2016 Verix Annual Influencers Outlook by Verix

2016 VERIX ANNUAL INFLUENCERS OUTLOOK VOICES FROM THE INSIDE

VOL 2 2016

Everybody keeps talking about the ‘data hype’, ‘data mania’- Pharma is going crazy over this thing, so much that it’s willing to spend more than $18 billion on BI and analytics! So is the hype over? Or are we merely scratching the surface? This outlook is meant to discuss and explore the ways in which technology has already changed the Pharma industry, and how it will continue to revolutionize the way we think, the way we speak, the way we perceive Pharma-patient relationships and the very business decisions we make. So, what does the future hold for Pharma; how will technology shape the industry; and what will be the implications? Instead of posting yet another 2016 Pharma trend predictions article, we thought it would be best to analyze technology’s impact on Pharma from the very inside, in the eyes of the people from the industry. We’ve gathered a few of today’s most interesting and influential people in life-sciences and big data, to ask them about this technological revolution in the twilight of 2015 and the emerging 2016. What we got was a fascinating account of how they perceive the dynamics that change our world at large, and the industry in particular. From election year, the new block chain technology and open source analytics platforms to social media, patient centricity, revolutionary diagnostics methods, hi-tech collaborations and digital communications- our influencers talk about it all. Before we begin, we’d like to thank our contributors for taking the time to offer their thoughts and share their experience with us and our readers. We’re grateful. So here we go - Verix’s 2016 Annual Influencers Outlook. Take a look... ANNIE REISS & the Verix Marketing Team

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THE D

PHARM FOREV

DATA RUSH:

MA & TECHNOLOGY VER 2016 VERIX ANNUAL INFLUENCERS OUTLOOK / VOL 2

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A LOOK INSIDE

GIVE PHARMA A HUG

GO HACK YOURSELF

HARNESS BIG DATA

SAVE LIVES

EMBRACE PATIENTS

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JOHN NOSTA The founder of NOSTALAB - a digital health think tank focused on health, medicine and technology, John Nosta also sits on the Google Health Advisory Board, and is considered one of the top influencers in medicine, marketing and technology. With a background in research at the Harvard Medical School and his marketing tenure at Ogilvy, Nosta has developed a unique perspective on driving digital health to success by intersecting medicine and marketing. Being a voice in-demand from boardrooms to blogs, we asked Nosta to share his thoughts on Pharma, medicine, technology and everything in between. So here goes- Nostaâ&#x20AC;&#x2122;s take on this yearâ&#x20AC;&#x2122;s resolutionsdefinitely worth taking to heart!

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2016 DIGITAL HEALTH RESOLUTIONS WE ALL SHOULD CONSIDER! 2016 is at hand, and with a new year come many resolutions. So I thought it would be interesting to share some of my new year’s resolutions as they relate to digital health, and challenge you to consider these suggestions yourselves- I believe they will help drive our digital health mission onward and upward!

1. STOP CALLING DEVICES GADGETS! Words matter, language is important. I’m going to work hard to avoid trivializing important advances in digital health and try to respect the “lifesaving” potential of important clinical tools like Alive Core (ECG on your smart phone) and iViz (handheld ultrasound). From my perspective, we are moving away from “athletic options” and more towards “clinical imperatives” that will drive engagement from both an emotional and rational perspective. Simply put, we will see technology that is much less about bragging rights (10,000 steps) and more about saving your life!

WE WILL SEE TECHNOLOGY THAT IS MUCH LESS ABOUT BRAGGING RIGHTS & MORE ABOUT SAVING YOUR LIFE!

Companies like Human Longevity and Google are pushing the bounds of digital health to amazing and important areas; the big bets for me are around nanotechnology and big data - both will be tested in the “laboratory of life” and my expectations are that they will, after some stumbles, become game-changers.

2. BE GENEROUS ON SOCIAL MEDIA. Let’s share our insights and thinking. I look forward to the seeker, student or thought-leader to follow me on social media.

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From Twitter to LinkedIn to Facebook - I’ll make myself available to chat and explore new thinking. Because, in my experience, social media has been a key area to exchange ideas and learn more, and is a well-suited platform for all those interested in digital health- from the novice to the guru. And so, even if you have nothing to say- it’s the perfect place to listen…and learn!

3. EXPECT THE UNEXPECTED. Everyday, no—every hour, I seem to learn something new. And interestingly enough, this is often a consequence of my clicking or glancing at a story that might be a bit off the beaten path. Yes, it’s time-consuming, but I think this is an essential tool for me to be smarter and offer a more eclectic perspective. This year I’ve stumbled upon stories of companies making some serious mistakes (that have yet to manifest), and as these stories hit the wires, they often came as a surprise. But frustrating as it is, we’ll just see more of it coming, as this is a basic function in the innovation space. So, buckle your seatbelts because we’re about to see an interesting combination of bumps, crashes and liftoffs!

4. SEEK COLLABORATION FROM ATYPICAL SOURCES. I’ve said it at least 1,000 times: We live in a “collaboratory” and it’s this connective tissue that links hemispheres in our brains and our world. Technology empowers us to communicate and connect but the diffusion of information must take on a greater sense of “active transport” to help facilitate the magic of innovation and digital health.

“WE LIVE IN A ‘COLLABORATORY’ & IT’S THIS CONNECTIVE TISSUE THAT LINKS HEMISPHERES IN OUR BRAINS & OUR WORLD.”

Almost everywhere you look you see these collaborative connections—from Novartis and Qualcomm, Samsung and Medtronic to MC10 and UCB—and we see innovation looking for two other essential components of success- clinical validation and market access. It’s these three components that will provide the critical mass for digital health.

