Trend Report Driving Precision Performance: Capitalize on Your Commercial Potential - mafonavigator

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Trend Report Driving Precision Performance: Capitalize on Your Commercial Potential - mafonavigator
Trend
                            Report

Driving Precision Performance:
   Capitalize on Your Commercial Potential
              with the Right, Relevant Data
Trend Report Driving Precision Performance: Capitalize on Your Commercial Potential - mafonavigator
Contents
Contents

 2    Driving Precision Performance
      Introduction

 3    Targeting the Right Markets:
      Portfolio optimization

 17   Identifying the Right Influencers:
      Provider alignment

 26   Making the Right Connections:
      Precision engagement

 36   Reaching the Right Patients:
      Patient population potential

 48   Conclusions on Commercial Performance Best Practices:
      Precision insights and applications you can use

 54   Endnotes, Expert Contributors
      To maintain the integrity and consistency of data and resulting
      analysis, all references to IMS data or QuintilesIMS data have
      been retained with mention of the IQVIA name as appropriate.

                                                                            1
Trend Report Driving Precision Performance: Capitalize on Your Commercial Potential - mafonavigator
Introduction
Introduction: Driving Precision Performance
If the challenge of precision healthcare involves the proper treatment for a specific patient,
the corresponding challenge for life science is focusing on the precise commercial
approach to improve your performance. The right markets, the right physicians with the
right communications, as conduits to the right patient populations.
Continuously changing and widely varying environments are generating unprecedented
complexities in pharmaceutical markets around the globe. No longer is there one national                                                 “… the corresponding challenge
market or single definition of stakeholder. Global and local dynamics are always moving,                                                 for life science is focusing on the
technologies constantly improving, and the pace of change only accelerating.
                                                                                                                                         precise commercial approach to
While not a full compendium of solutions available to commercial life sciences users, this
report is intended to provide a path to advancing precision and performance based on four                                                improve your performance. The
commercial drivers and the evolving trends of each. We’re constantly adding to the world’s
                                                                                                                                         right markets and the right
largest curated healthcare data source. And, included here are many examples of how
ongoing data investments are providing deeper, more precise perspectives into emerging                                                   physicians, with the right
markets, evolving channels, new stakeholders and better answers to more questions.
                                                                                                                                         connections, as conduits to the
Our goal is to help global, regional and local pharmaco leaders keep pace with these
                                                                                                                                         right patient populations.…”
changes—and with additional trends to be explored in the future. Here, we provide insights
into what really matters to you, improving commercial strategies, tactics and performance.
We hope this report offers familiarity with the expanded information available to advance
your commercial performance today and tomorrow.

                    Kevin Knightly
                    President, Information and Technology Solutions
                    IQVIA

   *More Real World Insights (RWI) are available from IQVIA beyond that included in the reference patient data throughout this report.

                                                                                                                                                                                     2
Trend Report Driving Precision Performance: Capitalize on Your Commercial Potential - mafonavigator
Targeting the
Right Markets:
   Portfolio optimization

                            3
Distribution Fragmentation
Slower global
spending                                                                                                                                                                                                                                                Shifts to control costs by

                                                                                                                                            THE
growth                                         9%
                                                                                                                                                  RIGHTMARKETS                                                                                          product types, therapy,
                                                                                                                                                                                                                                                        delivery, etc.
                                                                                                                                                                                                                                                        In the UK, hospital share
                                                                                                                                                                                                                                                                                                               Hospital
                                                                                                                                                                                                                                                                                                                10-year
                                                                                                                                                                                                                                                                                                              growth rate
                                                                                                           4-7%                               Current trends are varying demand                                                                         is growing while retail
                                                                                                                                                                                                                                                                                           13%                2007- 2016

                                                                                                                                                   for medicines and shifting the                                                                       pharmacy is stalling                                       1%
                                                             Globally, declining                                                                                                                                                                                                                                 Retail
                                                                                                                                              importance of markets at all levels.                                                                                                                             Pharmacy
                                                              to 4-7% by 2021
                                                    2015      2016    2017    2018   2019   2020    2021
                                                                                                                                                                                                                                                  Regional & local variances
                                                                                                                                                                                                                                                  Multinational Share: China Provinces & Municipalities
Pharmerging                                                                                   4%                             Oncology, diabetes                                                                                            350
                                                                                                                                                                                                                $290B-$335B                325
markets slow                                                                                                                 & autoimmune                                                                                                         15 provinces/
                                                                                                                                                                                                                                                                                              Beijing

                                                                                                                                                                                                                                           300                                                Tianjin
                                                                                                                             diseases                                                                                                                      municipalities =
                                                                                                                                                                                                                                                                                                  Shanghai
                                                                                                                             Major therapy areas drive
                                                                                                                                                                                                                                           275

                                                                                                                                                                                                                                           250      ~ 75% of China’s                       -2.5%
                                                                                                                                                                                                                                                                                          Q4 2016
                                                                                                                                                                                                                                                                                                                     6
                                                                                                                             spending growth in                                                                                                                                                 Zhejiang        have
                                                                                                                                                                                                                                           225
                                                                                                                                                                                                                                                         pharma market
                                                                                                                             developed markets                                                                                                                                                                MNC share:

                                                                                                                            For top 3 therapy areas in                                 $186B
                                                                                                                                                                                                                                           200                                                Fujian
                                                                                                                                                                                                                                                                                                               ≥ 24%
                                                                                                                            aggregate, expect rise of                                                                                      175
                                                                                                                                                                                                                                                                                      Guangdong
                                                                                                                            $104B - $149B by 2021.                          2016     2017                     2018    2019   2020   2021                                                                *country-wide share Q1 2017
                                    2011    2012   2013    2014      2015   2016   2017   2018   2019   2020    2021

                                                                                                                                                  Product Portfolio Evolution
Biosimilar development actively pursued by many companies                                                                                         Global specialty                                            1,000                                                         Niche    HOWEVER,
                                                                                                                                                                                                               900                                20%
                                                                                                                                                  market trends                                                                                                         population

                                                                                                                                                                                                                                                                                                                 %
                                                                                                                                                                                                                                                                                     54
                                                                                                                                                                                                               800                                18%

                                                                                                                           17                     Sales and Growth                                                                                16%                         and

                                                                                                                                                                                            Sales, LCUS$ Bn
                            adalimumab                                                                                                                                                                         700
registered, Marketed)

                                                                                                                                                                                                                                                         Growth LCUS$
 (Phase III, Pre-reg /

                                                                                                                                                                                                               600                                14%
                                                                                                                                                                                                                                                  12%
                                                                                                                                                                                                                                                                           orphan
                                                                                                                                                                                                               500
                         insulin glargine                             5                                                                                                                                                                           10%                        drug
                                                                                                                                                              Specialty Sales                                  400
                                                                                                                                                                                                                                                  8%                      markets                    of orphan
                                                                                                                                                                                                               300
                                                                                                                                                              Traditional Sales                                                                   6%
                                                                                                                                                                                                                                                                            surge                    diseases
                             etanercept                                                                                   17                                                                                   200                                4%
                                                                                                                                                              Specialty growth                                 100                                2%
                                                                                                                                                                                                                                                                                     have gaps in the pipeline
                               infliximab                                            8                                                                        Total Global                                       0                                0%                                 and no drugs on market.
                                                                                                                                                              pharma growth                                           2012                 2016

                                                                                                                                                                                                                                                                                                                                      4
                                                          Source citations for all of the above may be found in the IQVIA report Driving Precision Performance, module Targeting the Right Markets, Dec 2017
                                                                                                                                                                                                                                                                                                                                  4
Targeting the Right Markets: Portfolio optimization

                                                                                                                                                                                                                                                                                                                               The Right Markets
While each geography is different, fluid market dynamics are changing the relative importance of regions, countries and markets—and
requiring precise commercial strategies based on specificity and granularity to capitalize on shifting trends, therapies and markets.

Evaluating and re-evaluating continuously                                                        Variation in Spending and Volume Growth Across Global Markets
shifting markets at the national, sub-national                               1,600                                                                                                                                                          10%                          Exhibit M-1:
and local level requires precise intelligence.                                                                                                                                                                                              9%                           Spending and growth have shifted focus to
                                                                                                                                                                                                                                                                         volume-driven growth in pharmerging
To asses and act on a myriad of competing                                                                                                                                                                                                   8%                           markets and specialty medicines. In the

                                                                                                                                                                                                                                                   Growth Constant US$
                                                                             1,200
opportunities and challenges, you need                                                                                                                                                                                                      7%                           US, patent expiries and biosimilars will

                                                  Spending US$Bn
                                                                                                                                                                                                                                                                         play a key role in the decline in spending
increasing levels of detail specific to brands,                                                                                                                                                                                             6%                           growth. However, the next five years
sales territories and markets of interest.                                       800                                                                                                                                                        5%                           expect a continued boom in innovation
Yet demand for medicines varies                                                                                                                                                                                                                                          across a range of diseases.
                                                                                                                                                                                                                                            4%
significantly across and within markets,                                                                                                                                                                                                    3%
depending on trends in:                                                          400
                                                                                                                                                                                                                                            2%
• Economic conditions                                                                                                                                                                                                                       1%

• Therapy areas                                                                       0                                                                                                                                                     0%
                                                                                              2011        2012        2013             2014           2015            2016         2017         2018          2019      2020      2021
• Drug composition and                                                                                                                                                                                                                                                   Source: QuintilesIMS Market Prognosis,
                                                                                                                                                      Spending                         Growth                                                                            Sept 2016; IQVIA (QuintilesIMS) Institute, Oct 2016
• Distribution, amongst other things.
Given emerging and shifting trends such                                                                   Top 20 Pharmerging Markets Forecast Growth Dynamics
as these, precise information with the                                      14
                                                  Forecast CAGR (2016-21)

