pharmaceutical compliance congress - global … compliance congress changes to the commercial...
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PharmaceuticalCompliance Congress
Changes to the Commercial BusinessModel and the Implications to theCompliance: SMAC!
October 29, 2013
PwC
SMAC is transforming all industries, forcing thecreation of new operating models
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PwC
SMAC is changing the rules in healthcare forcingnew business models and threatening survival
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Social Volume Value
2000 2010 2020
Mobile
Analog
Analytics
Cloud
Places Spaces
General Individual
Digital
Institutional ConsumerAgent
New value propositions
New care delivery models
More customized solutions
Greater portability, security, access
More freedom, transparency, choice
PwC
Social – volume to valueWe demand the same value experience in healthcare as elsewhere
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PwC
Mobile – places to spaces90% reduction in price creating business model disruption
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Ambulatory Surgery Center
Hospital
Physician Office
Physician Pocket
EconomicSocietal Technology Political
ConsumerBusiness Model
Disruption
$199
$2,999
$9,999
ProductDisruption
$99
$14,999
3rd Party Pay
Consumer Pay
PwC
Analytic – general to individualShortage of critical talent for Big Data and personalized medicine
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PwC
Cloud – analog to digitalEnabling and demanding new business models
7Software, Hardware and Services
Middleware/ Platforms
HIE(i.e. interface, portal, clinical messaging exchange, analytics)
Infrastructure(e.g. network, storage, security, billing, device mgmt)
Videoconferencing
Patient
port
als
Dig
italRadio
logy
ACRIS
Tele
health
Cloud Apps/ HIE Peripherals
Rem
ote
Patient
Monitori
ng
Health
Insura
nce
Exchange
Patient
Thro
ughput
and
Logis
tics
Mgm
t
Care
Managem
ent
Work
flow
Apps
Com
pute
r-assis
ted
codin
g
Ele
ctr
onic
Health
Record
s
Revenue
Cycle
Managem
ent
PwC
Agent – institution to consumerAll business models must address a new customer, the consumers
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0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%Reduce own healthcare costs
Convenient access to provider
Ability to obtain information
Encouragement from myhealthcare provider
Encouragement from myhealthcare payer
Greater control over ownhealth
Manage aspects of my lifefrom my mobile phone
Manage a particular medicalcondition
Access better qualityhealthcare
Access to a greater choice ofapplications
Patient drivers to adopt mHealth
China
India
U.S.
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PwC
Football is sensing a SMAC future
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PwC
Social networks are leveraging analytics, cloudand mobile to revolutionize Fantasy Football
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PwC
Football is beginning to measure everything aboutthe game using mobile sensors
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PwC
Measuring the biometrics of the athletes throughmobile sensors to improve performance
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Heart RateHeart Rate VariabilityHeart Rate RecoveryRespiration RateAccelerometryIntensity & LoadLive Training ZonesEstimated CoreTemperature
PwC
These measures enable more precise and effectivetraining through high powered analytics
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PwC
NFL has even moved to integrated andinteroperable health data in the cloud
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PwC
SMAC for the rest of us
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PwC
Most of us are already social self trackers,technology just make is easier, better, and fun
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PwC
An ecosystems of mobile sensors, devices and appsare enabling us to track everything
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x
PwC
Form and function become integrated into fashionmoving us toward ubiquitous mobile sensors
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PwC
Major brands are leading this SMAC revolution inconnected consumer health
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PwC
Startups are also leading the way in novel sensorsand measures
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Mood and emotion
Time, heart rate, temperature, and more
PwC
Sensors are becoming implantable, printable,ingestible, and smellable
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Flexible Electronic Chips Tattoos for Glucometers
Chips on a Pill Smelling Chips
PwC
Has SMAC created a pedometer bubble?
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PwC
SMAC is following Moore’s Law driving theInternet of Everything (IoE)
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PwC
SMAC is THE mega trend creating chaotic newopportunities, requiring a new view on healthcare
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PwC
How are companies using SMAC tochange their business models?
