Biotech In 2020: Is Europe Still
Relevant?
EuropaBio’s Most Innovative Biotech
SME Awards
October 2, 2013
Brussels, Belgium
G. Steven Burrill
Chief Executive Officer
Burrill & Company
1
What’s Ahead for Europe?
• Can European life sciences companies gain access to capital
they need?
• Is European Big Pharma leading or following today?
• Will austerity quash innovation?
• Will price pressures in Europe cause companies to focus on
other markets?
• Will price pressures in Europe force companies to focus on
developing products with true value?
• Will resistance to GMOs delay progress for European
companies?
• Will Europe serve as a model on regulation? Healthcare?
• Does Europe still matter?
2
Healthcare:
A Menu
Without Prices
3
Healthcare:
Procedures
Outcomes
Cost
Value
4
Economic Signs in U.S. Show Some Improvement
• Layoffs slow but so is hiring
• Housing market hot again
• Sequester takes effect
• Debt-ceiling battle ahead
• U.S. Federal Reserve’s policy for continued
economic support uncertain
• Fed more pragmatic than doctrinaire…
helps sustain a growing economy
(rather than sharply higher interest rates)
• Capital goods purchases increase; consumer confidence building
• Economic growth is real but
Austerity is still the watchword of the day
5
Plenty of Mixed Signals Internationally
• Eurozone economy declines for six
consecutive quarters
• German economy will grow at a slower pace
than previously expected this year and next
• China’s manufacturing numbers shrink
• International Monetary Fund trims global
gross-domestic-product growth forecast to
3.1 from 3.3 percent
• Japan recovery well underway
• Rising middle class globally is spending money
• Economic sentiment indicator in the E.U. rose above its long-term average
for the first time since July 2011
6
Globally Markets Are Improving And Capital Is Available
• Major indices hit record highs
• Life sciences first and
information technology second in
IPO performance
• Half of executives in 50 country survey
say credit availability improved versus
one year ago.
7
Emerging Markets Losing Steam
For the first time, the advanced economies, including:
Japan
The United States
Europe
collectively contribute more to growth in the $74 trillion
global economy than the emerging nations, including:
China
India
Brazil
Source: Bridgewater Associates
8
Mixed Global Life Sciences Financings Since Last SME Awards
In USD M
Type
Global Venture Capital
10/1/119/30/12
10/1/129/30/13 Change
11,726
12,319
5.1%
IPOs (56 vs 37)
2,308
6,391
176.9%
Global PIPEs
4,616
4,703
1.9%
Global Follow-ons
6,157
13,792
124.0%
Global Other Equity
2,726
1,067
-60.9%
Global Debt Offerings
51,947
53,642
3.3%
Global Other Debt
13,993
8,813
-37.0%
Total Global Public Financings
81,747
88,346
8.1%
Global Partnering
39,373
36,759
-6.6%
121,120
125,105
3.3%
Total
Source: Burrill & Company
9
Biotech Outperforms Major Indices Since Last Year’s Awards
Burrill Select Index
Select
DJIA
NASDAQ
60%
50%
40%
30%
20%
10%
0%
-10%
-20%
10
And Small Companies Also Doing Well
Burrill Small-Cap Index
Small-Cap
DJIA
NASDAQ
50%
40%
30%
20%
10%
0%
-10%
-20%
11
With Record U.S. Life Sciences IPOs in 2012 and 2013
2012 (16 total)
Raised vs. Target
-5.2%
Price vs. Target
-23%
Shares sold beyond Target
31%
Change as of 9/26/13
76%
2013 (37 total)
Raised vs. Target
11.4%
Price vs. Target
-9.8%
Shares sold beyond Target
27.5%
Change as of 9/26/13
61.3%
12
Life sciences markets
are hot
(…in some places)
13
Not All Global Markets Up As Much As Biotech in the U.S.