                                                                                                                                                                                                                                                                         Exhibit M-2:
right, relevant detail is critical to reaching                              13
                                                                                     Bubble Size proportional to 2016 LCUS$ Sales                                     Bangladesh                                                   BRICTM
                                                                                                                                                                                                                                                                         Leading pharmerging markets have seen
your full potential and improving                                           12                   $100bn                                                                                       Pakistan          Egypt                                                    GDP growth slow over the past decade,
                                                                                                                                                 Turkey                                                                            Pharmerging Tier 3
commercial performance.                                                     11                                                                                               India
                                                                                                                                                                                                                                                                         resulting in a wide dispersion in growth as
                                                                                                 $20bn                                                                                                                                                                   the CAGR overall falls into single digits.
                                                                            10                                                                                                                            Kazakhstan
                                                                                              $7bn                                     Nigeria                Russia                                                                                                     The outlook for spending growth is
Slow Demand, Pharmerging Growth                                              9                                                                                                                      Vietnam                                                              expected to moderate from 10% CAGR
                                                                             8                                                           Indonesia                                                                                                                       over the past five years to 6% - 9%
Though the US remains the world’s largest                                    7                             South Africa                                   Algeria                     China                                                                              through 2021.
                                                                                                                                                                                                                Pharmerging
market, pharmerging countries will make                                      6
                                                                                               Mexico                                         Chile                                  Brazil                      Forecast
                                                                                                                     Philippines                                                                                CAGR: 7.4%                                               Notes: At ex-manufacturer price levels,
up nine of the top 20 markets by 2021,                                       5
                                                                                                                     Saudi Arabia
                                                                                                                                                           Colombia
                                                                                                                                                                                                                                                                         not including rebates and discounts.
with China continuing as number two.                                         4       Poland                                                                                                                                                                              Contains audited and unaudited data;
Current pharmerging markets include Brazil,                                  3                                                                                                                                                                                           Argentina excluded due to hyperinflation.
                                                                                                                                                 Pharmerging Historic
                                                                             2                                                                      CAGR: 10.8%
Russia, India, Mexico, Turkey, Bangladesh,                                                                                                                                                                                                                               Source: QuintilesIMS Market Prognosis,
                                                                             1
Chile, Kazakhstan and the Philippines.                                          2               4               6                 8                  10                12               14              16             18     Historic CAGR (2011-16)
                                                                                                                                                                                                                                                                         Mar 2017

                                                                                                                                                                                                                                                                                                                                        5
While global spending will reach $1.5         Therapy Focus, Oncology-Driven                    Changing Product Profiles                      specialty, niche and orphan medicines,

                                                                                                                                                                                                                The Right Markets
trillion by 2021, global spending growth is                                                                                                    while emerging nations find value in less
                                              Spending growth in developed markets will         Drug manufacturers have very different
slowing from 9% in 2015 to 4% - 7% over                                                                                                        expensive brands and options.
                                              be propelled by innovations in oncology           portfolios today than in previous decades,
the next five years (Ex. M-1). Spending
                                              (specifically immuno-oncology), diabetes          requiring precise granularity previously       Continued portfolio evolution is expected as
growth will be driven by increased
                                              and autoimmune therapies (Ex. M-3).               unavailable in some regions. Portfolios will   pharmacos seek opportunity driven by a few
pharmerging market volume, but the
                                              Diabetes treatments will evolve with more         continue to evolve as gene editing             key developments:
slower growth illustrates a direct
                                              convenient formulations, combinations and         techniques, microbiome use, regenerative       • Specialty medicines and new
correlation between medicine usage and
                                              delivery. Treatments for autoimmune               cell therapies and the like advance into         biologics surge
affordability in some countries.
                                              diseases, including rheumatoid arthritis,         the future.                                    • Biosimilars and non-originals increase
By volume, medicines consumed globally        psoriasis, ulcerative colitis, Crohn’s disease
                                                                                                R&D pipelines and demand in developing         • Future cell and gene therapies advance
will increase 3% annually through 2021,       and related disorders will continue to rise in
                                              usage, with spending growth up 11% - 14%.
                                                                                                countries suggest continued movement to        • Niche population & orphan drug rise 
but volume growth is slowing too. Since
2011, pharmerging market volume grew
37.5% over five years as prosperity
accelerated—verses 2% in the same                          Leading Therapy Areas Spending and Growth to 2021 (Constant US$Bn)
period in all other markets.
                                                                                                                                                               Exhibit M-3:
                                                                                     Spending            2011–16            Spending           2016–21
Pharmerging market growth is expected                  Therapy Areas                                                                                           Key therapy areas driving spending and
                                                                                       2016               CAGR                2021              CAGR           growth over the next five years will be led
to slow to 4% through 2021, based on                                                                                                                           by oncology, reaching $120 – $135 billion
declines in China’s economy. Countries         Oncology                                  75.3             10.9%             120–135            9–12%           in spending in major developed and
                                                                                                                                                               pharmerging markets.
projected to accelerate spending over the      Diabetes                                  66.2             16.4%              95–110            8–11%
next five years are Turkey, Mexico and
Poland (Ex. M-2). Romania, Argentina           AutoImmune                                45.1             18.2%                75–90           11–14%          Note: Includes 8 developed and 6
                                                                                                                                                               pharmerging countries: US, EU5, Japan,
and Colombia are expected to grow by                                                                                                                           Canada, China, Brazil Russia, India,
less than 5% through the year 2021.            Pain                                      67.9               7.1%               75–90            2–5%           Turkey, Mexico

Though growth in developed markets will        Cardiovascular                            70.5              -2.5%               70–80            0–3%
be driven by patented brands and               Respiratory                               54.4               3.4%               60–70            2–5%
scientific advances, pharmerging markets
will continue to be pushed by non-original     Antibiotics & Vaccines                    54.4               2.5%               60–70            2–5%
brands (NOBs), accounting for 91% of
pharmerging market volume and 78%              Mental Health                             36.8              -5.0%               35–40            -1–2%
of spending.                                   HIV                                       24.6              11.5%               35–40            6–9%           Source: QuintilesIMS Therapy Prognosis, Sept
                                                                                                                                                               2016; IQVIA (QuintilesIMS) Institute, Oct 2016

                                               Antivirals EX-HIV                         33.2             38.1%                35–40            0–3%

                                                                                                                                                                                                                         6
Specialty Medications Surge                                                                         Specialty Medicines Share of Spending Through 2021 (constant US $)

                                                                                                                                                                                                                                                                                                                                             The Right Markets
Specialty’s share of spending continues to                                                             US                                            EU5                               Other major developed                                          Pharmerging                         Exhibit M-4:
rise from less than 20% ten years ago, to                       50%                                                                                                                                                                                                                       Specialty spending will approach half of
                                                                                                                                                                                                                                                                                          total spending in the US and Europe by
30% in 2016 and 35% by 2021. While the US                                                                                                                                                                                                                                                 2021. In pharmerging markets, specialty
still leads growth in specialty drugs, roughly                  40%                                                                                                                                                                                                                       medicines continue but at lower shares—
82% of specialty sales growth is shared by                                                                                                                                                                                                                                                5% - 20% of spending.

seven developed countries and China.                            30%
Globally, specialty medicines—more than
50% of which are small molecule—are                             20%
increasing (Ex. M-4, M-5, M-6).
                                                                10%
Though prioritization may be based on
commercial potential versus composition,                         0%
it’s curious to note the coming five-years will

                                                                        2011

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                                                                                                                                     2011

                                                                                                                                            2013

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                                                                                                                                                                           2021

                                                                                                                                                                                    2011

                                                                                                                                                                                             2013

                                                                                                                                                                                                               2015

                                                                                                                                                                                                                      2017

                                                                                                                                                                                                                             2019

                                                                                                                                                                                                                                     2021

                                                                                                                                                                                                                                            2011

                                                                                                                                                                                                                                                   2013

                                                                                                                                                                                                                                                            2015

                                                                                                                                                                                                                                                                    2017

                                                                                                                                                                                                                                                                           2019

                                                                                                                                                                                                                                                                                   2021
see small molecules become increasingly
important and biologics entering indications                                    US                         US                                GermanyEU5 Italy                             Other major developed
                                                                                                                                                                                              Australia  Japan                                              Others Brazil
                                                                                                                                                                                                                                                          China
                                                                                                                                              UK         Spain                                   Canada                                                   Russia     India
                                                                                                                                              France                                             South Korea                                              Other Pharmerging               Source: IQVIA (QuintilesIMS) Institute, Oct 2016

            Specialty Growth in Key Markets:                                                                        Specialty Spending Growth Rising Faster than Total Global Market
              Percentage Growth 2015/16                                                                                     Global specialty market trends                                                                                  Specialty:
                                                                                                                                        Sales and Growth                                                                            Region Market Share 2016
                                                                                                    1,000                                                                                  20%
                    US                        Exhibit M-5:                                                                                                                                                                                                                                Exhibit M-6:
                                                                                                     900                                                                                   18%
                   12.5%                      A few pharmerging countries                                                                                                                                                                                                                 In the last five years, specialty medicines
        JP                      DE            also see growth in specialty                           800                                                                                   16%                                        16%                                                 have grown seven times faster than
                                                                                                                                                                                                                                                          13%
       21.6%                   7.2%           sales, e.g. Turkey 20.1%,                                                                                                                                                                                                                   traditional therapies, with Hep C
                                                                                                     700                                                                                   14%
                                                                                  Sales, LCUS$ Bn