“Owning the Disease”
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PwC
Business Model Innovation – Owning the DiseaseCase Study 1
Innovation in the newhealthcare paradigm
Molecular Dxscreening IDspatients whowould benefitfromtreatment
WirelessEasypodinjectiondevice recordsdosage dataand transmitsto clinicians
Nurse callcenterinterveneswhen notifiedby device ofpatient non-compliance
Clinical nursesin physician’soffice assist intreatingpatient
EHRIntegratespatientinformation
Value-basedreporting to NHSdemonstratescompliance andimprovedoutcomes
• Sales growth in a declining, off-patent brand
• Sales force reduction
• Smaller administrative costs; improved margin
• Enhanced patient outcomes at lower cost
• Better clinical integration
• More care provided in home settings at lower cost
Personalized System-based Value driven
Results:
PwC
Business Model Innovation – Owning the DiseaseCase Study 2
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Business ModelInnovation
Sanofi insulindrugs
AgaMatrixiPhone app showspatientrelationshipbetween insulin,glucose, and otherfactors to driveeffectivemanagement
Partnership withHealthyInteractionsto foster greaterdialogue betweenpatient andprovider
AgaMatrixiBGStar glucosemeter syncs datawith app;glucose / insulindata can beemailed toproviders
App providesindividualizedglucose patterncharts that cananalyzed byproviders
Treatment AnalysisEngagement Support Data
Myriad RBMmolecular Dxscreening IDspatients whowould benefitfrom treatment
Diagnosis
Sanofi drove 15% growth in insulin sales by becoming “a 360° partnerdelivering best-in-class and integrated solutions to diabetic patients”
PwC
Business Model Innovation – Owning the DiseaseCase Study 3
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Electronic scale totrack weight
Engagementplatform drivesadherence
-YMCA staffprovides educationon healthy diet andexercise- On-Demand videoprogram providesongoing guidance- Personalizedcounseling bypharmacists andNPs
Data fromelectronic scaleand engagementplatformaggregatedcentrally
Outcomesanalyzed todetermine efficacyof intervention
Claims data andother demographicinformation toidentify people atrisk of developingdiabetes
Business ModelInnovation
Diagnosis Treatment Engagement AnalysisSupport Data
Healthy diet andexercise regimen
United Healthcare has been collaborating withpartners to develop programs for diabetes and obesity
PwC
Business Model Innovation – Owning the DiseaseCase Study 4
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Cardiocom‘stelescale andother tele-monitoringdevices will help itprovides instantfeedback topatients and canreducereadmissions
CardioSightReader can beused to obtainimportant detailson a patient; aHeart FailureManagementReport or CardicaCompass TrendsReport is quicklysent to the doctor.
Data allowsdoctors to seehow well deviceand medicationsare workingtogether andhow heartfunction maychange over time
Business ModelInnovation
Diagnosis Treatment Engagement AnalysisSupport Data
Medtronic’s acquisition of Cardiocom helps it offer more comprehensiveheart failure treatment value to hospitals under cost-cutting pressure
Medtronic’scardiacresynchronizationtherapy deviceshelp the heartbeat in a morecoordinatedfashion
Medtronic’sCareLinkNetwork helpsdoctors check apatient’scondition anddevice statusremotely whenthe patient istraveling
Medtronic’sInsertable CardiacMonitor helpsdoctors identifywhetherunexplainedfainting is relatedto an irregularheartbeat or othercardiac relatedproblems.
PwC
Conclusion and Questions
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BACKGROUND
As a member of PwC's Global Healthcare Strategy team, Brian advises healthcare executives on strategy,innovation and corporate and entrepreneurial ventures. He has nearly twenty years of investment, businessdevelopment and strategy expertise within health care. Brian’s work at PwC provides senior executives withinsights on market entry strategies, business model innovation and mhealth and ehealth strategy developmentand implementation
Prior to joining PwC, Brian served as an executive for two health care firms, including one early stage companywhere he quadrupled revenues in three years, leading to a sale of the company returning 10x invested capital.Brian also drove industry acceptance and market growth of a venture backed, Silicon Valley based SaaS deployedpharmaceutical data management and performance analytics firm. Prior to these management roles, he spent adecade as an investor and entrepreneur. As an investor, Brian co-founded two top decile performing privateequity funds as ranked by PwC's MoneyTree report, whose investments included devices and diagnostics. Prior tohis business ventures, Brian served as a speechwriter to a former two-term Governor of Indiana.
INDUSTRY FOCUSBrian works within the life sciences industry for medical device and bio-pharmaceutical companies, as well as new entrants tohealthcare where he provides senior executives with insights on:Entry strategies for new markets, adjacencies or new geographic territoriesBusiness model innovation that supports access to care, higher adherence rates or improved outcomesmhealth and ehealth strategy development and implementation
PUBLICATIONS
Co-author, “The New Gold Rush,” non-traditional entrants to healthcare
Co-author, “Owning the Disease,” InVivo, December 2011, new business models in healthcare
Co-author, “Owning the Disease, Strategy and Tactics,” InVivo, April 2013
Contributor, “Medtech Innovation Scorecard: The race for global leadership”
Contributor, “Medtech Innovation Scorecard; The imperative for innovation”
Contributor, “Global Healthcare Heatlhcare M&A,” trends and analysis
Brian Williams, Global Healthcare Strategy
+1 (317) 504-0082
PwC
PwC leads the industry in defining the issues affecting allfacets of the healthcare industry
A sample of our Healthcare Thought Leadership
Build and Beyond:The (r)evolution ofhealthcare PPPs
Owning the Disease:Adapting strategyinto successfulbusiness tacticsIN VIVO Magazine, April2013
Top health industryissues of 2013
Personalizedmedicine
Emerging Trends inChinese Healthcare
Owning the Disease:A new business modelIN VIVO Magazine,December 2011
You get what you payfor
Behind the numbers:Medical cost trends2013
Workplace wellnessin Australia
Medical TechnologyInnovationScorecard: The racefor global leadership
Biotech reinvented:Where do you gofrom here?
Health Reform:Prospering in a post-reform world
To download any of the above reports, please go to: www.pwc.com/hri
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