A P ROMISE A ND C OMMITMENT to deliver
MERCK SERONO APAC
We are excited by the possibilities
Favourable healthcare and pharmaceutical policies accelerate high growth
We play a leading role in the therapy areas we operate in
Government policies and initiatives improve health care
Diversity delivers multiple growth prospects
A new era of high growth dawns across Asia Pacific
HOW DO WE bring a real difference to peopleâ€™s lives? HOW CAN WE make our presence felt in emerging high-growth markets and deliver passionately? HOW DO WE positively impact health outcomes around the world?
PROVIDING ANSWERS to these questions represents the cornerstone of our achievements.
AT MERCK SERONO APAC, WE ARE EXCITED BY THE POSSIBILITIES WE SEE AROUND US. Diversity in terms of varying levels of market penetration and affordability, coupled with a rich mix of partnership opportunities. These trends accelerate healthcare industry growth in the APAC region, and we are happy to be a part of this story of optimism.
Tim Kneen Vice President – Asia Pacific
The Asia Pacific (APAC) region has emerged as one of the prominent centres of global economic growth, driven by growing population, rising middle class income, enabling government policies and focus on education and urbanisation. The natural consequence of such a scenario is an enhanced demand for advanced and affordable healthcare. Moreover, the APAC region presents a picture of diversity. 2
We are aware that APAC still has many unmet healthcare needs. As societies and lifestyles change, new ailments are being identified and treatment strategies are being sought. We are striving to facilitate access to quality and innovative medicines, so that patients and their families can lead better lives, away from the shadows of critical and life-altering conditions. We are leveraging the market potential with wider geographic presence and a mature portfolio based on our expertise in specialist therapeutic areas. Our experience drives positive health outcomes for our patients. We are Helping Families lead healthier lives. What is wellspring of our strength? It is our team - the confident and committed people who help us keep our commitments to society and stakeholders. At every step of the way, we are focusing on innovation to adapt to a fastchanging business scenario. We nurture
a culture of ownership, knowledge exchange and result orientation to build competencies across the board. We share best practices to create an ecosystem of effective decision-making. We believe in transparent communication, because transparency breeds trust, and trust creates the foundation for an organization that delivers. When we deliver, we fulfil a promise that better healthcare solutions are possible and affordable for people in need. We are responsible to patients, healthcare professionals, regulators, distributors, partners, regional colleagues and other interdependencies, who repose trust in our ability to bring a real difference to people’s lives. Across the pages, we have many success stories to share, and we expect to elevate the level of our performance even further...Its A Promise And Commitment to deliver greater results! Tim Kneen Vice President – Asia Pacific Merck Serono
To be the market leading biopharmaceutical company in APAC dedicated to improving lives through innovation.
We partner with our global organization, our affiliates, and healthcare communities across APAC by delivering operational excellence by inspiring our colleagues and fostering a high performance culture
to drive broad access to quality, innovative medicines and tailoring solutions for patients and families. 3
A NEW ERA OF HIGH GROWTH DAWNS ACROSS ASIA PACIFIC
10 6 11 12 13 14
1. India, 2. Pakistan, 3. Sri Lanka, 4. Bangladesh, 5. Myanmar, 6. Laos, 7. Thailand, 8. South Korea, 9. Taiwan, 10. Hong Kong, 11. Vietnam, 12. Cambodia, 13. Malaysia, 14. Singapore, 15. Philippines 16. Indonesia
The reason for our optimism lies here The worldâ€™s most populous region, home to 1/3rd of the global population (2.3 billion people) 6.4% average annual growth rate forecasted between 2012 and 2016* Burgeoning working population Increasing Asian middle-class population - Emerging economies are expected
to reach 30% of global spending on medicines over the next five years**# Growing urbanisation and better education Governments are adopting favourable policies and initiatives towards healthcare improvement
APAC region promises immense potential
* Source: World Bank (2012) & IMF (2011) **Source: Frost and Sullivan Asia-Pacific Healthcare outlook report # Including China and Japan
APAC shows considerable economic stability
GDP Annual Percentage Changes (%)
10 8 6 4 2 0
APAC excl. China
Source: World Bank (2012)
Better healthcare affordability is made possible by growing young and working population Ratio of working-age to non-working population
South Asia Indonesia
WORKING-AGE POPULATION RATIO
Peak in SE Asia in 2020 (as represented by Indonesia)
Peak in South Asia in 2040
1960 1970 1980
1990 2000 2010
Source: UN report (2010)
Growing urbanisation triggers higher healthcare demand 100
Percentage Urban Population 80
Source: “CEIC Data” company & The Economist (2011)
ANOTHER 250M PEOPLE IN CITIES BY 2025 SE Asia: 50% urban population in 2025 India: 50% urban population in 2045
HIGHER DEMAND FOR HEALTHCARE Increased awareness about health issues Better access to healthcare
FAVOURABLE HEALTHCARE AND PHARMACEUTICAL POLICIES IS ACCELERATING HIGH GROWTH Government policies and increased per capita health care expenditure across emerging economies are paving the way for stupendous growth across APAC vis-a-vis the world.
