The Role of New Markets Advisors in Healthcare Case Study in Pharma General challenges facing pharmaceutical companies 2Copyright 2016 New Markets Advisors Lack of patient adherence to regimens Lack of patent protection and competition from generics Lengthy and costly process for drug development and approval Inconsistent and unreliable distribution systems in some markets Flatlining scientific productivity Lack of familiarity with beyond-the-pill business models The challenge 3Copyright 2016 New Markets Advisors The Client: PharmaCo Global pharmaceutical company with tens of billions of dollars in annual revenue Industry leader with over 40,000 employees worldwide The Challenge: Frustrated by the financial implications of drugs going off patent, PharmaCo engaged New Markets to help find and evaluate alternative models for generating revenue PharmaCo also sought assistance developing a broader solution that would improve drug adoption and adherence rates The approach 4Copyright 2016 New Markets Advisors Building customer base: New Markets formulated several options for building awareness around the need for PharmaCos medications New Markets also developed several models to help improve adherence and repurchase rates Throughout the process, New Markets focused on leveraging existing PharmaCo strengths to minimize the costs associated with customer attraction and retention Evaluating new business models: New Markets also helped design potential new business models that would help differentiate PharmaCos offerings from simple generic drugs In designing these new models, New Markets also presented several routes to market to assist PharmaCo in circumventing obstacles to broad market adoption The results 5Copyright 2016 New Markets Advisors Macro-level impact: New Markets provided a model for increasing the customer base for a wide range of PharmaCos existing and future medications In designing solutions to improve long-term adherence and repurchase rates, New Markets also set PharmaCo on a path to building capabilities that will be essential as the healthcare industry evolves As a result of the success of these new solutions, New Markets and PharmaCo are again working together to find new opportunities that will support PharmaCos core drug business while also cementing its role as a key player in the future of healthcare