Index
DJIA
Price 9/20/2012 Price 9/20/2013
(USD)
(USD)
Percent
Change
13,597
15,451
13.6%
S&P 500
1,460
1,710
17.1%
Nasdaq Composite
3,176
3,775
18.9%
Nasdaq Biotechnology
1,498
2,194
46.5%
369
438
18.7%
NYSE Biotechnology
FTSE 350
Pharma/Biotechnology
1,585
2,217
39.9%
9,768
11,060
13.2%
Euro STOXX 50
2,553
2,927
14.7%
Germany DAX
7,389
8,676
17.4%
Swiss SMI
6,556
8,105
23.6%
NYSE Pharmaceutical
14
European Life Sciences Companies Financing by Debt
15
Some Big Biotechs Surpass Big Pharma
Company
Market Cap
(USD Billions)
Closing price
(USD) 9/26/13
85.0
$113
96.1
$63
57.8
$243
77.3
$47
55.8
$51
40.6
$52
206
$267
171
$77
16
A Host of Problems Face the World
• Global climate change, sustainability
of the planet
• Clean water
• Energy security, energy self-sufficiency
• Food security and food production
• Wellness
• Emergence of new viruses to which we are not immune
The life sciences industry has the tools to
develop solutions
17
The Impact of Urbanization, Longevity and Better Lifestyles
More than 371 million people have diabetes.
Top 10 Countries/Territories for People with Diabetes
China
India
USA
Brazil
Russian Federation
Mexico
Indonesia
Egypt
Japan
Pakistan
0
10
20
30
40
50
60
70
80
90
100
Source: International Diabetes Foundation
18
Non-Communicable Diseases Take a Growing Toll Worldwide
• Account for 63% of deaths worldwide
• Cost more than $30 trillion over the next 20 years
• Cause nearly 80% of deaths in low- and middle-income countries
9%
Cardiovascular Diseases
30%
Cancer
Other Chronic Diseases
30%
Diabetes
Chronic Respiratory Diseases
Other Conditions*
13%
7% 2%
Injuries
9%
Source: World Economic Health Forum and the Harvard School of Public Health; World Health Organization
19
Half of Deaths from Diabetes Are In the Under 60 Age Group
and in 2012 alone 4.8 million people died worldwide due to diabetes
Source: International Diabetes Foundation
20
Hepatitis C: A Silent Epidemic
One of every 33 baby boomers
are infected with hepatitis C
- Centers for Disease Control and Prevention
21
Healthcare Cost Rapidly Increasing Not Only in the U.S.
Health Costs as a Percent of GDP
U.S.
OECD outside of the U.S.
21
19
17
15
13
11
9
2006
2008
2010
2012
2014
2016
2018
2020
Source: PricewaterhouseCoopers Health Research Institute
22
Spending Does Not Equate to Quality
Per capita healthcare
expenditures in USD
U.S. spends two-and-a-half times the OECD average
1. In the Netherlands, it is not possible to distinguish the public and private share related to investments.
2. Total Expenditure excluding investments
Source: OECD Health Data 2012
23
As Costs Rise, Governments Demand Value for Their Money
Pricing pressures will alter pharmaceutical development strategies
• Germany’s drug pricing law AMNOG
• U.K.’s National Institute for Health and Clinical
Excellence
• U.S.’s Independent Payment Advisory Board
• India’s Department of Pharmaceuticals
Cost-based systems become value-based
24
Same pressures on
healthcare driving
pressures on
agriculture and energy
25
The Biogreentech Opportunity
Opportunities within the agricultural and cleantech sectors that
apply biotechnology and associated technologies, such as
chemistry, biomaterial science and nano-technology to:
• Enhance productivity
• Enhance sustainability
• From agriculture to renewable chemicals
26
Food vs. Fuel: Food Crops Used for Fuel
Biofuel Crops, Feedstocks, and Fuels
SUGAR CROPS
• Sugarcane
• Sugar beet
• Sweet sorghum
SUGAR CROPS
• Maize
• Rye
• Wheat
• Potatoes
• Barley
• Cassava
SUGAR CROPS
• Switchgrass
• Poplar
• Miscanthus
• Crop stover
• Willow
SUGAR
• Rapeseed
• Oil palm
• Soybean
CROPS
• Sunflower
• Peanut
• Jatropha
FERMENTATION AND
DISTILLATION
ETHANOL
SACCARIFICATION,
FERMENTATION, AND
DISTILLATION
EXTRACTION AND
ESTERIFICATION
BIODIESEL
Source: FAO 2008, Food Vs. Fuel, Frank Rosillo-Calle and Francis X. Johnson editors
27
EU Fourth for New Biorefineries
Projected Biorefineries by 2025
60
40
60
135
130
200
40
U.S.
