distribution will be adapted from other industries like the automotive industry

Automated dispensing of drugs

Smart cards / internet to store patients details

20152015

20202020

Opportunities in the Global

Pharma Market

Opportunities in the Global

Pharma Market


Cancer Treatment Represents the Highest Potential

ProjectedRevenues In2012

High Revenues

Low Revenues

Growth Rate (2007-2012)Low High

Diabetes

Cancer

CNS

Cardiovascular

RespiratoryGastroenterology

MultipleSclerosis

Established Treatments

Unmet Needs


Can

cer

Pip

elin

e 20

07 –

Spl

it by

Pha

se II

I & I

Increasing Focus on Biologics in the Future Cancer Related Drugs Constitute Half of the Current Biotech Pipeline.

Phase III: 5-10 years to launch

Phase I: 10-15 years to launch

Cancer vaccines are an emerging technology that are likely to create the next wave of growth in the biotechnology industry because of better safety profiles and minimal side effects

Other: Includes genetic disorders, skin disorders, eye conditions, growth disorders, transplantation

Monoclonal Antibodies constitute half of the Phase III biotech pipeline. More Monoclonal Antibodies are likely to reach the market in the next 5-10 years.

2007


DiagramDiagramGene Therapy will Drive the Market in the Longer Term. Technologies such as Pervasive computing are Important in Improving the Drug Discovery Process.

Defining diseases more accurately and creating healthcare packages for patients with specific disease subtypes. Resulting in Premium Drugs and the launch of health care kiosks offering one-stop-shop services

Semi Block Busters, Patent Expiration Strategies

Gene Therapy

Growth RateOp

port

unit

ies

Biologics: Targeted Treatment Solutions, Integrated Solutions

Gene therapy uses genes to treat or prevent disease. In the future, this technique will allow doctors to treat a disorder by inserting a gene into a patient’s cells instead of using drugs or surgery

Genomics / ProteomicsCellomics

SmartTags

Petaflop & Grid computing

Future TechnologyTrends

Predictive biosimulation

Advanced storage solutions

Pervasive computing

Web-scale mining

A disease led approach creates a new discovery and development model. Technology will improve the process e.g. making in-life testing more cost efficient. This brings significant changes for pharma companies in terms of time, development costs and success rates to man.

2005 2010 2015 20202005 2010 2015 2020

MoreInfo


Top-10 Medical device based platforms for the next decade

New innovations in In Vitro Diagnostics like Mircoarrays and Lab-On-A-Chip have brought a revolution in the field diagnostics.

New innovations in In Vitro Diagnostics like Mircoarrays and Lab-On-A-Chip have brought a revolution in the field diagnostics.

Growth Rate

Op

port

un

itie

s

Preventive as well as personal care devices and Home/Self therapy devices will have a very high growth rate and opportunities in entire spectrum of the market.

Preventive as well as personal care devices and Home/Self therapy devices will have a very high growth rate and opportunities in entire spectrum of the market.

Intelligent/Automated devices, Robotic

devices for surgery and diagnosis will

reshape the modern face of the healthcare

sector

Intelligent/Automated devices, Robotic

devices for surgery and diagnosis will

reshape the modern face of the healthcare

sector

2005 2010 2015 20202005 2010 2015 2020

Tissue generated devices and site-

specific drug delivery devices are being

developed for more sophisticated

healthcare delivery

Tissue generated devices and site-

specific drug delivery devices are being

developed for more sophisticated

healthcare delivery

Infection control devices/Wound care

Home/Self therapy devices

Total disc replacement

Robotic devices

Advanced In Vitro Diagnostics

Virtual reality

Intelligent/Automated devices

Electrical stimulation

Site specific drug delivery

Tissue generation devices

Upcoming medical device technology platformsUpcoming Technologies in Medical Devices


Clinical IT Systems and Electronic Medical Records Represent the Highest Potential in the Future

ProjectedRevenues In

2012

High Revenues

Low Revenues

Growth Rate (2007-2012)Low High

Clinical decision support systems

Image management systems

EHR / PHRFinancial management

Resource management

Clinical IT solutions

EMR

Declining market

Mature market

Emerging market

Growing market

Patient management systems


• Fully integrated healthcare delivery

Pre 2005Pre 2005

• Emphasis on administrative systems and automation

20152015

• Adoption of clinical systems • Patient self-management

• Emphasis on home healthcare services

20202020

• Adoption of clinical systems

• Efficient medication management

• Management of chronic diseases and mental health

• Availability of patient information for mapping disease patterns to be used in the R&D of drugs and treatment techniques/technologies

• Patient ability to self–manage disease

• Remote consultation and monitoring

• Self-testing, early treatment, and the management of medication

• Greater application of bioinformatics in healthcare-related research

• Emphasis on home healthcare services to improve hospital efficiencies and save patient costs

• Private hospital groups and public hospitals integrated to deliver patient-centric healthcare services with better outreach

• Patient expectations of safety

• Safe data sharing and safe care

• Patient data security

• Patient-centric healthcare delivery

• Patient portals and mobile technologies of patient monitoring and management

20202020

Opportunities in the India HIT Market

Opportunities in the India HIT Market

• Active use of biometrics as healthcare becomes more patient-centric

• Optimal efficiency in healthcare delivery using IT, as number of patients and costs rise

• Need for cost and quality transparencies will drive the use of IT in healthcare services

• Integrated patient records

• Improved medical tourism

Emerging Technologies in Information Communication and Technology Rapidly Changing Patient Care Scenario


Global

Healthcare

Conclusion

Emerging Trends and Impact on Technology

Setting the Context


Technology Opportunities

Asia Healthcare Spend by Area, 2009-2020

• Major opportunities within

diagnostics and monitoring

• Products and services will not

be standalone but will be

“packaged” to target specific

diseases.

• Example : predict avian flu,

diagnose, treat, monitor


Fragmented Patient Flow Integrated & Automated

From...

Invasive Diagnosis & Treatment

Less Invasive, Preventative, Image Based

Provider Centric Focus Patient Centric

Centralized – Hospital Monitor De-Centralized–Shift to Community

One Size Fits All Approach Personalized Medicine

Therapeutics/Diagnostics/Devices Tools “Theranostics”

Treating Sickness Objective Preventing Sickness – “Wellness”

...To

A modern healthcare system is on the horizon, experiencing a paradigm shift

In Nutshell


Reenita DasSenior Vice President

Frost and [email protected]

Bio Taiwan 2009 Final Presentation Reenita Das

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