Strictly confidential

How to achieve sustainability in rapidly changing environment?

Pavle Marjanović, Country Manager for Actavis Republic of Serbia and Republic of MontenegroOctober 5th , 2011

Main changes in the pharmaceutical industry

• Limited number of new molecules in R&D pipelines (except some “me too” molecules)=> lack of fundamental innovation/patent expiry

• Aging population, higher demand for the therapy• Less money in sick fund(s) • Reference pricing, tenders leading to constant price erosion

(example paclitaxel USA)• Liquidity issues • Big Pharma enters Gx segment• Prescription limitations• Focus on medical compliance, prevention• Focus on legal compliance and ethics

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Generic industry ensures healthcare sustainability

• Gx medicines enhancing competition – SAVINGS

• Drugs are becoming affordable especially for chronic diseases

• Gx medicines could provide innovation – new formulations, methods of delivery

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Gx entry should be supported by relevant authorities• Time limited “exclusivity” for the first Gx entry – SAVINGS!

• Value of products going off patent expected to increase from 2011 – SAVINGS!

• Evaluating each segment of drug approval seeking possible “fast tracks” for Gx

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Serbia vs. relevant European markets

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Gx entry brings sustainability to healthcare system

• Lowering prices could enable broader number of patients treated• Statins consumption among lowest in Europe• Reinforcing the position of “family doctor” making decisions for the treatment of the

major chronic diseases

• Old drugs (from ‘60, ’70) could be replaced with new generation Gx drugs at the same price • Typical/Atypical antipsychotics – 50% of patients treated with typical antipsychotics• Antidepressants - 40% of patients treated with older antidepressants• Antidiabetics• Sartans

• Peculiarity of the Serbian market – Gx industry brings innovative molecules to the market at affordable prices

• OTC status liberalization (ranitidine, loratadine etc)• Savings could be used for extending generic therapeutic categories

6 Serbian Market - Saturation

Actavis role in bringing sustainability to healthcare system

• Meeting healthcare needs• More affordable prices• Modern therapies• More patients treated• Overall cost saving

…in partnership with relevant authorities and through transparent dialogue!

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This is not the best way to calculate healthcare budget figures

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