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Healthcare insurance & reimbursement landscape in ASEAN markets Tokyo, 18th March 2015 Deallus Contact: Carole Brückler, PhD Partner, Head of Japan and Asia-Pacific [email protected] +65 6823 6836 Deallus Contact: Ichiro Masuda Principal, Head of Japan Operations [email protected] +81 70 1542 9876 Client Confidential – Do not share Why does Asia / ASEAN matter? ASEAN Regional trends Concept Overview Country Discussion Conclusions and Business Opportunities Deallus Introduction Client Confidential – Do not share 2 Why does Asia / ASEAN matter? ASEAN Regional trends Concept Overview Country Discussion Conclusions and Business Opportunities Deallus Introduction Client Confidential – Do not share 3 Why does Asia / ASEAN matter? Client Confidential – Do not share 4 Why Asian Markets Are Attractive ❶ Rising Healthcare Expenditure Expands the Healthcare Market Healthcare spending grew substantially across Asia (Top-left illustration). Source: Growing Healthcare Spending In Southeast Asia Brings Opportunity, 2014, BDG Asia ❼ 50.0% 41.6% 40.0% ❽ ❹ 37.3% 37.6% ❶ ❸❷ ❺ ❻ 32.7% 28.9% 30.0% 1. East Asia and Pacific 2. South East Asia 3. South Asia 4. LaTam 5. MENA 6. Sub-Saharan Africa 7. North America 8. EU 22.4% 20.0% 11.9% 10.0% 0.0% ❶ -10.0% ❷ ❸ ❹ ❺ ❻ Whilst a steady growth of pharmaceutical market is expected in the developed market (1-4% CAGR2012-2017), the significant rise of healthcare spending in the key Asian countries will lead the huge drive of pharma market growth in the next 5-10 years (Bottom-left illustration). The sharpest ever rise in the healthcare spending for the past 4 years (2009-2012) was observed in a few Asian countries including Indonesia (67.8% CAGR), Philippines (52.1%), Myanmar (50.5%), Malaysia (43.6%) and Vietnam (42.7%). The trend in the region is anticipated to continue throughout to 2018 thanks to the region’s rapidly growing economics, expansion of the affordable social class. ❽ ❼ -2.1% 2012 Health Expenditure per Capita (US$) (Public + Private) %Growth of Per Capita Healthcare Spending (2009-2012) 10,000 Australia 12.8% Sri Lanka 100 Laos China Thailand Mongolia Cambodia Philippines Indonesia Vietnam Asia Market India Pakistan Size CAGR Bangladesh(2012-2018) 7% Nepal 10 0.01 South Korea Asia Spending CAGR (20122018) Malaysia 1,000 Japan Taiwan Developed markets Source: The World Bank Data Myanmar 0.1 1 Asia as a region is the fastest growing part of the global economy. In 2001, the region accounted for 26.8% of global GDP (measured using purchasing power parity). By 2013, that share had risen to 36.6%. The rapid income growth means that healthcare spending in the region is also growing faster than anywhere else. Emerging markets 10 100 1000 Nascent markets Espicom The Pharmaceutical Market Reports Frost & Sulivan, Top Five Growth Sectors in the Asia-Pacific Healthcare Market, Global Pharma Market Outlook – with focus on emerging markets, IMS Health Pharmaceutical Market Size in 2012 (US$ Billion) Client Confidential – Do not share 5 Why Asian Markets Are Attractive ❷ Rapid Demographic Change Drives Healthcare Industry Growth Aging Asia presents huge opportunities for industries that provide products and services to the elderly Asia stands out as being the most exciting part of the world for healthcare businesses. As growing richer, having broader exposure to improvements in medicine, Asian countries are expected to experience tremendous ‘ageing’ (Bottom-left illustration) Change of wealth distribution will drive the expansion of pharmaceutical market size in the next 10 years. A significant proportion of the new Asian middle class are also expected to be at the upper end of the income bracket, with impressive spending power (Bottom-right illustration) Asia rapidly turns to Aging Society Rapid growth of middle class in Asia One of the most attractive opportunities in Asia centres on the region’s changing age profile, of which the elderly population aged 65 and over will reach 11.6% by 2030 600 ■ Population of over 65 (mln) ■ %Population of over 65 Two-thirds of the global middle class is expected to live in the Asia-pacific region, up from just under one-third in 2009 12% 500 10% 400 8% 300 6% 200 4% 100 2% Estimated total income by band 2010 and 2020 in China (Annual income, thousands of people) 0% 0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 Number of people aged 65 and over in Asia Pacific in millions and % of the total population Source: Asia Rising, Healthcare, 2014, The Economist Client Confidential – Do not share Source: Middle Class Growth in Emerging Markets, Earnst & Young 6 Why Asian Markets Are Attractive ❸ Booming Foreign Investment Creates More Opportunities Illustrative Increasing affluence and demand for better are forcing previously protectionist Asian governments to be more open to give leeway to foreign companies (Top-Left illustration) Increasing business transparency and policy continuity has lifted the chronic risks existing in some region, boosting market rewards in the recent years Vietnam Market Attractiveness Rating Addressable Market Ease of Import Indonesia • Overall Market Attractiveness Stance of Foreign Investment Addressable Market Foreign healthcare investors enjoy a corporate income tax rate of 10%, tax exemption over the first four years of a project and a 50% subsequent tax break in the following years. Ease of Import Distribution Reach Overall Stance on Foreign Investment Source: Healthintel Asia, 2013 EOS Intelligence insights, PharmaExec.com 2013 State of the Healthcare in South East Asia, Edelman Whitepaper • Market Attractiveness Rating Very high High Medium Rating Low The Negative Investment List currently stipulates that foreign investors may own up to 67% (65% previously) in healthcare related business Heavy investment in R&D in the region has enabled earlier ever access of pharmaceutical products in Asia As perception changing on the importance of R&D investment in the region, the value of medical research in Asia is growing swiftly, with the Asia’s share of global R&D expenditure rose from 18.1% to 23.8% (Bottom-Right illustration) 100% 80% Share Distribution Reach 51.2% 45.4% 60% 40% US 28.5% 20% 0% 29.2% 18.1% 2.2% 23.8% 2007 2012 1.6% Share of Global Expenditures on Biomedical Research in 2007 and 2012 Client Confidential – Do not share Europe Asia & Oceania RoW Source: Asia Rising, Healthcare, 2014, The Economist 7 Why does Asia / ASEAN matter? ASEAN Regional trends Concept Overview Country Discussion Conclusions and Business Opportunities Deallus Introduction Client Confidential – Do not share 8 ASEAN Regional Trends Social • Demographic changes – wealth and age distributions • Epidemiological transitions (M&M is no longer driven by infectious diseases but rather NCD (diabetes, COPD, cancer etc.) • Patient preference of branded products and private health sector, where affordable • High income patients cross country borders to seek high standard health care and technologies. Technological Economic Political Client Confidential – Do not share 9 ASEAN Regional Trends Social Technological • Limited pharma technology, therefore the region relies on import for innovative drugs • Limited requirements for technology transfer into the region • Skilled physicians in Thailand, Malaysia, Singapore which leads to medical tourism. • ASEAN HTA agencies have limited technical capacity but actively developing. Economic Political Client Confidential – Do not share 10 ASEAN Regional Trends