Huntsworth Plc Capital Markets Day 1
Agenda 1:45 Intro Paul Taaffe / Neil Jones 2:05 apothecom - An introduction to medical affairs 2:30 TCEG The changing nature of engagement 2:55 Refreshments 3:25 Evoke Health More Human 4:00 Wrap up Paul Taaffe 4:15 Close 2
The world is getting older 1. Within 10 years there will be one billion >60 yr olds 2. The world s over-65 population is projected to double over the next 30 years 3. By 2050 global life expectancy is projected to increase by 8 years 4. The oldest old - those over 80 are expected to triple between 2015 and 2050 1bn Over 60s worldwide 49m 88m Over 65s in US 68yrs Global life expectancy 126m 76yrs 446m Over 80s globally Source: An Ageing World: 2015 US National Institute of Health/US Census 3
And needing more healthcare 133m Americans have at least one chronic disease By 2025, chronic diseases are predicted to affect an estimated 164m Americans Obesity rates amongst 65 to 74 year olds is 30% Alzheimer s projected to triple by 2050 45% of the population 5% increase since 2000 30% 5m 16m Alzheimers in US Sources: (1) Wu S, Green A. Projection of Chronic Illness Prevalence and Cost Inflation. RAND Corporation, October 2000; (2) Partnership for Solutions. Chronic Conditions: Making the Case for Ongoing care; (3) CDC Summary Health Statistics for US: National Health Interview Survey; (4) Alzheimer s Association (www.alz.org ) 4
Worldwide Total Prescription Drug Sales (2008-2022) Source: Evaluate Pharma, August 2016 5
FDA Approval Count vs. Total USA Product Sales 5 years after Launch Source: Evaluate Pharma, August 2016 6
Shift to biotech means more complex drugs Worldwide Prescription Drug & OTC Pharma Sales: Biotech vs. Conventional (2008-2022) Biotechnology Conventional / Unclassified Source: (1) Evaluate Pharma, August 2016; (2) IMS Institute for Healthcare Informatics, October 2014; 7
Healthcare providers are going digital 82% of HCPs will use a computer, smartphone and tablet for professional purposes in 2014 of HCPs will use smartphones in 2014 90% 70% HCPs are TWICE as likely to use online sources than print when making clinical decisions HCPs spend 11 hours+ per week online for professional purposes of Primary Care Physicians use Social Media for professional purposes Source: Epocrates: Google (2012); emedfusion 8
The rise of Dr. Google GLOBAL Over 60% of people in developed and emerging markets use the internet to search for advice on health, medicines, or medical conditions. 1 US + 80% of internet users look for health information online. 2 + 59% of all adults in the U.S. say they looked online for health information within the past year. 3 66% 77% 2006 2013 11% increase in percentage of US health seekers who begin their health inquiry at a search engine 3,4 1. McDaid D, Park LA. Online health: untangling the web. Available from: www. bupa.com/healthpulse [Last accessed 15 September 2017]Fox S, Duggan M. Health online 2013. Washington, DC: Pew Internet & American Life Project. 2013 Jan 15. 2. Fox S. Health topics: 80% of internet users look for health information online. Washington, DC: Pew Internet & American Life Project; 2011. 3. Fox S, Duggan M. Health online 2013. Washington, DC: Pew Internet & American Life Project. 2013 Jan 15. 4. Fox S. Online health search 2006. Pew Internet & American Life Project; 2006. 9
Healthcare spend on digital is low but growing 7-8% 15.6% 2012 2014 Source: emarketer/davy Research 10
Digital Intensity Digital Progress In Pharma Still Lags Most Other Industries Capgemini s Digital Maturity Quadrant by Industry Travel & Hospitality Fashionistas Telecom Retail Digirati High Technology Banking Pharmaceuticals Beginners Consumer Packaged Goods Conservatives Utilities Insurance Manufacturing Transformation Management Intensity Source: Capgemini, The Digital Advantage: How Digital Leaders Outperform Their Peers In Every Industry, 2017 11
Huntsworth Health 12
Health in a Huntsworth context Revenue Operating profit* 2017 36% Health 20% Health Annualised for TCEG PR PR 64% 80% * Before central costs 13
US weighted Revenue Operating profit* 2017 29% US 24% US Annualised for TCEG 71% UK 76% UK 20% + Consistent margin delivery * Before central costs 14
Accelerating growth trajectory HH Revenue CAGR % HH OP CAGR % 18% 16% 16% 16% 14% 14% 14% 12% 10% 8% 6% 4% 8% 13% 12% 10% 8% 6% 4% 8% 12% 2% 2% 0% 2007 to 2013 2014 to 2016 2017 to 2019* 0% 2007 to 2013 2014 to 2016 2017 to 2019* * These are based on Analyst consensus numbers and should not be in anyway taken as a forecast or estimate of the company 15
We work for the World s top 20 pharmaceutical companies 16
Strong client base 63% 27% c. 1m Of clients by value have been a customer for more than 5 years CAGR on top 10 client revenues over the past 5 years Average size of client 17
18 GLOBAL MEDICAL AFFAIRS IN THIS CHANGING WORLD OCTOBER 2017
WHERE MEDICAL AFFAIRS SITS IN THE WORLD OF PHARMA 19