Brazil
E.U.
India
China
Other EMEA
Other Asia-Pacific
Other-Americas
Source: Biofuels Digest
28
Evolving Business Models Move to Bio-based Chemicals
Chemicals are a nearer term opportunity compared to fuels
•
•
•
•
•
•
Smaller scale and volumes
Lower capex requirements
Less biomass required
Better economic margins
Market pull from the consumer product industry
Access to ready partners
29
A convergence of
technology with
healthcare and
biogreentech
30
Convergence with IT Creating A New Healthcare Model
Passive / active data
collection
Diagnostics/
Devices
Healthcare
IT
Therapeutics
Analytics and
network architecture
Electronic medical
record / patient
medical record
Patients
Services
for
Integrated
Consumers Care
Performance and
outcomes analysis
Integrated technology
platforms
Data mining
and integration
services
Increasingly targeted
care and efficient
use of finite resources
31
Emerging Technologies Create New Possibilities
New digital technologies provide powerful
weapons in the arsenal against disease
• Remote patient monitoring systems
• Mobile early interventions
• Health consumer wellness apps
• Genomics and personalized therapies
• Data analytics for improved patient AND
provider outcomes
32
A New Future Drives the Bio-economy
Breeding traits
•
•
•
•
Productivity
Reliability
Quality
Integration of native and biotech traits
Genetic traits
•
•
•
•
•
Pest protection
Stress alleviation
Superior nutrient use
High nutrient density
Processor efficiency
Microbes and biofilms / chemicals
• Pest control
• Nutrition
• Growth regulators
33
New Forms of Medical Intervention in Development
Implants
Brain stem implant
in deaf 3 year-old
turns data from a
receiver into sound
3D printing of
trachea to maintain
airway function
Biomonitoring
technologies and
implants
Human-computer
interfaces
Self-regulating
drug delivery
technologies
Artificial organs
and
exoskeletons
Mind-controlled
prosthetics
Patient
monitoring
Digital pills for
medication
adherence
Mobile apps remind
patients and reduce
provider costs
Ingestible sensors
report back to
physicians for
improved care
34
Europe pushes the
envelope
35
Gene Therapy Advances in Europe
• UniQure’s Glybera wins regulatory approval
• Rescues lipoprotein lipase deficiency
• Relies on adeno-associated virus serotype 1
• EMA grants first approval for a gene therapy in
the western world
• Approval for exceptional circumstances
only and requires outcomes reporting
36
Europe A Leader In Using Sequence Data
To Advance Understanding of Ourselves:
• Single-stranded library preparation at Max Planck Institute for
Evolutionary Anthropology, Germany
• Reconstruction of the genome by sequencing DNA from frozen finger
fragments
• Advances knowledge of our evolutionary past
To Advance Rapid Interventions:
• Practical application of whole genome sequencing by Sanger
Institute, Britain and Addenbrooke’s Hospital, Cambridge
• First case of rapid whole genome DNA sequencing to lead to
intervention of an infectious disease outbreak
37
Europe Provides Innovation to Pharma and Biotech
• Oxford-based Immunocore
• Key platform technology to
develop immune mobilizing monoclonal T cell receptors
against cancer, or ImmTACs
• GSK will pay more than $5 million USD total to gain
access to treatments for cancer and other diseases
• Genentech will pay between $10 million and $30 million
USD each for new cancer immunotherapy
38
United States Reaches to Europe for Innovation
Company
Country
Affimed
Therapeutics
Germany
Academia/
NonProfit
Reason
The Leukemia & AFM13, antibody against human
Lymphoma
CD30 and CD16A for Hodgkin’s
Society
lymphoma
UK
NEOMED
(Canada)
AstraZeneca’s 250,000 high-quality
small molecule compounds library
Germany
Broad Institute
Bayer’s oncogenomics and drug
discovery
Germany
Evotec's drug discovery
Yale University infrastructure
Germany
Harvard
University
Evotec's drug discovery
infrastructure for antibacterials
Harvard Stem
Cell Institute
Evotec's drug discovery
infrastructure for amyotrophic
lateral sclerosis
AstraZeneca
Bayer
Healthcare
Evotec
Evotec
Evotec
Germany
Source: Burrill
39
United States Reaches to Europe for Innovation - cont
Company
Ipsen
Karolinska
Institute
