Accessing Global Healthcare: The Role of Innovation

The International Economic Forum of the AmericasPalm Beach, April 7, 2014

Murray Aitken, Executive Director

Palm Beach Strategic Forum 040714

TRANSFORMATIVE INNOVATION ACROSS HEALTHCARE

Predisposition

WellnessDiagnosis Therapy

Rehabilitation

Monitoring

IntegratedHealthcare

In vitro diagnostics

Genomics

In vivo diagnosticsMedical devices

Pharmacotherapy

Regenerative/tissueengineering

RemoteMonitoring/Telemedicine

Surgery

Behavioraldiagnostics

2

Informatics

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2010 2011 2012 Average Per Year 2013-

2017

0

5

10

15

20

25

30

35

40

Novel Mechanism Existing Mechanism Orphan

GLOBAL LAUNCHES OF NEW MOLECULAR ENTITIES

Source: IMS Institute for Healthcare Informatics, October 2013

GLO

BA

L N

ME L

AU

NC

HES

New therapy options:

Rheumatoid arthritisCystic fibrosisMelanomaBreast cancerOvarian cancerMultiple sclerosisHeart failureHepatitis CMalariaMany rare diseasesEtc.

ESTIMATED TOTAL SPENDING ON MEDICINES IN 2014

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$1 Trillion

4

North America$373 Bn

Central & Latin

America$80 Bn

Africa

$23 Bn

Europe & CIS

$253 Bn

Asia & Oceania$270 Bn

Middle East

$18 Bn

5

ANNUAL AVOIDABLE HEALTHCARE COSTS DUE TO MEDICINES NOT BEING USED RESPONSIBLY

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Medication nonadherence

Delayed evidence-based treatment

Medication errors

Suboptimal generics use

Mismanaged polypharmacy

Antibiotic misuse

$269 Bn

$62 Bn

$54 Bn

$42 Bn

$30 Bn

$18 Bn

Total Annual

Avoidable Costs:

$475 Bn = ~8% THE

Global 2012

PRIORITIES FOR LEVERAGING INNOVATION TO ADVANCE GLOBAL HEALTHCARE

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Creating or sustaining the eco-system to support innovation

Using common language, common metrics to set goals and measure progress

Applying rigorous assessment of clinical benefits from innovation

Leveraging digitized information

Balancing equity and affordability