                                              Brazil 17.2%, China 8.3%                                                                                                                                                                                                                    medications driving significant growth in
                                                                                                                                                                                                                                                                    7%

                                                                                                                                                                                                    Growth LCUS$
                                              and Mexico 4%. Of the top                              600                                                                                   12%                                                                                            2014/2015. Specialty growth is heavily
                                       ES     30 markets, Poland is the                              500                                                                                   10%                                                                                    4%      concentrated in developed markets, and
   CA
                                      13.0%   only country with zero                                                                                                                                                                                                                      although re-balanced in 2016, it continues
  10.1%                                       specialty growth.                                      400                                                                                    8%                                                                                    4%      to grow.
                                                                                                     300                                                                                    6%                                                                                    1%
                                                                                                     200                                                                                    4%                                                                                    1%
     AU                              FR
                                    8.5%                                                             100                                                                                    2%
    58.6%                                                                                                                                                                                                                            54%
                                                                                                        0                                                                                   0%
                UK           IT                                                                                  2012            2013         2014           2015            2016
               15.5%       26.1%                                                                                                                                                                                             USA                                   EU5
                                                                                                                                                                                                                                                                                          Source: QuintilesIMS MIDAS, MAT Q4 2016
                                                                                                                                                                                                                             ALL OTHERS                            JAPAN
                                              Source: QuintilesIMS MIDAS,                                               Specialty Sales              Specialty growth                                                        ASIA / AUSTRALIA                      CHINA
                       Positive Growth        MAT Sept 2016                                                             Traditional Sales            Total Global pharma growth                                              LATIN AMERICA                         AFRICA / MIDDLE EAST

                                                                                                                                                                                                                                                                                                                                                      7
typically treated by small molecules. To                         Specialty Biologics and Small Molecules Today and in the R&D Pipeline

                                                                                                                                                                                                                                                       The Right Markets
date, the small molecule versus biologics                                                                                                              Global Pipeline (Jan 2017)
                                                              Global Specialty Sales (2011-16)
mix is relatively even. Yet, small molecules                  bn LCUS$
are more than half of expected future                                                                                                               Biologic                Small Molecule            Exhibit M-7:
                                                        CAGR %                                                                                                                                        Today, the majority of specialty drugs are
approvals (Ex. M-7).                                    (2011-16)                                                               Preclinical        817                                  950           biologics, but looking at the pipeline,
                                                                                                                                                                                                      biologics make up less than half of all
                                                                                                                                   Phase I                                                            expected new medicines. Moreover, more
Biosimilars & Non-Original Biologics                      +13%                                                                                            484                  614
                                                                            53%                                                                                                                       than a quarter of the global pipeline is
While the biosimilars market in the developed                                                                                                                                                         designated as orphan drugs.
                                                                                                                                  Phase II               582                         809
world has been somewhat subdued, new
opportunities exist for biosimilars and non-           59%                                                                        Phase III              204                        341
original biologics (NOBs).                                                  47%                                 (56%)
                                                                                                                               Pre-reg/Reg                     92             164
As patent expiries in developed markets                41%
contribute to slower growth, areas attracting          2011                     2016             Top 10 companies
interest include monoclonal antibody                                                             share of specialty
                                                                                                       2016                                                                                           Source: QuintilesIMS Market Prognosis Q4 2016;
oncologics, modern insulins and anti-TNF             Specialty Biologic    Specialty Small Molecule                                                 Total pipeline is 43% biologics
                                                                                                                                                                                                      IQVIA (QuintilesIMS) Institute Feb 2017
mAbs (a therapy area larger than all
previous therapy areas with biosimilar                           Biosimilar Development is Being Actively Pursued by Many Companies
competition put together) (Ex. M-8).
                                                                                                                                              Number of Biosimilar Companies
Approval pathways for biosimilars, cleared                           2016 Global Sales US$Bn                                              (Phase III, Pre-reg / registered, Marketed)
over the past decade, will continue to offset                                                                                                                                                         Exhibit M-8:
branded growth and add to the credibility of        adalimumab                                                          18.7                                                               17         Biosimilars are attracting companies, large
biosimilars across major markets. The US,                                                                                                                                                             and small, based on global sales of greater
                                                  insulin glargine                                              12.5                               5                                                  than $4.9 billion in 2016. Investments will
EU5 and Japan currently support biologic                                                                                                                                                              accelerate market growth, with product
expenditures and will be key for biosimilar           etanercept                                         10.2                                                                             17          positioning and pricing as some of the
                                                                                                                                                                                                      most critical challenges.
new opportunity.                                        infliximab                                 8.6                                                         8
Additionally, biosimilars will be available for
                                                        rituximab                            6.9                                                                                                18
several of the leading autoimmune products
by 2021, potentially allowing wider use with       bevacizumab                           6.4                                                                                13
lower spending. Two developed regions,
                                                    trastuzumab                          6.2                                                                             12
Japan and Europe, make up 92% of
biosimilar sales currently, with uptake             pegfilgrastim                      4.9                                                                                                       19
slower in some major European markets.
                                                     epoetin alfa               2.9                                                                                                              19   Source: QuintilesIMS MIDAS, Dec 2016
Seen by many as the start of a new wave,
                                                        filgrastim        1.0
infliximab biosimilars have had inconsistent                                                                                                                                           16

                                                                                                                                                                                                                                                                8
impact following launch. Uptake so far          A gene-editing technique, more powerful,             Biosimilar Uptake, the Nordics Versus the UK

                                                                                                                                                                                                                              The Right Markets
has been cautious in most European              rapid and less expensive than any
                                                                                              infliximab biosimilar uptake, % share of volume in terms of treatment days
countries—with exception of the Nordics         previously invented, CRISPR-based
(Ex. M-9). Tender systems in the Nordics        therapies are expected to accelerate in the   100%
                                                                                                                                                                           Exhibit M-9:
have led a to rapid uptake (up to 98%           market in the next decade. In the case of                                                                                  In the Nordics, clinician acceptance has
penetration) of biosimilars in comparison       these completely new technologies, it is       80%
                                                                                                                                                                           been high, meaning safety and efficacy
                                                                                                                                                                           evidence for switching has largely been
to EU5 countries.                               difficult to determine the impact each will                                                                                accepted. Price reductions also became
                                                have on the specialty category.                                                                                            significant quickly and patients have not
However, as biosimilars take their place in                                                    60%                                                                         objected to being asked to switch or start
the industry landscape, commercial models       CRISPR-based therapeutics and other                                                                                        on a biosimilar.

for biosimilars need to adapt. Since they       regenerative technologies could stretch        40%
have the same clinical profile as branded       (and potentially break) the current
medicines, drug manufacturers need to better    definitions of pharmacotherapy, having
educate prescribers on the clinical benefits,   device- or procedure-like characteristics
                                                                                               20%

while focusing payers and funding entities      and potentially creating a new class of
on potential cost-savings.                      therapeutic, with its own regulatory,           0%

                                                financing and delivery challenges.
Future Cell and Gene Therapies
                                                The speed of movement in the field also                Norway        Denmark        Sweden         Finland      UK
For high unmet need diseases, cell and          means that very rapid development
gene therapies are driving investments,         should be expected in the next 5-10 years,                        infliximab as % of total anti-TNFs
signaling confidence in newer technologies.     with major pharmaco investments and           60%
                                                increasing numbers of companies involved.
The first cell therapy cancer vaccine has
been launched in the US and the first gene      While offering huge potential, regenerative
therapy treatment has been approved for         technologies also pose significant
use in Europe. Launching in August 2017,        regulatory challenge. They could trigger      40%

the first CAR-T treatment has also been         competition between countries and
approved in the US to treat children and        institutions in terms of location of highly
young adults with a recurrent form of the       specialized centers of excellence,
blood cancer, acute lymphoblastic leukemia.     funding for these technologies and how        20%

                                                commercial return is realized.
In addition to these new treatments, we’ll                                                                                                                                 Source: IQVIA (QuintilesIMS), European Thought
                                                                                                                                                                           leadership - Biosimilar tracker, Jun 2017; IQVIA
likely see the continued evolution of new       While there will be further cell and gene                                                                                  (QuintilesIMS), Market Access, Biosimilars:

platforms such as CRISPR, microbiomes           therapy launches through the decade,           0%
                                                                                                                                                                           Learning from Europe, Mar 2016

and regenerative cell therapies.                companies may find navigating valuation, 

                                                                                                                                                                                                                                       9
reimbursement, sales and manufacturing                                     Potential in Niche and Orphan Drugs is Complex and Dynamic

                                                                                                                                                                                                                                              The Right Markets
challenging as these therapies pose
unique questions for players. High prices,                                   Clinical Landscape for EU Orphan Indications with 1-10/20,000 prevalence
reimbursement, market access, sales and                                                                 Total 243 Indications
training approaches and more will require
strong and novel commercial models                                                                                                                                                        Exhibit M-10:
                                                                                                                                                                                          Orphan disease drug approvals have
which may be ambitious and complex to              Only one approved treatment (e.g.                                                                                                      increased dramatically in the EU, focused
navigate.                                            Hunter syndrome, Pompe disease,                                                                                                      on oncology indications. Over a quarter of

