Presentation on theme: "SUCCESS FACTORS IN THE PHARMACEUTICAL MARKETPLACE"— Presentation transcript:
1 SUCCESS FACTORS IN THE PHARMACEUTICAL MARKETPLACE BRIAN A. MARKISONChairman, President and Chief Executive Officer
2 CAREER SUMMARY July 2004 – Present King Pharmaceuticals, Inc. Chairman, President and Chief Executive OfficerPresident and Chief Executive OfficerActing President and Chief Executive OfficerChief Operating OfficerBristol-Myers SquibbPresident, MBSOV / OTNPresident, BMSOV / OTN, DuPont IntegrationVice President, Operational Excellence and ProductivitySenior Vice President, Licensing & External DevelopmentPresident, Neuroscience, Infectious, Dermatology/ApotheconU.S. Managed CarePresident, Neuroscience / Infectious Disease / DermatologySenior Vice President, Neuroscience / Infectious DiseaseVice President, Northeast SalesVice Present, Strategy & EconomicsGeneral Manager, NetherlandsVice President, Marketing & Advanced Medical ServicesVice President, Marketing & Business DevelopmentSenior Director, Marketing & Business DevelopmentDirector, Marketing & Commercial DevelopmentGroup Product DirectorDirector, Business Development and PlanningSenior Manager, Strategic PlanningProduct ManagerSales Representative, Oncology, Primary Care
3 CRITICAL SUCCESS FACTORS Focused expertise and resources, “trends” toward a higher probability of success.Industry metrics for predicting the probabilities associated with each stage of drug development are useful but may not be reliable.Life cycle management is essential.Licensing and acquisition talent needs to be “best in class”.The ability to generate meaningful free cash flow is the ultimate predictor of sustainability.
4 WHAT’S GOING ON IN PHARMA Intellectual property is under siege.Managed care and the Government are continuing to exert stronger controls over pricing.Innovation within Big Pharma is not keeping pace with expectations for growth.Biotechnology will emerge as the fastest growing segment.Regulatory environment is increasingly more difficult to navigate.
5 PROJECTED US PHARMA MARKET, 2007-12 Market (US$ billions) % of Healthcare ExpenditureSource: Datamonitor
6 SWOT OF THE US PHARMA MARKET StrengthsWeaknessesThe world’s largest market due to populationHigh pricesHighest per capital GDPHighly litigious marketStrong manufacturing & R&D capabilitiesEnormous cost of developing new drugsPoor R&D pipelinesOpportunitiesThreatsPatients and physicians demand besttreatmentsParallel imports from Canada, EU, Israel‘• ‘Big Pharma’has a poor public imageIncreasing cost awareness offers goodDrug safety issues in the wake of Vioxxopportunities for generic manufacturersCompetition from low cost manufacturing/R&Dcompanies in India/China2006 Medicare reformForthcoming patent expiries for major drugs
7 BIG PHARMA GROWTH RATES FROM LAUNCHES AND EXPIRIES, 2005–11
14 CRITICAL SUCCESS FACTORS 3. Life cycle management is essential ■ Requires a continuous R&D focus■ A willingness to invest (even on the down slope)■ Demands creativity■ Pediatric exclusivity tends to have the highest NPV associated with any life cycle program
15 CRITICAL SUCCESS FACTORS 4 CRITICAL SUCCESS FACTORS 4. Business Development Talent must be best in classCompanies tend to leverage core capabilities- however -Companies are: moving to earlier technologies and even discovery tools looking globally for assets hoping that novel delivery approaches can provide meaningful differentiation
16 CONCLUDING THOUGHTS…MoleculeR&DCommercialUnmet Medical Need
17 CONCLUDING THOUGHTS (CON’T) If you do not feel passionately about what you do…Goal achievement becomes less likelyYour personal values and your environmental values (culture) need to resonate.