1 / 24

An overview

Drug Discovery and Healthcare India’s Opportunities. An overview. Disclaimer facing the truth upfront. I am not a mechanical Engineer but I have a Ph. D. in mechanical engineering I am not a life scientist by training but most of my patents and contributions are on life science

ondrea
Télécharger la présentation

An overview

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Drug Discovery and Healthcare India’s Opportunities An overview

  2. Disclaimerfacing the truth upfront • I am not a mechanical Engineer but I have a Ph. D. in mechanical engineering • I am not a life scientist by training but most of my patents and contributions are on life science • I am not part of the “movie industry” and yet I did receive an “Academy Award” (Technical Oscar) • I look very much “Indian” but I just begun to learn to think “Indian” • So take what I say with a proper sense of skepticism.

  3. Background -Macro Factors • Global pharmaceutical business is in transition • R&D Productivity is a major pressure point • Large R&D Budgets • Industry ~ $55B • NIH ~ $23B in FY2002 • Increasing demand • Longevity is on the increase worldwide • 65,000 Centenarians in US today • 1Million by year 2050 • Emphasis on quality of life • Focus on wellness and disease management

  4. It is all about “Knowledge” • It is a knowledge intensive business • Requires multi-disciplinary knowledge • IP Rights & barriers are derived from knowledge generation • Knowledge “production” has a direct impact on creating shareholder value

  5. R&D - Industry Facts • Drug development cost too prohibitive – average cost is $800M and takes 10 - 15 years • Average sales per drug: $265M • >90% drugs generate sales <$180M • Genomics has created abundance of new targets. However, • R&D productivity is expected to decline while cost expected to increase in the near term • Patient stratification will further increase pressure on R&D cost • Patient stratification and segmented markets

  6. Not all Drugs are Block Busters 1% 1% 2% 6% 90%

  7. R&D - Industry Facts • Drug development cost too prohibitive – average cost is $800M and takes 10 - 15 years • Average sales per drug: $265M • >90% drugs generate sales <$180M • Genomics has created abundance of new targets. However, • R&D productivity is expected to decline while cost expected to increase in the near term • Patient stratification will further increase pressure on R&D cost • Patient stratification and segmented markets

  8. #1 Pfizer $2.9b #18 Amgen $0.56b Pfizer $1.5b Amgen $0.28b Pharma/ Biotech R&D Spending Top 40 Companies Spent $40b on R&D in 2000 Development Research

  9. Rate of Failure unchanged Reason for Failure unchanged Productivity & Bottlenecks Few NCE’s filed 1998: 42 1999: 41 2000: 32 2001: 34 19881997 • Efficacy: ~25% 30% • Toxicity: ~31% 30% • PK Issues: ~41% 39% Biocentury June 10, 2002

  10. R&D Productivity R&D in $B NCEs

  11. Increasing Competition

  12. Patent Pressures • In 2000, 13 out of top 100 drugs came of patent (Represented $11B/yr) • In 2005, 53 of the top 100 drugs will be off patent (2000 sales $53B/yr) • Pharma needs 3 to 5 NCEs to maintain double digit growth

  13. Significant Unmet Needs • In pharmaceutical R&D by • Increasing the probability of success, • Decreasing the time to market, or • Reducing the cost of a given phase of drug discovery or development • In diagnostics by • Reducing the time and cost of developing tests to address cost containment pressures • In healthcare delivery by • Using technologies to address inefficiencies in access & reach

  14. Large Vs Small Interesting comparison (12/31/00) Biotech Index Merck

  15. Where does India Fit in? The evolution has just begun

  16. “INDIA” Advantage • Human resources • 10% of researchers and 15% of scientists in Pharma/ Biotech R&D in USA are of Indian origin • Large English speaking skill base: 3 million graduates, 700,000 post graduates & 3,000 PhDs qualify in bio-sciences each year • Speed & Low cost of innovation • World class scientific skills at significantly lower costs • Favorable policies & incentives • From central and state governments • Building the knowledge bridge • Real interest from US-based Indian pharmaceutical professionals

  17. “India's” Promise • TRIPS compliant patent regime • Expected by 2005 • India ranks No:3 in Asia in patent filings • Huge potential for clinical trials and research • Access to vast & diverse disease populations. Indian companies, hospitals & clinics are beginning to comply with GCP guidelines • Bio-diversity • India’s human gene pools offer an exciting opportunity for genomic research and pharmacogenomic validation • International and domestic VCs • Beginning to show interest in the Indian Biotechnology segment

  18. Challenges • Missing link between research and commercialization • Absence of entrepreneurial venture capital • Thin supply of well-trained domain specific management talent • Relatively low R&D expenditure by industry • Image of Indian industry – doubts about ability of to meet high standards of quality

  19. What is the Road Ahead? • 2 +2 = at least 3 strategy • Incremental • Narrow exploration • Opportunities around the current capability • 2 + 2 = can be 8 strategy • Leverage the present • Look for new opportunities where the current capability plus the new brings unique advantages

  20. Opportunity Space – Big Picture • Enabling niche opportunities to become economical through access to low cost R&D • “un orphanizing” compelling opportunities • Enabling faster R&D through access to a larger pool of skilled resources at affordable costs • “faster, better and cost efficient” • Enabling the exploration of alternative development methodologies by reducing the amount of risk capital • “out of box thinking made affordable”

  21. IT Experience • Low cost labor focus • Transitioning to skill based services now • Struggling to move-up the value chain • No creation of leveraged “technology” • Minimal direct impact on internal “economic production”

  22. The “Big Questions” • What are the lessons learned from IT experience and how not to repeat the mistakes? • How to focus on low cost of “knowledge generation” and not simply on access to low “cost of labor”? • Can integrated policies and “R&D” infrastructure investments impact length and size of “opportunity cycle”? • Is it possible to achieve synergistic growth leading to highly valued “solutions” and not result in simple execution of discreet tasks.

  23. Summary • Global “Healthcare” is entering a period of monumental challenge • Ability to “ride” the wave will depend on whether one is over it or under it • Knowledge driven approach will be the key differentiating factor • Great opportunity to create “wealth “ for the nation but more importantly contribute to the “health” of the nation

  24. Thank you

More Related