5. GIVE PHARMA A HUG. I’ve been giving the life science community, particularly the pharmaceutical industry, a hard time. And this might have been partly due to my ignorance. Today, I’m seeing important advances in digital health that are being driven and supported by Pharma. And though they still need to shed some baggage, the pharmaceutical industry provides an essential contribution for digital health -

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wear them or really use them much. So I’m going to commit! 2016 will be a year of my trial of one of my many sedentary devices. The question is- which one? Any suggestions? The 2017 story might be about this very journey!

8. FOCUS ON LONGEVITY.

specifically clinical validation and market access. Once they realize that sometimes (yes, sometimes) the spark of innovation comes from a brilliant caregiver toiling in a garage - we will all be better off.

6. REVISIT CONVENTIONAL NOTIONS OF DIGITAL HEALTH GEOGRAPHY. Silicon Valley? Boston? Austin? I’m thinking that it’s less and less about geography and more about robust collaboration.

In 2016 my focus will be on longevity and live extension. I’m going to take a good hard look at the simple (calorie restriction) to the complex (genomic analysis a la Human Longevity) and let that be my digital health guiding light.

9. AVOID THE ECHO CHAMBER. I think 2016 will be about attending less meetings, but better ones! I’m seeing the same regurgitating thoughts in too many meetings. Maybe it’s time for more informal meetings with the “critical mass”- Might be a better use of my time and expense.

10. MEET RAY KURZWEIL. Well, this is a bit personal. But Ray, let’s talk!” RAY KURZWEIL, FUTURIST

And while there are certainly focal points of technological and clinical innovation, the “usual places” are changing and new “hot spots” may evolve to be more virtual than real.

7. EMBRACE ONE DEVICE - AND USE IT REGULARLY! My gadgets… oops, did I just say that? My devices are basically dust collectors. I don’t

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EMMA SUTCLIFFE A leading voice in medical communications, socialized health and patient solutions for more than twenty years, Emma Sutcliffe is a lobbyist, presenter, author and a consultant to pharmaceutical companies and patient organizations.

Giving endless speeches and presentations on patient centricity on every platform possible, Emma has made it her purpose to work tirelessly and bring different groups together for better patient outcomes. Thatâ&#x20AC;&#x2122;s exactly why we turned to Emma to hear her opinion on latest Pharma attitudinal changes regarding patient centricity, and where she thinks this is all going. It was therefore no surprise getting a fascinating account of what it means to really practice patient centricity, with a fresh and acute perspective.

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PROVIDING A PILL IS OLD MEDICINE. WHAT MORE WILL YOU GIVE ME, PHARMA, TO HELP ME LIVE BEYOND THE DISEASE BURDEN?

that I’ve just seen the first TV advert for a 23andMe gene testing pack (which is now available at my local chemist for just £150!), perhaps my work since 2008 highlighting the patient centric movement and the impact on the practice of medicine is complete...? Over and again I’ve been explaining to my colleagues in Pharma companies that, increasingly, patients are creating their own worlds, storing their own data, offering their own theories for disease interventions and ways to better manage chronic conditions.

GO HACK YOURSELF! THE YEAR THAT DATA GOT PERSONAL “This year I’ve been offered 3 jobs as a ‘Patient Centric Director’ in Pharma companies, and made the same presentation about aspects of patient centricity 18 times! Fortunately, this was to different audiences…

Wonderfully, the industry has garnered this momentum to gear up internally and match that new patient attitude. So, is this the end for me as a Patient Polemicist?

It would certainly seem that 2015 was the year when the industry decided it would transform itself into more far-reaching ‘healthcare organizations’ that could truly appreciate patient’s entire needs. It’s high time I updated what I have to say when Pharma is generous enough to listen, and given

“THIS IS NOT THE END, IT IS NOT EVEN THE BEGINNING OF THE END; BUT, IT IS THE END OF THE BEGINNING.” WINSTON CHURCHILL

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Or maybe, to steal the words of Churchill, ‘this is not the end, it is not even the beginning of the end; but it is the end of the beginning.’ Now that we’ve established ‘patient centricity’ as an essential component of how we design, develop and authenticate the use of drugs in the real world of the patient, we should probably take a step back and a sanity check to make sure the interpretation of what that means is aligned. Using the same terms and creating new job titles to match and mirror is a measure of good intent but is it yet good practice? So, here’s a suggestion of what the good practice of patient centricity might include and a prediction of what is now expected when patients seek healthcare solutions. What is the next phase of patient-centric medicine?

1. “CURED-DISEASE” MEDICINE Society is increasingly ageless yet ageing. We still want to run marathons in our 70’s, to work into our 80’s and to embark on new experiences in our senior years. This inevitably impacts our health; we expect to be able to recover from an illness or live more productively with an illness. The era of ‘cured disease’ is next. For example, how will we live the active lives we want to reclaim, once our cancer has been cured but we have long-term pain and fatigue that results from coming through the treatment-phase of ‘surviving’ an illness? I’m writing these words on World Aids Day; another therapy area where not dying anymore means that people living with HIV are developing concomitant conditions associated with being able to age with an existing condition or with the effects of having lived with that condition for 20 years plus. HIV specialists report that they are evolving into general practitioners for their older patients. In the Pharmaceutical industry this means we have to gear up to produce healthcare solutions that help us live with and past an illness. Providing a pill is old medicine. What more will you give me, Pharma, to help me live beyond the disease burden?