Social Technological Economic • Growth of middle population segment with disposable income • Increasing cost pressures on health care budgets as cost of delivery and drugs risk outstripping budgets • ASEAN Economic Community Political Client Confidential – Do not share 11 ASEAN Regional Trends Social Technological Economic Political • Strong political commitment for Universal Health Coverage • Struggles with the realities of implementation UHC systems • Willingness to make more evidence-based decision making Client Confidential – Do not share 12 Why does Asia / ASEAN matter? ASEAN Regional trends Concept Overview Country Discussion Conclusions and Business Opportunities Deallus Introduction Client Confidential – Do not share 13 Three components of insurance coverage should be considered What does health insurance constitute of? “100% population coverage” does not always mean that a certain drug is covered for 100% of population with fixed reimbursement rate. Height: How much is service (pharmacy) benefit covered? OOPs (co-payments) Non-insured people Non-reimbursed drugs Breadth: population coverage (what % of population is covered?) Depth: which health services (drugs) are covered? Client Confidential – Do not share 14 How does this compare with Japan? Contrasting ASEAN with the Japanese healthcare model Component Japan ASEAN Breadth: Population coverage It is compulsory that Japanese citizens subscribe a certain type of social health insurance. Population coverage ranges from 60% to 100% Depth: Service (drug) coverage Almost all drugs approved are listed NHI reimbursed drug price list Level and standard of drug coverage differs from market to market. Originators drugs are often not reimbursed Height: Financial protection (co-payment) Typically 20-30% of copayment Listed drugs are highly subsidized although may be subject to government or hospital budget It is essential to think out of “Japan box”. Client Confidential – Do not share 15 It is important to understand “what HTA exactly means” HTA is broad term and its impact changes according to its context Definition of Health Technology Assessment: Health technology assessment (HTA) refers to the systematic evaluation of properties, effects, and/or impacts of health technology. It is a multidisciplinary process to evaluate the social, economic, organizational and ethical issues of a health intervention or health technology. The main purpose of conducting an assessment is to inform a policy decision making. (WHO) HTA concept (not exhaustive) Efficacy Ethics Budget impact Cost effectiveness HTA from drug reimbursement perspective Drug Device When discussing HTA, it is important to understand from what perspective HTA is mentioned Example: Procedure Health Program Health Policy Decision Making In 1993, HTA program, Technology Assessment and Social Security in Thailand (TASSIT) was introduced. Broader HTA: Not impactful on drug reimbursement per se The 2007 revision of NLED required input from the Health Intervention and Technology Assessment Program (HITAP) in Thailand. High impact on drug reimbursement Client Confidential – Do not share 16 Why does Asia / ASEAN matter? ASEAN Regional trends Concept Overview Country Discussion Conclusions and Business Opportunities Deallus Introduction Client Confidential – Do not share 17 ASEAN Region A 650 million people economy potential Member countries Indonesia Philippines Thailand Vietnam Myanmar Malaysia Singapore Brunei Darussalam Lao PDR Cambodia Client Confidential – Do not share 18 Indonesia Indonesia Japan 248.0 127.4 52 92 GDP in 2013 (bn USD) 870.3 4,898.5 GDP in 2019 (bn USD) 1,230.9 5,433.4 GDP per capita in 2013 (th USD) 3,510 38,468 GDP per capita in 2019 (th USD) 4,560 43,504 THE/GDP in 2012 (%) 3.0 10.1 Pharmaceutical market CAGR (2014-2020, %) 10.2 2.0 Population in 2013 (mn people) Urban population rate in 2013 (%) Client Confidential – Do not share *GDP: Growth Domestic Product, THE: Total Health Expenditure 19 Undergoing a formidable change in health insurance 2014-2019: transition to the universal health coverage Key indicators Indonesia Japan 60% 100% Government expenditure of total healthcare expenditure in 2012 (GGHE/THE) 39.6% 82.1% OOP rate of total health expenditure in 2012 45.3% 14% OOP rate as % of private expenditure on health in 2011 76.3% - Population coverage by public financial protection schemes Public Health Insurance Situation UHC by 2019 image 1968 2010 46% 2014 2019 The Indonesia public health insurance system was established in 1968. And as of 2010, approximately 46% of the population was covered under the five different schemes. In January 2014, the government committed to provide healthcare insurance to all citizens by 2019, merging all existing schemes. 100% Drug Coverage HTA Situation On-patented drugs have potential in public market Indonesian public health system employs Diagnosis Related Group (DRG) system which is similar to DPC system in Japan. The government use e-catalogue system to manage medicines in the public sector. Listing of e-catalogue and purchase price are determined centrally and physical procurement is managed by individual hospitals. In this system originator’s company can join and on-patented drugs comprise about 10% in volume and 30% in expenditure. It appears that originators play in out-ofpocket private sector in general, some of certainly participate in public sector to enjoy public funding. HTAs have been implemented since 2014 Since 2014, HTAs has been formally implemented and evaluate new technology similar manner to UK-NICE. Although HTA body evaluate cost-effectiveness from various data sources, it requires pharma companies to submit relevant data. At this moment, procedures and interaction with pharma companies are discussion basis. Formal guideline is not yet available as capacity of Indonesian HTA body is limited. However, it is estimated some form of guideline may be issued around 2016. As Indonesia integrated several schemes into single payer body, impact of HTA in public health sector is high particularly for pharmaceutical industry. Client Confidential – Do not share 20 What will the spending priorities be by 2019? One national health insurance, single payer model will impact coverage decision. year . . . population coverage 2010 2014 2019 46% 60% 100% Public health insurance before 2014 Askes Active civil servants and dependants, civil service and military retirees Taspen Military workers, police and their uncovered dependents Jamsostek Private formal sector employees (and dependents) of firms with 10 or more employees Jamkesmas Poor and near-poor population, based on individual and household targeting Jamkesda Poor and near-poor, homeless, orphans, and non-civil service teachers National Health Insurance Program (JKN: Jamian Kesehatan Nasional) Managed by BPJS: the Badan Penyelenggara Jaminan Sosial • • • Single payer model Diagnosis-Related Group system HTA involvement for technology selection In 2014, Indonesia reformed healthcare insurance system. 