                                                  paroxysmal nocturnal hemoglobinuria)                      20%                                                                           the entire late stage pipeline is focused on
                                                                                                                                                                                          the development of oncologics.
Niche Population & Orphan
Drug Focus                                                                                                                                          Gaps in the pipeline and no
                                                                                                  5%                                                drugs on the market (e.g.
Orphan drugs are on the leading edge of                   “Clustering” where multiple                                           54%                 congenital hypothyroidism or
the specialty medicines trend, thus driving             treatments exist for the same
                                                                                                   9%                                               osteochondritis dissecans)
even further need for precision and detail.            indication (e.g. PAH, CML, CF)
With 6,000 to 8,000 rare diseases in
existence and 30 million1 people in                                                                      11%
Europe alone suffering from a rare                  Will start to see competition from                                                                                                    Source: OrphaNet, SMA, IMS Health R&D Focus
disease, collectively, rare diseases are not      other ODs (e.g. Idiopathic Pulmonary                                                                                                    June 2015, OD: Orphan Drugs, MA: Marketing
                                                                                                                                                                                          Authorization (only including those with orphan
really rare.                                         Fibrosis, Multiple Myeloma, DMD)                                                                                                     designation), PAH, pulmonary arterial
                                                                                                                                                                                          hypertension; CML: chronic myeloid leukemia;
                                                                                                                                Of this 11% in the pipeline, 31%* of products have 2+     CF: Cystic Fibrosis, DMD: Duchenne muscular
These populations offer opportunity as                                                                                          products per indication, e.g. Uveitis, Ovarian Cancer,    dystrophy; products for the most prevalent orphan
                                                                                                                                                                                          indications (1-10/20,000)
only 5% of orphan diseases have an                                                                                              Gastrointestinal Cancer, Pancreatic Cancer
approved drug treatment option (Ex.
M-10). They are also a commercially                       No Pipeline/No     MA Pipeline Only   MA (with Pipeline)   MA (without Pipeline)   Not Druggable or Asymptomatic                        1http://www.eurordis.org/about-rare-

attractive area due to patient advocacy,                                                                                                                                                                                         diseases

medical breakthroughs, regulatory
delivery options incentives and venture         number of orphan drug approvals—                            Fragmented Distribution                                      These include:
capital investment.                             because together they represent a large
                                                                                                            Shorter shelf lives, cold supply chain                       • Different models for different product
                                                share of the medicines budget.
In addition, many orphan drugs are                                                                          requirements, parallel trade regulations and                   types and patient segments, with some
biologics, which are less likely to have        However, orphan drugs are increasingly                      other issues are requiring more flexible                       bypassing wholesalers entirely
immediate competition from generic              subject to price scrutiny and will require                  distribution across the globe. Several issues
equivalents after patent expiration. Thus,      strong justification for high price tags                                                                                 • New channels, including direct to patient
                                                                                                            are giving way to more fragmented channels,
despite the relatively small market available   moving forward.                                             and adding to the precise metrics and                        • Increasing specialty drugs and
for orphans, there has been a surge in the                                                                  complexity of demand by distribution channel.                  delivery options 

                                                                                                                                                                                                                                                     10
In some markets, such as Italy’s blood                                  Italy’s Blood Coagulation Market: Distribution Variances by Region

                                                                                                                                                                                                                                                             The Right Markets
coagulation market, distribution by product
type has been implemented with some                                                                                                                   Direct     Traditional             Traditional
                                                                                                                                                                                                       Exhibit M-11:
                                                 Valle D'Aosta                                                                     Regions                                      DPC2                   In Italy, 70% of blood coagulation drugs go
success. Within Italy, regional Local Health                                                                                                       Distribution1 Hospital                  Retail
                                                                                                                                                                                                       directly to patients via LHA access. Within
Authorities (LHA) have taken control of                                                       Trento                                                                                                   Italy’s 20 regions, high variability exists,
                                                                                                                                  Abruzzo           81-100%        0-20%         n/a      0-20%
distribution, creating new models, impacting                                                                                                                                                           with some adopting direct channels more
                                                                                                                                                                                                       readily than others.
patient access to medicines, especially             Piemonte         Lombardia
                                                                                       Bolzano
                                                                                                           Friuli                 Basilicata        81-100%        0-20%         n/a      0-20%
                                                                                                          Venezia
more costly drugs, and driving highly                                                                      Giulia                Bolzano –
variable adoption rates among regions.                                                   Veneto                                  Provincia           61-80%        0-20%         n/a      0-20%
                                                                                                                                 Autonoma
                                                         Liguria
The need for precision in distribution can                                     Emilia                                             Calabria           0-20%         0-20%       81-100%    0-20%
be seen in both Calabria’s DPC channel                                        Romagna

                                                                                                                                 Campania           81-100%        0-20%       0-20%      0-20%
and Sardegna’s Direct Distribution where
differing paths are used to bypass                                                                                            Emilia Romagna        81-100%        0-20%         n/a      0-20%
                                                                        Toscana
wholesalers in an attempt to control costs.                                                                                     Friuli Venezia
                                                                                                                                                     0-20%         0-20%       81-100%    0-20%
DPC and Direct Distribution in Italian                                                        Marche                                Giulia
markets are both options for implementing                                            Umbria
                                                                                                                                    Lazio            0-20%         0-20%       81-100%    0-20%
“Direct to Patient” distribution, yet each has
                                                                                                                                   Liguria          81-100%        0-20%       0-20%      0-20%
a very different drug flow (Ex. M-11).                                           Lazio
                                                                                               Abruzzo
                                                                                                                                 Lombardia          81-100%        0-20%         n/a      0-20%
A longer-term shift to hospital distribution
is the result of not only medical need, but                                                            Molise
                                                                                                                                   Marche           81-100%        0-20%         n/a      0-20%
continuing efforts to control specialty
                                                                                               Campania         Paglia             Molise            0-20%        21-40%       61-80%     0-20%
prescribing. Across Europe as in Italy,                   Sardegna
budget concerns are driving efforts to                                                                                        Piemonte+Valle
                                                                                                                                                    81-100%        0-20%         n/a      0-20%
                                                                                                                                 D'Aosta
avoid wholesalers and pharmacy margins,                                                                          Basilicata
                                                                                                                                                                                                       Source: IQVIA (QuintilesIMS) Regional
                                                                                                                                   Paglia           81-100%        0-20%         n/a      0-20%        Integrated Dataview, 2016
and gain greater influence in negotiating
discounts and driving growth for hospital-                                                                                        Sardegna          81-100%        0-20%         n/a      0-20%
prescribed markets (Ex. M-12).                                                                                                                                                                         1Direct Distribution indicates distributing drugs
                                                                                                                                   Sicilia          81-100%        0-20%         n/a      0-20%
                                                                                                                                                                                                       directly to patients through hospital pharmacies or
                                                                                                                Calabria
                                                                                                                                                                                                       dispensing structures managed directly by LHAs
In other hospital markets, such as in China,                                                                                      Toscana            61-80%       21-40%       0-20%      0-20%        and bypassing intermediaries to control costs.
growth rate and share are highly varied                                                                                                                                                                2 DPC   is also direct to patient distribution on
                                                                                                                              Trento - Provincia                                                       behalf of LHA, however drugs price and quantity
by therapy area. Oncology maintains the                                    Sicilia                                               Autonoma
                                                                                                                                                    81-100%        0-20%         n/a      0-20%
                                                                                                                                                                                                       are defined via tender offers between
highest growth rate of key therapeutic areas                                                                                                                                                           manufactures and LHA without wholesalers or
                                                                                                                                                                                                       intermediaries, with distribution through
                                                                                                                                   Umbria            61-80%        0-20%         n/a      0-20%
there—as in many developed countries                                                                                                                                                                   retail channels.

(Ex. M-13).                                                                                                                       Veneto            61-80%       21-40%       0-20%      0-20%

                                                                                                                                                                                                                                                                    11
In certain specialty therapies, using                      Hospital Pharmaceutical Sales Market Share vs. 10-year Value Growth (2007-2016)

                                                                                                                                                                                                                                           The Right Markets
oncology again as an example, retail to                                                                                                        Hospital Prescribed Share 2016
patient channels are growing. Consider
                                                                                                                                                                                      Exhibit M-12:
Australia, where approximately 45% of                 Austria             4%                                                                   9%                      31%
                                                                        GROWTH                                                               GROWTH                                   Longer-term shifts to hospital channels,
oncologics are distributed directly to retail                                                                                                                                         specifically in Europe, are shown in the
pharmacies for patients. This requires the                                                                                                                                            evolution of hospital prescription values
                                                                                                                                                                                      across country markets.
patient to assume responsibility for storage         Belgium               1%                                                                  6%                            38%
                                                                        GROWTH                                                               GROWTH
and transport to the care delivery site and
brings with it additional considerations in
                                                      France              0%                                                                   4%                      36%
pricing, reimbursement and safety for                                   GROWTH                                                               GROWTH
pharmaceutical manufacturers.
                                                     Germany               5%                                                                  5%                            14%
Delivery options also include precise and                               GROWTH                                                               GROWTH
differing channels within a given country. In
Brazil, where Pharmacy Benefit Managers                  Italy            -1%                                                                 12%                      61%
are considered a channel, a significant                                 GROWTH                                                               GROWTH

decline related to economic slowdown
has caused manufacturers to review                     Spain
                                                                          0%                                                                  10%                            51%
                                                                        GROWTH                                                               GROWTH
investments in discount programs,
sometimes eliminating them completely or
                                                                          1%                                                                   13%                     49%
reducing the number of products in the                   UK
                                                                        GROWTH                                                               GROWTH

                                                                 0%     10%         20%     30%   40%    50%      60%     70%      80%        90%        100%
                                                                                                                                                                                      Source: IQVIA (QuintilesIMS), at ex-manufacturer
                                                                      Retail         Hospital       Value market share                                                                price levels, not including discounts and rebates,
                                                                                                                                Growth % = 10-year growth rate (2007-2016)            MAT Sept 2016