Country
Academia/
NonProfit
France
Harvard
University
Reason
Ipsen’s drug discovery and R&D
expertise for botulinum toxins for
the treatment of neurologic
diseases
Mayo Clinic
Karolinska Development to
evaluate Mayo Clinic innovations
US National
Psoriasis
Foundation
LEO Pharma's psoriasis care
solutions
Sweden
LEO Pharma Denmark
ALS Therapy
to-BBB
Development
technologies Netherlands Institute
BBB's CNS-targeted liposomal
drug delivery system
Source: Burrill
40
Asian Governments Look to Europe Too
Company
ICON
Country
Ireland
QuantuMDx UK
Roche
Servier
Academia/
NonProfit
National
Taiwan
University
Hospital
Country
Reason
Taiwan
ICON set-up and
management of clinical
studies in Taiwan
A*STAR:
Genome
Institute of
Singapore
Asia-specific point-of-care
genetic tests for use with
Singapore QMDx’s handheld device
Institute
South
Switzerland Pasteur Korea Korea
France
A*STAR
Discover and develop drug
candidates for infectious
diseases
Discover and develop
compounds for cancer and
Singapore autoimmuine diseases
Source: Burrill
41
And Europe Leverages China’s Power
• BGI Europe in Denmark and the LUCAMP
initiative, a collaboration with 9 Danish
universities/institutes
• Focus on the human genome and the gut microbiome to
understand variations in metabolic and cardiovascular disease
• To improve the health of at-risk populations
42
Healthy Medtech R&D Spending in Europe
2018
Rank
Company
Country
Global Spending
Increase
(USD M)
2012- 2018
(USD M)
2012
2018
1,706
2,023
317
1
Siemens
Germany
2
J&J
USA
1,681
1,899
218
3
Medtronic
USA
1,557
1,823
266
4
Abbott Laboratories
USA
848
1,280
432
5
Philips
Netherlands
1,032
1,180
148
6
Roche
Sweden
1,009
1,157
148
12
Stryker
USA
471
616
145
13
Becton Dickinson
USA
472
591
119
16
Essilor International France
208
340
132
17
Novartis
285
335
50
19
B. Braun Melsungen Germany
246
329
83
20
bioMerieux
217
272
55
Sweden
France
Source: EvaluateMedTech
43
A leader in public-private
initiatives to solve big
problems that hamper
innovation and
productivity in drug
development
44
Working together to
overcome obstacles
45
The European Lead Factory
• European public-private partnership that seeks to speed
translation of academic research into innovative therapies
• 30 international partners, including 7 European Pharmas and
13 E.U. Universities
• Founded by Innovative Medicines Initiative
• Provides public partners with industry-like discovery platform
• Unifies 500,000 small molecule compounds into a Joint
European Compound Collection for drug discovery screening
• $261.9 million (€196 million) effort
46
Select European Government and Non-profit Initiatives 2013
Company
Abcodia
Almac
Discovery
AstraZeneca
AstraZeneca
Academia/
Country NonProfit
Country Reason
Austrian Institute of
Biomarkers for early detection of
UK
Technology
Austria lung and colorectal cancers
Queen's University
Belfast
Ireland
UK
Karolinska Institute
Center for preclinical and clinical
research for cardiovascular and
Sweden metabolic disease
UK
Univ. of Cambridge;
Cancer Research
UK
UK
Identify changes in tumor cells and
test drug combinations
PATH
Intl
Develop pre-exposure prophylaxis
against HIV infection
France
Large collection of cryopreserved
tumor samples at Institute Curie
Ireland
Janssen R&D Ireland
Sanofi
France
Curie Institute
Accelerate cancer-focused drug
discovery in Northern Ireland
Source: Burrill
47
Public-Private Partnerships to Advance Biogreentech
• THANAPLAST private-public consortium: one of the largest
projects in plastics technology
• Private partners include lead company Carbios, specializing in
new approaches for recovering plastic waste and producing
biopolymers
• Public partners are National Center for Scientific Research
(CNRS) and Poitiers University
• Funds €3.2-million collaboration to develop new plastics
technologies
48
Healthcare Solutions Redefined
Treating sickness with:
 Drugs
 Devices
 Dx
Promoting wellness with:
 Patient management
 Health incentives
 Individual and
efficient treatments
49
Global Initiatives to Engage Patients Worldwide
Improve patient outcomes globally through
interactive web application for patients and
doctors
Enhances the patient experience via U.K.