5 different schemes were integrated into one National Health Insurance Program, also known as BPJS, the Badan Penyelenggara Jaminan Sosial Keseehatan. This will change the complicated public health care in Indonesia and expand population and benefit coverage. According to health policy experts in Indonesia, this ambitious goal is “achievable”. However many operational challenges are expected. Client Confidential – Do not share 21 Thailand Thailand Japan 68.2 127.4 48 92 GDP in 2013 (bn USD) 387.3 4,898.5 GDP in 2019 (bn USD) 493.3 5,433.4 GDP per capita in 2013 (th USD) 5,676 38,468 GDP per capita in 2019 (th USD) 7,047 43,504 THE/GDP in 2012 (%) 3.9 10.1 Pharmaceutical market CAGR (2014-2020, %) 7.0 2.0 Population in 2013 (mn people) Urban population rate in 2013 (%) Client Confidential – Do not share *GDP: Growth Domestic Product, THE: Total Health Expenditure 22 Thailand is a stand-out performer in delivering care at low OOP rates UHC was first achieved in 2001 Population coverage by public financial protection schemes Thailand Japan 98% 100% Public Health Insurance Situation UHC already achieved in 2001 82.1% CSMBS: 1980Government employee 10% of population 13.1% 13.1% SHI: 1990Private sector employee 13% of population 55.8% - Government expenditure of total healthcare expenditure in 2012 (GGHE/THE) 76.4% OOP rate of total health expenditure in 2012 OOP rate as % of private expenditure on health in 2011 Drug Coverage Standard Drug List for public sector reimbursement Drug benefit for all public insurance schemes is referenced to the medicines quoted in the National List of Essential Medicines (NLEM). A prescription of the nonessential drug if deemed necessary. Depending on type of insurance, reimburse model differs. While members of CSMBS enjoy fee-for-service payment, SHI and UC enrolees receive treatment under capitation and DRG system. The NLED is periodically updated by a subcommittee of the National Drug Committee. Non-NLEM drugs need to be paid out-of-pocket regardless of type of insurance enrolled. UC: 2001Remaining population 74% of population Although Thailand has dual system of public and private health sector, public sector plays a dominant role. Since achievement of universal health coverage, Thailand has maintained its system though various approaches such as strong primary care gatekeeping and tough negotiations with pharmaceutical companies. OOP rate of 13.1% stand out of ASEAN peers. HTA Situation HITAP: leading HTA body in ASEAN region The Thai Health Intervention and Technology Assessment Program (HITAP) is a well established HTA agency, founded in 2006. While HITAP has no legal authority to make healthcare resource allocation decisions itself, in its role as an advisor to the Ministry of Public Health and other national Thai authorities, HITAP has developed a track record in informing national policy. For example, the 2007 revision of NLEM required cost-effectiveness evidence produced by HITAP, which significantly impact reimbursement decision making. HITAP is a leading HTA body in ASEAN region. It pioneered to establish the first Asian HTA network, HTAsiaLink in 2011. Client Confidential – Do not share 23 Thailand has well established UHC system The government employ capitation system to control health expenditure. CSMBS recently employed DRGs for inpatient payment. CSMBS SSS UCS Official name Civil Servants Medical Benefits Scheme Social Security Scheme Universal Coverage Scheme Established since 1980 1990 2002 Administrator Controller General Department, Ministry of Finance Social Security Office (SSO), Ministry of Labour National Health Security Office (NHSO) Population coverage All civil servants, permanent public employees, retirees, and their dependents (7.9%) All private employees and temporary public employees (15.3%) Anyone who is not covered by the SSS and CSMBS (75.8%) Financing sources General tax revenue Equal contributions from employers, employees, and the government General tax revenue Financing model OP: Fee-for-Service IP: DRGs* Capitation OP: capitation IP: DRGs Co-payment (in principle) No (full pay without proper referral) No (full pay outside contractor) No (full pay in private sector) Note: OP: out-patient, IP: in-patient, DRG: Diagnosis-related group Client Confidential – Do not share 24 Since the NLED 2007 revision, cost-effectiveness evidence has been required NLED publication The National Drugs System Development Committee The Subcommittee for Development of the NLED The Working group for coordination & consolidation of NLED Applicable to all three national health insurance schemes Endorsement of NLED Setting concept, philosophy and criteria Making final decision from the proposal of all the Working groups. The Health Economic Working Group commissions Health Intervention Technology Assessment Program (HITAP), an independent research institute under the Ministry of Public Health, to conduct pharmacoeconomic assessment. Results of these studies are subsequently considered by the Subcommittee for inclusion/exclusion of these drugs from the NLED. HITAP has also developed guidelines on pharmacoeconomic studies. Cost-effectiveness benchmark Gathering information and making recommendations Reviewing and generating pharmacoeconomic evidence for selected medicines The Health Economic Working Group HTA process Commission HITAP to conduct pharmacoeconomic assessment 16 Specific Working Group for NLED selection Reviewing evidences, requesting more information and making recommendations NLED secretariats Screening drug applications submitted by pharmaceutical companies Gathering and generating evidence NLED development process Any technology with a cost per quality-adjusted life-year gained below the average GDP per capita is considered acceptable for inclusion on the NLED. HTA study by HITAP and Current Policy Research projects: Cost-utility analysis of recombinant human erythropoietin in anemic cancer patients induced by chemotherapy Findings: Erythropoietin was cost-ineffective for treatment of anemia induced by chemotherapy among cancer patients Issues taken by: The Subcommittee for development of the NLEM Current policy: Erythropoietin was not recommended for treatment of anemia among cancer patients in Thailand Client Confidential – Do not share 25 Thailand is leading HTA movement in ASEAN region International HTAs HTA has evolved over this ten years and actively expanded international network HTAsiaLink established Domestic HTAs ISPOR Thai Chapter established Health Technology Assessment Unit NLEM 2008 revision collaboration agreement Organized capacity development meeting HITAP established NLEM 2004 revision The National HTA guidelines and database NLEM 2013 revision Insurance scheme 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Universal coverage policy Client Confidential – Do not share 26 Singapore Singapore Japan Population in 2013 (mn people) 5.4 127.4 Urban population rate in 2013 (%) 100 92 GDP in 2013 (bn USD) 297.9 4,898.5 GDP in 2019 (bn USD) 369.1 5,433.4 GDP per capita in 2013 (th USD) 55,182 38,468 GDP per capita in 2019 (th USD) 65,701 43,504 THE/GDP in 2012 (%) 4.7 10.1 Pharmaceutical market CAGR (2014-2020, %) 2.0 2.0 Client Confidential – Do not share *GDP: Growth Domestic Product, THE: Total Health Expenditure 27 Singapore enables drug access through private saving funds Ongoing iterations to the insurance schemes expands options Singapore Japan 93% 100% Government expenditure of total healthcare expenditure in 2012 (GGHE/THE) 37.6% 82.1% OOP rate of total health expenditure in 2012 58.6% 13.1% OOP rate as % of private expenditure on health in 2011 94.1% - Population coverage by public financial protection schemes Public Health Insurance Situation 100% coverage by Medishield Life by end of 2015 The government has taken balance of public and private spending on health. Medisave is a compulsory national medical savings scheme for individual hospitalization expenses. To complement Medisave, Medishield was introduced to