1. Augusto Villanueva
21 July 2010
The Medical City, Pasig, Philippines
Business and Healthcare

2. Snapshot CV
Worked for Hoffmann-La Roche from 1997-2010.
Variety of roles in affiliates and headquarters, mostly marketing or strategy related.
Most recent assignment was General Manager, Philippines until March 2010.
First career in consumer products with Procter and Gamble.
Education: Economics (University of Western Ontario, 1988) and MBA (INSEAD, 1996).
3. Disclaimers
The content of this presentation does not reflect the policies of Hoffmann-La Roche or any other pharmaceutical manufacturer.
Any opinions, insights, and inaccuracies are the responsibility of the presenter.
4. Objectives
Emphasize on the marketing strategies that you have employed to promote Roche
Summarize the most important considerations to bring a research-based medicine to market and keep it there
Discuss how practices differ across regions and countries and why
Discuss some issues and controversies, especially those most relevant to clinicians
5. What does marketing of pharmaceuticals encompass?
New product introductions
Customer-directed activities about products and diseases:
Deployment of sales representatives
Promotional materials and programs (paper and electronic)
Continuing Medical Education sponsorship
Ensuring and broadening access
Public health systems
Private insurance-based systems
Less important in cash-based systems (e.g. Philippines)
Clinical trials (pre- and post-registration)
Pharmacovigilence and safety monitoring
6. New product introductions
Innovation is lifeblood of all research-based companies
Only one chance to launch
Sales in Q3 Year 1 are predictive of sales in Year 5
Issues:
What is label? Where is unmet need? Where is competition vulnerable?
What is current level of disease awareness and education?
What resources is company prepared to commit?
What is the optimal marketing mix?
What is the global pricing strategy and approach with payers?
7. Many controversies surrounding the promotion of medicines today
What is the value to public health of promotion and does it affect prices?
Are reps helpful and credible?
Do companies have the right to engage in scientific promotion and education?
Minimal impact on price, but high marginal profit leads to higher spending
Good reps: yes and yes; but very inefficient channel
Will public health systems assume cost of education in place of industry? Current approach is to have transparency and disclosure
8. Marketing depends on disease area, lifecycle stage, and competition (1)
9. Marketing depends on disease area, lifecycle stage, and competition (2)
10. Most people cannot afford treatment for serious illness
Percentile
PHP 000
Source: 2006 Family Income and Expenditure Survey
11. Impact of poverty on healthcare
Less than half the population can afford occasional treatment
Only the top 10% can afford to be sick
Most people cannot afford to see a doctor
Many people in rural areas have no access to a local clinic
Incentives for too many specialists and hospitals, not enough GPs and community facilities
Many live without proper shelter, hygiene, water, etc.
Many families are trapped in a cycle of poverty that flows from one generation to the next
No single institution government, industry, private enterprise, NGO can remedy this situation on its own
12. Improved access to treatment makes social and commercial sense
Creation of access systems would permit more people to participate in the healthcare economy
Combination of public and private seems most likely
Increased demand from these patients would have probable consequences for industry:
Create negotiation opportunities for public and private payers (higher volume for lower prices)
Widen market space between positions of multinationals and local firms
Greatest growth potential exists in emerging economies
13. China and India alone are double the size of current developed economies
Source: World Bank , United Nations 2009 data
14. Summary
Successful new product launches are most important activity for research-based pharmaceutical companies
Most crucial factor(s) for determining launch success or failure can very tremendously from one product to another
Traditional promotion channels are inefficient and/or under scrutiny for accuracy, completeness, and objectivity
Pharma industry's geographic focus is shifting due to aging populations in West and growing developing economies
Innovation in the commercial model is needed to exploit near-term growth in developing world