consumers main point of contact:
their pharmacist
Digital health diabetes self-management
program using digital coaching and wireless
glucose meter to transmit data to clinical
monitors
50
Challenges and
Opportunities for Europe
51
European Regulators More Proactive than U.S.
• U.S. contract research organization, Cetero Research, found
to have falsified pre-clinical and clinical trial data
• Nearly 100 U.S. for drug approvals, ranging from blood
thinners to chemotherapeutics and painkillers, relied on the
falsified data
• European Medicines Agency recalled seven of the drugs, but
the U.S. Food and Drug Administration has done little to
address the problem
52
Unified Patent Protection Still Uncertain
• Unified patent system is designed to cut costs and eliminate
burdensome filing procedures
• Will provide uniform legal protection in 25 European countries
• In 1973, the Munich Convention created a unified community
patent, but it was never adopted
• Attempts again in 1989, 2000, proposal tabled in 2011
• Current agreement takes effect January 1, 2014 or after
thirteen contracting states ratify it, provided that the signatories
include the United Kingdom, France, and Germany
53
Uncertain Future for Med Devices
• European Parliament committee proposes U.S.-style
premarketing approval system with randomized clinical trials
for implantable devices
• Will be controlled by the European Medicines Agency
• In response to breast implants made in France with industrialgrade silicone used by hundreds of thousands of women
around the world
• E.U. trade group Eucomed says it will delay patient access to
lifesaving medical technology and deliver a devastating
financial blow to Europe's 25,000 small and medium-sized
device makers
54
Offsetting Stagnation in Europe by Global Arbitrage
Companies look to emerging markets:
• Amgen acquires Turkish drug maker Mustafa Nevzat
• Teva Pharmaceutical opens $110 M plant in Hungary
• Novo Nordisk hiring in emerging markets, including Ukraine
55
The Potential For Cell Phones As Partners in Health
•Out of the world’s estimated 7 billion people,
6 billion have access to mobile phones
•Kaiser Permanente’s 9 million members around
the world have 24/7 access to their medical information
via free apps
•Healthcare app downloads expected to be 142 million
in 2016
•The benefits of mobile:
– Personal and immediate
– Context aware; acts as a sensor
– Distributes instant rewards
Source: International Telecommunication Union
56
Social Media for Patients And Providers: Global Access
•Nearly 70 percent of adults use a social networking site like
Facebook, Google+, LinkedIn
•Nearly 60 percent of physicians think social media is engaging,
beneficial, and a good way to get current high-quality information
•Physicians in Europe, particularly in Italy and France, are the
most conservative in use of public social media sites, medical
community sites, or the internet for professional networking,
compared to physicians in the emerging markets or U.S.
Source: Physiciandesign.com and Cegedim Strategic Data
57
The need for innovation
58
Innovate or Die
• Kodak
• Nokia
• Vinyl records  8 track tape  CDs  iTunes 
cloud
59
Why Is Innovation Important?