cover expensive medical cost which cannot be covered by Medisave balance. Medisave and Medishield are considered to be private spending which is the main reason for high OOP rate. The government established what is called three M schemes, by establishing Medifund which act as a safety net for the poor. The government is currently working to replace Medishield with Medishield Life which will be mandatory to further strengthen health financing system in Singapore. Drug Coverage Standard Drug List for public sector reimbursement HTA Situation HTA to support SDL decision making Singapore has established Standard Drug List (SDL) since 1979. There are two groups in the SDL. SDL group 1 drugs are essential first-line drugs for which patients pay SG$1.40 per item per week. SDL group 2 drugs are relatively more expensive essential drugs for which patients pay 50% of the selling price. Although there is no subsidy for nonstandard drugs, subsidized patients can pay for nonstandard drugs from their Medisave and/or Medishield (inpatients). An annual call for applications for standard drugs inclusion is made by the Ministry of Heath (MOH) to the public institutions. And Drug Advisory Committee (DAC) in the MOH evaluates application. HTA is employed in variety of health related decision making process. It features in decision making for the SDL, licensing of medical clinics, the Health Service Development Programme, healthcare subsidies, and policy development. In the SDL selection process, DAC work with the Pharmaco-economics and Drug Utilization Unit of Health Science Authority (PMDA equivalent in Singapore). The technology assessment of a drug is based on its regulatory and formulary profile, incremental efficacy and safety, relative cost-effectiveness, the financial impact of including the drug in the SDL among with other epidemiological and clinical data. Client Confidential – Do not share 28 Singapore enables drug access through private saving funds Ongoing iterations to the insurance schemes expands options Healthcare Financing system in Singapore 3M schemes Others Cash *Medishield will be updated to Medishield Life by end of 2015 to cover non-eligible population such as people with pre-existing conditions Medisave Medishield* Medi Fund Compulsory national medical savings scheme Low-cost catastrophic illness insurance scheme Social safety net for the poor Private financing Standard Drug List (SDL) Class Co-payment Class I: Essential 1st line drugs 1.40 SGD per item per week Class II: relatively more expensive essential drugs 50% of selling price Client Confidential – Do not share Subsidy Public financing Medication Assistance Fund (MAF) Assist patients with costly drugs that are not in the SDL but have been assessed to be clinical necessary, providing up to 75% subsidy Drug Advisory Committee evaluates drugs with technical assistance of the Pharmacoeconomics and Drug Utilization Unit of HSA 29 Malaysia Malaysia Japan 29.9 127.4 73 92 GDP in 2013 (bn USD) 313.2 4,898.5 GDP in 2019 (bn USD) 535.8 5,433.4 GDP per capita in 2013 (th USD) 10,457 38,468 GDP per capita in 2019 (th USD) 16,170 43,504 THE/GDP in 2012 (%) 3.9 10.1 Pharmaceutical market CAGR (2014-2020, %) 9.0 2.0 Population in 2013 (mn people) Urban population rate in 2013 (%) Client Confidential – Do not share *GDP: Growth Domestic Product, THE: Total Health Expenditure 30 Full UHC access, yet the majority of growth comes from private / OOP care If you can afford to cut the queue… Key indicators Malaysia Japan Population coverage by public financial protection schemes 100% 100% Government expenditure of total healthcare expenditure in 2012 (GGHE/THE) 55.0% 82.1% OOP rate of total health expenditure in 2012 35.6% 14% 79% - OOP rate as % of private expenditure on health in 2011 Public Health Insurance Situation Rise of private sector affect OOP rate Malaysia has achieved universal health coverage through a public healthcare system providing near-free comprehensive care financed though general taxation. However private healthcare system is getting popularity to meet demand of wealthier people which, which is the reason for high OOP rate despite of the UHC system. The government has faced challenges as to how to balance public and private sector and maintain UHC in the country. In 2012 the government proposed “1Care for 1Malaysia” policy which would allow the insured to access private facilities. However, it appear to be unsuccessful so far. The government seem to be struggling to modify the distort of UHC in Malaysia. Drug Coverage HTA Situation Low OOP in public; High OOP in private HTA on drugs is still limited Drugs available in the public sector are highly subsidized (8090%). Each public hospital has their own budget allocated and each hospital manage within the budget. Although drugs are highly subsidized, it is unclear that how their own budget is allocated to drugs and it is up to their financial situation. In private sector, majority of drugs are paid directly from patients which drive up OOP rate in Malaysia. Domestically available generics as well as absence on pricing regulations further contribute to a market with high complexity. Malaysia HTA Section (MaHTAS), a department of Ministry of Health, published the drug formulary and guideline for pharmacoeconomics in the past two years. The areas covered in the guidelines include: the types of economic evaluation that need to be carried out by, the costing approaches that are acceptable, the outcome issues, discounting, sensitivity analysis, the acceptable cost-effective ration and also the budget impact analysis. However, due to limited capacity, the number is drugs evaluated are limited. Recent study was to evaluate and recommend pneumococcal vaccine for children below five yeas old to its national immunization program. Client Confidential – Do not share 31 Philippines Philippines Japan 97.5 127.4 45 92 GDP in 2013 (bn USD) 272.1 4,898.5 GDP in 2019 (bn USD) 517.3 5,433.4 GDP per capita in 2013 (th USD) 2,791 38,468 GDP per capita in 2019 (th USD) 4,712 43,504 THE/GDP in 2012 (%) 4.6 10.1 Pharmaceutical market CAGR (2014-2020, %) 9.4 2.0 Population in 2013 (mn people) Urban population rate in 2013 (%) Client Confidential – Do not share *GDP: Growth Domestic Product, THE: Total Health Expenditure 32 PhilHealth has a broad reach in the population Expansions into the remaining population sectors have been mandated Philippines Japan 78% 100% Government expenditure of total healthcare expenditure in 2012 (GGHE/THE) 37.7% 82.1% OOP rate of total health expenditure in 2012 52.0% 13.1% 83.5 - Population coverage by public financial protection schemes OOP rate as % of private expenditure on health in 2011 Drug Coverage Reimbursement is based on pre-determined ceilings PhilHealth is responsible for the reimbursement of drugs on the PNDF. PhilHealth manages drug cost through pre-determined ceilings, which are decided based on the severity of the disease and the classification of hospitals. For example, the benefit ceilings for drugs when patients are in secondary hospital are USD75 for case type A (simple) diseases, USD249 for case type B (moderate) diseases, USD499 for case type C (severe) diseases. The Philippine National Drug Formulary (PNDF) lists reimbursable drugs under the National Health Insurance Program in addition to a positive list, which is a compilation of non-PNDF drugs that are also reimbursable. Please note prior instances of mandated price cuts. Public Health Insurance Situation Further political