11 strategies to become a faster/smarter pharma- "the valeant experience"

2011 NPV CMarch 30th, 2011

11 Strategies to Becoming a Smarter Faster Pharma – The Valeant Experience

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Valeant Canada

Early 90’s

Sales: 15 Million

Products: Generic, OTC

Focus: Organic growth, Limited Product Development

Philosophy: Complacent, Slow, Risk Adverse, ReactiveCorporate Focus: Centric

2010

Sales: 220 Million

Products: Diversified, Branded Products GP/Specialist, OTC, SPA

Focus: Strategic Acquisition, In-Licensing and JV’s

Philosophy: Aggressive, Fast, Risk-Taking, ProactiveRegional Focus: Decentralized

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Valeant Canada Achievements Over Past 3 years

Completed 15 dealsStreamlined all functions and processesInstalled a culture of quick and opportunistic decision makingInvestment in employee development and wellnessSupport for continued investment on Canadian market

Valeant Canada has become a “Faster” and “Hopefully”“Smarter” Pharma Company

5New Management atValeant Pharmaceuticals InternationalDrove Change

Why was a change requiredLimited growth potential (no pipeline)Questionable business decisionsCumbersome processesPeople with questionable performanceLacking sense of urgencyRisk adverse mentalityInappropriate spend in most areas including R&D

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Valeant Wanted to become a Smarter Faster Pharma Company Through

StabilizationEstablish Platform Upon

Which to Build Future Product Focus, Processes People, etc.

GrowthLicensing and Acquisition in Areas of Focus

Invest in People

SimplificationReduce Staff – Flatter Organization

Simplify Processes – Decision makingReduce Spend

Prioritize Projects

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To become Faster and SmarterYou Need

Top leadership with clear vision andTeam that is extremely tight

and communicates well

Simple business modelwith quick and

Efficient decision makingWith “Right People”, “Right Focus” and “Right Philosophy”

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People

Hire very talented peopleChallenge them to go beyond the boundries of their jobs

More responsibilitiesPush for cross-fertilizationPromote team workPerformance based compensationTraining + developmentSpecial projects

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Focus

Establish a clearly defined growth strategyIdentify+ Acquire assets that are undermanaged and fix themIdentify assets where significant synergy values can be established

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Management Philosophy

Bias towards action rather than over-reflection and analysisOpen to taking acceptable risks for the sake of greater speedTrust judgment of local management – decentralized approachLimited layers of management to take decisions, resulting in speedy transfer of information and rapid decision makingSimplification of all processesLean financial + metric drivenConnected to facts

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Faster Smarter Pharma (11 Steps)

SelectRight People

Biais toSpeed ofDecisionMaking

Simplificationof Processes

Top Manage-ment Alignment

& Focus

LearningOrganization

Teamworkand Cross-Fertilization

LeanFinancial &

Metric Driven

ConnectedTo Facts (data

& KOLs)

Driven toSucceed

PerformanceBased Culture

Biais toRisk Taking

GrowthStrategy Well

Defined

FasterSmarterPharma

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All these Steps Result in Faster Smarter Pharma Company that is

Quick pacedLeanFlexibleForward lookingGrowingConfidentOutside zone of comfortAdapting to thrive