•Global competition
•Sustainable economic
growth
•Enhanced shareholder
(and societal) value
•Faster, smaller, cheaper, more mobile
60
Faster
61
CellScope for Rapid And Remote Diagnosis of Infections
• Attachable devices turn smartphone into
a microscope
• Transmits high-magnification diagnosticquality images to physician for remote
diagnosis and treatment
• Smart Otoscope for ear infections
• Smart Dermascope for skin infections
• No need to make an appointment with
the doctor
62
Smaller
63
New Products Connect Patient Data to Doctor for Feedback
Applications that report data to individual and doctor
Use: Improve compliance, provide early interventions,
collect better quality data
Glow Caps
Zio Patch
ViSi Mobile
Compliance
Long-term
cardiac monitors
Wireless platform for
vital signs monitoring
64
Cheaper
65
Save Money on Prescriptions
•Prescription Saver searches
for the prices of prescription drugs
at local pharmacies
•App makes it easy to find the nearest
pharmacy, get directions, click to call
and save the pharmacies in favorites
•Share savings through Facebook,
Twitter, and email
Phunware
66
Smart Diapers Connect Data
• Digital diapers from
Pixie Scientific
• Detects possible urinary tract
infections, kidney dysfunction,
dehydration
• Accompanied by smartphone
app that transmits the information to a physician
• Intended to help in screening for disease so subject to
regulation by the FDA; require clinical trials and 510(k) approval
• Crowdfunded through
67
Allow Elderly to Live Independently Longer
• Remote patient monitoring
• Smart sensors for senior living
communities
• Wellness surveys, brain fitness games,
medication compliance reminders keep
members engaged
• Simple, secure interface to interact online
through a private social network to promote
physical, social, and mental health
• Helps staff monitor seniors’ wellness and identify potential problems
early
68
Innovation Takes Two Principal Forms
• Brave new world of new ideas, new products, new industries
–
Fax
–
GPS
–
Email
–
iPhone
• Better, faster, cheaper modifications to existing products with
new features/new industries
–
US mail  FedEx
–
Crops with new traits
–
Microsoft Office  cloud computing
69
Strategies for Promoting Innovation
• PROVIDE THE FOUNDATION - Promote innovative culture
– Executive commitment
– Mission statement
– Reward it
• TECHNICAL CAPABILITIES - Establish internal research & development
– Time
– Financial resources
– Leverage others R&D
• LEVERAGE OTHER’S IDEAS AND $$ - Acquire or partner for innovation
• KEEP THE INNOVATION WINDOW OPEN - Engage with venture capital
70
The Necessity of Building A Culture of Innovation
Number 1 on Forbes Most Innovative Companies list in 2011, 2012, 2013
“I can’t do it all. I don’t have all the ideas.
That isn’t my job. My job is to build
a culture of innovation. That’s something
that we try to enforce.
We encourage it.
We value it.
We notice it.
We compensate for it.
We require it.”
Salesforce Founder
Marc Benioff
to Forbes Magazine
71
Innovation Can Be Acquired
Salesforce has spent nearly $4 billion since 2011 buying smaller software firms
“I’m willing to acquire a company that
might not have a lot of revenue
but has a lot of innovation.
We’ll take innovation any way
you can give it to us. … I don’t care if it’s my idea, an
employee’s idea, a competitor’s idea, a partner’s idea or some
other associate’s idea.”
Marc Benioff,
Salesforce Founder
Source: Forbes
72
Innovating Into New Markets
• Microsoft acquires handset
and services business of Nokia
for $7.2 billion
• Consumers moving away from
low-end mobile phones,
Nokia’s lead product
• Microsoft needs mobile device for software
• Hope is to reduce intellectual property conflicts and increase
agility of unified company
• Innovate by increasing efficiencies
73
Innovation By Integration
• New uses of existing technologies
• Integration of existing technologies
for new applications
• Big data convergence
– Robotics
– Synthetic biology
– Biocontrol
The key is integration of innovation,
not just new science or technology
74
Applying Technologies from Human Health to Agriculture
• Repurposes health technologies for agricultural use
• Acquires RNAi technologies
• Moves towards “point-of-care” gene sequencing
• Consistently present on Forbes’ innovative companies list:
34th in 2013
9th in 2012
10th in 2011
• In 2013 number 14 on Great Place to Work Institute’s
Top 25 world’s best multinational workplacesthe only ag company in the award’s second year of existence
75
Innovate By Capturing Value Outside the Product
Amazon:
Builds cloud computing business