                               20%
  China Hospital Market:                                                                                                                                      MAT2017Q1 Share
                                                                                                                                                                                      Exhibit M-13:
 Value Share and Growth                                     14%                                                                                               MAT2017Q1 Growth Rate   Key therapeutic areas account for 65% of
   Rate by Therapy Area        15%                                                                                                                                                    China’s hospital market.
                                                                                                            11%                                   11%
                                                                                                                                                                  9%
                               10%                                                                                                   8%
                                                                                                  6%                     5%
                                                                                          5%
                                5%
                                        4%      4%                             2%
                                                                                                                                                                                3%
                                                                                                                                                                                      Source: QuintilesIMS, Hospital Audit
                                                                                                                                                                                      (>=100 beds), 17M4
                                0%

                                                                                                                                                                                                                                                  12
programs. Also high unemployment is                                                           Brazil Distribution Fluctuations

                                                                                                                                                                                                                                  The Right Markets
reducing the number of people insured,                           Q2 2016                          Q3 2016                   Q4 2016                      Q1 2017
therefore lives covered in these programs,              0%
                                                                                                                                                                               Exhibit M-14:
                                                                                                                              -3%
thus reducing PBM demand (Ex. M-14).                                                                -4%                                                                        In Brazil, PBM tracking for specific
                                                                                                                                                            -9%                products and markets provides unique
                                                       -5%
In some regions distribution is a function of                     -12%                                                                                                         views of non-visible physicians (+ range)
                                                                                                                                                                               only seen within granular prescription data
local versus multinational manufacturer                                                                                                                                        for this country.
                                                       -10%
(MNC). In China, MNCs have more market
share contribution in municipalities and                                                                                                                                       Source: QuintilesIMS, at ex-manufacturer price
                                                       -15%
coastal developed provinces. Of the                                                                                                                                      PBM
                                                                                                                                                                               levels, not including discounts and rebates, MAT
                                                                                                                                                                               Sept 2016
Chinese provinces, 15 provinces/
municipalities, coastal plus the land-locked                  China’s Local and Multinational Company Share by Region and by Therapy
Chongqing province, account for more than
65% of the country’s pharma market.                                                                                                                                            Exhibit M-15 & M-16:
                                                  LOCAL                                                                                                                        Across China’s provinces, MNC market
Therapeutic focus across China is also                                                                                                                                         share continues to creep upward year over
                                                  MNC
varied by MNC and local companies (Ex. M-                                                                                                                                      year, from 23.8% in 2016 to 24.1% for the
                                                                                                                                                                               same Q1 period 2017, with variances in
15, M-16).                                                                                                                                                                     growth rate by therapy focus.

Regardless of the manufacturer or
                                                MNC share:
distribution channel, success in complex          24.1%
markets requires precision insights—sub-         Q1 2017

national views, regional intelligence and
local detail to manage demand and ensure
the right products reach the right people at
                                                 25%
the right type of care setting.                                                                    MAT Q1 2017 MNC/Local

                                                 20%

                                                 15%

                                                 10%

                                                  5%

                                                  0%                                                                                                                           Source: QuintilesIMS, Hospital Audit
                                                                                                                                                                               (>=100 beds), 17M4
                                                 -5%

                                                -10%

                                                -15%
                                                                  TA MAT17Q1 Share in Local       TA MAT17Q1 Share in MNC   TA Growth Rate in Local   TA Growth Rate in MNC

                                                                                                                                                                                                                                         13
TARGETING THE RIGHT PHARMERGING MARKET: Indonesia

                                                                                                                                                                                                                                      The Right Markets
The challenges of this unique Asian market and its new healthcare policy, combine with its increasingly elderly population,
a high prevalence of infectious diseases and growing incidence of chronic diseases to boost Indonesia’s pharmaceutical
sector. However, diversity abounds throughout this island nation as do requirements for precise market information.

Indonesia, the world’s fourth most populous                human, economic and geographic diversity.                  market (+7.49% year-to-year, according to        However, the ranking of key attributes
country, is also one of the most ambitious in              Today, 150 million people are packed into                  2016 IQVIA market indicators).                   differs by city. Thus, local geography and
terms of healthcare. In 2012, the central                  Java, an island with the size of England,                                                                   specialty play a role as expectations differ
                                                                                                                      This concentration has ongoing implications
government declared it would provide                       while the remaining 100 million Indonesians                                                                 within countries and across markets. When
                                                                                                                      for pharma commercial models locally as
affordable healthcare to all of its 250 million            are spread across some 7,000 islands over                                                                   assessed according to specialty, GPs,
                                                                                                                      well. Saturated physician schedules require
citizens within seven years. Known as the                  a distance of 3,000 kilometers. Thus,                                                                       Internist and Pulmonologist, say honesty is
                                                                                                                      every minute spent during a medical
Jaminan Kesehatan Nasional, this effort                    healthcare access is significantly limited for                                                              the most important attribute, though GPs
                                                                                                                      representative visit to count. In urban
was launched in 2014 with the potential to                 the majority of Indonesians in rural areas.                                                                 also want pharma representatives to be
                                                                                                                      Indonesia, honesty and product knowledge
become the world’s largest social health                                                                                                                               “Updated with the most recent information.”
                                                           While this dynamic was identified years ago                are seen as important attributes of a pharma
insurance program.                                                                                                                                                     Anesthesiologists want reps to be
                                                           and supposedly addressed with compulsory                   field representative, as reported in a
                                                                                                                                                                       “Knowledgeable on the disease area,” and
The clock is ticking and turning the plan                  service and other incentives, it continues                 QuintilesIMS medical representative
                                                                                                                                                                       “Knowledge on own product” is the most
from will to reality presents particular                   and has resulted in intensified competition                satisfaction survey in late 2016.
                                                                                                                                                                       important attribute for Oncologists. 
challenges in a country of tremendous                      within the steadily growing pharmaceutical

                                                     Urban Indonesia: Location Impacts Physician Requirements on Pharma Medical Representatives
                                                 Jakarta                        Bandung                    Surabaya                 Semarang                   Medan
                                                                                                                                                                                       Exhibit M-A:
                                                                     87                              100                   98                            100                83         Medical representatives are one of the most
                   Honest, does not oversell
                                                                                                                                                                                       important assets for pharmacos across
                                                                      95                   62                                                       83                       90        Indonesia, yet it is becoming more difficult
            Knowledgeable on own products                                                                                   100
                                                                                                                                                                                       to gain attention due to intensified
                                                                                                                                                                                       competition. Thus honesty, follow up and
                                                                          100                  66                     79                       66                                97
Always follows up on agreed actions/reliable                                                                                                                                           product knowledge are now differentiators
                                                                                                                                                                                       and are generally most important to
           The best possible level of service                    80                                 88                 86                           78                 63              physicians in urban Indonesia.

   Deliver key information within limited time                        93                  53                            88                     62                                100
                                                                                                                                                                                       Source: QuintilesIMS, Medical Representative
                                                                                                                                                                                       Satisfaction Survey, Dec 2016
            Knowledgeable on disease area                  61                                   78                         94                   73                          82

               Updated on latest information                    74                        57                          77                            82                      86

                                                                                                                                                                                                                                             14
Portfolio Optimization:

                                                                                                                                                                                                            The Right Markets
Implications & impacts for life sciences management
Addressing commercial challenges by market requires increasing depth, precise dimensions
and granular measures across geographic breadth and segment depth. Here are a few things
to consider in assessing and adopting differing strategies for each market.

                                                                                        Global / Regional / HQ

                 Brand / Franchise / Marketing                                        Sales Operations Leaders                                           Market Research Director /
                    Directors and Leaders                                                and Sales Directors                                               Business Intelligence

1) Weigh pharmerging markets with granularity. It’s easy to        1) Harmonize sub-national with national insights. Sales            1) Recognize that not all markets are represented equally.
   recommend balancing geographic markets, yet difficult in           operations, targeting, territories and more, are specific to       Data used routinely in developed countries are seldom
   practice. Strategies that work in one emerging market may          regions, cities or other local geographies. Using the right        available in all countries equally, and not all regions within a
   not work in another, and not all regions of a country grow at      national and sub-national data is important, yet local             given country react similarly. Understand the local nature of
   the same rate. It may be better to define precise thresholds       views should roll up to harmonize global and local                 the data you need and look to a partner who can help you
   by market level or therapy area on volume growth,                  performance with minimal discrepancies and                         with resources and insights that enable informed decisions.
   regulation elements, competitive landscape, etc., to               maximum accuracy.
   maximize profitability.                                                                                                            2) Utilize secondary insights to make PMR go further.
                                                                   2) Align incentive compensation design and strategy. Data             Supplement or substitute primary market research (PMR)
2) Drive market precision. Aim for local specificity as niche         and metrics should incent the behavior you want. Matching          with secondary or syndicated information to guide and
   populations, orphans drugs, specialty medicines and pricing        data granularity with incentives can increase the consistency      improve primary results. PMR coupled with secondary data
   options require insights regarding sub-national anomalies          in how territory and national sales performance is reported        can help better define research requirements and focus on
   and intricacies. Appropriate data can help track, trend and        and can lead to greater confidence in home office or               efficiency and efficacy in attaining results.
   size opportunities, but local views should harmonize               headquarters’ views.
   with global.                                                                                                                       3) Leverage data and analytic expertise. As a resource for
                                                                   3) Build networks and partnerships that leap beyond                   internal operations, MR and BI can provide greater impact
3) Prioritize product profiles. Winning strategies depend             internal hurdles. Local players can act as the commercial          by moving well beyond descriptions and interpretations of
   on precisely the right information for your R&D pipeline,          arm to leverage distribution and sales capabilities that           past performance by entering the realm of predictive and
   geographic presence, appetite for risk and willingness to          deliver strong top-line results. Research options of existing      prescriptive analytics. Look for these embedded with rich
   invest. At the highest level, you need information that helps      entities (affiliations, partners or M&As) to build geographic      data assets to enable advanced forecasting, specialty and
   prioritize countries, set portfolio priorities and evaluate        cover and portfolio breadth that ensures the right balance of      therapy level understanding, machine learning and other
   investments in commercial structures to support your               assets and expertise.                                              advanced analytics.
   company’s current and future products.
                                                                             + Country or Local Directors and Leaders