2. “NARRATIVE DATA” MEDICINE We are all health entrepreneurs thanks to the panoply of devices we are co-creating that generate vast swathes of physical and narrative data. It is predicted that by 2020 there will be 50 billion connected devices; the bulk of growth will be from wearable sensors that track medical data with the average person using 7 connected devices to monitor their health and generate insights about both disease pathology and disease management. This means that patients will feel more entitled than ever to contribute this data and, in the words of Emma Hill, Editor of The Lancet, “every patient is expert in their own chosen field, namely themselves.” If Pharma isn’t prepared to partner with patient-generated data, to ready itself for experienced-based medicine in addition to traditional evidence-based medicine, then patients will volunteer this data to other organizations. Never has the role of the Data Scientist been more important within the walls of a Pharma company. The most progressive organizations are creating repositories and building systems to aggregate and analyze that data now. Because if you tell patients in 2020 that you weren’t expecting their data- you will lose the relationship equity you’ve been trying to nourish with them.

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3. “ETHICALLY-ECLIPSED” MEDICINE 2015 was a landmark year for medical manipulations and research at a truly genetic level. The approval of mitochondrial DNA donation in the UK was a triumph of science over stigma. Critics heralded this as the start of ‘three-parent babies’; supporters outlined the opportunity to prevent mitochondrial diseases such as diabetes mellitus, deafness, heart and liver conditions. Similar controversy raged 40 years ago with early IVF techniques becoming part of fertility medicine. Does this mean ‘designer babies’ where traits or behaviors can be fixed? Or does this mean that we can intervene at a molecular level to eradicate certain diseases? If so, we are ethically driven to achieve rather than prevent this scientific advance. Isn’t Darwinism via a laboratory arguably just an expedited natural process? The challenge for Pharma is how to harness this controversy and regain some scientific high ground by bringing their scientists out of their commercial labs and contributing to the ethical challenges that need to be addressed. Patients want to see the world’s experts on this, and given the criticism about Pharma not being transparent, here is an opportunity to participate, to be visible and lead on the big issues in medicine. Underlying all of this is the unrelenting charge by patients to be ‘health hackers’. Living past diseases, contributing data and pushing for a new version of medical ethics are all underpinned by a determination with which patients have hacked at health, therapies and solutions. The nomenclature ‘Health Hacking’ describes the social organization of pairing tech and healthcare experts to fast-track ideas and foster innovation. Hackathon events assemble hundreds of participants to simplify and solve health problems. This has evolved essentially to describe an attitudinal shiftwhat an individual can do to experiment with their own health in small, everyday ways. Some of this is a repurposing of our atavistic desire to share tips and advice, but increasingly we are seeing encouragement of ‘Lifehacks’ applied to disease management. And where mindfulness was once the ‘treatment of choice’ coming into 2015, ‘go hack yourself’ will be the popular patient activity next year. I hope the pharmaceutical industry is as committed to this as patients are. Because calling your company ‘patient centric’ is a good start, but harnessing the ‘healthhackers’ in 2016 will require some real dexterity. I think I’d better update my presentation…

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RICHIE ETWARU Now a Chief Digital Officer at IMS Health, Richie Etwaru has a rich background in digital innovation management, from UBS Wealth Management and Barclays to Cegedim.

Once a Clinton Global Initiative delegate, Etwaru currently serves as a board member for multiple non-profit organizations. He is a frequent keynote speaker at leading tech-related events and forums, a serial entrepreneur, an author and a regular contributor to Forbes and Huffington Post. Etwaru’s current position at IMS Health is meant to help bridge the innovation and efficiency gap for healthcare stakeholders and life sciences customers using analytics and technology. We thought Etwaru might have something interesting to say about the passing year in Pharma, about patients, and technology’s impact on both. We were right.

THE GOOD, THE BAD AND THE UGLY: IS PHARMA TAKING THE WRONG APPROACH TO PATIENT CENTRICITY? “Patient centricity is a hot topic among life sciences organizations today. Companies are eager to find new ways to engage patients, and to build more profitable long-term relationships with consumers. Yet life sciences companies often behave as though focusing on patient needs is simply a matter of asking: “How can we provide patients with more services?” Instead, they should be asking: “What is wrong with our current patient relationships, and how can we deliver the best patient experience?”

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Life sciences companies now want patients to come to them for more than just a prescription. They are trying to become the kind of brands that patients care about, and from which they want to purchase added services. But most patients don’t see Pharmaceutical companies that way.

LOVE, HATE AND BRANDING Imagine everyone with 100 units of brand love, and another 100 units of brand hate. Now try allocating those love/hate units to various brands on two pie charts in your mind; one chart is for brands you like, and the other is for brands you dislike. Me? There are certain brands I absolutely love. Every time I engage with one of my favorite brands, I feel good about the experience. And because I love those brands, I’m open to hearing about and trying new products and services they recommend. There are also many brands I dislike. Essentially, Pharmaceutical companies need to move from “dislike” to “like” in the consumer’s mind. Making that transition is difficult, but not impossible.

THE GENIUS OF UBER

taking a taxi was a negative experience. The cars were often dirty and smelled bad; the drivers were rude and always on the phone. Uber replaced those negatives with clean cars, friendly drivers and extra amenities such as phone chargers. But what really created the fundamental shift- the genius of Uber- is that they identified the ugliest, most difficult part of the experience and removed it completely. The ugly part of taking a taxi is that you never know what the fare will be, so you’re constantly worrying about what route the driver is taking and whether you’re being overcharged. Uber removed the pricing issue and took the uncertainty out of the taxi experience. When you take Uber, you know from the start that you’re going to be charged the correct fare - the

PHARMACEUTICAL COMPANIES NEED TO MOVE FROM “DISLIKE” TO “LIKE” IN THE CONSUMER’S MIND.

I used to hate taking taxis. Today, I love it. What made the difference? Uber. For me,

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system calculates the best price from where you are to where you want to go. If the driver takes a longer route, he’s wasting his resources, not yours. You get the same price regardless. That’s how Uber shifted the taxi experience from “dislike” to “like” in the consumer’s mind, and now can offer a new range of services to consumers who love their brand. People enjoy buying products and services from brands they love. The key is to make the primary consumer relationship exceptional, and only then provide other services. It’s about becoming a consumer organization that focuses first on improving the customer experience rather than selling products.

MAKING LIFE SCIENCES PATIENT-CENTRIC Uber studied the consumer experience and took out the ugly parts. In life sciences, we’re doing the opposite: We’re adding shiny new services to an inherently ugly experience - one that frequently starts with a patient’s pain or illness, and is often marked by frustration or anxiety- with no attempt to identify and address the underlying issues. For life sciences companies to truly understand the patient experience, they need to study it so carefully that they figure out what isn’t working and find a way to fix it. How? Technology can help. Technology today enables companies to listen to the sentiments of the marketplace, understand what people like and dislike, and why they prefer one brand over another. By listening to customers and working to understand the good, bad and ugly parts of the patient experience, life sciences companies can become patient-centric and move from the “dislike” to the “like” category in the minds of many consumers. Because once consumers like you, they will buy more of your products and services.”

“It’s about becoming a consumer organization that focuses first on improving the customer experience rather than selling products.” 16

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PEOPLE SEE DATA AS A MAGICAL UNICORN. THE CHALLENGE IS HELPING THEM UNDERSTAND THAT’S NOT REALLY HOW IT WORKS & OFFER WAYS TO APPLY IT.

MILIND KAMKOLKAR Global Head Next Gen Analytics at Novartis - With a job title like that, Milind Kamkolkar was already a fascinating interviewee for us. Formerly working in Global Head Commercial Analytics at Novartis in Switzerland, and prior to that as Director & Global Client Partner at Life Sciences Research Consulting Practice (and the list goes on) - Milind has made a career out of harnessing big data technology and analytics for commercial and business purposes. He values working in the healthcare industry because of the personal motivation it creates to better use technology, and describes himself as a visual data narrator. Here’s what he had to tell us about big data and Pharma.

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BIG DATA- HYPE AND REALITY “The term ‘big data’ is being used a little too absentmindedly anything that is BI these days is being bucketed into big data. And so one of the key 2015 takeaways for me is that there’s definitely a need to improve the data literacy in organizations. It’s exciting because it’s a new form of looking at data. 2015 was also a year of further technological integration; I’m pleased that machine learning and a lot of the algorithms that have been around for 50-60 years are finally being put onto platforms that allow them to scale more. It’s great to see how the open source community is evolving and the way it’s being used. At the same time, I’d say that what’s challenging is to get people to think about new questions they can ask in response to these new developments. The hardest part is helping organizations separate the hype from the reality. Take for example the cognitive computing and how it changed the way users actually use information; people see data as a magical unicorn. The challenge is helping them understand that’s not really how it works, and offer ways to apply it. We need to realize what is permissible versus what’s possible.

FROM BIG DATA TO MATURE DATA Different kinds of data have different kinds of management approaches associated with it. I think we’re only starting to scratch the surface here, because when we think of big data, we typically only think in commercial terms or social media terms, etc. Personally I don’t think we’re anywhere near big data yet. We need to look beyond just genomic libraries (which constitute a significant amount of data). For instance, if we look at the healthcare space, we also need to look for all the paradigms associated with it and ask questions like: What are the particular touch points? What are the data attributes that contribute that particular behavioral pattern that happens at that specific time? So, when we think about big data I think data, itself is maturing, it’s growing up.

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BEYOND PHARMA- ASKING THE RIGHT QUESTIONS I think we’re going to get better at managing a lot of this information, if we try and look beyond our own industry verticals and really look at it holistically. It’s amazing how the open source contribution has become so widespread, access to information has become so easy, and there is so much data available today. So much data that one of the key challenges will be to catalog this information and understand what the right questions are, and which questions will yield new business opportunities.

BLOCK CHAIN TECHNOLOGY - ANALYTICS’ NEW CHALLENGE Another creeping technological challenge after the internet and the mobile technology will be the block chain technology. This technology is going to provide tremendous new opportunities around how we actually manage and store information assets with security being a big issue; the premise of securing medical records, reimbursement strategies and so forth. This is going to be the new thing- how do we apply analytic capabilities to block chain, which will be far more scalable than anything else we’ve seen so far.

MAN OF THE YEAR? So I’d like to point out two people from the big data analytics world, who have left a mark on me during 2015, by being able to separate the hype from reality, but also make the reality something that is comprehensible for people who aren’t trained in these sciences. First is Hans Rosling. He understands the way in which data can reveal hidden truths and take away biases resulting from causation vs. correlation. He also appreciates the context and ethical responsibilites when looking at certain kinds of data and how it can be used for both good and misleading truth.

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HANS ROSLING, PROFESSOR OF INTERNATIONAL HEALTH, KAROLINSKA INSTITUTET

The other one is Dr. Neil deGrasse Tyson, for making complex data theories into consumable information for people who don’t have the first clue about it.

EVERYONE JUST TAKE A BREATHER AND RELAX. My New Year’s wish is for us all to just reflect on the passing year. And then we need to really think about the new work model which is based on determining what machines are good for, versus what human skills are good for. Enterprise organizations need to look at what they’re doing to equip their employees for an upgrade or a retooling of current functions, in order to stay relevant.

DR. NEIL DEGRASSE TYSON

IN THE END, IT’S NOT ABOUT DATA PROVIDING ANSWERS, OR ABOUT THE LATEST TECHNOLOGY BUT RATHER, HOW YOU USE THOSE TO ASK THE RIGHT QUESTIONS.

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of Novartis.

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PAUL TUNNAH Dr. Tunnah is the founder of Pharmaphorum media group, a digital podium which drives better communication, connection and collaboration between the Pharmaceutical industry and other healthcare stakeholders.

Today, Pharmaphorum media’s focus is on publishing and consulting around content-driven customer engagement, with a deep expertise in creating engaging, relevant media. Currently the group’s CEO, Tunnah has previously provided commercial consulting for Datamonitor, IMS Health and SmartAnalyst. So we turned to Paul to ask him what his main takeaways from 2015 are, and what the future holds. Here’s what he had to say.

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TECHNOLOGY, PATIENTS & MONEY… “You could argue that 2015 saw a ‘tipping point’ in three, interlinked areas of the Pharmaceutical industry- digital engagement, patient-centricity and cost-effectiveness. The first is demonstrated by initiatives like Takeda’s digital accelerator and Bayer HealthCare’s Grants4Apps program, where technology is being taken seriously in ways that go far beyond traditional medicine. With regards to cost-effectiveness, we have seen serious progression with major US insurers in developing sizeable patient registries to measure outcomes for different treatments, bringing the value equation to the most free-priced drug market, so it’s definitely a global issue. Finally, patient engagement has some way to go, but there are signs of the talk around patient-centricity translating to meaningful collaboration around areas such as clinical trial design and input into ‘beyond-the-pill’ support programs.

MOST REMARKABLE DRUG LAUNCH THIS YEAR It’s tempting to still say Gilead’s Sovaldi (sofosbuvir) deserves the most remarkable drug launch title of the year, given how it has revolutionized management of hepatitis C, but of course it was launched before 2015! So looking over the last 12 months, I would pick out Bristol-Myers Squibb’s Opdivo (nivolumab), a cancer immunotherapy belonging to the PD-1 inhibitor class of treatments, which activates the body’s own immune system against tumors. While it was the second such drug to market

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(Merck & Co was first with Keytruda- pembrolizumab), it was the first to get two indications, being approved for treating both malignant melanoma and non-small cell lung cancer. This class has enormous potential in treating cancer.

A WORD ON PATIENT CENTRICITY AND POLITICS I see patient centricity as more of an opportunity than a challenge; while the term has been a buzzword for quite a while, companies are now recognizing that the scrutiny on cost-effectiveness means that medicines have to deliver beneficial real-world outcomes at the right price. Patient input at every stage of development and commercialization has therefore become vital to ensure clinical benefit is translated to the real-world. Ultimately, if pharmaceutical companies do not invest sufficiently in patient engagement, other healthcare players, such as diagnostic and technology companies, will be one step ahead of them by being closer to the â&#x20AC;&#x2DC;consumersâ&#x20AC;&#x2122;. The pharmaceutical industry is also constantly striking a balance between profitability and affordability of medicines. The former is important to deliver the medicines of the future through making this sector an attractive investment, but has to be balanced with the immediate needs of patients and health systems. Unfortunately, 2015 has seen some disappointing commentary on this balance from companies like Turing Pharmaceuticals and Valeant Pharmaceuticals, both of which have been criticized for putting profits before patients. As a result, political intervention in the US, led by former first lady and presidential candidate Hillary Clinton, has put drug pricing very firmly under the microscope and perhaps not in a balanced way..?

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ANNE WOJCICKI

PREDICTIVE ANALYTICS: HARNESSING BIG DATA

PHARMA AND TECHNOLOGY: FRIENDS OR FOES?

Over the last few years we have definitely seen a transition from reliance on predominantly commercially available data sources, to technology unlocking the potential of healthcare big data that is publicly available.

There is no doubt pharmaceutical companies have to make better use of technology, as it is becoming as essential as medicines to delivering patient outcomes. However, some technology companies are clearly looking to reduce the Pharmaceutical industryâ&#x20AC;&#x2122;s monopoly on treating disease. The diagnostic company 23andMe is a great example, where it has gone from selling DNA testing kits directly to the public, to striking commercial deals with pharmaceutical companies around the resultant rich genomic data, to now announcing it is seriously considering its own drug development.

Every pharmaceutical company is now looking for ways to integrate these new sources of real-world evidence; such as patient records, claims data, health system demographics and prescriber/payer profiles; to deliver additional insight and competitive advantage, which will continue to shape business analytics. However, advanced business analytics is also enabling companies to harness this big data to more accurately predict future events. Rather than relying on traditional historic analysis of medicines use, the Pharmaceutical industry is now at a point where it can more accurately harness predictive analytics for real-time decision making.

But the limiting factor for technology companies is the availability of talent in drug development and commercialization, with organizations like Googleâ&#x20AC;&#x2122;s Calico moving aggressively to hire experienced industry executives. So I would say that the pharmaceutical industry has to embrace technology and it makes sense to partner with smart tech companies rather than build in ternally, but it must ensure it stays the most att-

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ractive environment to work in for experience industry professionals.

PHARMA VISIONARY OF THE YEAR? I think we should announce Anne Wojcicki, CEO and Co-founder of 23andMe as this year’s Pharma visionary. Strictly speaking, she is not ‘Pharma’but the way that 23andMe has led the consumer health diagnostics revolution, along the way securing approval from FDA, is going to massively impact the way the pharmaceutical industry conducts drug development in the future.

NEW YEAR’S WISH The challenges of aging populations versus limited health budgets can only be addressed by all healthcare stakeholders working together. This means that there needs to be more ongoing dialogue between the pharmaceutical industry and other groups such as prescribers, payers, patients, patient organizations, caregivers, regulators, diagnostic, device companies and other technology players. So, my New Year wish is for the pharmaceutical industry to see more two-way collaborations and co-creations between them and other healthcare stakeholders.”

IF PHARMACEUTICAL COMPANIES DO NOT INVEST SUFFICIENTLY IN PATIENT ENGAGEMENT, OTHER HEALTHCARE PLAYERS WILL.

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MARK DEGATANO As Vice President of Customer Insights at Merck, Mark directed the market research, business analytics and sales force analytics teams with a total of over 140 employees, $80M data and research budget, and supporting sales of $10B and 5,000 reps. Since leaving Merck, Mark has worked with Medivo, ImpactRx, Symphony Technology team and more.

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GETTING THE RIGHT MESSAGE TO THE RIGHT PERSON AT THE RIGHT TIME HAS EVOLVED INTO: TELL ME HOW YOU’RE GOING TO HELP ME NOW.

Mark’s extensive career spans the client and supply side and he is widely recognized for his market insight, strategic expertise, data analytics, and ability to develop and deliver innovative data-based solutions. With over 30 years of operations experience in the Pharma industry, a consultant to and member of the Verix Advisory Board, Mark is passionate about driving evidence-based commercialization initiatives that help Pharma companies improve healthcare. We thought him a good candidate to share his 2015 resolutions and 2016 predictions. Take a look:

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“THE COMPANIES THAT EMBRACE THE CHALLENGES OF PATIENT CENTRICITY WILL REAP THE BENEFITS OF A GREAT OPPORTUNITY.”

THE GOOD AND BAD OF 2015? “Pharma is back into the ‘limelight’ and into the ‘hot seat’- at the same time! The strong positives of 2015 are the increase in FDA approvals and the incredibly successful launches of innovative new products. More products gained FDA approval in 2015 than in quite some time. It may be the start of a new trend as a result of the reengineered pipelines across the industry. Pharma and Biotech companies are more productive because they have significantly changed their discovery and development approaches. 2015’s negatives are the increased scrutiny of pricing which is driving renewed discussion of price controls, especially among Presidential candidates. Mergers based on inversion approaches to reduce US tax liability are also not likely to help consumer perceptions of the value of the Pharma industry.

MOST REMARKABLE DRUG LAUNCH Gilead’s Harvoni for HCV is clearly the most remarkable launch in 2015, perhaps in the pharmaceutical history at large. The product has had incredible commercial success busting through all previous definitions of blockbuster status. It has changed the treatment of hepatitis C and has extended and helped many thousands of patients. However it was also Gilead’s pricing of Harvoni, and Sovaldi before that, that’s brought into question Pharma pricing decisions and value to society. It will be interesting to see how the HCV market evolves from the initial treatment of diagnosed patients to generating market expansion by activating undiagnosed at-risk populations like baby boomers. How will Gilead and other companies approach these patients and convince them to get tested and, ultimately, treated? The market could become much larger but innovative approaches are needed.

PATIENT CENTRICITY - PERSONALIZED MEDICINE AND SOCIAL MEDIA The companies that embrace the challenges of patient centricity will reap the benefits of a great opportunity! The rise of patient centricity has been an emerging trend for many years as patients take a greater role in their own health care and treatment choices. More recently the trend has greatly accelerated with the increased use of social media for sharing information and the availability of personal devices to monitor and track health status.

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From a product development perspective, companies need to continue their consideration of the increasing availability of biomarkers that are indicative of disease, disease progression, and treatment options for personalized medicine. From a promotion perspective, commercialization teams need to continuously reassess their message development and resource allocation. Getting the right message to the right person, at the right time - has evolved into: “tell ME how you’re going to HELP ME - NOW”. Everyone recognizes that the days of large personal selling models are over and that the shift to other channels is well underway. Recent FDA guidance regarding appropriate promotion using social media has helped generate new and innovative approaches. The companies that fully leverage all the new and emerging innovative options to effectively message target audiences will gain a tremendous advantage over those who don’t.

PHARMA AROUND THE GLOBE The global political environment is always about the dilemma of the highrisk/high-cost pursuit of innovative new treatments while providing access to the world’s medicine cabinet for all, regardless of financial situation. For the US and among other developed countries, the debate is often focused on pricing and value to society: European nations control pricing based on their view of the value of the product according to a centralized set of criteria based on their needs and situation. The US is moving further and further towards that approach; although the FDA’s mandate is limited to the certification of the safety and efficacy of a product, there is increased pressure to consider other criteria including need and cost. Recent discussions among emerging undeveloped markets is about intellectual property rights. While it is necessary to support such rights in order to encourage the kind of investments needed to develop new products, many countries still see a healthcare mandate that allows them to develop and make available copycats prior to patent expiry.

BIG DATA HAS TO MOVE TOWARDS BIG ACTIONS! The volume, velocity, and variability of new databases continues to explode with no end in sight. That’s a good thing. Commercialization teams are much more focused on how to make sense of their

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data, or more importantly, which of their needs are best served by the data they are already receiving. While there is much effort to cleanse and integrate data through data marts and data mastering systems, commercialization teams need to gain a deep understanding of how best to leverage what they have and how to get it used for more effective targeting and messaging to a wide variety of relevant audiences. Advanced analytic solutions play a key role in transforming a company’s data into actionable insights. For example, solutions are available that easily and readily make field personnel aware of target opportunities in real time, which is especially important during product launch. New advanced analytic methods are available to measure the impact of digital campaigns directed at consumers, which helps guide investment.

TECHNOLOGY’S HERE TO HELP! Pharma’s embracing of collaboration models with technology partners has been and continues to be a great benefit for all involved. Years ago, Pharma had a very strong ‘not invented here’ attitude. Across the enterprise- from clinical trial management to promotional message development/delivery- Pharma companies are seeking partners to replace or extend their expertise and operational needs. As a result, Pharma maintains greater cost control, gains more creative insight, and goes to market faster. Most importantly, these partnerships free up resources to focus on the value drivers for the company by discovering, developing, and delivering important new products for better patient care.

MY NEW YEAR’S WISH In 2016, the US will elect a new president and there will be much debate about the role of government in the Pharma industry. My wish is that the industry demonstrates the right values in balancing the need for investment in managing the high risk/high cost of product discovery with patient’s access to affordable medicines. If the industry is successful in this, then there will be continued pricing freedom which will enable the investment needed to attack the many challenging diseases for which an effective treatment has not yet been discovered.”

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RAMON CHEN Ramon has been developing and launching big data databases, enterprise apps, development tools and master data management platforms for over 20 years. Formerly VP product marketing at Veeva systems, Ramon is currently the Chief Marketing Officer at Reltio, a provider of a modern data management Platform-as-a-Service and data-driven applications.

Ramon is now using Reltioâ&#x20AC;&#x2122;s own data-driven applications inhouse for more effective sales, marketing, and a myopic focus on customer experience and satisfaction. So, naturally, we asked him to contribute his thoughts on the continuing effects of big data on Pharma. What we received is an important account on what big data will be able to deliver, and what it wonâ&#x20AC;&#x2122;t be able to replace.

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“2015 saw a significant increase in the number of companies deploying Big Data Analytics tools, emboldened by their peers seeing success from the maturing offerings of established vendors in the life sciences industry. Given the opportunity, there has also been no shortage of new vendors, all offering some flavor of the latest in NoSQL, Deep Learning and in-memory processing. The landscape continues to expand leading to evaluation paralysis, or Franken-research IT projects that are destined for an unhappy ending. In this evolving journey, you can hear business teams continuing to ask the grating, but very reasonable question - “Are we there yet?”.

HIGH QUALITY PROFILE DATA: OXYGEN AND WATER The industry has concluded that if data is the new lifeblood of life sciences, then reliable, high quality profile data is like oxygen and water, an essential foundation before any analytics and insights can be drawn. With the increasing popularity of the cloud, smaller companies, many pre-commercial, can now benefit from continuously clean data that not only contains accurate profile information, but deep affiliation, hierarchy and relationship details. Gaining this level of insight used to be purely an IT discipline called master data management (MDM) costing millions in hardware, on premise software and consulting services. Today “modern” data management in the cloud can easily combine and clean master data across internal and external sources, correlate those profiles with transactions, big data or small, and maintain those relationships to provide a core repository from which predictive analytics can be obtained.

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NEXT WAVE OF DATA MANIA 2015 was the year of mega mergers, with industry giants in life sciences joining forces to gain access to promising drug pipelines. Only time will tell if each M&A will be classified as a success. Even though cost savings can be realized through consolidation of operations, reduced sales reps, and other staff- the industry continues to search for new ways to generate growth. Data holds the key to streamlining processes, optimizing collaboration, improving customer satisfaction and meeting compliance reporting goals, but it also unlocks the formula for competitive advantage. The rise of high paying job titles such as data scientists, and the c-suite chief data officers (CDO’s), are gaining in significance and popularity in other industries; life sciences companies are already starting to face this same wave of data mania. If anything, the ‘big data-hype’ has just begun. It’s true that the term “big data” unjustly makes people think primarily of size (volume of the data), but it’s the variety, velocity and even veracity (quality) of the data that has life sciences companies taking notice. Rather than focusing on the size of the data, they are rightly focusing on the size of the problems that they can solve. Being “data-driven” is a business term that has also been hyped to the max over the last few years with many experts encouraging companies to use analytics and visualization to gain the insights they need to succeed. As previously discussed, data mania is reaching a fever pitch with the BI and Analytics market forecast by some to be $18B+, with the separate sized data management market at $65B+. That’s a lot of money being invested by business teams and IT, often in uncoordinated efforts.

Unquestionably there are successes that can be tied to the investments, but the ROI of software has always been arbitrary. Without a closed loop to correlate back actions to the insights provided, it’s a continued guessing game at best.

WHAT IT REALLY MEANS TO BE ‘DATA-DRIVEN’ While the hype and noise shows no signs of abating, buyers of technology are focusing on time-to-value and differentiating capabilities. Business users in particular who experience the ease-of-use of products such as LinkedIn and Facebook as consumers, are asking tough questions of their IT counterparts: “Are we there yet?” questions are now morphing into “why can’t I get it and why does it take so long?”, and “why can’t my application deliver recommended actions to me like LinkedIn, and why does it make me search for something it already should know?” This powerful voice of the user is putting pressure on IT, already faced with shrinking budgets and legacy systems to maintain, not to mention continuing issues with data quality and security. 2016 will see a revolution in what it really means to be data-driven, and the ones that will thrive will be those that can have the platform and technologies that can deliver and share information on demand, anytime, anywhere across the enterprise.

