STRATEGIC GROWTH OUTLOOK FOR CELLO HEALTH April 10 th 2019 CELLO HEALTH PLC
DISCLAIMER The information contained in this presentation document (the presentation, which term includes any information provided verbally in connection with this presentation document) does not constitute an offer or solicitation to hold, sell or invest in any security and should not be considered as investment advice or as a sufficient basis on which to make investment decisions. This presentation is being provided to you for information purposes only. Whilst this presentation has been prepared in good faith, neither Cello Health Plc (the Company ) nor any of its group undertakings nor any of their respective directors, members, advisers, representatives, officers, agent, consultants or employees: (i) makes, or is authorised to make any representation, warranty or undertaking, express or implied, with respect to the information and opinions contained in it or accepts any responsibility or liability as to the accuracy, completeness or reasonableness of such information or opinions; or (ii) accepts any liability whatsoever for any loss howsoever arising, directly or indirectly, from use of or in connection with the information in this presentation. The Company is under no obligation to provide any additional information or to update or revise the information in this presentation or to correct any inaccuracies which may become apparent. This presentation may include certain forward-looking statements, beliefs or opinions. There can be no assurance that any of the results and events contemplated by any forward-looking statements contained in the information can be achieved or will, in fact, occur. No representation is made or any assurance, undertaking or indemnity is given that any such forward looking statements are correct or that they can be achieved. CELLO HEALTH PLC 2
WELCOME Mark Scott Chief Executive Officer CELLO HEALTH PLC 3
INTRODUCTION TO CELLO HEALTH Stephen Highley Group Chief Operating Officer CELLO HEALTH PLC 4
AGENDA 2.30pm Welcome and Introduction to Cello Health Mark Scott Chief Executive Officer Stephen Highley Chief Operating Officer 2.50pm The Future & Cello Health Core Services Jon Bircher Chief Commercial Officer Jane Shirley Regional Chief Executive Officer Europe 3.40pm Future Growth & Strategic Outlook Julia Ralston Regional Chief Executive Officer USA Stephen Highley Chief Operating Officer 4.15pm Q&A 4.30pm Drinks CELLO HEALTH PLC 5
PURPOSE OF THE DAY CELLO HEALTH PLC 6
INTRODUCTION The purpose of today is to outline: Our view of the future, particularly what this means for Cello Health Our ambition Our strategy CELLO HEALTH PLC 7
CELLO HEALTH DIVISION - EXECUTIVE TEAM Stephen Highley Jane Shirley Julia Ralston Jon Bircher Mark Bentley Chairman Regional Chief Executive Europe Regional Chief Executive USA Chief Commercial Officer Chief Financial Officer CELLO HEALTH PLC 8
BRIEF OUTLINE CELLO HEALTH PLC 9
WHO WE ARE A global, healthcare focused advisory group, comprised of a distinct set of technical advisory and execution capabilities: EXPERTS IN SCIENCE, INSIGHT, STRATEGY, COMMUNICATIONS DELIVERED AS A SPECIALIST CAPABILITY OR AS A FUSION OF EXPERTISE BUSINESS INSIGHTS & ANALYTICS STRATEGIC & SCIENTIFIC CONSULTING SCIENTIFIC & CREATIVE COMMUNICATIONS CELLO HEALTH PLC 10
WHY DO CLIENTS NEED US? 10 12 YEARS TO LAUNCH $3.6bn AVERAGE R&D SPEND PER NME SINCE 2007 FROM PHASE 1 ONLY 13.8% OF DRUGS MAKE IT TO APPROVAL 50% OF LAUNCHES OVER THE LAST EIGHT YEARS HAVE UNDERPERFOMED SUCCESS DEPENDENT ON FIRST 12-24 MONTHS POST LAUNCH https://academic.oup.com/biostatistics/advancearticle/doi/10.1093/biostatistics/kxx069/4817524 https://www.statnews.com/wp-content/uploads/2017/01/lifetime_trends_in_biopharmaceutical_innovation.pdf https://www.forbes.com/sites/baininsights/2018/03/05/the-secret-to-a-successful-drug-launch-infographic/#2df474f74346 CELLO HEALTH PLC 11
THE PRIZE Most successful drugs of all time in lifetime sales Company #1: Lipitor Pfizer #2: Humira AbbVie #3: Advair GlaxoSmithKline Treats High cholesterol Ankylosing spondylitis, arthritis, Crohn s disease, plaque psoriasis, ulcerative colitis Chronic obstructive pulmonary disease, asthma Lifetime sales $150.1 billion $116.1 billion $95.7 billion [1996-2017] [2003-2017] [1999-2017] https://www.nasdaq.com/article/biggest-blockbuster-drugs-of-all-time-cm900574 CELLO HEALTH PLC GlobalData.com accessed on 26 Feb 2019 12
Maximise their likelihood of success CELLO HEALTH PLC 13
WHERE ARE WE ON OUR JOURNEY? Drive a significant presence in the US Increase weighting to early stage commercialisation Alignment of Signal digital market capability to Health Unified brand, unified professionalised organisation CELLO HEALTH PLC 14
PRESENTATIONS Jon Bircher Jane Shirley Julia Ralston Stephen Highley Why health, the future market place and implications for Cello Health Core services, and what differentiates us Our drivers and priority areas for growth Closing remarks CELLO HEALTH PLC 15
THE FUTURE Jon Bircher Chief Commercial Officer CELLO HEALTH PLC 16
THE FUTURE OF HEALTHCARE IS HERE CURE BLINDNESS TRIALS ON CHIPS DIGITAL PRESCRIPTION PHARMACY DRONES MALARIA ERADICATED CELLO HEALTH PLC 17
GLOBAL HEALTHCARE INDUSTRY IS A GREAT PLACE TO BE Global health care spend by 2022 Percentage increase 2015-2020 ~$10 trn = 10% GDP 7.5% 2.5% Deloitte-g2017-health-care-outlook-infographic https://www2.deloitte.com/content/dam/deloitte/global/images/infographics/lifescienceshealthcare/gx-lshc-hc-outlook-2019-infographic.pdf CELLO HEALTH PLC 18
PHARMA IS OUR CORE BUSINESS OPPORTUNITY AND CAPABILITY $1.2 trn Value by 2024 +6.4% CAGR 2018-24 20% Orphan drugs ~12% Oncology market growth 29.6% CAGR In digital health 59 Molecular entities and biologics FDA approved in 2018 3.1% CAGR Forecasted R&D spend growth $11bn Spend on advisory services http://info.evaluategroup.com/rs/607-ygs-364/images/wp2018.pdf CELLO HEALTH PLC 19
Investment of sales OUR CLIENTS NEED TO MAKE CONFIDENT CRITICAL DECISIONS Drug life optimisation: the three life phases EARLY MIDDLE LATE Pre-Clin/Phase I Phase II Phase III Intro Growth Maturity Decline Generic Competition DISCOVERY LAUNCH Years LOSS OF MARKET EXCLUSIVITY CRITICAL DECISION Which indications in which sequence? CRITICAL DECISION What evidence and outcomes to support access? CRITICAL DECISION How to build the right organisation / plan for launch? CRITICAL DECISION How to differentiate vs. growing competition? CRITICAL DECISION Follow on indications, assets and formulations? CELLO HEALTH PLC 20
SO WHAT DOES THIS MEAN FOR OUR BUSINESS TODAY? 3 Expert Navigation Through complexity, steer decisions and build solutions Fresh Insights Intelligence and data to address critical questions Credible Perspective Bring challenge and realworld experience Thought Leadership In areas of science, practice and therapeutics Creatively Communicate Connecting customers with cutting-edge science Extra Capacity Providing resources and skills or to fill capability gaps Embedding New process, ways of thinking and/or skills and capability CELLO HEALTH PLC 21
BUT THE OPPORTUNITY GOES WELL BEYOND PHARMA Biotech $500bn 30% of Biopharma MedTech $800bn 5% growth Digital Health $600bn 40% mhealth share Health & Wellbeing $4.2trn $575bn preventative care http://info.evaluategroup.com/rs/607-ygs-364/images/wp2018.pdf https://pharmaphorum.com/news/digital-health-market-to-top-379bn-by-2024/ https://globalwellnessinstitute.org/press-room/statistics-and-facts/ https://www.wearable-technologies.com/2019/01/healthcare-wearables-marketto-reach-60-billion-by-2023-says-juniper-research/ CELLO HEALTH PLC 22 https://www.gminsights.com/pressrelease/digital-health-market
CRITICAL DECISION MAKING IS BECOMING MORE COMPLEX Targeted therapies focused on small patient populations Digital technology competitors disrupting the space Pricing pressure and drive towards innovative, evidenced based, value outcomes Impact of the microbiome AI and big data analytics impacting all stages of the development cycle The mobilised, knowledgeable, quantified patient Digital sensors & digital health around the pill CELLO HEALTH PLC 23
SO WHAT DOES THIS MEAN FOR OUR BUSINESS FUTURE? Broaden and deepen scientific thought leadership Build relationships with the companies of the future Integrate digital solutions across our service offering Targeted data analytics and AI on insight and evidence generation Bring our technology expert capabilities into health + Experienced senior hires in growing areas of science and technology Cutting-edge, patient orientated solutions business Acquire or partner to enhance advisory capabilities in line with strategy CELLO HEALTH PLC 24
CORE SERVICES Jane Shirley Regional Chief Executive Officer Europe CELLO HEALTH PLC 25
CONFIDENCE, CREDIBILITY & CAPACITY: THE KEY REASONS CLIENTS NEED CELLO HEALTH The Cello Health Knowledge Bank 500 + MARKETS STAFF 52GLOBAL COVERED DISEASES COVERED IN 80RARE 2018 8MARKET SEGMENTATIONS IN 2018 200 140 70+ 60+ Market Researchers, Master Practitioners, Digital Specialists, Innovation leads, Field and Compliance Communications Specialists, Scientists & Creatives including Client Service, Project Managers and Medical Writers Consultants with a blend of industry experts and consulting specialists PhDs and MDs providing a depth of understanding into cutting edge science CELLO HEALTH PLC 26
CELLO HEALTH SUPPORTS CLIENTS ACROSS THE FULL PRODUCT LIFECYCLE Pre-Clinical Pre-Launch Launch Post-Launch Brand Optimisation Landscaping & Unmet Needs TPP Optimisation BD & Partnering Support Forecasting & Valuation Asset & Indication Prioritisation Analysis & Assessment Strategic Communication Planning Data Dissemination Public & Government Affairs Qualitative & Quantitative Research Patient Journey Customer & Market Segmentation Positioning & Message Development Brand tracking Commercialisation Strategy Franchise & Brand Strategy Scenario & Competitor Planning Launch Excellence Stakeholder Engagement Education & Outreach Consumer Engagement CELLO HEALTH PLC 27
OPPORTUNITIES FOR FURTHER WORK PROLIFERATE Follow on work Follow on work Follow on work Cross sell Initial / Ongoing Project Client moves to new company Cross sell Follow on work Expand into new team in client base Expand into new team in client base Expand into new team in client base Follow on work Expand into new team in client base Expand into new team in client base Cross sell Follow on work Cross sell Expand into new team in client base Expand into new team in client base Follow on work Cross sell Follow on work Cross sell CELLO HEALTH PLC 28
CELLO HEALTH CONSULTING: APPLYING GAMING STRATEGY TO ENHANCE STRATEGIC PLANNING THE CLIENT CHALLENGE: Developing commercial strategy and Phase 3 trials for important new asset in a specific TA. A rapidly changing market with several competitors also in development OUR APPROACH Developed perspectives of future market Designed four plausible future market scenarios Ran internal workshops to explore scenario implications Ran competitor simulations to anticipate competitor strategy Developed brand strategy THE VALUED OUTCOME: Robust global strategy accounting for multiple market and competitor scenarios, aligned across key functions Informed Phase 3 Development Plan based on sound internal assumptions and competitor analysis CELLO HEALTH PLC 29
CELLO HEALTH COMMUNICATIONS: TENURED AND INTEGRATED WORKFLOWS ACROSS CLIENT PORTFOLIOS YEAR 1 YEAR 2 YEAR 3 FUTURE Portfolio B: Awarded Scientific Communications AOR Referral Portfolio A Capabilities Pitch: Awarded Scientific Platform Development Portfolio B: Extends to Health Economics & Outcomes support work Portfolio B: Digital solutions for Medical Affairs congress booth Portfolio B: Continued expansion to include all portfolio assets Portfolio A: Continued expansion of activities across portfolio Portfolio A: Expansion to additional Scientific Communications programming support Portfolio A: Extends to Health Economics & Outcomes support work CELLO HEALTH PLC 30
CELLO HEALTH INSIGHT: MAPPING THE PATIENT JOURNEY As part of the submission for approval to launch, NICE requested our client provide real world evidence of impact of a specific allergy on patients throughout their journey Social insights and analytics Parent co-discovery Self-ethnographic mobile video capture Deep dive patient interviews Mini-group discussions Physician validation Digital journey task CELLO HEALTH PLC 31
THE CELLO HEALTH ASSET BANK CELLO HEALTH PLC 32
HOW CELLO HEALTH STANDS OUT FOR OUR CLIENTS ORGANISATIONAL BALANCE GIVES CLARITY OF PERSPECTIVE EXCEPTIONAL CALIBRE OF TEAMS Complex challenges requiring expert guidance and creative thinking GENUINLY ALIGNED AND NON-COMPETING STRUCTURE AND CULTURE CELLO HEALTH PLC 33
FUTURE GROWTH Julia Ralston Regional Chief Executive Officer USA CELLO HEALTH PLC 34
DRIVERS OF GROWTH PRODUCTS AND IP LEVERAGING CAPABILITIES GEOGRAPHY VALUE OF CLIENT BASE CELLO HEALTH PLC 35
EVOLVING PRIORITIES Clinical / medical US expansion Reimbursement Signal and Health PRODUCTS AND IP LEVERAGING CAPABILITIES Technical Valued advisory Early stage High margin GEOGRAPHY Regulatory Commercial VALUE OF CLIENT BASE CELLO HEALTH PLC 36
GEOGRAPHY G L O B A L UNITED STATES EUROPE Close to client California Boston Berlin 1200 1000 800 600 400 200 0 US COAST TO COAST Early MA candidates by stage Preclin P2/3 Filed Tech in CA companies #1 NIH grants CA #1 VC investment $7.6bn #1 Digital health VC funding 3,418 companies #2 NIH grants MA #2 VC investment $6.2bn 16% US drugs in pipeline > 2,000 candidates For CA: California Life Sciences Industry Report 2019 http://info.califesciences.org/2019report For MA: 2018 MassBio Industry Snapshot www.massbio.org/why-massachusetts/industrysnapshot CELLO HEALTH PLC 37 Bio Medtech
CAPABILITY Growth within capability Centers of excellence across: Oncology Rare diseases, gene therapy Medtech Forecasting CELLO HEALTH PLC 38
CLIENT BASE Top 25 Depth of Top 25 Breadth across client base US Base Yes No Combined Single Large Other US ROW Integrated, matrix BD team structure Integrated work teams Reward & recognition CELLO HEALTH PLC 39
INNOVATION: IP AND PRODUCT CELLO HEALTH PLC 40
SUMMARY CELLO HEALTH PLC 41
SUMMARY Stephen Highley Group Chief Operating Officer CELLO HEALTH PLC 42
KEY FUNDAMENTALS Our foundation for growth is strong because: Business is based on strong client interdependency We have a strong unified Cello Health Brand We have a well integrated unified organisation We have a high calibre, tenured team We have a clear unified purpose and ambition Mission critical projects, senior decision makers, deep dive technical expertise All future acquisitions will inherit and help build our presence in the market Golden thread from PLC to operating board and executional teams Supported by succession plans, continued organisation development Culture, values and aspirations CELLO HEALTH PLC 43
AMBITION The go-to-team of thought leaders and thought formers at the cutting edge of science and technology, navigating clients to confident critical decisions Partner of choice to support mission critical commercial decisions and implementation programs fundamental to brand success Best known for early commercialisation Working at the forefront of where science and technology is going CELLO HEALTH PLC 44
Q&A CELLO HEALTH PLC www.cellohealthplc.com
CONTACT US: MARK SCOTT, Chief Executive mark.scott@cellogroup.com +44 (0)20 7812 8462 MARK BENTLEY, Group Finance Director mark.bentley@cellogroup.com +44 (0)20 7812 8463 STEPHEN HIGHLEY, Group Chief Operating Officer stephen.highley@cellohealth.com +44 (0)20 7812 8463 Thank You. Cello Health plc Queens House 8-9 Queen Street London EC4N 1SP CELLO HEALTH PLC www.cellohealthplc.com