                                                                                                                                                                                                                   15
Sales & Prescription Data Availability by Region

                                                                                                                                                                                                               The Right Markets
Precision data can positively impact global, regional and local markets and business results

                                                                                                                                          EUROPE                                    Sales & Prescription
                                                                                                             ARMENIA      DENMARK      ITALY         NORWAY        SWEDEN               Data Types
                                                                                                             AUSTRIA      ESTONIA      KAZAKHSTAN    POLAND        SWITZERLAND
                                                                                                             AZERBAIJAN   FINLAND      KYRGYZSTAN    PORTUGAL      TURKEY
                                                                                                             BELARUS      FRANCE       LATVIA        ROMANIA       UK
                                                                                                                                                                                 Retail, dispensed Rx
                                                                                                             BELGIUM      GEORGIA      LITHUANIA     RUSSIAN FED   UKRAINE
                                                                                                             BOSNIA       GERMANY      LUXEMBOURG    SERBIA        UZBEKISTAN    Dispensed Rx at
                                                                                                             BULGARIA     GREECE       MACEDONIA     SLOVAKIA
                                                 NORTH AMERICA                                               CROATIA      HUNGARY      MOLDOVA       SLOVENIA
                                                                                                                                                                                 prescriber level
                                                                                                             CZECH REP    IRELAND      NETHERLANDS   SPAIN
                                                CANADA                                                                                                                           Movement of packs
                                                PUERTO RICO
                                                USA
                                                                                                                                                                                 and prescriptions

                                                                                                                                                                                 All major channels: Retail,
                                                                                                                                                                                 Mail, Hospital, Clinics,
                                                                                                                                                                                 Long-term Care, HMOs,
                                                                                                                                                                                 Others
                                                                       MIDDLE EAST & AFRICA
                                                                                                                                                                                 Sourced from pharma,
                                                                 ALGERIA                LEBANON
                                                                                                                                                                                 wholesalers, institutions
                                                                 EGYPT                  MOROCCO
                                                                 FR. WEST AFRICA*
                                                                                                                                    ASIA-PAC
                                                                                        SAUDI ARABIA
              LATIN AMERICA                                      GHANA                  SOUTH AFRICA                      AUSTRALIA        NEW ZEALAND                           Direct & indirect sales
                                                                 JORDAN                 TUNISIA                           BANGLADESH       PAKISTAN
   ARGENTINA              DOMINICAN REP.                         KENYA                  UAE                               CHINA            PHILIPPINES
   BRAZIL                 ECUADOR                                KUWAIT                                                                                                          Daily, weekly, monthly,
                                                                                                                          HONG KONG        SINGAPORE
   BOLIVIA                MEXICO
   CENTRAL AMERICA        PERU
                                                                 *FRENCH WEST AFRICA: Benin, Burkina Faso,                INDIA            SRI LANKA                             quarterly frequencies
                                                                 Cameroon, Chad, Congo, Gabon, Guinea,                    INDONESIA        TAIWAN
   CHILE                  URUGUAY                                Ivory Coast, Mali, Niger, Senegal, Togo
                                                                                                                          JAPAN            THAILAND
   COLOMBIA               VENEZUELA
                                                                                                                          KOREA            VIETNAM                               National, sub-national
   *CENTRAL AMERICA: Costa Rica, El Salvador,                                                                             MALAYSIA
   Honduras, Guatemala, Nicaragua, Panama

                                                                                                                                                                                 Multiple attributes

                                                                                                                                                                                                                      16
Identifying the
Right Influencers:
      Provider alignment

                           17
New faces drive treatment                                                                                                                                                                         Specialists concentrate by market
Quebec and Atlantic provinces show higher prescribing

                                                                                                    THE
                                                                                                        RIGHTINFLUENCERS
                                                                                                                                                                                                        4 10
rates from non-traditional writers than national                                                                                                                                                                                      PHYSICIANS IN BALTIC REGION
per capita average of 0.57                                                                                                                                                                                                            PRACTICE IN
                                                                                                                                                                                                                   OF                 8 SPECIALTIES
                                                                                                          Broad changes are impacting healthcare
                                                                                                                                                                                                        Pediatrics, Obstetrics & Gynecology, Cardiology, Neurology,
                                                                                                              professionals globally—though how                                                         Psychiatry, General Surgery, Ophthalmology, Orthopedics
                                                                                                                    these play out depend largely
                                             NFL
                                             0.73                                                                         on the local landscape.
                                                                                                                                                                                                                    ESTONIA                 38%    IN 8
                                                                                                                                                                                                                                            SPECIALT IES

                           QC                                PEI                                US Nurse Practitioners &
                           1.02                              0.73                               Physician Assistants
                                                    NB
                                                                       NS
                                                                                                doubled Rxs written in the                                                                                              LATVIA              36%    IN 8
                                                                                                                                                                                                                                            SPECIALT IES
                                                   0.94                                         past 5 years.

                                                                                                                                                                                             x2
                                                                      0.66

                                                                                                             &               = 22% of                                                                              LITHUANIA                38%    IN 8
                                                                                                    NP            PAs              US HCPs                                                                                                  SPECIALT IES
         Canada’s non-traditional prescribers expanding                                                                         (healthcare professionals)
                                                                                                                                                                                  5yrs.

New influences abound                                                                           Transparency & compliance intensifying                                                            HCPs are on the move
                                                                                                                                                                                                  Physicians in Turkey and Tunisia illustrate
                                                                                                Increasing regulations ensure ethical interactions
     IMS Health Confidential                                                                                                                                                                      rapid and regular shifts in care delivery sites
           67% physicians                                                                       with physicians

           74% hospitals
                                                                                                   Q1 2016
                                                                                                                    41         DISCLOSURE
                                                                                                                               TEMPLATES
                                                                                                                                                                Global growth in
                                                                                                                                                              Disclosure Reporting
                                                                                                       vs
Integrated Delivery Networks affiliated with majority
of US providers
                                                                                                   Q1 2017
                                                                                                                   72          DISCLOSURE
                                                                                                                               TEMPLATES                                                            Tunisia ~17%        Shift in 1 year period (2015 to 2016)     Turkey ~19%

                                                                                                                                                                                                                                                                                18
                                  Source citations for all of the above may be found in the IQVIA report Driving Precision Performance, module Identifying the Right Influencers, Dec 2017                                                                                      18
The Right Influencers
Identifying the Right Influencers: Provider alignment
Across the globe, the profiles of healthcare professionals are fluctuating significantly over relatively short time periods, requiring precision
information and alignment with the right prescribers. While healthcare delivery depends on a country's structure, economy and politics, a
few common trends are changing the faces of prescribers globally—though how these play out depend largely on the local landscape.

For those delivering care on the front lines,    • Regulatory compliance and transparency                                                        Canada’s Expanded
change is not new. Yet, it underscores a           is spreading, requiring precise depth and                                             Non-Traditional Prescribing Practices
complex challenge for those attempting to          breadth to manage specificity in a manner
precisely track the details and definitions of     that harmonizes both.
this quickly shifting group. Based on our
experience with healthcare professional          The Changing Definition of
(HCP) data in more than 100 countries,           Healthcare Professional
including more than 15 million HCPs, the         Safe, appropriate medication traditionally               YT
                                                                                                                                                                                           NFL
following trends are having pronounced                                                                                      NT
                                                 requires treatment by a physician. However                                                        NU                                      0.73
impact on pharmaco commercial models             emerging markets often have a pronounced
and are making precision alignment with the      lack of doctors in some regions, and even
right HCPs an imperative.                        developed markets are experiencing
                                                 physician shortages.                           BC                                               MB                                          PEI
• Definitions of healthcare professional                                                        0.51            AB                               0.22                            QC          0.73
  are broadening. The definition of care                                                                       0.31             SK
                                                 As a result, many countries have                                                                                                1.02
                                                                                                                               0.63                                  ON
  delivery has expanded to embrace new           introduced legislation expanding                                                                                    0.41
  types of clinicians as the global physician    prescribing authority to non-physician                                                                                                    NB       NS
  shortage grows, patients demand more           HCPs. These non-traditional prescribers                                                                                                   0.94     0.66
  and technology alternatives take hold.         (NTPs), including nurses, pharmacists,
• HCPs are on the move. In response to           physician assistants, paramedics, midwives
  policy and market forces, physicians and       and others, are filling the demand and
  other HCPs are switching affiliations and      showing marked growth in many countries.                                                                                                   NTP
  specialties in growing numbers, creating                                                                                                                                              Prescriptions
  an increasingly dynamic marketplace.           In Canada, an evaluation of NTP growth                                                                                                  per Capita

• New influences abound. New                     shows differing provincial legislation is                                                                                                  0.9 - 1.0
                                                                                                Exhibit O-1:
  stakeholders, policy makers, payers and        resulting in a varied landscape. In Ontario,                                                                                               0.7 - 0.8
                                                                                                Quebec NTPs have the highest written prescriptions average at just
  organizations are increasingly mandating       nurses are drivers of NTPs. While in           over one (1.02) per capita. The Atlantic provinces (NFL, PEI, NB,                           0.5 - 0.6
  what doctors can prescribe, yet HCPs           Quebec, pharmacists have seen the largest      NS) have higher per capita NTP prescribing than the national                                0.3 - 0.4
                                                                                                average of 0.57, reviewing July 2015 –June 2016 MAT.
  are asked to take a more active and            NTP growth (Ex. O-1).                                                                                                                       0 - 0.2
                                                                                                Source: IQVIA (QuintilesIMS) OneKey, Jun 2016
  accountable role than they have in the past.

