Iqvia Holdings, Inc. · NYSE:IQV
Iqvia — IQVIA Life Sciences Innovation Forum 2022
14 slides from Iqvia's conference presentation, Sep 16, 2022
Slide 1: IQVIA Life Sciences Innovation Forum: Re-thinking the Life Sciences Business Model
IQVIA Life Sciences Innovation Forum Set-up slides: Re-thinking the Life Sciences Business Model September 16, 2022 Copyright © 2021 IQVIA. All rights reserved. IQVIA® is a registered trademark of IQVIA Inc. in the United States and various other countries.
Slide 2: Pharmaceutical companies have changed where and how they operate over the last few decades
Pharmaceutical companies have changed where and how they operate over the last few decades Changing Share of Global Drug Spend 10% - Asia Pacific 2% - Latin America 8% - Japan 6% - Europe ~60% Share of market for Top 20 pharma over last 20 years Large Pharma restructuring to focus on core business P
Slide 3: The surge of biomedical innovation activity since 2019 reflects a robust pipeline
The surge of biomedical innovation activity since 2019 reflects a robust pipeline Change from 2019 - 21 U.S. Venture Funding in Life Sciences Planned Clinical Trial Starts +105% $22.9 -> $47.0 Bn +885 4,693 -> 5,578 Total Pipeline Next Generation Biotherapies in Pipeline +17% 5,221 -> 6,085 +33% 605
Slide 4: Emerging biopharma companies are responsible for most of the R&D pipeline
Emerging biopharma companies are responsible for most of the R&D pipeline, with their share continuing to grow Share of Phase I to regulatory submission pipeline by company segment, 2001-2021 100% 90% Academic 80% 70% Small 60% Mid 50% 40% Large 30% 20% EBP 10% 0% 2001 2003 2005 2007 2009 2011 2013
Slide 5: Many companies focused in oncology R&D, often with a single molecule
There are a significant number of companies focused in oncology R&D, often with only a single molecule in development Oncology late-stage pipeline by company and company type, 2021 # of oncology molecules under development 2+ molecules 13 comp/ 41 comp/ 42 comp/ 10 comp/ 156 comp/ 62 drugs 220 drugs
Slide 6: Lifetime sales per molecule are trending down
Lifetime sales per molecule are trending down 5 Source: IQVIA Institute
Slide 7: Positive ROI reduced to few products, pressuring blockbusters to perform
Positive ROI have been reduced to 1 in 10 products, putting greater pressure on blockbusters to perform Average Lifetime Returns by Launch Cohort and Decile Real 2009 US$ NPV to Launch and Offset by Costs (SG&A, COGS, TAX, R&D) $12 $10 Average Lifetime Returns per NAS $8 Positive ROI $6 $4 $2 B/E $0
Slide 8: Record-setting levels of new drug pricing meeting questions and resistance
Record-setting levels of new drug pricing meeting questions and resistance Median annual cost Oncology NAS 2002-21 Growing use of ICER assessments will continue to send stronger (Real 2021$) price signals to manufacturers that cancer drugs with low value for 250,000 money will be viewed less favoura
Slide 9: Public scrutiny and threats have been intensifying and led to lines being crossed
Public scrutiny and threats have been intensifying and led to lines being crossed Draft Ministerial Decision on the TRIPS Agreement authorizing the use of the subject matter of a patent2 required for the production and supply of COVID-19 vaccines without the consent of the right holder to the extent
Slide 10: Growth in costs and R&D spend are outpacing sales, decreasing returns for pharma
Growth in costs and R&D spend are outpacing sales, decreasing returns for pharma companies Sales and Cost Growth for Large Pharma Companies Indexed to 2012 Values, 2012-2021 170 Declining average global 2017-2021 pharmaceutical revenues 160 CAGR since 1990 R&D 8.2% 150 COGS 8.9% OM 6.5% 140 Sales 6.
Slide 11: Operating margins for the Top 15 pharmacos rose in 2021
Operating margins for the Top 15 pharmacos rose in 2021 as rising COGS were offset by reductions in SG&A and R&D Operating Margin Components as Percent of Sales 2016-21 32% 30.6%COGS 30% 28.9% 28.7% 29.0% 28.0% 28.1% 28% 27.1% 28.0% 27.9% 26.3% 26.2%Op.Mgn 27.3% 26% 26.8% 25.2% 24% 24.5% 24.3% 24.0%
Slide 12: Shift to remote detailing requires omnichannel engagement across therapy areas
Recent shift to remote detailing requires companies to focus on omnichannel engagement with variation across therapy areas In-person Details as Percent of Baseline and Total Details In-person Details as % of Baseline In-person Details as % of Total Details (Mix) 90 Cardiology 92 80 Gastroenterology
Slide 13: A new paradigm is emerging based on core commercial principles
Amongst the shifting marketing dynamics, we see a new paradigm is emerging based on core commercial principles Advanced analytic decision-making Using predictive analytics and AI/ML to assess Connected, convenient customer data engagement strategies, promotional mix, Ensuring customer and commercial
Slide 14: Day 5: Re-thinking the Life Sciences Business Model
Day 5: Re-thinking the Life Sciences Business Model Areas for discussion Balancing Risk and Reward How is the balance of risk and reward evolving from a therapeutic and geographic basis? Disruptors How can the life sciences business model Radical Patient Engagement prepare for and respond to disrupt
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