WHY THERE IS A SHIFT FROM SUPPORT TO STRATEGY IN THE MEDICAL AFFAIRS FUNCTION Transactional commercial interactions are decreasing; the prescriber-facing model is becoming more medicalised Greater requirements for post-authorisation data safety / risk management, patient populations and long term outcomes More stakeholders and diversification of healthcare teams requiring evidence to address clinical questions and inform use Increased hurdles for market access requiring real world and increasingly localised evidence Adaptive licensing with restricted launch. Expanded use based on increasing evidence Compliance and regulatory controls are driving increased separation of medical and commercial functions 20
AREAS OF FOCUS FOR MEDICAL AFFAIRS ACROSS THE PRODUCT LIFECYCLE PHASE I PHASE II PHASE III POST-LAUNCH Publication planning Scientific statement development Investigator and trial support Mechanism of action description Pipeline and commitment to a therapy area Landscape analysis and internal training Key opinion leader / Centres of Excellence identification Evidence planning Scientific platform development Investigator and clinical trial support Key opinion leader engagement Publication planning and support MSL training and materials Disease awareness and education Congress activity educational symposia, medical booth Supporting market access strategy and HEOR Clinical practice / guideline reviews and consensus Real-world evidence planning Outcomes studies and realworld data generation Ongoing clinical development and lifecycle management Publication planning and support Medical education Congress activity educational symposia, booths Patient access programmes HCP engagement Advisory boards and intelligence gathering 21
NEW BUSINESS SINCE 2016 22
WHAT WE DO: MEDICAL STRATEGY AND TRAINING Regional training across Asia, Europe, Middle East and Africa Medical Foundations and Senior Leaders courses Strategic support for the international strategy group across brands >200 medical affairs professionals trained during 2017 Methodologies to support integration between commercial and medical functions TOP 10 Global Pharma Company Review and optimisation of 2017 medical plans (across 6 brands across oncology and specialised medicine) Development of a strategic planning process and templates for Global Medical Affairs Standardisation across brands and markets for 2018 planning Development and delivery of in-market training to support the global medical affairs structure Global Specialised Pharma Company STRATEGIC MEDICAL AFFAIRS TRAINING AND DEVELOPMENT OF ANNUAL MEDICAL PLANS 23
USD (in Thousands) IMPACT OF ENVIRONMENTAL AND INDUSTRY CHANGES ON THE MEDICAL AFFAIRS SPEND: AVERAGE AND MEDIAN MEDICAL AFFAIRS TEAM ANNUAL BUDGET (ALL COMPANY SIZES AND REGIONS) 10,000 9,000 8,000 Average Median $7,720 $8,616 $9,329 7,000 6,000 5,000 $4,190 $4,493 $4,887 4,000 3,000 2,000 1,000 $875 $1,250 $1,600 $2,050 $2,000 $2,500 2011 2012 2013 2014 2015 2016 Year Data from MAPS (Medical Affairs Professional Society, 2017) 24
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The changing nature of engagement 27
Next 3 on one slide UL casse Keep imge from wrg in bg 28
Significant Healthcare Expertise 70% of our revenue comes from our healthcare clients 29
The changing nature of engagement Events 15 quarters of increased marketing confidence and spend (IPA Bellwether) Film 82% of world s online traffic will be video by 2021 (Cisco) and content marketing is set to grow at a 14.4% CAGR from 2017 to 2021 VR & instructional design Global VR market expected to reach $75bn (Greenlight Insights) and global AR market expected to reach $134bn by 2021 (Zion) Interactive UK internet marketing grew 22.7% in Q2 2017 (IPA) highest growth rate in 10 years Internal comms Regular work-at-home, among the non-self-employed population, has grown by 115% since 2005 (Global Workplace Analytics) Embedded agency 45% of UK brands have, or are considering an in-house capability (The Drum), and 56% of US clients have moved assignments in house (ANA) 30
Getting it right at launch As pressure on drug prices increases, R&D costs increase and patent life decreases - there is a need to maintain high investment in launch products About two-thirds of new drugs fail to meet pre-launch consensus sales expectations for Year 1 New brand success is often determined in the first 3 years on the market Key markets like Oncology have high competitive intensity Success requiring faster, more effective customer engagement at launch Source: Evaluate Pharma McKinsey Analysis 31
How do you engage a cynical expert audience at one of the world s busiest conferences? 32
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Making the complex, simple By 2020, genetic testing will be part of mainstream medical practice - more personalized medicines Increasing numbers of personalised medicines which target specific genotypes within a disease area particularly for cancer and neurodegenerative diseases Biomeds are expected to contribute 52% of the Top 100 product sales by 2022 Much more complex mechanisms of action based on a better understanding of genetics and molecular biology Requirement to demonstrate insight and expertise in the best way of engaging customers with this new science 34