INDIA Foreign investment in health care reached US$ 630 MILLION in the first half of 2012, from US$ 181 million in 2011.
INDONESIA Integration of GOVERNMENT INSURANCE SCHEMES and universal health care by 2019.
MALAYSIA Expected to introduce national health - insurance system; US$ 3.5 BILLION government purchase of regional hospital chain.
VIETNAM UNIVERSAL HEALTH CARE coverage by 2014, with increased government funding.
Source: News Reports
SOUTH KOREA National health insurance (NHI) covered 96.3% of the population. A medical-aid programme exists for the remaining 3.7% of the population.
ASEAN COOPERATION: IMPROVING THE STANDARD OF THE HEALTH CARE PROVISIONS Regional harmonization of regulatory Professional standards in healthcare sector Free flow of services within the region
TAIWAN Over 90% of all healthcare facilities in Taiwan have contracts with the National Health Insurance programme and are reimbursed on a fee-for-service.
Harmonized educational and professional standards Regional accreditation system for quality hospitals
Source: News Reports
High growth rates in Health Care expenditure Large variance among markets, high growth potential of developing economics, especially in India, Malaysia and Indonesia. 2,500
Source: The Economist Intelligence Unit report (2012)
APAC Pharmaceutical Market Outpaces the Global Market Growth
Annual Growth Rate
20% LatAM China 15% APAC 10% GLOBAL 5%
US Japan Europe 2012
Data Source: IMS Prognosis, March 2012
DIVERSITY DELIVERS MULTIPLE GROWTH PROSPECTS Diversified market requirements, combined with low market penetration, varying affordability, increased funding and partnership opportunities will catalyse future industry growth.
