The document discusses trends in the Australian pharmaceutical industry. It notes that the industry is worth $22 billion annually and is a top exporter. Key trends include the industry's reliance on government subsidies through the Pharmaceutical Benefits Scheme, higher life expectancies increasing drug consumption, and the growth of generics. The industry faces pressures from the strong Australian dollar and increased automation. Pfizer is a major player with manufacturing plants in Sydney, Melbourne and Perth and partnerships with research organizations. The strategies discussed to address challenges include focusing on innovation, manufacturing technologies, and collaborating between industry and researchers.
1. Pharmaceutical Industry Trends in Australia
Tiago Antonio Ferreira da Silva
September,20th 2012 – Perth Western Australia
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
2. Agenda:
Pharmaceutical Industry Profile in Australia
About Pfizer
Forces at work in healthcare
Trends
PEST
Opportunities
Australia Strategy
Conclusion
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
3. Australian Pharmaceutical Market in AUD Billion
AUD 22 BILLION
Source: IBIS World, Pharmaceuticals
Product in Australia, 2011
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
4. Australian Pharmaceutical Market in AUD Billion
AUD 30.5
BILLION
t
re cas
F o
20
20
Source: IBIS World, Pharmaceuticals
Product in Australia, 2011
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
5. Australian Pharmaceutical Industry Profile
• Australian pharmaceutical industry is ranked 15th largest in the world.
• Revenue AUD 22 Billion.
• 1% of the global market
• $1.02 billion on R&D
• Australia’s largest exporter:Aud 4.1Billion.(over 60 countries)
• Pharmaceutical Industry employs 44.000 people.
• Continuous growth: 2.3%
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
6. Global Context
• Worldwide industry sales are projected to grow strongly at 7.5 per cent per
annum over the next five years.
• Project it will reach US$1,158.5 billion in 2014. The markets driving this
change will be:
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
7. Nobel
Australia is a leading country in
Research and Development
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
8. Australia proud history of seven Nobel winners in medicine
• Howard Florey (1945: development of penicillin).
• Frank Macfarlane Burnet (1960: research on organ transplantation).
• John Eccles (1963: research on the transmission of nerve impulses)
• Peter Doherty (1996: discoveries concerning the specificity of the cell
mediated immune defence)
• Barry Marshall and J. Robin Warren (2005: discovery of the bacterium
Helicobacter pylori and its role in gastritis and peptic ulcer disease).
• Elizabeth Blackburn (2009: research on telomeres, structures at the end of
Source: IBIS World, Pharmaceuticals Product
chromosomes that protect the chromosome). Manufacturing in Australia, 2011
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
9. The Australian model
Comprises bio-medical research
Biotechnology firms
Originator and generic medicines
Companies and service related segments
including wholesaling and distribution.
Source: IBIS World, Pharmaceuticals Product
Manufacturing in Australia, 2011
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
10. The Business
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
11. Pfizer Mission, Vision and Value
Mission:
Our mission is to apply science and our global resources
to improve health and well-being at every stage of life.
Vision:
“Working together for a healthier World”
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
12. About Pfizer
• Pfizer was founded in 1849 in New York by a German called Charles Pfizer.
• Pfizer has been operating in Australia since 21 May1956.
• Employs more than 2,000 people across Australia.
• Pfizer has three manufacturing plants based in West Ryde, NSW; Parkville, Victoria;
and Perth, Western Australia.
• Three plants export a value of $100 million.
• More than two million Australians take a Pfizer medicine in any given year .
• Nyse:24.07 US dollar
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
13. Pfizer price per Action source:Bloomberg,2012
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
14. Pfizer Australia : “ Three manufacturing plants”
West Ride, Sydney
Victoria
Perth
These 3 plants export a value of 100 million AUD
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
15. Pfizer R&D Activity Solution…
• Developing a new drug is expensive.
• Current estimates of the full cost of bringing a new chemical or biological
entity to market are around US$1.3 billion.
Source: IBIS World, Pharmaceuticals Product
Manufacturing in Australia, 2011
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
16. Pfizer Partnership
• The National Health and Medical Research Council (NHMRC)
• Specialised research institutes, eg. Baker, Garvan, Queensland Institute of
Medical Research
• Universities
• The Commonwealth Scientific and Industrial Research Organisation (CSIRO)
• Hospitals
• Cooperative Research Centres (CRCs).
Entities supported by Australian Government
Source: IBIS World, Pharmaceuticals Product
Manufacturing in Australia, 2011
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
17. The Forces at work in Healthcare today
Consumerism in
ty r d
cie
s in g So d w o
Advance ogy gin lope
A ve
l
of ound d Techno de
Pr
ce an
Scien
Transparency
of cost and
I Quality
exp nform
lo s
ion ation
Me & N lity
dia ew dabi
Affor
Healthcare
plans
consolidated
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
18. The Forces at work in Healthcare today
Consumerism in
ty r d
cie
s in g So d w o
Advance ogy gin lope
A ve
l
of ound d Techno de
Pr
ce an
Scien
Transparence
of cost and
I Quality
exp nform
lo s
ion ation
Me & N lity
dia ew dabi
Affor
Healthcare
plans
consolidated
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
19. Trend 1 Economic: Pharmaceutical Exports from Australia
Competitive taxation arrangements that provide
incentives for companies to invest in relatively high
risk activities like R&D and complex, value adding
pharmaceutical manufacturing.
Strong AUD impacts on Exportation
Source: ABS Cat no 53.68, International Trade
in Goods and Services Australia
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
20. Trend 2 Social and cultural :Pharmaceutical Industry Turnover in Australia
Expanding access to its medicines and vaccines.