Google:
AdWords pay-per-click advertising
Facebook:
Establishes gifts program
Twitter:
Charges for promoting tweets and trends
76
Life Sciences Companies Doing the Same
23andMe
• Business focused on selling DNA analysis
for ancestry and health data
But finds value outside product:
• Company wins patent for polymorphisms
associated with Parkinson’s disease
• Hired by Genentech to enlist breast cancer patients in a
study to predict which patients benefit from the use of Avastin
77
All bring value
to healthcare
78
A Transition from Illness to Wellness
Treating Symptoms
Promoting Health
Treats illness
Promotes
wellness/improves
outcomes
Targeted
therapies
Genomics
Diagnostics
Prevention
Digital health
Rx/Dx combos
Pharmacogenetics
Bioinformatics
Early intervention
Behavior
modification
79
Changing Roles of Doctors
•
•
•
•
Past
Future
Unquestioned authorities
Trial and error approach
Treat disease
Disconnected from others
in the healthcare system
• Health advisors
• Data driven decisions using
health IT and diagnostics
• Focus on prevention and
wellness
• Integrated with specialists,
labs, and pharmacists
80
Changing Roles of Patients
Past
Future
• Passive about their
healthcare
• Active managers of their
healthcare
• Armed with family history
• Armed with knowledge of
genetic risks
• Relied on doctors to
maintain health records
• Have access to their own
digital health records
• Relied on doctors as
primary source of medical
information
• Rely on Internet, social
networks, for medical
information
• Received annual check-up
• Monitor health and wellness
with digital devices
81
Healthcare Systems Are Changing Globally
Past
Future
• Acute care
• Chronic care (to wellness care)
• People = dying patients
• Systems / Software
• Place = hospitals
• Consumer digital health
• Payment = Cost-based care
• Value-based care
82
Technology Is Changing Dysfunctional Sickness Care…
…to personalized, predictive, and preemptive medicine
• Treat sick people effectively and well people preemptively
• Treat the molecular mechanisms of disease rather than the symptoms
• Deliver the right drug at the right dose at the right time to the right
patient, for the right cost!
Shifting towards integrated care of higher quality at lower cost
would benefit everyone, everywhere
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A Shift in Emphasis
From treating illness
Medical care
system
To promoting wellness
Primary
and preprimary
care
Medical
care
Primary/pre-primary care system
84
But Innovation Is Not
Enough
85
Value Creation Is Different Than Value Capture
Value Creation
-company perspective-
Value Creation
-customer perspective-
Value Capture
-everyone's perspective-
higher value products
greater profits
more for less
what payers will pay for
High margin products
Dominant market
share
Targeted therapies
Generics
Rare diseases
OTC products
Unmet medical needs
Biosimilars
Broad markets
Faster regulatory path
Cheaper products
Reduced competition
Less competition
86
Why Europe Matters
•
•
•
•
•
•
Big important market
Still a source of innovation
Ahead of U.S. on some policy issues
Range of approaches to healthcare challenges being faced
Integrating cost-effectiveness into pricing
Financing remains difficult in Europe - companies forced to
seek capital elsewhere
87
What Can Others Learn from Europe
•Collaborative efforts to promote innovation and answer the big
questions in healthcare
•Leverage global resources
•Innovative government funding strategies
•Market size of Europe is still significant and companies shouldn’t
ignore it
•Ahead of others in applying cost effectiveness: companies will
need to learn to live in a world of NICE/AMNOGS
•As healthcare systems try to improve quality and reduce costs,
there are successes in Europe that provide models to others
88
Where Are the Biggest Opportunities
• Transformational healthcare delivery
• Disruptive therapeutics / vaccines / diagnostics…each with a special
pathway to market
• Personalized and predictive medicine
• Medical devices / platforms / tools
• Data analytics
• Digital health
• Significant opportunity to address global needs for food, energy, fiber
• To address societal needs, investments are needed not only in
technology development but also infrastructure for deployment
• Emerging market opportunities / global arbitrage
89
The very best opportunities
in Life Sciences are now.
Go for it!
90
Biotech In 2020: Is Europe Still
Relevant?
EuropaBio’s Most Innovative Biotech
SME Awards
October 2, 2013
Brussels, Belgium
G. Steven Burrill
Chief Executive Officer
Burrill & Company
91