support to complete UHC Philippine Health Insurance Corporation (PHIC), more commonly knowns as PhilHealth administers the National Health Insurance Programme. The NHIP’s target was to attain universal coverage within 15 years of its implementation in 1995. However, as of 2012 PhilHealth covered approximately 78% of the total population. Philippines’ decentralized healthcare service is also challenge to support efficient comprehensive care. In 2013, the president of the Philippines amended the National Health Insurance Act of 1995, which mandates the government to shoulder the premiums for the insurance of the indigent and informal sectors. This is estimated to drive coverage and benefit expansion. HTA Situation HTA is not yet formally implemented on drugs The first HTA attempt was initiated when the HTA Committee in PhilHealth was established in 1999. The committee aimed to develop reimbursement policies. One of major functions of the committee was conduct of drug assessments to determine which drug should be reimbursed. However, due to lack of political support and leadership changes, HTA underwent period of silence . Since 2009, several policies have made breakthrough to revive HTA. Department of Health is now active partnering with NICE and Thailand’s Health Intervention and Technology Assessment Program. However HTA is not yet formally implemented in drug reimbursement decision process. Client Confidential – Do not share 33 Vietnam Vietnam Japan 89.7 127.4 32 92 GDP in 2013 (bn USD) 170.6 4,898.5 GDP in 2019 (bn USD) 281.4 5,433.4 GDP per capita in 2013 (th USD) 2,497 38,468 GDP per capita in 2019 (th USD) 2,948 43,504 THE/GDP in 2012 (%) 6.6 10.1 Pharmaceutical market CAGR (2014-2020, %) 15.4 2.0 Population in 2013 (mn people) Urban population rate in 2013 (%) Client Confidential – Do not share *GDP: Growth Domestic Product, THE: Total Health Expenditure 34 Strong public commitment to expand UHC coverage But incentives for overconsumption of services and drugs hinder this Vietnam Japan 65% 100% Government expenditure of total healthcare expenditure in 2012 (GGHE/THE) 42.6% 82.1% OOP rate of total health expenditure in 2012 48.8% 13.1% OOP rate as % of private expenditure on health in 2011 83.2% - Population coverage by public financial protection schemes Public Health Insurance Situation Commitment to cover 80% of population by 2020 The national Social Health Insurance (SHI) program was established when Health Insurance Law was passed in 2009. The government consolidated existing scheme into one SHI program which is, in principle, a single payer and a single pool with a unified benefits package model. However, enrolment rates remain low, and funds pooling is highly fragmented. High OOP rate indicates the SHI system is not functioning well. In 2012, the Ministry of Health produced the “Master Plan for Universal Health Coverage from 2012-2015 and 2020” The Master Plans clearly set target to reach SHI coverage of 70% by 2015 and 80% by 2020, and to reduce OOPs to less than 40% of total expenditures by 2015. Drug Coverage Strong brand preference of the reimbursement list HTA Situation No HTA process in place for reimbursement Current payment mechanism include fee-for-service, capitation, and a DRG pilot. Due to market liberalization policy, hospitals depend on their revenue from provision of their services which are reimbursed by Vietnam Social Security which manages the SHI, and paid by patients. Pharmaceutical sales are a good source of hospital revenue. In fact health providers have a strong preference for branded drugs, and drug expenditure account for 60% of total VSS spending in 2010. VSS pays an average of 89.2% of total pharmaceutical expenditure in hospitals. At this moment the Health Insurance Reimbursement List (HIRL) is in favour of branded drug manufacturers. Vietnam does not have a national program for HTA or similar evidence-based decision making process. Currently, there is no regulated or transparent process for selecting drugs for reimbursement, or rules about who should be on the committee to represent different stakeholders. VSS, the payer of the SHI, has no direct role in the benefit package decision making process. Selection of reimbursed drugs is decentralized and subject to hospital preference. Client Confidential – Do not share 35 The government commit not only population coverage but also OOP rate year . . . 2009 population coverage OOP rate Various programs Health Insurance Law 2012 2015 2020 65% 70% 80% 48.8% <40% Master plan for UHC Program A Program B Social Health Insurance Managed by Vietnam Social Security Program C • Single payer model Healthcare Fund for Poor Client Confidential – Do not share 36 Why does Asia / ASEAN matter? ASEAN Regional trends Concept Overview Country Discussion Conclusions and Business Opportunities Deallus Introduction Client Confidential – Do not share 37 Evolving HTA dynamics: Keep an eye on collaboration mechanism to understand change and influencing factors Various stakeholders are collaborating to develop and promote pharmacoeconomics and HTA in Asia Multi-stakeholder network Government / HTA agent network Global *Annual meeting: 2016 in Tokyo International Society for Pharmacoeconomics and Outcomes Research * ISPORS has regional affiliation Asia regional HTA net Asia Foundation: 2011 Foundation: 2003 in Japan Members: Members: Governments or HTA agencies only Scope and Activities: HTA is the main focus. Health economic is part of scope. Annual conference (4th conference: May 2015 in Taiwan) / News Letters HTA HEOR Various stakeholders including academia, industry, patients Scope and Activities: Health economic and outcome research is main focus. HTA is a part of its scope. Biennial Asia-Pacific conference (7th Conference: 2016 in Singapore)/ HEOR HTA Academic journal (Value in Health)/ News Letters/ Regional Chapters Note: HTAi: Health Technology Assessment International , INHTA: The International Network of Agencies for Health Technology Assessment, ISPOR: International Society for Pharmacoeconomics and Outcomes Research, HERO: Health Economic and Outcome Research This is not Client Confidential – Do not share 38 exhaustive mapping. 2015 was the plan for ASEAN economic integration Majority of initiatives are delayed and would not be achieved by end of 2015. At this moment, no immediate impact is expected for pharma industry. Member countries ASEAN Economic Community (AEC) Initiatives Status Pharma related issues Elimination of nontariff barrier Not progressed Integration of regulatory system MRA of product approval Indonesia Philippines Thailand Vietnam Myanmar Free movement of skilled professionals Limited progress Free-movement of physicians (not started) Malaysia Singapore Brunei Darussalam Lao PDR Cambodia ASEAN 2020 vision: conceptualization of “ASEAN community” Current status: Although some components of AEC such as tariff reduction are well progressed, majority of initiatives are delayed. It appears that completion of the integration by 2015 would be unrealistic. Given this situation, ASEAN started to discuss post-2015 vision 2016-2025. Declaration to establish “ASEAN community” by 2020 Declaration to accelerate “ASEAN community” by 2015 Post-2015 vision 2016-2025 conceptualization 1997 2000 2003 2006 2010 2014 2015 Client Confidential – Do not share 2020 2025 39 ASEAN+3 countries are collaborating to share experiences Regionally overarching forums are mutually influential, but no interfering ASEAN integration does not have