turning science into value/_acnmedia/accent... · nme developed launches market net sales $190b...
TRANSCRIPT
High Performers deliver on the commercial promise of new science through outcome-driven operating models
Turning science into value
Biopharmaceutical Industry High Performance Business Study
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Key FindingsConfidence is back; expectations are high with companies making strategic moves
2 Return to growth is predicted but polarized between High Performers and the rest
3 Capturing the value of innovation is stretching margins and the markets' capacity to pay
4 High Performers are focusing on building dominant growth positions and reshaping operationsSeveral operational attributes and capabilities are distinguishing High Performers:
Collaborating to get the best science and break-through speed to approval and launch.
Transforming their organiza-tions by leveraging partnerships, acquisitions, divestitures and asset swaps. Developing new business
models in response to the consumerization of healthcare.
Mastering flexible pricing and market access while demonstrating superior outcomes.
Six companies are now a step change ahead of the pack, with Astellas joining for the first time and Novartis re-joining.
High Performers distinguish themselves on five important metrics:
Accenture’s study of the Biopharmaceutical industry is in its 10th year and has analyzed the long-term performance of “pure-play” pharmaceutical companies (those with more than 75 percent of their revenue derived from pharmaceutical products).
Our High Performance Business research methodology is a proprietary approach for analyzing relative peer company performance across six key metrics—profitability, growth, positioning for the future, longevity, consistency and revenue growth forecast,
and strength of pipeline relative to intellectual property exposure. Composite scores demonstrate relative performance within the peer set and highlight the High Performers.
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4
Rest of peer group
High Performers
33.4%
27.3%
Higher proportion of growth forecast to come from recent and upcoming launches as a percentage of revenue
Rest of peer group
High Performers
33.1%
27.7%
Higher average operating margins
Higher average five year revenue forecast
CAGR2015-2019
Rest of peer group
2016High Performers6.5%
1.3%
4.7%
1.1%
Rest of peer group
High Performers
Higher average sales forecast for NME launches five years after launch
NME launches
Sales
5.3
$1.1BNME launches
Sales
7.1
$0.4B
Rest of peer group
1.7 HighPerformers
3.0
Higher five year forecast replacement revenue ratio average (ability to replace revenue lost to patent expired drugs)
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Anne O’RiordanGlobal Life Sciences Industry Senior Managing Director Accenture Life Sciences [email protected]
Andrea BruecknerManaging Director, EALAAccenture Life [email protected]
Thomas D. SchwengerSenior Managing Director, North AmericaAccenture Life [email protected]
AuthorPhilip J. DavisHead of Healthcare & Life Sciences ResearchAccenture [email protected]
Visit Our Blogwww.accenture.com/lifesciencesblog
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$125BRecent and Upcoming
NME LaunchesDeveloped
Market Net Sales
$190B$65B
The operating margins at 11 of the 16 companies have fallen over the last two years (peer group average saw 3% fall).
Drug price inflation in the US is running high at 13.2% and particularly high for specialty drugs.
There is an estimated $65B gap between the predicted growth in pharma spend in developed markets and NME growth forecast.
US Drug Price
Specialty Drug Price
13.2%
25.2%
3%
2014-19 $ Growth ForecastCore Operating Margins
4.0
4 Year Growth Forecast (CAGR 2014-2017)
High Performance Business Score*
High Performers
Near High Performers
Average Performers
Low Performers
Astellas
Amgen
Novo Nordisk
Roche
Bristol-Myers Squibb
Novartis
8%
7%
6%
5%
4%
3%
2%
1%
0%
-1%
-2%
-3%1.0 1.5 2.0 3.0 3.52.5
High Performance Business Score December 2014* Versus Group Revenue Forecast CAGR (2014-17)
*Based on seven year performance methodology
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2
High Performers Rest of peer group
+11% Mergers, acquisitions and divestitures are restructuring the industry.(Global Life Sciences M&A Deal Value shown)
$364B2014
177%
-15%
+17%
2%
Q3 2014
2007 Q3 2013
Enterprise Value (EV) continues to rise.
Future Value (FV) as a percentage of Enterprise Value (EV) is positive for the first time since 2007.