Advanced Asia (KOREA, HONG KONG, TAIWAN, SINGAPORE)
Functional national health insurance schemes provide relatively comprehensive coverage for the majority of the population (Korea & Taiwan) High affordability level, hence high share of biotech products GDP/Capita US$ 31,220-59,710 (PPP) Health Care Expenditure/Capita US$ 1,553-2,161 Source: Frost and Sullivan Asia-Pacific Healthcare Outlook Report
South Asia (INDIA, PAKISTAN)
Health insurance schemes provide minimal benefits and only small population groups Low income level Yet high growth Generic products dominating the market GDP/Capita US$ 2,768 – 3,663 (PPP)
Source: Frost and Sullivan Asia-Pacific Healthcare Outlook Report
Health Care Expenditure/Capita US$ 29-96
South East Asia (INDONESIA, MALAYSIA, THAILAND, THE PHILIPPINES, VIETNAM)
Barring the Philippines, national health insurance schemes cover a subset of the population with non-comprehensive coverage Burgeoning middle class can afford branded general medicine products GDP/Capita US$ 3,359 – 16,240 (PPP) Health Care Expenditure/Capita US$ 107-519
Source: Frost and Sullivan Asia-Pacific Healthcare Outlook Report
SHAKING HANDS WITH HIGH POTENTIAL COMMITTED TO DELIVER - MERCK SERONO APAC
BEATING INDUSTRY GROWTH
9% Market CAGR (2009 - 2012) Merck Serono is building on the APAC market potential with a wide presence across geographies, a balanced portfolio and talented teams. Ranked 13th among all multinational companies in APAC in 2011 Growing share of total company business (6% in 2012, estimated 8% in 2015 and 10% in 2018) Strong ability to grow innovative products and leverage mature portfolio Consistently growing faster than the market
14% M-S CAGR (2009 - 2012)
Merck Serono registered growth above APAC pharmaceutical market 2009 2012
APAC - WE PLAY A LEADING ROLE IN THE THERAPY AREAS WE OPERATE IN
Market leader in Fertility
Market leader in Growth Hormones therapy
Regional Leader in Colorectal / Head & Neck cancer
Market leader in thyroid diseases
The only first line therapy for treatment of Diabetes
Fastest growing Beta Blocker in many markets
GEOGRAPHIC MIX, 2012 6.0% Vietnam
BUSINESS MIX, 2012
2.6% Other (Expert Sales)
4.8% Hong Kong
20.5% Local GM
14.6% Korea 5.8% Thailand
67% of revenue from top 5 affiliates, led by India and Korea 16
General medicine products represent 64.3% and special product 35.7% of business
PEOPLE Diverse and stable team Talented, young, passionate and dedicated team of 2,800 members Motivated and cohesive leadership team Significant cross-country collaboration Proven track record of meeting and exceeding expectations
The strength of Merck Serono is our people and our continuous focus on operational excellence. 17
In Helping Families, central in our Asian societies, we are transforming medical science into solutions that make a difference to peopleâ€™s lives
In Asia, Merck Serono is focussed on diseases with a high and growing prevalence in Asia including fertility disorders, cancer, cardiovascular disease and diabetes. We are investing in global research and development programs and are bringing high quality, new medicines to Asia; and are committed to helping families gain access to these medicines.
‘Nectar - improving multidisciplinary care of mCRC patients’
‘Starting Families Asia’, the largest fertility study in APAC
Merck Serono has established a long term partnership with surgical and oncological key thought leaders across APAC to create an Asian Network of multidisciplinary care Centers for mCRC. This program is known as the NECTAR and partners with Prof Rene Adam in France with links to his LiverMet registry. The aim is to improve multidisciplinary care across the region to optimise management of potentially resectable mCRC patients among surgeons & medical oncologists.
The study is commissioned by Merck Serono and is conducted in collaboration with one of Asia’s leading fertility experts, Professor P. C. Wong from the National University Hospital in Singapore (NUH). It reveals key insights on the barriers and critical knowledge gaps that impact women and families regarding their ability and decision-making skills to conceive and start families.
The NECTAR group will define treatment protocols for the management of liver metastatic mCRC, collect and publish Asian data on mCRC patients, drive further awareness and education across the region via high quality preceptorship and scientific educational programs.
A survey was conducted across 1,000 women in 10 countries, who were trying to conceive. The objective was to gather insights into contemporary decisionmaking, regarding child conception and the barriers women and couples face, when they seek medical help during infertility.
India starts DReAMing
Diabetes Mellitus Registry for Antidiabetic Medications (DReAM), India is an ongoing, systematic listing of individuals with Type 2 diabetes. It is an observational, prospective, multi-centric database, which focuses on generating data on the epidemiological profile, clinical characteristics, investigational features and management trend of diabetic patients across the country. Merck Serono expects the campaign to lead India to an improved management of diabetes. It will further strengthen the Company’s image as leaders in the diabetes segment.
The study was modelled on a similar study undertaken by Merck Serono in collaboration with Cardiff University in 2009-2010. 19
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