element of national health insurance coverage. This is because, national health insurance is rather seen as internal political issue of each member country which is against ASEAN principle of non-interference in the internal affairs. However, a group of wider stakeholders, ASEAN, China, Japan, Republic of Korea, are collaborating toward achievement of universal health coverage in the region. In 2012 ASEAN Plus Three UHC Network was conceptualized. The network has work plan 2014-2016 such as monitoring UHC progresses and capacity development. The network aim to be a platform of information sharing and guidance toward UHC. Although they collaborate, it is unclear if they are producing solid outcomes to achieve their goals. Japan is particularly active in promoting UHC as the country has long established history. For example Japan has been collaborating with the world bank to share its experience. They had publication on UHC in 2014. In February this year, ministry of health started discussion on Japan’s long term healthcare vision which includes communicating Japan’s experience to Asian counties. • Cost-effective viewpoint • Influence on Asian coutries Although there may not be immediate impact, it is worth capturing international dynamic and regularly assessing implication to pharma industry Client Confidential – Do not share 40 Why do Japanese Companies have an Advantage in Asia? ❶ Similar Disease Pattern Client Confidential – Do not share 41 Why Japanese Pharma have advantages ❶ Similar Disease Pattern Similar disease patterns between Japan and Asian region results in similar unmet needs, generating synergy in prioritizing product development strategies Japan share more similar oncology pattern with Asian market than Western markets (Bottom-Left illustration). Change of disease patterns in less developed Asian region will attract more Japanese pharma that specialise in chronic disease care as well (Bottom-Right illustration). New Cancer Cases in East Asia Countries and the US China Lung (18%) Stomach (16%) Korea Stomach (22%) Lung (14%) Japan Stomach (19%) Colorectal (18%) Development of Disease Pattern, 2008-2020 United States Liver (13%) Lung (13%) Asian countries share Breast (7%) more similarities in Colorectal (7%) Breast (5%) Liver (7%) disease patterns Esophagus (12%) Colorectal (9%) Breast (6%) Cervix (4%) Prostate (5%) Breast (14%) H&N (3%) Leukemia (3%) Esophagus (2%) 11% 5% 35% Lung (13%) NHL (4%) 14% 32% Colorectal (8%) Melanoma (4%) Pancreas (4%) Kidney (4%) Gall / Bile duct (3%) Bladder (3%) Source: Clinical Trials in Asia Pacific – New Challenges and Opportunities, Partnerships in Clinical Trials Asia Pacific (Singapore, 02 DEC 2009); American Cancer Society, 2015 23% 21% 9% 12% 2% 8% 9% 3% 2% 9% 15% 8% 8% 20% 3% 7% 15% 2008 12% 13% Western Pacific 9% 2008 H&N (3%) 35% Prostate (13%) 28% Liver (16%) 34% 2030 ASEAN 2030 Cardiovascular disease Infectious disease, malnutrition Cancer Injuries Respiratory disease Diabetes Others Source: Leveraging ASEAN market, Researchpartnership.com Client Confidential – Do not share 42 Why Japanese Pharma have advantages ❷ Advantage of multinational clinical trial design in Asia for faster regulatory approvals Ethnic similarity allows Japan pharma to design collaborative trials and shorten the launch gap in these markets The bottom-left illustrates a therapeutic area where the highest level of ethnic difference exists. - Considerable ethnic difference between East and West, which often result in differences in clinical practice, guideline, dosage, active control, concomitant drugs - Even in this situation, clinical studies can be co-designed in Japan and Asia at the same thanks to low genetic diversity (illustrated in the Bottom-right), ultimately shortening the time for Japan-focused trial sponsors to enter the Asian market than Global sponsors who proritise US and EU market. Fully Separated Clinical Study Collaboration Origin of Clinical study Collaborate-ability between regions US, EU Phase 1 Japan Phase 1 Asia Phase 2 Phase 3 Phase 2 Phase 3 Genetic diversity is limited within the region due to close proximity Arrows indicate genetic diversification flows Source: Tetsuomi Takano, New Strategy on Multinational Clinical Trials in China and Japan in Consideration of Ethnic Factors, JPMA http://www.pmda.go.jp/files/000152237.pdf Client Confidential – Do not share 43 Why Japanese Pharma have advantages ❸ High awareness of Japanese brands & Geographical/Cultural relatedness Comparison of Top 60 Brands in Global VS Asian region Adidads Jaguar Adidas Amazon.com Johnson&Johnson Ajinomoto Mercedes-Benz American Express Lexus American Express Apple LG Apple AT&T L'oreal BMW Audi MasterCard Canon Nestle Bayer McDonalds Citibank Nike Berkshire Hathaway Mercedes-Benz CocaCola Nikon Nissan 10% of McDonald's Microsoft Mitsubishi Electric Muji 35% of Japanese Japanese Daihatsu Brands in Nissan Brands in Epson Panasonic BMW Michelin Bridgestone Microsoft Cadillac Chevrolet Nestle Nike Cisco Colgate Nivea Danone Dell Nokia P&G Japanese companies could be benefited from high awareness of Japanese brands stemming from consumer products/electronics in the region (Left illustration) Especially large conglomerates with healthcare divisions could enjoy an existing share of voice Geographical proximity and similarity across cultures and business practices between Asian countries and Japan lower the operational challenges of international strategy development and implementation from HQ (Bottom illustration) Global Top VS AsianSharpTop CocaCola Disney Nivea Novartis Gap General Electrics Ernst & Young P&G Google 60 Most Popular Brands in 2014 Shiseido 60 Most Hitachi Sony Popular Honda Brands in Suzuki Toshiba 2014 Toyota ExxonMobil Pepsi H&M Facebook Philips Haagen-Dazs Ford Porche General Electric PwC Google Samsung Gucci Shell H&M Siemens Philips Samsung Starbucks HP HSBC Hyundai Sony IBM Unicharm Starbucks Johnson&Johnson Unilever Toyota Kao Uniqlo Twitter Kellog's Visa IBM Unilever KFC Xerox Infiniti Visa LG Yahoo Intel Volkswagen L'Oreal Yamaha Hershey's Honda HP HSBC Formal, structured business setting Siemens Source: Brand Asia 2014 Survey Results, Nikkei BP Consulting, Ranking The Brands Top 100 www.rankingthebrands.com Processoriented Generating profit Humility, patience, harmony Commonly shared corporate goal (●) and operational considerations (○) Indirect communi cation Team credit Asia Casual, less distant business setting Direct ResultCreating commuoriented Sharenication holder value Confidence, Personal demonscredit trativenss West Source: How to Crack Asian Business, 2011, Fortune 21 Cultural Clues for Doing Business in Asia, 2013, The Business Journals Client Confidential – Do not share 44 Dynamic landscape: Increasing political investments and HTA evaluation processes will create greater market opportunity HTA dynamics High uncertainty Significant changes matched with political commitment Relatively established, HTA to be accelerated Client Confidential – Do not share Health insurance coverage dynamics 45 Country Key Take-aways Indonesia: Where will the UHC spending priorities be by 2019? Thailand: With UHC established, where next? Singapore: Maintaining its position as key market entry node? Malaysia: Is the current model sustainable? Philippines: Would further price cuts be mandated to achieve UHC? Vietnam: Will the price gap between brands and generics narrow? Client Confidential – Do not share 46 ASEAN Region A 650 million people economy potential! Member countries