Creating new therapies Increase of medicines consumption
Higher life expectative. Source: IBIS World, Pharmaceuticals Product
Manufacturing in Australia, 2011
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
21. Trend 3 Economic and Technology: Employment
High salaries : more machine less workers
Source: IBIS World, Pharmaceuticals Product
Manufacturing in Australia, 2011
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
22. Trend 4 Political and Economical Suppliers by PBS scheme
Generics growth
•Government –subsidised prescription medicines
through the Pharmaceutical benefit Scheme ( PBS )
Source: IBIS World, Pharmaceuticals Product
Manufacturing in Australia, 2011
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
23. Awareness Increasing for heath care.
Trend 5 : Social and Cultural
4
Source: abs,2012
3.6
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
24. PEST ANALYSIS
•Government –subsidized
prescription medicines •Awareness Increasing for
through the Pharmaceutical heath care.
benefit Scheme ( PBS ) •Higher life expectative.
•Education programs
•Annual review and addition
of expensive innovative
drugs to the PBS drug list.
•Amount of sponsorship •Large Pipeline of
money or reimbursement Pharmaceutical companies
given to individual doctors •New and excellent drugs
and research
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
25. PEST ANALYSIS
•Government –subsidized
prescription medicines •Best drug available for
through the Pharmaceutical treatments.
benefit Scheme ( PBS )
•Annual review and addition
of expensive innovative
drugs to the PBS drug list.
•Over prescritiption by
•Amount of sponsorship physician : “ no need”
money or reimbursement
given to individual doctors
and research
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
26. PEST ANALYSIS
•Strong AUD
•Impact on the medicines
prices.
•More expensive
•High expenditure on R&D.
•Low quality medicines
•Generic growth
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
27. PEST ANALYSIS
Action to combat:
Predictable, timely and transparent
regulatory and reimbursement systems
•Government –subsidised
prescription medicines
that provide companies with a clear and
•Best drug
through the Pharmaceutical streamlined path to market.available for
treatments.
benefit Scheme ( PBS )
______________________________
•Annual review and addition
Follow the Compliance Code of
of expensive innovative
drugs to the PBS drug list. Conducts.
Committed to the highest standards of
ethics and integrityOver prescritiption by
•
•Amount of sponsorship physician : “ no need”
money or reimbursement
given to individual doctors
and research
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
28. PEST ANALYSIS
Action to combat:
Competitive taxation arrangements that
provide incentives for companies to
invest in relatively high risk activities like
•Strong AUD R&D and complex, value adding
pharmaceuticalImpact on the medicines
• manufacturing.
prices.
______________________________
•More expensive
Expanding access to its medicines and
•High expenditure on R&D.
vaccines.
Defending the brand adding value to
the customers with a Loyalty card and
discounts.
•Low quality medicines
•Generic growth
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
29. PEST ANALYSIS
•Awareness Increasing for
heath care. Increase of medicines
consumption.
•Higher life expectative.
•Prevention of diseases.
•Education programs
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
30. PEST ANALYSIS
Action to combat:
Strong and effective collaboration
between industry and research.
•Awareness Increasing for
heath care. Increase of medicines
_________________________
consumption.
Creating new therapies
•Higher life expectative.
Continued pipeline advancement
including several product launches
•Prevention of diseases.
•Education programs
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
31. PEST ANALYSIS
• 7 Nobel award in
researching and developing. Fast cure
•More information available in
the internet.
•New potent pharmaceutical
drugs in the market.:
Biotechnological
•Prevention of diseases.
•Education programs
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
32. PEST ANALYSIS
Broad and Deep Commercial
Technologies
• 7 Nobel award in Focus on manufacturing process and
researching and developing. technology Fast cure
•More information available in
the internet. Continued pipeline advancement
including several product launches
•New potent pharmaceutical
drugs in the market: Improving the interface between
Biotechnological
customer and Pfizer through the
internet : new programs, classes,
webcasting, chats• and others.
Prevention of diseases.
•Education programs
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
33. Positive trends
• Easy access to pharmaceutical drugs.
• Increasing awareness of the need for the for the early detection of lifestyle
and chronic diseases.
• Government –subsidised prescription medicines through the Pharmaceutical
benefit Scheme ( PBS ) for all eligible.
• Annual review and addition of expensive innovative drugs to the PBS drug
list.
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
34. Focus on Opportunitties
Innovative Medicines
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
35. Australia Strategy
Predictable, timely and transparent regulatory
and reimbursement systems that provide
companies with a clear and streamlined path to
market.
POL
POL
POL
Competitive taxation arrangements that provide
incentives for companies to invest in relatively high
ECO
ECO risk activities like R&D and complex, value adding
ECO pharmaceutical manufacturing;
Strong and effective collaboration between
ACTIONS SOC
SOC
SOC industry and research.
SOC
SOC Continued pipeline advancement including
several product launches
TEC Focus on manufacturing process and technology
Broad and Deep Commercial Technologies
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
37. Reference:
• Australian Bureau Statistics,Pharmaceutical Industry, retrieved on
September 31 on: www.abs.com.au
• Bloomberg, Pfizer price per action,retrieved on September 31 on
www.bloomber.com
• Pfizer Inc,Vision Statement,retrieved on September 12,2012 on:
www.pfizer.com
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
38. Thanks
Central Institute of Technology Diploma of Marketing: Tiago Antonio Ferreira da Silva Lecture: Rebel Carratt