DON’T EULOGIZE PERSON-TOPERSON INTERACTION JUST YET… Increased M&A always results in many losing their jobs due to consolidation of roles, and the reduced need for physical interaction and presence when dealing with customers, whether they be HCPs or larger entities such as IDNs. An interesting twist is that the reduced contact or

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coverage means potentially less information provided back to the home office where predictive insights are being generated. Licensed third party data, social site chatter and even sensor related data doesn’t yet completely replace the unique insights that can be gathered from person-to-person interaction.

2016 WILL SEE A REVOLUTION IN WHAT IT REALLY MEANS TO BE DATA-DRIVEN. THE ONES THAT WILL THRIVE WILL BE THOSE THAT CAN HAVE PLATFORM AND TECHNOLOGIES THAT CAN DELIVER & SHARE INFORMATION ON DEMAND, ANYTIME, ANYWHERE ACROSS THE ENTERPRISE.

The name, address, phone number and license number of a physician is fundamental (like oxygen and water), but which HCP is a key influencer within their peer network, on which committee, and how that group makes decisions, are “soft” data facts that have the makings of true competitive advantage. Take the enriched insights which consumers rely on in the form of Yelp business reviews, or endorsements through LinkedIn. These types of social collaboration and curation form the basis for the next generation of insights for the enterprise. If Pharma can harness the workforce they have to gather information at source through data-driven applications- then they can truly extend and see the added value of their teams out in the field, rather than just as an operating cost line item.”

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“ALL TECHNOLOGY IS COMMUNICATION, AN EXTENSION OF OURSELVES THAT ALLOWS US TO REACH FURTHER THROUGH TIME AND/OR SPACE.”

-MARSHALL MCLUHAN, PHILOSOPHER OF COMMUNICATION THEORY

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A BRIEF SUM UP Marshall McLuhan, a philosopher of communication theory, once said “All technology is communication, an extension of ourselves that allows us to reach further through time and/or space.” Where Pharma once used to utilize technology strictly for medicinal purposes in the hopes of finding new treatments for human pathologies, it now uses technology to communicate with its patients, its customers and stakeholders; it uses technology to talk the language of the crowd, to measure and analyze the changing market dynamics, to make business decisions. Technology has by now become not merely a tool, but rather a part of our thinking patterns, behaviors and actions. It has become an extension of ourselves. Up until recently, Pharma was accustomed to perceive big data mainly for its enormity and potential commercial value, rather than raw material that needs to be meticulously processed and carefully fostered until it reaches its final formpure gold. And if there’s anything we can learn from our contributors, it’s that this ‘pure gold’ is literally capable of changing lives: with new digital communication platforms, revolutionary voluntary diagnostics methods, wearables and the refreshing willingness of the patient to actively participate in the healing process through technology. The life sciences industry is being completely revolutionized, and it’s happening right now, as we speak. Under these circumstances it goes without saying- Pharma has to embrace what technology has to offer, and learn how to use it not only to cure diseases, but also to face today’s new challenges, such as: living with the disease, recovering from treatments, self-diagnostics, and so forth. Pharma has to realize that valuable data is not necessarily that which directly improves sales, but that quality “pure gold” data which teaches about patient recovery behaviors, physicians’ relationship with the patients, patient adherence to treatments, etc. Because using big data technologies, today, is communicating with one another and is ultimately the key to helping one another. And isn’t that why we’re all here in the first place?

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A WORD FROM OUR CEO We here at Verix believe the Pharma industry has a special role in leading the world to a better future. That’s why we’re determined to find new and innovative ways to use technology and allow Pharmaceutical companies to understand physicians and patients better, and establish a productive relationship with both. On these grounds Pharma can gross higher profits, while staying committed to both saving people’s lives, and bettering them. With that in mind, we offer a revolutionary way of producing highly utilized data insights, with the first true end-to-end analytics solution in the life sciences industry operated by a single vendor. Our model is an innovative, unique analytics solution based on a single proprietary platform that offers much faster Time to Market, and significantly reduces Total Cost of Ownership, while eliminating traditional conflicts of accountability and collaboration between multiple players. This is how we allow Pharmaceutical companies to focus on what really matters, and lead the way. That’s why we turn to people from the industry itself, and we listen. Because we believe Pharma leaders can offer a unique peek into what the future holds for all of us. On that note, we’d like to give a special thanks to our dear contributors for dedicating their precious time and their hearts, in order to allow us to share their thoughts and insights on the future of Pharma, with our readers. Thank you, we appreciate every word. And we wish you and our readers a very Happy New Year! From all of us here at Verix. Best, DORON ASPITZ CEO, Verix

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ABOUT THE AUTHORS WHAT INSPIRED US TO WRITE THIS ANNUAL INFLUENCERS OUTLOOK? Today the world is about the crowd, the community, social media, patient centricity… This is a revolution that is shaking all grounds, all the way from finance to the way we order a taxi or even rent a flat. And we wanted to use it to give voice to the people on the ground. So this Outlook is about voicing Pharma leaders’ opinions. It’s about engaging a conversation with the industry and drive innovation. And it’s about sharing. This is the very dialogue that ultimately makes us progress, as well as share our insights. We hope it inspires you the way it inspired us. Best Annie Reiss Danielle Arad Lynn Brigg

WE ENJOYED MAKING THIS OUTLOOK DID YOU ENJOY READING IT? SHARE THE OUTLOOK WITH YOUR NETWORK

DO YOU HAVE FEEDBACK OR WANT TO GET IN TOUCH WITH US? EMAIL US AT: ANNIE.REISS@VERIX.COM

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