Sophia Tickell MeTA IAG Chair Pharma Futures 3, the external environment, MeTA’s private sector plans MeTA29/01/20161

MIAG Report on Pharma Futures Industry at a crossroads The challenges and opportunities of the emerging markets The relevance of these findings to MeTA

MIAG 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

The Common Characteristics of “Emerging Markets”

1. Highly Complex Extreme cultural and ethnic diversity Marked income inequalities Rural/urban divide Poor access to infrastructure Volatile business climate

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)

MIAG Source: World Bank

MIAG Source: World Bank

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

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

MIAG 5. The Social Contract Pharma industry’s unusual social contract, consisting of: High value afforded to pharma products by widespread stakeholder base Association 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.

MIAG 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.

MIAG Core Point - To meet market potential, companies need to develop business models that are: HUMAN CENTERED AFFORDABLEACCESSIBLE

MIAG 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

29/01/2016MeTA16 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

29/01/2016MeTA17 Agenda List the topics to be covered List the times allotted to each

29/01/2016MeTA18 Overview Give the big picture of the subject Explain how all the individual topics fit together

29/01/2016MeTA19 Topic One Explain details Give an example Exercise to re-enforce learning

29/01/2016MeTA20 Topic Two Explain details Give an example Exercise to re-enforce learning

29/01/2016MeTA21 Topic three (try to keep max 10) Use maximum 6 lines and 1 sublevel 2 – A – B ! This is the last one!

29/01/2016MeTA22 Summary State what has been learned Define ways to apply training Request feedback of training session

Ask for input from participants! Try to use a graph of funny picture here and there, but don’t overdo it! 29/01/2016MeTA23

29/01/2016MeTA24 Where to Get More Information References Books, articles, Electronic sources with URL Other sources

29/01/2016MeTA25 Thank you! Name of presenter Mobile number International Secretariat, MeTA: DFID: