Value Proposition canvas- Customer needs and pains
The Pharma Partners China Forum 2015: Jan 15/16 San Francisco
1. Advice + Action for Transformational Growth
+The
Pharma
Partners
China Forum
1-on-1 Partnering Event
San Francisco, USA
Jan 14-15th 2015
2. 01
China Forum
1-on-1 Partnering Event
San Francisco, USA
Jan 14-15th 2015
+ Event Highlights:
- Late Stage & Commercial Assets
- Drugs, Devices & Diagnostics
- Licensing of China rights
- Investment from Chinese funds
- Pre event diligence & partnering
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Hosted by:
3. China
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• Commitment by the Chinese government to improve healthcare access is
creating millions of new pharmaceutical customers. The market is forecasted to
become the world’s second-largest drug market by 2015.
• Domestic pharmaceutical companies are jostling to be the most important and influential:
- Those in the Top 20 need to differentiate to compete
- Those outside the Top 20 need new avenues of growth to break through
• Both sets have identified international products and technologies as an immediate opportunity to achieve
their goals:
- Sales, marketing and distribution is already in place.
- Funding of registration costs and clinical studies is not a barrier.
• Massive healthcare funds have been established in partnership with public healthcare companies to inject
more capital and speed into the race.
• Navigating the complex and highly competitive market is difficult, once business culture is added it is clear
why finding the right partner is the key to successfully tapping the Chinese market.
For more information on the China market, please see slides at the end of this deck.
4. The TPP China Forum is a first-of-its-kind event.
It will be the first time that so many Chinese dealmakers will be in one building. Not just that, the event
has other major attributes others do not:
• Pre-event diligence co-ordinated by a team of bilingual analysts
• Pre-arrange meetings with parties having confirmed interest
• Independent PhD translators available for every meeting
• Cross border business specialists on hand to assist
Whilst the focus is the partnering meetings, there will also be an educational track focused on the Chinese
healthcare market, doing business in China, regulatory and clinical requirements, Law & IP and more.
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Why This Event?
5. Executives who are interested in exploring the massive potential of the Chinese Healthcare market and
engaging investors with large amounts of capital to deploy overseas.
• Companies who believe their products should have potential for significant revenue in China.
The event will have coverage with over 300 Chinese pharma companies who are all seeking exciting
products to commercialise locally.
• Companies seeking investment for their exciting late-stage drug, device or diagnostic.
Public Pharma companies are seeking ground breaking technologies to help them stand out from their
peers. Healthcare funds have $billions of US dollars under management and a mandate to invest in cross-
border deals.
Who Should Attend?
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6. How Will It Work?
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Selection Screening SF Event Shanghai Event
Invited companies
provide information
for analysts to quickly
evaluate China market
potential.
Essential data translated
into Mandarin. Potential
investors or licensors
educated by internal
analyst team. Likely
partnership or deal
confirmed.
Matched parties are put
into hour long meetings at
the China Forum in San
Francisco.
Deal signature meetings
arranged for follow up
event in Shanghai Spring
2015.
7. Who Is Coming?
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A sample of the companies attending. Over 100 have started the matching process.
8. TPP Previous Success in China
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Help Ironwood seek strategic partnership in
China with its novel IBS/constipation drug
Linzess. Ironwood announced partnership
deal with AstraZeneca in China.
AstraZeneca paid $25M upfront for this
partnership.
Help Ipsen seek strategic partnership in
China with a late stage asset. Also help
Ipsen expand its partnership with KOLs in
leading academic institutes in China for
early stage collaboration.
Help Icon’s strategic expansion in China
through M&A and partnership. Help Icon
acquired Beijing Wits in 2012.
Helped the company secure a license deal
for ANGIOMAX® (bivalirudin) and
CLEVIPREX® (clevidipine) to SciClone
Pharmaceuticals for total upfront and
milestones of >$50m.
Help Stallergenes with two marketed
products to develop market entry strategy.
Help the company to develop a specific
partnership structure including JV, MA to
build its presence in China
Helped an Australian biotech company to
divest an HIV/HBV compound in preclinical
development. The process involved more
than four parties to close the deal.
9. 1. Basic Corporate Information
2. Product Information Summary
3. Registration and Certifications
4. Status of Regulatory Filings
5. Geographic Distribution Strategy
6. Competitive Advantage
Initial Matching Information
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TPP will translate this information into Mandarin for distribution to
Chinese attendee’s with known interest.
Only summary information is required in order to get the ball rolling.
10. Company presentations will be occurring continually throughout and there will be an advisory track. Topics
to be discussed.
Deal Structuring. A lot of options, multiple countries, multiple currencies, holding companies, issuance of
in multiple markets.
Intellectual property issues. Is China the IP Risk that it has been warned to be?
Holding companies. The role of Hong Kong. Using Structures such as holding companies to oversee
investment partnerships offers considerable flexibility for both US and Chinese investors.
Currency movement. To what extent is capital flight a driver in external investment by Chinese investors.
To what extent is equity ownership in US companies a factor in the decision to joint venture.
Equity vs. Licensing vs. Cash. How to craft the optimal blend? What are the considerations that factor into
the equation for both the Chinese investors and US technology providers.
Educational Content
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11. Event Organization
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TPP have partnered with OneMedForum to host the China partnering event.
They have a long and successful history of bringing together companies and investors.
The TPP event will follow the highly respected OneMedForum, which is held during the long standing JP Morgan week.
2015 will be their 8th Annual Emerging Company Healthcare Conference.
OneMedForum has continuously worked to facilitate the discovery of lesser-known companies.
Since 2008, over 400 companies have presented at OneMedForum.
Almost 300 leading investors have served on panels.
More information can be found here
US Media Partner
12. Event Fees
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If you are successful in being matched with Chinese investors or distributors,
the following event attendance fee will be required before meetings are arranged in SF: $4500
Services to Companies
- Convert presentation to Mandarin.
- Circulate summary in China to source appropriate investment partners.
- Arrange meetings with pre-screened, capable and interested in San Francisco January.
- Distribution to audience beyond the participants.
- Listing in the TPP/OneMedChina Catalogue of available US technologies and products.
- Ongoing advisory services.
- Opportunity to participate in meetings in Shanghai Spring 2015.
13. Registration
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If you are interested in attending the TPP China Forum, please contact our event partner OneMedPlace.
Derrick Li
OneMedConferences
E-Mail: dli@onemedmarket.com
Tel: (516)606-6763
Alternatively use the quick online registration survey.
14. China
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Continued
China will become the 2nd largest market ahead of Japan by 2017 …
2010 rank
1 United States
2 Japan
3 China
2016 rank
1 United States
2 Japan
3 China
2017 rank
1 United States
2 China
3 Japan
*Source : IMS Health Market Prognosis, March 2011
JOINT-VENTURE
IMPORT
LOCAL
25
34
43
20
Billion USD
52
Pharmerging markets
2012-16
Tier 1 (China) 15-18%
Tier 2 11-14%
Brazil 12-15%
Russia 10-13%
India 12-15%
Tier 3 7-10%
Pharmerging 11-14%
Mature markets
2012-2016
US (-1) - 3%
Japan 1-4%
Germany 2-3%
France (-1)-1%
Italy (-4) - 3%
Canada (-1) - 4%
Spain (-8)–(-2)%
UK 2 - 3%
S. Korea (-4) - 0%
Mature 0-3%
Data source: IMS 2012
15. The Chinese market takes time to build, but
the brand value lasts much longer…
Time
US/Europe
China
• In China, brand value will continue to grow for a long time after patent
expiration. Ownership of MNC brands are key asset in China
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16. Example: AstraZeneca China Product Portfolio
is still dominant in the Chinese market
Brand
Losec
Betaloc
Plendil
Nexium
Pulmicort
Diprivan
Iressa
Zoladex
Arimidex
Rhinocort
184
157
147
91
84
82
77
38
28
25
20%
22%
24%
66%
48%
33%
48%
41%
63%
26%
AZ Product
Growth CAGR
*Source : BFC Research
$M USD
•Plendil (felodipine) is a generic calcium channel blocker. Losec and Nexium are generic PPI. Betaloc is also a generic hypertensive drug
2010 sales
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17. Plenty of Challenges for Chinese Companies
Lack of R&D capabilities leads to lack of
sustainable future growth
• Despite of the growth, plenty of challenges remain
– Healthcare industry is very fragmented
• >3000 pharmaceutical companies in China
• Only ~30 domestic diagnostic companies with annual sales over $15 M; most of the
IVD companies are very small
– R&D investment is low for domestic companies
• Too much repetitive low-end products
• Very short product life cycle due to commoditization
• Lost of growth momentum due to lack of new products
– Shrinking profit margin despite sales growth
• Price erosion due to lack of clear product differentiation
• Many companies start to invest in R&D globally
– Mindray (medical device)
– Henrui (pharmaceutical)
– Hepalink (pharmaceutical)
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18. Product Licensing is Key Growth Strategy
Cross-board transaction still takes time to complete
• Product licensing is becoming a core part of growth strategy
– Local companies:
• Need high-end product to grow and maintain the profit margin
• Need to improve internal R&D capabilities
– Multinationals:
• Need marketing partner to access the middle/low tier market
• Need to find a local manufacturing partner to be competitive on cost
• Key Challenges: IP, market complexity, and management difference
– Concern of IP integrity is still an issue
– Complex market environment in China makes company indecisive
• “The market is too large to let partner to handle this product in China”
• “We are not there in China yet, and we need to find a partner”
– Management style difference means more time for making deals
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19. Financing from Chinese partner is a new trend
Investment deals lower the long-turn partnership risk
• Chinese companies are quite eager to invest in US companies
– Most Chinese companies want to make the investment in exchange for owning the China right of your products
– Public Chinese companies pays close attention to earning impact
– Likely to take less than 20% stake to avoid any impact to earnings
– Approval from Chinese government is getting much easier
• Key challenges for getting investment from China:
– Cultural difference makes some western companies cautions about getting board level from Chinese investors
– Many of the Chinese companies also not too familiar with the overall investment process in US companies
– Our goal is to bridge some of the cultural difference to keep the deal straight forward both parties.
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