Indonesia Philippines Thailand Vietnam Myanmar Malaysia Singapore Brunei Darussalam Lao PDR Cambodia Client Confidential – Do not share 47 Why does Asia / ASEAN matter? ASEAN Regional trends Concept Overview Country Discussion Conclusions and Business Opportunities Deallus Introduction Client Confidential – Do not share 48 About Deallus Consulting www.deallusconsulting.com Deallus Consulting improves your strategy by developing, testing and refining the key market assumptions that underpin it. We can do this because of our focus on the Life Sciences industry, our efficient and comprehensive research and our rigorous analysis Deallus Consulting Deallus Global Footprint Was Founded in London in 2004 with offices in New York, Princeton, Los Angeles, Singapore, Tokyo and dedicated, exclusive support in China and LATAM Has completed over 1,000 assignments Has over 80 Consultants Is a Life Science specialist, with more that 80% of our Consultants possessing a Life Science PhD Has >90% client retention, (clients we continue to work with since our first engagement) Supports any decision maker or manager involved in strategy development, right across the Product Life Cycle, in the largest multinationals or SME’s at Global, Regional and Affiliate level Client Confidential – Do not share 49 Deallus Consulting What We Do www.deallusconsulting.com Deallus’ best in class competitive analysis is based on rigorous research and analysis to test and refine the assumptions, to ensure winning strategies based on a robust understanding of the market Deallus’ expertise in strategic management consulting spans a range of services across product lifecycle, in strategy development, in business development, brand management, market access and manufacturing and supply chain Deallus has extensive experience in effectively leading and implementing competitive workshops consistent of scenario planning workshops, war games, individualized training programs and hybrid models Client Confidential – Do not share 50 Deallus has supported its clients in optimising robust market entry strategies for the Asian markets Asian market strategy must take into account all factors affecting the market’s true potential • What is the total number of patients in each indication • What is the number of eligible patients in each indication • Patient Population Dynamics • What are the regulatory requirements for approval • What are the regulatory timelines for approval in each market • will post registration activities be required • What are the pricing and reimbursement requirements for each indication in each market? • How does the pricing differ depending on setting of care? • What are the pricing timelines? Healthcare Landscape • • How well developed is the healthcare infrastructure for each indication in each of the markets? What is the treatment pathway for each indication in each market? Who are the key influencers in each market? • Product Registration and Launch • Competitor Landscape • Pricing and Market Access Sales and Marketing Strategy • • • Client Confidential – Do not share • Who are the key competitor in the market? What is the competitor strategy and impact on your company? What is the competitor market share vs your market share? What are the winning sales and marketing strategies tailored for each market? What is the product penetration per account? Who are the key stakeholders to target per indication per market The drivers and strainers of growth within each market? 51 Deallus Consulting Who We Are www.deallusconsulting.com Our Presence in Asia builds on a strong foundation of Project Management from JPAC HQ, with on-the-ground support from local consultants Carole Bruckler, PhD Ichiro Masuda Partner, Head of Japan & Asia Pacific Principal, Head of Japan Operations Anousha Kamvari, PhD Feng Wang, PhD Senior Consultant, Singapore Consultant, Tokyo 3 Ju Hyoung Lim, PhD Hiroyuki Onoda Consultant, Singapore Associate, Singapore Tom Chang, MBA Budiman Jimron, MSc Associate, Singapore Associate, Singapore Carl Qian, PhD Michael Lee Associate, Singapore Business Analysts, Singapore Alicia Yang Jenkins, PhD Supported by other Local Researchers Client Confidential – Do not share 52 Deallus Consulting JPAC Team Carole Bruckler, PhD – Partner, Head of JPAC Carole Brückler is the Head of the Deallus Consulting Japan & Asia-Pacific operations, based in Singapore. She has led client engagements developing regional or global product strategy for 9 of the top 10 global pharma companies. Carole’s clients assignments have enabled business decisions reflecting market evaluations of new products and acquired assets, pricing and reimbursement challenges, generic and biosimilars entry and landscape assessments to validate opportunities present existing portfolios. Carole’s experience covers multiple therapy areas, particularly Vaccines, CNS, CVM and respiratory field, as well as medical devices field. Prior to setting up the Asia Pacific operations for Deallus consulting, she led the established European business. Carole has also lectured at multiple Pharma industry conferences on the challenges of conducting research in the vaccines area, in Europe, US and China. Prior to joining Deallus, Carole worked in preclinical R&D, both in a synthetic organic setting, as well as an analytical setting in support of asthma treatments at GSK. Carole completed her PhD in Chemical Biology at the University of Edinburgh. Carole is a joint inventor and patent holder of this technology. In addition to her academic qualifications and professional credentials, Carole speaks several European languages. Ichiro Masuda – Principal, Head of Japan Operations & Representative Director Ichiro Masuda is the Principal, Head of Japan Operations and Representative Director in the Deallus Tokyo Office. Ichiro joined Deallus with 27+ years of experience in sales, marketing, marketing research, business development in the pharmaceutical industry. He spent 21 years at Eli Lilly Japan in progressively senior sales, marketing and product management roles, before he moved to the consulting industry. At IMS Consulting, he worked in the Commercial Practice, delivering market optimisation, resource allocation and marketing training projects. At ZS Associates, he developed the area of strategic market research in ZS Tokyo and worked on forecasting and business development assignments, while managing business development and client engagements. Ichiro is a graduate of Kyoto University in Economics, a nationally registered management and healthcare consultant, as well as a native Japanese speaker. Client Confidential – Do not share 53 Deallus Consulting JPAC Team Anousha Kamvari, PhD – Senior Consultant Anousha is a Senior Consultant based at our Singapore office. Anousha offers broad experience across both the medical device and pharmaceutical industries. Her areas of expertise include strategic and operational leadership in market entry, market analytics, pricing and reimbursement, regulatory (FDA, EMA, CFDA) and compliance systems for medical devices including drug-device combination products and pharmaceuticals. Prior to joining Deallus, Anousha was instrumental in advising senior management at BTG, an international specialist healthcare company, on go no-go business case investments for multiple brands across the Interventional Oncology franchise; at both a regional and global level. Anousha holds a PhD in Biomaterials Engineering from University of Cambridge and a 1st class honours MEng