How do you show content from a different perspective? 35
. How do you train submariners without a submarine? 36
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The Importance of Engaging Stakeholders - Externally Technology is powering healthcare customer & consumer engagement The increase in data and information access, mobile applications, and personal health devices is accelerating the pace of engagement Changes in the stakeholder roles and influence with much greater patient involvement and shared decision-making 40% of surveyed health care consumers looked online for information and 23% used social media for health related purposes (Source: Deloitte) Online tools and networks have become powerful customer engagement tools offering a more personal and open dialogue Deloitte 2017 global life science sector outlook 38
How do you create digestible content for a hard to reach audience? 39 39
Wrong case study need digital version? 40
The Importance of Engaging Stakeholders - Internally Pharmas have always needed to work closely with their staff in the major markets to gain input to development and commercial strategy. However, the breadth and depth of consultation with these markets has increased to include new major markets like China Also, importance of internal communication within and across HQ departments to promote effective crossfunctional teams General understanding that higher levels of engagement are shown to improve market understanding, employee morale and to boost productivity Most pharma companies are focusing on SG&A reduction - a greater willingness to embrace virtual events alongside face-to-face 41
. How do you engage 100,000 employees around the world? 42
Depth and breadth of service Virtual events / platforms Live video broadcasts, globally Animation & motion gfx Web/app development Video 3D visualisation Design and print 43
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Refreshments 45
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We Are A full-service health + wellness marketing group for an evolving digital world 47
NATIVELY DIGITAL DATA DRIVEN CULTURALLY CONNECTED 1OO% HEALTH Bound by a common purpose Health More Human TM 48
4 locations.250 People. 100% Organically Grown NEW YORK PHILADELPHIA CHICAGO LOS ANGELES 49
WHY DO CLIENTS COME TO US? Consumer Digital RM 50
Consumer 89% of patients requested a specific branded treatment after seeing a pharma advertisement Avg. Grant Rate: 53% Up to 80% for some conditions We educate, drive demand and convert new customers *(Pharmacy & Therapeutics, 2011) 51
Digital 72% of people have looked online for health information in the last year We leverage technology & behavior to influence consumers where they live 77% use search prior to booking a medical appointment Pew Internet 52
RM 50% of Chronically ill patients do not take their medication as recommended We create more valuable & productive long-term relationships 30% of new prescriptions are never filled *Mayo Clinic, 2011 **Express Scripts, The Costs of Non Adherence, 2015 53
STRUCTURED FOR INNOVATION, ACCOUNTABILITY AND SCALABILITY: $0 - $70M IN 10 YEARS 54
Growing the market At roughly $70mm, Evoke Health constitutes 1.2% of the of the $5.7 Billion* healthcare agency market *Based on MMM Healthcare agency revenue table 55
Growing the market From 2014-2016 Evoke Health has been awarded the work for 8% New Drugs approved by the FDA *Based on MMM Healthcare agency revenue table 56
While also growing share 25 new business wins since 2015 7 new product 18 launches displacing incumbent agencies and stealing share from the market. 57
How do we do it? 58
HOW WE SEE THE WORLD 5 9 59
THE WORLD IS CHANGING FASTER THAN WE CAN IMAGINE 6 0 60
AND NOW PEOPLE HAVE ALL OF THE POWER They know all about your brand, your ads, your promises - and word spreads faster than ever 6 1 61
They will give you their attention, BUT THEY EXPECT A LOT Transparency + authenticity Quality content + flawless execution Involvement + co-creation + dialogue Real-time information anytime, anywhere 62
OUR ROLE SMARTER PLAN HIGHER PURPOSE 6 3 63
It s not about channels It s about TRANSFORMATIVE EXPERIENCES that amplify your brand 64
It s not about gimmicks or tactics It s about leveraging TECHNOLOGY & HUMAN BEHAVIOR to build relationships 65
Health More Human TM 6 6 66
Brand Platform Brand Experience Brand Performance 67
Humanize TM in action 68
NATIVELY DIGITAL DATA DRIVEN CULTURALLY CONNECTED 1OO% HEALTH Bound by a common purpose Health More Human 69
Huntsworth Health: positioned for strong growth HUNTSWORTH HEALTH: MEDICAL HUNTSWORTH HEALTH: MARKETING HUNTSWORTH HEALTH: IMMERSIVE 70
Huntsworth Plc Capital Markets Day 71