107
Industry
Barriers to Entry
Clinical Development
15 Years later....
Market Access
Barriers to Entry
Oncology Market
Oncology is currently the most important therapeutic area making up 19% in 2015 and forecasted to increase to 23% of the market by 2021
After FDA/EMA approval, companies begin pricing and reimbursement process
For every single country...
INDUSTRY
Biopharmaceutical
Market
Barriers to Entry
- R &D + FDA/EMA Approval
- Market access
Types of Markets
Market Structures
Oncology Market
Factors increasing the oncology market potential
Medical Innovation
Socio-demographic changes
Emerging markets
Focus- Oncology
Non- Market Strategy
Immunotherapy
Merck Strategy
Consumer - Centric
Innovation in Infrastructure
China Expansion - Strategic Partnership
About
CHINA
Traditional Oncology Therapy Areas
Strategic Partnerships
Merck entered the immunotherapy market with the development of the PD1 inhibitor - Avelumab.
Joint Venture
Transnational- Distributors
Motives:
- Strategic
- Financial
Increase in Available Funding
Increase in Oncology Significance
The Emergence of Immunotherapy
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ERCK STRATEGY
Merck Strategy
Strategic Partnerships
Benefits of collaboration
International Expansion
Benefits of collaboration
Consumer-Centric
Innovation in Oncology
Geographic Expansion
- Product differentiation: Improved efficacy compared to going alone
- Shared costs: Marketing, R&D, Market access costs
- Pricing flexibility
- Market growth - overcoming early market access challenges
- Shared costs: Marketing, R&D, Market access costs
- Pricing flexibility
- Future partnership opportunities: for R&D on asian population
Corporate Rebrand
Strategic Partnerships
The Future of Immunotherapy
Redirecting
T-cells
Combo PD1/ PDL1 + Existing Products
Activators for
targets
Inhibitors for
other targets
Adoptive
T-Cell
PD1/ PDL1
Immunotherapy Progess
I
Innovation in
Infrastructure
Focusing on Niche Markets
Reinventing Image
Strategic Partnerships
"Our aspiration is to make great things happen. With our research-driven specialty businesses, we help patients, customers, partners and our communities around the world to live a better life. We deliver entrepreneurial success through innovation"
"We at Merck do what we say and then measure ourselves on this basis"
Strategic Partnerships
Niche/ Focus - Orphan Drug
Perks for Orphan drugs (due to regulation)
Increased patent life
Accelerated clinical trials (faster to market)
Market exclusivity
(no competitors unless significant added benefit)
> > >
Different price regulation (much higher prices)
Some cases ability to market ahead of FDA/EMA approval
Various tax benefits
PD-1 Indications
- Currently 15 PD-1 indications in the pipeline.
- 2 approved, 1 in registration, and the rest still in development.
- Most recent approval came earlier this year: first approval since the partnership with Pfizer
Lagos : Medical Technology
Johannesburg : Medical Technology
Cairo : Medical Technology
Kampala : Genetic Engineering
Gabarone : Public Health Development
- Market retention and growth: Leveraging Merck’s Avelumab to keep multiple products competitive in the market
- Domestic reputation: Leverage on name of a global firm to build physicians and consumer confidence.
- Domestic portfolio: Leverage Merck portfolio to be an innovative player in the market
- Domestic differentiation: First Chinese company to become perceived as an innovative player
- Geographic expansion: Access to the Chinese market
- Speed of Market access: leverage domestic firm knowledge of Chinese FDA and pricing and reimbursement agencies
- Market diffusion: leverage domestic firm distribution channels and relationship with local doctors
All Cancer
types
Oncology related
rare diseases
Rare Disease
- Market exclusivity
- No competition
- High price
- Government incentives
Africa
Cancer types responsive
to PD1/ PDL1 inhibitor
- Large volume of patients
- Large number of competitors
- Geographical leverage: Leverage Pfizer’s strong position in US market (previously difficult entry for Merck due to Merck & Co)
- Marketing Experience leverage: Leverage Pfizer’s very strong oncology sales force
Cancer types responsive
to PD1/ PDL1 inhibitor
- Large volume of patients
- Large number of competitors
Price x Quantity = Revenue
All Cancer
types
Emerging Markets
Socio-demographic Changes
Medical Innovation