Darden Health Care Club

1
Darden Health Care Club

• Interview Prep
• Industry Overview
• Wharton Conference Planning
• January 27th, 2003

2
Interview Tips

• Research the Company!
• Talk with SYs and Darden Alums who work for the
  company
• Scour the companys website
• Read the WSJ the morning of your interview for
  any late-breaking news
• Know thyself S-A-R
• Situation Succinct set-up
• Action Specific actions on your part
• Results Quantifiable outcomes and what you
  learned
• Avoid dark alleys
• Each year is differentjudge for yourself
• Its acceptable to ask for an extension
• Ask for advice on negotiating an offer (salary,
  start/end date, of weeks, relocation, housing
  stipend, project, vacation)

3
Industry Overview

• Resources
• Wall Street Journal
• http//portal.darden.virginia.edu/mydarden/Portal/
  My20Community/Student20Organizations/
• http//www.phrma.org/
• http//www.dtcnational.com/agenda.asp
• http//www.biospace.com/index.cfm
• http//www.corante.com/biotech/
• http//www.pharmaportal.com/pharmaportal/

4
PhRMA Guidelines

• July 2002 U.S. pharmaceutical companies enacted
  guidelines restricting interactions with
  healthcare professionals
• Gift/support criteria
• Patient benefit
• Clinical use
• Educational
• http//www.phrma.org/mediaroom/press/releases/19.0
  4.2002.390.cfm

5
Drug Development Process
Program Management
Product Management
Preclinical
Phase I
Phase II
Phase III
Launch
6
Business Development
Program Management
Product Management
Preclinical
Phase I
Phase II
Phase III
Launch
Entity is unproven in humans, acquired for
development.
Demonstrated potential for efficacy, acquired for
marketing.
7
Market Research
Estimated Patients (epidemiology)
Diagnosis Rate
Market Share
Treatment Regimen
Compliance
Sales Forecast
8
Health Care Administration Statistics

• Estimated healthcare premium increase 15
• Percentage of large employers expecting to
  increase cost sharing 78
• Percentage of workers whose companies reduced
  benefits 17
• Number of uninsured Americans 41.2 million

9
What is Managed Care?

• Managed Care vs. Indemnity Insurance
• Staff Model HMO employs salaried physicians and
  owns facilities.
• Point of Service (POS) patient stays in the HMO
  network of physicians and follows a referral
  path.
• Preferred Provider Organization (PPO) similar to
  POS, except patient does not need a PCP referral
  to see a specialist within the network.

10
Managed Care Financial Incentives

• Fee for service (FFS) cost plus reimbursement
  physician gets a fee for every day he or she
  visits a patient in the hospital.
• Full Capitation physician receives fixed amount
  per member.

Full risk to Insurer
Full risk to Provider
Fee for service (FFS)
Full Capitation
11
Managing a Blockbuster

• In what other industry do you know that
  over-night you will lose more than a billion
  dollars in revenue because of patent expiration?
• How do you manage your portfolio to mitigate the
  impact?
• AstraZeneca Case Study
• Purple Pill Conversion Strategy

12
Other Issues in the News

• Off-Label Marketing and Liability
• Wyeth Pharmaceuticals and Hormone Replacement
  Therapy

13
Wharton Conference

• February 20-21st 25 registration
• Philadelphia
• http//www.whcbc.org/
• Reimbursement amount for travel and hotel
  contingent upon of attendees

14
Wharton Conference Agenda

• Thursday February 20 - The Wharton School
• 500-600pm Opening Bob Croce, Chairman, Cordis
• Friday February 21 - Park Hyatt
• 800-850am Registration and Networking Breakfast
  
• 900-1000am Morning Keynote Bradley T. Sheares,
  Ph.D., President, U.S. Human Health, Merck
• 1015-1130am
• Biotech Panel Is Acquisition The Only Way That
  Biotechs Can Grow?
• Payor Panel Does Prevention Pay?
• 1130-1245pm Lunch

15
Wharton Conference Agenda Continued

• 100-215pm
• Finance Panel Wall Street Dynamics Are The Best
  Days Behind Them for Health Care Companies?
• Medical Device Panel The Convergence of Medical
  Devices and Chronic Disease Management
• 230-345pm
• Pharmaceutical Panel Is The Blockbuster Model of
  Drug Development Sustainable?
• Entrepreneurial Panel Overcoming Current
  Challenges in Health Care Start-Ups A
  Cross-Sector Perspective
• 400-500pm
• Closing Keynote Richard Scrushy, Chairman,
  HealthSouth
• 500-600pm Cocktail Reception

16
Wharton Conference

• Register yourself online and print receipt
• Contact Jenny Zenner if attending to coordinate
  travel and hotels
• zennerj03_at_darden.virginia.edu
• 434-825-2214 mobile

17
Darden Health Care Club

• Create a life by design versus a life by default.
• You made a great choice by coming to Darden. You
  are developing the skills, knowledge, and
  relationships that will overcome a temporarily
  weak economy.
• Heres to your health!