Sophia%20Tickell

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Pharma Futures 3, the external environment,
MeTAs private sector plans

• Sophia Tickell
• MeTA IAG Chair

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Report on Pharma Futures

• Industry at a crossroads
• The challenges and opportunities of the emerging
  markets
• The relevance of these findings to MeTA

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• What is 'Pharma Futures 3 Emerging
  Opportunities' (PF3)?
• A year-long dialogue between the pharmaceutical
  industry, institutional investors, global health
  experts and social entrepreneurs to explore risks
  and opportunities of the emerging markets
• Third in a series all of which focused on the
  importance of the emerging markets as critical to
  the future fortunes of the pharmaceutical
  industry
• An attempt to identify concrete steps that both
  industry and investors could take to achieve a
  better balance between investor and societal
  needs

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The Common Characteristics of Emerging
Markets
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(No Transcript)
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1. Highly Complex

• Extreme cultural and ethnic diversity
• Marked income inequalities
• Rural/urban divide
• Poor access to infrastructure
• Volatile business climate

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2. Different Notions of Affordability

• Customer purchasing power markedly lower than
  western counterparts
• Generic price benchmark posing challenges
• Complex payer landscape, public and private
• High out of pocket expenditure
• Little health insurance or state provision
  (finance delivery)

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Source World Bank
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Source World Bank
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3. Weak Health Systems

• Weak healthcare infrastructure makes delivery
  difficult
• Limited number of healthcare professionals
• Limited diagnostic and treatment capacity
• Complex procurement systems
• Drug safety and pharmacovigilance harder to track
• Complex regulatory processes

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4. Government relations

• Unpredictable operating environment
• No government shield
• Support for local firms
• Defence of national interests
• e.g. trade and health
• Pricing and IP push back

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5. The Social Contract Pharma industrys
unusual social contract, consisting ofHigh
value afforded to pharma products by widespread
stakeholder baseAssociation in many minds
between responsibility to deliver healthcare and
Hippocratic Oath of doctors to treat on basis of
need Government recognition of economic value
of pharma industry Freedom to operate in market
place in pursuit of profit IP protection,
patents, trademarks, exclusive marketing rights
(20 years) Resultant expectation that
manufacturers of life-saving meds should make
them available on basis of need.
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Report Conclusions

• Developing country markets are critical to
  industry going forward
• To achieve better balance between social and
  investor needs, the market needs clearer signals
  from the pharmaceutical industry about emerging
  market opportunities, the business models they
  require, and the investments they need
• Pharmaceutical companies business models need to
  adapt from those developed for western markets
  with robust health infrastructures to models that
  account for the distribution and pricing
  realities of emerging markets.

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Core Point - To meet market potential, companies
need to develop business models that are
HUMAN CENTERED
AFFORDABLE
ACCESSIBLE
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Relevance to MeTA

• Unprecedented industry interest in developing
  country markets
• Willingness to experiment with new business
  models
• Demonstrable good practice emerging from outside
  conventional market
• Investor interest in and awareness of risks and
  opportunities
• Potential for new collaborations

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Introduction

• Define the subject matter
• State what the audience will see / learn in this
  session
• Find out any relevant background and interest of
  the audience

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Agenda

• List the topics to be covered
• List the times allotted to each

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Overview

• Give the big picture of the subject
• Explain how all the individual topics fit together

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Topic One

• Explain details
• Give an example
• Exercise to re-enforce learning

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Topic Two

• Explain details
• Give an example
• Exercise to re-enforce learning

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Topic three (try to keep max 10)

• Use maximum 6 lines and 1 sublevel
• 2
• A
• B
• 3
• 4
• 5
• 6! This is the last one!

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Summary

• State what has been learned
• Define ways to apply training
• Request feedback of training session

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Ask for input from participants!

• Try to use a graph of funny picture here and
  there, but dont overdo it!

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Where to Get More Information

• References
• Books, articles,
• Electronic sources with URL
• Other sources

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Thank you!

• Name of presenter
• Email
• Mobile number
• International Secretariat, info_at_metasecretariat.or
  g
• MeTA www.MedicinesTransparency.org
• DFID www.dfid.gov.uk