                                                                                                                                                                                                                   19
The Right Influencers
In the US, Nurse Practitioners (NPs) and          continue and be seen in other EMEA                  US Liberal and Limited Prescribing Practices by State
Physician Assistants (PAs) have more than         countries as well (Ex. O-3).                                                                                                                  Exhibit O-2:
doubled the prescriptions written over the                                                           25%    24%
                                                  In the Asian region, Indonesia’s HCP                                       High / Med NP
                                                                                                                          Prescribing Authority
                                                                                                                                                                         Low NP
                                                                                                                                                                  Prescribing Authority
                                                                                                                                                                                                Many US states have expanded
past 5 years. Nationally, NPs and PAs make                                                                                                                                                      prescribing authority for Nurse
                                                  concentrations are geographic in nature,                                                                                                      Practitioners (NP), especially those with
up 22% of the HCP workforce, however not
                                                  challenging the central government’s               20%                 19%                                                                    significant HCP shortages. More than 17%
with equal prescribing authority in all states.                                                                                                                                                 of states have fully expanded prescribing
                                                  proposal to provide universal healthcare to its                                                                                               authority to NPs, though in some states
The expansion of US prescribing authority                                                                                             16%
                                                  citizens by 2019. National coverage presumes                                                                                                  prescribing remains restricted.
has also begun in other HCP types, e.g.
                                                  physicians will be co-located with patients. Yet   15%          13%
psychologists, pharmacists and naturopaths                                                                                                                       12%                    12%
                                                  across Indonesia, the distribution of doctors is
(Ex. O-2).                                                                                                                                          10%                10%
                                                  highly unequal, with specialists concentrated                                10%
                                                                                                     10%
On the other side of the Atlantic,                in the largest cities. Comparing the doctor                                               8%
                                                                                                                                                                                  7%
e-prescriptions and generics are impacting        ratio of 5:1 for general practitioners and 25:1                                                         6%
doctors’ prescribing power and increasing the     for specialists in Bali versus Jayapura            5%
role of pharmacists especially for reimbursed     illustrates the inequity. Thus healthcare                   MS
                                                                                                                           NM            AZ                                           AL
drugs across Europe. In the Baltic region,        access is significantly limited for the majority                                                    DC          LA
                                                                                                     0%                                                                                         Source: US Census Bureau, Dec 2015; IMS
Lithuanian pharmacists play a leading role in     of rural Indonesians.                                                                                                                         Health, Xponent, Jan 2016; Healthcare
                                                                                                                                                                                                Relational Services, IQVIA (QuintilesIMS)
deciding which product is actually dispensed.
                                                  Looking at representative countries where                    NP % of TRxs Written         NP % of Healthcare Professional Workforce           Institute, Mar 2016; HSRA, Dec 2015
And in Latvia, generics only are prescribed for
                                                  the percentage of HCP movement is in the
newly diagnosed patients.
                                                  double digits shows significant shifts in a              Concentration of Specialties in the Baltic Region
                                                  relatively short time. Notably, nearly 25% of
HCP Shifts and Concentrations                                                                                                                     25%                                           Exhibit O-3:
                                                  physicians in the Baltic region have shifted
                                                                                                                                                                                                Though overall stability holds given the
Given healthcare reform across the globe,         over a one year period, with others in the
                                                                                                                        ESTONIA                38% in                                           number of specialists versus traditional
it’s not surprising physicians and HCPs           EMEA region also showing considerable                                                      8 Specialties                                      physicians over the past five years, deeper
                                                                                                                                                                                                insights show concentration in eight
are looking to medical specialties for            movement (Ex. O-4). While physicians                                                            37%                                           specialties. In the coming years, the role of
professional development, as well as              move the most, nurses, pharmacists,                                                                                                           specialists in the Baltics will likely continue
stability and quality of life.                    midwives and dentists shift with regularity.                                                    30%                                           to increase as a result of increasing patient
                                                                                                                                                                                                populations and innovative therapies.
In terms of specialty concentrations, the         As these represent only year-over-year                                 LATVIA
                                                                                                                                               36% in
                                                                                                                                             8 Specialties             Family / Internal
numbers in the Baltics illustrate a growing       deltas, it is reasonable to assume changes                                                                           Medicine
                                                  will compound with time, and therefore                                                          34%
trend. Though Estonia has roughly half the                                                                                                                             8 Specialties =
population of Lithuania, both have nearly 4 in    increase the requirements for precision                                                         32%                  Pediatrics, Obstetrics
                                                                                                                                                                       and Gynecology,
10 physicians concentrated in eight specialty     alignment with HPCs and their                                                                                        Cardiology, Neurology,
                                                  organizations.                                                  LITHUANIA                   38% in                  Psychiatry, General
areas. This leaves Lithuania with a little over                                                                                              8 Specialties             Surgery,
                                                                                                                                                                       Ophthalmology,
one-quarter of its physicians in all other                                                                                                                             Orthopedics              Source: IQVIA (QuintilesIMS) OneKey. Apr 2017

specialities combined—a trend expected to                                                                                                         29%                  All other specialties

                                                                                                                                                                                                                                                          20
The Right Influencers
Healthcare Influences Grow                            Although these can be overruled by                                                               Most US states have seen HCPs                                       in certain regions of the US, where they are
                                                      individual doctors, often usage and                                                              increasingly affiliated with IDNs since 2010                        expanding to payer roles as they become
While individual patients and physicians
                                                      treatment patterns vary from region to                                                           (Ex. O-5). Ten states have experienced                              powerful catalysts for change.
may still make treatment decisions, they do
                                                      region, providing evidence of influence from                                                     growth in HCP/IDN affiliations of 10% or
so now under the influence of multiple                                                                                                                                                                                     Outside western countries, HCP affiliations
                                                      regional provider administrators, policy                                                         greater in the last five years. In the US, 67%
stakeholders—many of whom are growing                                                                                                                                                                                      are less structured, but links to hospitals,
                                                      makers, pharmacy benefit managers and                                                            of all physicians are part of an IDN, as are
considerably in number and clout.                                                                                                                                                                                          clinics and practices illustrate local
                                                      payers (both private and public). Entities,                                                      74% of all US hospitals. IDNs influence
                                                                                                                                                                                                                           intricacies. In a Baltic example again, half of
Physicians have options when prescribing              such as Accountable Care Organizations                                                           protocols with direct “class level” prescribing
                                                                                                                                                                                                                           all Latvian doctors work in Opencare Clinics
treatments, however recommended protocols,            and Integrated Delivery Networks (IDNs) in                                                       controls and indirect bottom-up conditions
                                                                                                                                                                                                                           and an additional 21% practice in both clinics
pathways and formularies rely on top-down             the US, are shifting power and requiring the                                                     that impact brand pull through. IDNs often
                                                                                                                                                                                                                           and hospitals. Yet, Estonia’s hospital-only
administrative mechanisms.                            industry to better align commercial                                                              vary influence by disease and differ in
                                                                                                                                                                                                                           doctors are the highest portion in the region.
                                                      approaches with these new influencers.                                                           “control” levels across the regions the central
                                                                                                                                                                                                                           Meaning, a large and growing number work 
                                                                                                                                                       IDN serves. Some IDNs are more prevalent

          Percentage of HCPs on the Move in One Year (2015/2016)                                                                                         Affiliations of HCPs with Integrated Delivery Networks
                   Sample of High Change Rate Data                                                                                                                 Continues to Grow in Most US States

                                                                  Exhibit O-4:                                                                                                                                                                           Exhibit O-5:
                      Baltic                                                                                                                                                 Median 2015 55% Affiliated to IDNs
     All HCPs       (LV, LT, EE)   Tunisia   Turkey     Greece    Looking at just year                                                       20%                                                                                                         Looking at a five-year
                                                                  over year data, the
                                                                                                                                                                                                                                                         change, 76% of US
Physician            24.15%        17.08%    18.77%     14.90%    movement of HCPs is                                                                                                                     VT
                                                                                                                                                                                                     MT                                                  states increased the
                                                                  sizeable and most                                                          15%                                                     MS
                                                                                                                                                                                                                                           ND            level of HCP affiliation
                                                                  significant within the                                                                                      CT         AR
Nurse                 18.66         1.10      2.04        6.46                                                                                                                     WV                          ME                                        to IDNs. This growth