degree from Queen Mary University of London. She has authored two book chapters within the field of Biomaterials Engineering. Feng Wang , PhD – Senior Consultant Feng is a Senior Consultant at Deallus Consulting Tokyo office, recently transferred from Deallus Global Headquarter in London. He joined Deallus London in 2011 and since then, he has led client engagements across wide therapy areas (Oncology, Vaccines, Urology, Ophthalmology & Biosimilars) at product and portfolio level. His prior and ongoing projects support top 20 MNC including Japanese pharmaceutical companies in competitive landscape analysis, product launch preparation, commercial structure benchmarking, emerging market entry strategies as well as clinical development and new product planning. His market expertise covers EU, US and Emerging Markets in Asia. Feng holds a PhD in Oncology from the University of Cambridge examining the mechanism of chemotherapy resistance in ovarian cancer and an MBioch from the University of Oxford. During his PhD, he also developed commercial knowledge through pharma-sponsored workshops and Technology Management course at Cambridge Judge Business School. Feng speaks English, Mandarin and basic Japanese. Client Confidential – Do not share 54 Deallus Consulting JPAC Team Lim Ju Hyoung, PhD – Consultant Ju Hyoung is a Consultant at Deallus Consulting, Singapore. Since joining Deallus, he has led a broad range of projects covering Korea, China, Japan, Australia, South East Asia, as well as Europe, supporting clients by providing bespoke insights in various therapeutic areas including infectious diseases, oncology, autoimmune diseases, orphan diseases, etc. In addition, he has worked in a number of projects with extensive focus on biosimilars, vaccines, aesthetic products. Ju Hyoung has earned a PhD in Biological Sciences from Korea Advanced Institute of Science and Technology (KAIST) and completed a postdoctoral fellowship at Massachusetts Institute of Technology (MIT). He also spent considerable time working with Korean biotechnology start-up companies, consulting on process optimization projects, as well as managing collaborations with government departments to develop research proposals and assess the commercialization potentials of these projects. He is a native speaker of Korean, and is fluent in English. Hiroyuki Onoda, BPharm – Associate Hiroyuki Onoda (Hiro) is an Associate in the Deallus Singapore office. At Deallus, Hiro has supported a wide range of projects ranging from R&D strategy, marketing strategy and competitive landscaping to supply chain optimization. Hiro brings in-depth insights from the Japanese market to multiple projects, bridging cultural gaps and engaging with Japanese client teams. His research and analysis has covered multiple therapy areas (oncology, hepatology, gastroenterology, CVM & CNS) as well as vaccines and biosimilars. Prior to joining Deallus, Hiro worked as a marketing specialist at Suzuken in Japan, the third largest domestic pharmaceutical wholesaler, developing expertise in sales, promotion and physician engagement for a wide range of pharmaceutical products across therapy areas, both branded and generic, including vaccines and diagnostics. During this time he developed a deep understanding of the supply chain, sales and marketing and the Japanese healthcare system through working with a variety of pharmaceutical companies in highly competitive environment. Hiro is bilingual (Japanese/ English), holds a B.S. in pharmaceutical sciences & is a registered pharmacist in Japan. Client Confidential – Do not share 55 Deallus Consulting JPAC Team Budiman Jimron, MSc – Associate Budiman is an Associate at Deallus Consulting, Singapore. He has earned a Masters in Integrated Biosciences from the University of Tokyo, and had considerable working experiences with Japanese consultancy firm on market entry strategy for Japanese companies in South East Asia. Since joining Deallus, he has worked on projects covering Indonesia, Malaysia and other APAC countries, supporting research efforts into various therapeutic areas such as diabetic nephropathy, vector-borne diseases, etc. He is a native speaker of Bahasa Indonesia, and is fluent in English and Japanese. Tom Chang, MBA – Associate Tom Chang is an Associate in the Deallus Singapore office. He is an MBA graduate of Hitotsubashi University, Graduate School of International Corporate Strategy in Tokyo, Japan. He received his BSc from University of British Columbia (UBC) in Vancouver, Canada. Tom has worked in the technical side of pharmaceutical companies and brings a unique perspective of drug development and product planning. He has experience in the Japanese Generics Market through an internship at Mylan Seiyaku (Pharmaceutical) Ltd., where he was assigned to assist on three products, one product line expansion and two product developments for antipsychotic and migraine attack treatments. Tom speaks English, Mandarin and Japanese. Client Confidential – Do not share 56 Deallus Consulting JPAC Team Carl Qian, PhD – Associate Carl is an Associate at Deallus Consulting’s Singapore office. Since joining Deallus, he has worked on multiple projects covering Asia Pacific and the US, supporting clients in fields such as oncology, infectious diseases, vaccines and drug manufacturing. Carl graduated from the PhD program in Mechanobiology from National University of Singapore. His PhD research area was in computational biophysics. He holds a Bachelor of Science in Biological Science and a minor in Computer Science from Fudan University in China with a thesis focusing on Breast cancer genomics. He also had internship experience at Novartis Institute of Biomedical Research, working on antibody-based biomarker discovery. Prior to joining Deallus, he was an Associate at SingTel Group in its Tel Aviv office, working on innovation and business partnerships in the high-tech sector. He is fluent in English and Mandarin Chinese. Michael Lee, MSc – Business Analyst Michael is a Business Analyst at Deallus Consulting in Singapore. In his time with Deallus, he has been involved in multiple projects with a primary focus in China and the rest of APAC region. Michael’s therapeutic area expertise include virology, digestive diseases, infertility, oncology, metabolism diseases, and cardiovascular diseases. Biosimilar and generic drug markets are two major focuses of his recent researches. Michael’s studies on competitor dynamics monitoring, potential trends prediction, business development support, regulatory policy research have supported commercial decision making. Michael holds a Master of Science degree in Biochemistry and Molecular Biology from National Cheng Kung University, Taiwan and specialized in cancer biology and metastasis mechanism. Before joining Deallus, Michael worked on business development and training services at PPC, the leading domestic clinical research organization in Taiwan. He also has internship experiences at Vita Genomics, Inc. and NanKang Biotech Incubation Centre on marketing and industrial development strategies analysis. Michael is fluent in Mandarin. Client Confidential – Do not share 57 Client Confidential – Do not share 58 Acronyms AEC ASEAN FDI GDP NCD OOP SHI THE UHC ASEAN Economic Community Association of South East Asian Nations Foreign Direct Investment Gross Domestic Product Non-communicable diseases Out of Pocket Social Health Insurance Total Health Expenditure Universal Health Coverage Client Confidential – Do not share 59