Mediengespräch EY Globale Biotechindustrie: Analysen und ... · Page 47 Moving from potential to proven Most products have a value gap at launch Novel pricing and financing agreements

Mediengespräch EY

Globale Biotechindustrie: Analysen und Prognosen 9. Juni 2016

Returning to Earth

EY Beyond borders

biotechnology report 2016

Page 3

Content

The year in review..……………………………...………………………………………..…...…. 4

Financial performance Global………………………………………………………..……....….. 9

Financial performance Europe……………………….……………………………...…………... 15

Financing Global………………………………………………………………………………….. 18

Financing US...........……………………………………….....………………..………………... 24

Financing Europe..……………………………………….....………………..…………………... 27

Deals Global...………….……………...………..………….…………………………………….. 32

Deals Europe.………….……………...………..………….……………………………………... 40

Drug Pricing...………….……………...………..………….……………………………………... 44

Page 4

The year in review

Beyond borders - Biotechnology Report 2016

Page 5

2015: Record results for the biotechnology industry, but…


R&D spend up 16% to >US$40b

M&A involving biotech >US$100b

Innovation capital exceeds US$41b

Capital raised: US$71b

IPO window: 11 consecutive quarters

The biotech industry market cap: US$1.1t

Revenues reach historic high: US$132.7b

New drug approvals: US: 45 / Europe: 93

Employees up 19% to 203,850

Page 6

Slowing growth and a pull back in the public markets suggest a new normal for biotech

Year over year percentage change in key financial indicators (US and Europe)

Market

capitalization Revenues R&D Profitability

-20

-10

0

10

20

30

40

50

60

70

802013 2014 2015

225

Perc

enta

ge

Source: EY


Page 7

The US and European biotechnology centers at a glance, 2015 (US$b)


Page 8

US FDA product approvals, 1996-2015


Page 9

Financial performance


Global

Page 10

Growth in the US and European biotechnology sectors, 2014-15 (US$b)


Page 11

Highly concentrated growth in the US US biotechnology at a glance, 2014-15 (US$b)


Page 12

European sector growing at slower pace European biotechnology at a glance, 2014-15 (US$b)


Page 13

EY survival index shows number of years of cash companies have on hand


Page 14

US and European public company revenues, 2000-15


Page 15

Financial performance


Europe

Page 16

European public company revenues, 2000-15


Page 17

Top changes in European market capitalizations, 2011-15 (US$m)


Page 18

Financing


Global

Page 19

Innovation capital in the US and Europe surpassed US$40 billion in 2015


Chart placeholder

Page 20

US and European early-stage venture investment reached unprecedented heights


Page 21

More than 30% of all US and EU venture investment came via seed and first rounds


Page 22

End of the boom? US and European biotechnology IPO pricing by year


Page 23

The window of all windows: US and European biotechnology IPOs by year


Page 24

Financing


US

Page 25

US biotechnology IPOs by year


Page 26

US biotechnology IPO pricing by quarter, 2013-15


Page 27

Financing

Europe


Page 28

European biotechnology financings by year


Page 29

European innovation capital by year


Page 30

European venture capital by year


Page 31

European biotechnology IPOs by year


Page 32

Deals


Global

Page 33

US and European M&As, 2006-15


Page 34

US and European strategic alliances based on biobucks, 2006-15


Page 35

Big biobucks alliances, 2015


Page 36

US and European strategic alliances based on up-front payments, 2006-15


Page 37

Alliances with big up-front payments, 2015


Page 38

Selected M&As, 2015


Page 39

M&As with big earn-outs, 2015


Page 40

Deals


Europe

Page 41

European M&As, 2006-15


Page 42

European strategic alliances based on biobucks, 2006-15


Page 43

European strategic alliances based on up-front payments, 2006-15


Page 44

Drug Pricing


Page 45

Drug pricing: More questions than answers


What incentives

support biopharma

innovation and meet

needs of other

stakeholders?

What is needed to

scale new

solutions in the

marketplace?

How should drug

value be defined?

And who should

define drug value?

