Addressing access to healthcare

Transcription

1 Addressing access to healthcare Karl Mahler Head Investor Relations René Imhof Head Operational Pricing Swiss Sustainability Leaders SRI Conference Buonas, 17 November 2014

2 This presentation contains certain forward-looking statements. These forward-looking statements may be identified by words such as believes, expects, anticipates, projects, intends, should, seeks, estimates, future or similar expressions or by discussion of, among other things, strategy, goals, plans or intentions. Various factors may cause actual results to differ materially in the future from those reflected in forward-looking statements contained in this presentation, among others: 1 pricing and product initiatives of competitors; 2 legislative and regulatory developments and economic conditions; 3 delay or inability in obtaining regulatory approvals or bringing products to market; 4 fluctuations in currency exchange rates and general financial market conditions; 5 uncertainties in the discovery, development or marketing of new products or new uses of existing products, including without limitation negative results of clinical trials or research projects, unexpected side-effects of pipeline or marketed products; 6 increased government pricing pressures; 7 interruptions in production; 8 loss of or inability to obtain adequate protection for intellectual property rights; 9 litigation; 10 loss of key executives or other employees; and 11 adverse publicity and news coverage. Any statements regarding earnings per share growth is not a profit forecast and should not be interpreted to mean that Roche s earnings or earnings per share for this year or any subsequent period will necessarily match or exceed the historical published earnings or earnings per share of Roche. For marketed products discussed in this presentation, please see full prescribing information on our website All mentioned trademarks are legally protected 2

3 Life expectancies to increase Economic cluster not expected to change fundamentally Addressing access 3

4 With longer life expectancies healthcare costs set to increase further Life expectancy at birth, in years World More developed regions Less developed regions excl. least developed countries Least developed countries E projections Life expectancy gap between more and less developed regions is closing Source: IMF Global Financial Stability Report, April 2012, Chapter 4 The Financial Impact of Longevity Risk 4

5 SPENDING CAGR Age related therapy areas to see strong growth Leading Therapy Areas In % 15% 50bn 25bn 5bn Specialty Traditional MS Autoimmune ADHD HIV Antivirals Immunosuppressants 10% Antipsychotics Angiotensin II Asthma/COPD Antidiabetics Oncologics Vaccines Immunostimulants 5% Platelet Aggr Inhb Narcotic Analgesics Cephalosporins Contraceptives Antivirals excl HIV (0%) Anti-Ulcerants Lipids Anti-Epileptics (5%) (10%) (5%) 0% 5% 10% SPENDING CAGR Source: IMS Institute for Healthcare Informatics; Therapy Forecaster, April

6 Population (mln) Ageing demographics add ~0.5% to pharma costs every year Additional pharma costs per year due to changing age structure* - net of inflation Population demographics in G8+Japan 1.4% 1.2% 2004 to to % % % % % % France Germany UK US * assuming stable prices, no delay in onset of diseases, unchanged relative consumption patterns between age groups Age Group Source: modelled based on 1) population information from IHS Global Insight Global Consumer Markets, and 2) pharma spend per patient derived from IMS Disease Analyzer (FRA, GER, UK; GPs only) and Wolters Kluwer Source (US) 6

7 Life expectancies to increase Economic cluster not expected to change fundamentally Addressing access 7

8 Economic development to drive healthcare spend Healthcare spend per capita 2012 (in current US$) 10,000 8,000 United States 6,000 France Japan 4,000 2,000 0 India Mexico China Brazil Russia Turkey Spain Italy UK Germany 0 10,000 20,000 30,000 40,000 50,000 60,000 GDP per capita 2012 (in current US$) Source: World Bank 8

9 Most countries maintain their relative GDP rankings, no large leaps expected by 2020 GDP / capita "Low income" "Middle income" "High income" incl. all EU28 NG IN ID BR CN MX TR MY RU Countries NG IN ID BR CN MX TR MY RU NG IN ID BR CN MX TR MY RU Note: GDP and population forecast based either on EIU predictions (where available), or forecasted applying 10y CAGR on 2013 values Source: EIU, Roche analysis 9

10 Life expectancies to increase Economic cluster not expected to change fundamentally Addressing access 10

11 Access The key challenge: Differentiated access solutions for different geographic clusters High Developed world United States United States (35% of world market, 5% of pop) Free, stable pricing Japan Germany France Developed world ex-us (37% of world market, 10% of population) Payers determine price Italy UK Emerging Markets (28% of world market, 85% of population) Spend limited by GDP per capita Low Turkey Russia Brazil Mexico China India Emerging markets Low Pricing flexibility High 11

12 What is Access? Relevant factors are in place for a patient to have the opportunity to receive the diagnostics and medicines to achieve optimal outcomes Access for All, Innovation for Tomorrow 12

13 Roche and Access to Healthcare Our role Our primary contribution is to invent and develop medicines and diagnostics that significantly improve people s lives. We work with many different partners to continuously and sustainably reduce the barriers that prevent people from having access to our products. Our aim is for every person who needs our products to be able to access and benefit from them. 13

14 Access in emerging markets Only 30% with access to Herceptin and MabThera 100% 50% Patient figures in 000s % 21% % 132 Label incident patients Inaccessible patients Accessible patients Access restricted patients Accessed patients Baseline summary for EM sample (18 markets), population of 4 billion. Herceptin (ebc, mbc), MabThera (CLL, NHL) 14

15 Roche and access to healthcare is more than just about pricing Deliver Innovation Strengthen Healthcare Infrastructure Improved Health Outcomes Increase Awareness & Patient support Improve Affordability 15

16 Tailored solutions for each market to address affordability Established Countries Emerging Countries General access and healthcare coverage Negotiate with payers on reimbursement Commercial arrangements Personalised Reimbursement Models Limited healthcare coverage and/or infrastructure Enable access to public/private funding Differential pricing Patient assistance programs Health insurance policies Strengthen healthcare systems 16

17 Helping improve healthcare coverage Toolkit of options to address affordability Private insurance 1 Public reimbursement 2 Private payment 3 Commercial arrangements Local packaging Differential pricing* Health insurance Patient assistance programmes * In emerging/ developing markets 1. Private Insurance: Voluntary health insurance, Employer insurance 2. Public Reimbursement: Statutory Health Insurance, Sick Funds, Primary Care Trust, Ministry of Health, Military institutions, etc. 3. Private Payment: Out-of-Pocket, Co-Payments 17

18 Key element is partnership with governments to increase access in public markets Increased price flexibility / or other support Provide access through public reimbursement Government To provide access to innovative products for patients who otherwise could not benefit from these drugs 18

19 Piloting access solutions in emerging markets CIS CAC SSA CAC = Central America & Caribbean CIS = Commonwealth of Independent States SSA = Sub-Saharan Africa 19

20 Case study: Herceptin in China Identifying the hurdles Government health priority - Targeted therapies are unaffordable Affordability - High treatment cost paid out-of-pocket Accessibility & availability - Limited access to quality hospitals & treatment Physician awareness & preference Low disease awareness 20

21 The Results Multiple local reimbursement breakthroughs achieved 11,800 Patients on Herceptin 8, million people in China now have some type of coverage for Herceptin 3,500 2, PAP = Patient Assistance Programs 08/2011 PAP implementation 2013 Multiple local reimbursement 21

22 Doing now what patients need next