                                                                                                 % Change in IDN Affiliation, 2010 to 2015
                                                                                                                                                                                        ID
                                                                  physician category.
                                                                                                                                                        WY
                                                                                                                                                                                                                                                         supports IDN efforts to
                                                                  This constant                                                                                                                     WA
Pharmacist             8.67         2.45      2.21        5.41                                                                               10%                                                                                                         increase negotiating
                                                                  movement produces an                                                                                                                          MO                          DC
                                                                                                                                                                                                                                                         power with insurers,
                                                                  increasingly dynamic                                                                                                          IN
Midwife               14.97         7.22      1.33        2.68                                                                                                                                                  PA OH                                    leverage economies of
                                                                  marketplace for life                                                        5%                                   CO    KY
                                                                                                                                                                              OK          KS                                                             scale and drive pay for
                                                                  science companies                                                                                NJ                       GA     NY I
Dentist               10.58         5.74     10.63        3.14                                                                                                                              NCNE        IA                                               performance initiatives.
                                                                                                                                                                                                    MD DE
                                                                  focusing on                                                                                                            VA SC                NH MA
                                                                                                                                                                               AZ               CA          HI
                                                                  professionals in                                                                           TN        FL                 OR               MI
Paramedic              8.21          0        2.49        3.11                                                                                0%                                                                                     WI
                                                                  changing markets.                                                                               AL                            RI
                                                                                                                                                                                                   NM
                                                                                                                                                                        NV                               UT        SD MN
Administrative         0.64        11.46      0.72        7.79                                                                                                          LA
                                                                                                                                             -5%                              TX        AK
Other                  5.40          0        0.47        3.26
                                                                                                                                                                                                                                                         Source: IQVIA
Veterinary             0.00           -       9.22        0.21                                                                               -10%                                                                                                        (QuintilesIMS) Healthcare
                                                                                                                                                 35%              45%                         55%                   65%           75%             85%    Organizational Services;
                                                                  Source: IQVIA (QuintilesIMS)                                                                                                                                                           IQVIA (QuintilesIMS)
TOTAL MKT SHIFT      19.26%        13.25%    12.35%     10.60%    OneKey, Mar 2017                                                                                                                                                                       Institute, Mar 2016
                                                                                                                                                                               % of HCPs Affiliated to IDNs, 2015

                                                                                                                                                                                                                                                                                             21
The Right Influencers
only where specialty therapies are used and                               Practice Location Differences Across                                                                        Growth in Disclosure Reporting:
patient access is often limited (Ex. O-6).                                          the Baltic Region                                                                         Increased Geographical Coverage and Templates
In other developed markets, stakeholder                                                                                                                             80
                                                                                                                                                                                                                                                                      72
                                                              Estonia                                                                                                            Countries        Templates
influences are extremely complex as noted                                                                                                                           70                                                                       64
                                                            Estonia                  40%                            39%                     19%     3%
in this UK example (Ex.O-7). For a
                                                                                                                                                                    60
pharmaco building a business case for an                                                                                                                                                                                     Japan                 Canada
intravenous iron anemia service, the                            Latvia                                                                                              50                                             44
                                                             Latvia                      50%                           25%                 21%      4%                                   41                                                                39
                                                                                                                                                                               37                         37                         38
difficulty was discovered in trying to follow the                                                                                                                   40
payment flow within the National Health                                                                                                                             30
Service (NHS).                                             Lithuania
                                                          Lithuania                    44%                           31%                   22%      2%              20
Following primary market research, efforts                                                                                                                          10
uncovered that it wasn’t clear which NHS                             0%      10%     20%      30%     40%     50%    60%     70%     80%      90%   100%
                                                                                                                                                                     0
entity was responsible for paying for                                         Only Opencare Clinics                  Only Hospital                                              Q1 2016                   Q2 2016                    Q3 2016                 Q4 2016
different elements of the service. Influencer                                 Opencare Clinics and Hospital          Other
Mapping highlighted the need to precisely                                                                                                                           Exhibit O-8:
                                                    Exhibit O-6:                                                                                                    The evolution of countries and templates over the past 12 months shows transparency
identify the key stakeholders and                   From one-quarter to more than one-third of Baltic region physicians practice only in                            mandates growing significantly. Templates list the required information manufacturers must
influencers of these health services to             hospitals settings, influencing patient therapy starts and follow up.                                           disclose on the transfers of value between the healthcare industry and HCPs/HCOs.
maximize the probability that therapeutic           Source: IQVIA (QuintilesIMS) OneKey, Mar 2017                                                                   Source: IQVIA (QuintilesIMS) OneKey, Mar 2017; AggregateSpend360
interventions would reach patients.
                                                                              UK NHS Institutional & Professional Stakeholders: Intravenous Anemia Service
Transparency in HCP / HCO Reporting
                                                       Regional payer                                                Local health economies                                                                                      Exhibit O-7:
Across the globe, regulatory and compliance               bodies
                                                                                   Clinical Commissioning Groups (CCGs)                                                                                                          Within the single-payer system of the
requirements stem from similar universal                                                                                                                 CCG Lead                             Decision making on
                                                                                                                                                                                                                                 NHS, the influence of newly generated
                                                                                                                                                                                              cost effectiveness,
goals of ensuring ethical contact and                                                                   CCG leads commission services from provider NHS Trusts                                affordability constraint           stakeholder entities or empowered
                                                                                                                                                                                                                                 professional groups can change rapidly
interaction with HCPs and Healthcare                 Local healthcare                                                  NHS Hospital trusts
                                                                                                                                                                                              balanced against
                                                                                                                                                                                                                                 and be difficult to follow. Often payer
                                                                                                                                                                                              patient outcomes at a
Organizations (HCOs).                                   provider
                                                                                                                                                                                              population level                   bodies make the final determination on
                                                                                             Formulary Committee                                    Chief Pharmacist                                                             funding of services within the NHS.
Though mandates differ by country, as do                                                     Chief pharmacists shed light on following the money between the Trust and CCGs
policy change frequency, interactions with          Internal NHS Trust
                                                                                                                 Blood Transfusion Clinical Lead
HCPs/HCOs increasingly require tracking,                  hospital
                                                       departmental                            Lead Clinical Scientists straddle across the decision making domains between
monitoring and reporting with both local               management                                       the patient and business process levels for anaemia clinics
specificity and regional breadth. A quick
                                                    Patient-level health
view of the past four quarters shows how               professional
                                                                                     Anaesthetists                                                          Haematologist                     Decision making in
                                                                                                                         Collaboration and                                                    respect to direct
significantly the number of required                    interactions          Anaesthetists are often named             influence decisions          Key stakeholder for determining          patient care                       Source: IQVIA (QuintilesIMS) UK Market Access
                                                                              anaemia leads at NHS Trusts                                                  selection of therapy                                                  internal analysis, Jun 2017
templates has grown and indicates the
increasing number of countries requiring                 Key decision making body          Decision making for reimbursement         Decision making for market access        Influencer of prescribing        Prescribers
disclosure reporting (Ex. O-8). 
                                                                                                                                                                                                                                                                                         22
IDENTIFYING THE RIGHT RUSSIAN INFLUENCERS: Local provider turmoil in action

                                                                                                                                                                                                                               The Right Influencers
The Russian National Healthcare system has experienced upheaval since the move from the old
Soviet Union's system. National changes have driven HCP turnover, by facility and by specialty.
Morphing still, physicians continue to deal with government regulations and this shifting infrastructure.

Post-Soviet 1990s Russian healthcare was          began to experience financial troubles leading                In 2015, another new regulation required       As Russian HCPs become more outcome-
financed by federal and regional budgets that     to the “May 2012 Decrees,” providing for                      patients to align to a medical institution     focused, medicine choice, prescribing and
reimbursed hospitals, but did not cover costs.    privatization of state health services and                    and doctor (or a paramedic in rural areas).    treatment recommendations will evolve as
The bulk of reimbursements went to doctors        physician salary increases by as much as                      In this move to manage mergers, closures       well. However, as patient alignment
as state employees. However, incentives for       200% by 2018.                                                 or expansions based on patient flow,           increases, physician time has become
performance improvement and efficiency—                                                                         hospitals and clinics were financed on a       precious—allowing about 12 minutes per
                                                  The majority of Russia’s regions were
and improved population health—were                                                                             per capita basis and physician payment         patient per visit. This is reducing medical
                                                  required to take unpopular measures,
lacking given the low per capita health                                                                         based on the number of people “attached”       representative access to HCPs and
                                                  resulting in elimination of 35,000 beds, and
spending (and physician salaries) in                                                                            to each physician.                             increasing the number of physicians
                                                  closure of 76 clinics and 306 hospitals.
comparison to developed countries.                                                                                                                             refusing rep visits. Thus, global and local
                                                  Other actions included out-staffing, creating                 With 97% of insured Russians attached to a
                                                                                                                                                               life sciences organizations are looking to
By 2011, the Russian healthcare system was        specialty hospitals, merging clinics and                      doctor, the Ministry of Health now believes
                                                                                                                                                               remote detailing technology and other
converted to single-channel insurance, with       reducing staff, resulting in significant                      its groundwork is strengthening doctor
                                                                                                                                                               communication channels they had
no government financing. Hospitals soon           turnover in the Russian HCP base.                             responsibility for patient health outcomes.
                                                                                                                                                               previously avoided. 

                                                                                                                              Shifting HCPs in Russia Based on Government Restructure
                                             %HCPs on the
  Russia: Top 5 HCP Specialties                                   Exhibit O-A:
                                             move (1 year)                                                       8,000                                                         Exhibit O-B:
                                                                  As a result of system upheaval, many GPs
                                                                  dismissed in 2013/2014 switched to a                                                                         By 2014, general practitioners and
 Child and Youth Allergology                     16.69%                                                          6,000                                                         pediatricians began finding new
                                                                  specialty. By 2015, a new pattern
                                                                  emerged, though specialties continue to                                                                      employment, though not at a rate that
                                                                  shift even today.                              4,000                                                         matched earlier dismissals. Only
 Angiology                                       15.38%                                                                                                                        specialists found employment at a higher
                                                                                                                                                                               rate than previous dismissals.
                                                                                                                 2,000
 Dialysis                                        14.57%
                                                                                                                    0
                                                                                                                             2013               2014             2015
 Urology                                         13.57%                                                         -2,000

                                                                Source: IQVIA (QuintilesIMS) OneKey, Jun 2017                                                                  Source: IQVIA (QuintilesIMS) OneKey, Apr 2016
 Child Gastroenterology                          13.25%                                                         -4,000
                                                                                                                                    GP       Pediatricians    Specialists

                                                                                                                                                                                                                                        23
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