Defining the problem Identifying solutions Driving adoption

Page 46

Drug pricing is a global concern Even in the US, the most “free” market

Top 3 specialty therapy classes accounted for 56.3% of all specialty spend.

Branded Prescription price increased 16% from 2014 to 2015.


Source: Express Scripts 2016

Page 47

Moving from

potential to proven

► Most products

have a value gap

at launch

► Novel pricing and

financing

agreements are

a way to co-create

data with

stakeholders

► Such data

accelerate the shift

from potential to

proven value

At launch, most products have “potential” not “proven” value to stakeholders

High

Low

Potential value Proven value

Price

Value

Less value to stakeholders

Most value to stakeholders

More value to stakeholders

Least value to biopharma

Outcomes data


Page 48

Biopharmas must move away from selling pills to partnering around outcomes

Outcomes driven

Patient, provider, payer

pull based on outcomes

Focus on Prevention,

Treatment and Mgmt.

Value driven

Indication Driven

Rep Push Based On

Features

Pill/Treatment focus

Volume and revenue

Limited patient engagement,

low data risk Greater openness and

greater data risk

Pills – now Outcomes – future

Trials data +

Real world evidence Trials data

Operationalizing these partnerships is challenging


Page 49

Thank you and stay tuned

Download the report:

ey.com/beyondborders

Participate in our blog:

LifeSciencesBlog.ey.com

Follow us on Twitter:

@EY_LifeSciences

Jürg Zürcher Partner, Life Science Sector Leader Switzerland, Biotechnology Sector Leader EMEIA

Ernst & Young AG Rain 41 Telefon: + 41 58 286 23 74 CH-5001 Aarau jürg.zü[email protected]


mailto:jürg.zü[email protected]

Page 50

EY Global Life Sciences Center

Vital Signs

EY’s regular publication in the life sciences sector

www.ey.com/vitalsigns

Pulse of the industry

EY’s annual report on the global medical technology sector

Firepower

EY’s annual reports on M&A in the life sciences sector

www.ey.com/firepower

www.ey.com/lifesciences


Page 51

EY | Assurance | Tax | Transactions | Advisory

Über die globale EY-Organisation

Die globale EY-Organisation ist eine Marktführerin in der Wirtschaftsprüfung,

Steuerberatung, Transaktionsberatung und Rechtsberatung sowie in den Advisory

Services. Wir fördern mit unserer Erfahrung, unserem Wissen und unseren

Dienstleistungen weltweit die Zuversicht und die Vertrauensbildung in die

Finanzmärkte und die Volkswirtschaften. Für diese Herausforderung sind wir dank gut

ausgebildeter Mitarbeitender, starker Teams sowie ausgezeichneter Dienstleistungen

und Kundenbeziehungen bestens gerüstet. Building a better working world: Unser

globales Versprechen ist es, gewinnbringend den Fortschritt voranzutreiben – für

unsere Mitarbeitenden, unsere Kunden und die Gesellschaft.

Die globale EY-Organisation besteht aus den Mitgliedsunternehmen von Ernst &

Young Global Limited (EYG). Jedes EYG-Mitgliedsunternehmen ist rechtlich

selbstständig und unabhängig und haftet nicht für das Handeln und Unterlassen der

jeweils anderen Mitgliedsunternehmen. Ernst & Young Global Limited ist eine

Gesellschaft mit beschränkter Haftung nach englischem Recht und erbringt keine

Leistungen für Kunden. Weitere Informationen finden Sie auf unserer Website:

www.ey.com.

Die EY-Organisation ist in der Schweiz durch die Ernst & Young AG, Basel, an zehn

Standorten sowie in Liechtenstein durch die Ernst & Young AG, Vaduz, vertreten.

«EY» und «wir» beziehen sich in dieser Publikation auf die Ernst & Young AG, Basel,

ein Mitgliedsunternehmen von Ernst & Young Global Limited.

©2015 Ernst & Young AG

All Rights Reserved.

www.ey.com/ch


Documents

Mediengespräch EY Globale Biotechindustrie: Analysen und ... · Page 47 Moving from potential to proven Most products have a value gap at launch Novel pricing and financing agreements