Snapshot on the French Oncology Market March 2010

Presentation of the French Oncology Market – Lyon - March 2010 1

Snapshot on the French Oncology Market

-

Franco-British Business Exchange on oncology therapies

Lyon, March 2nd 2010


KEY MARKET FIGURES1.

RELEVANT NETWORKS & STAKEHOLDERS2.

FOCUS ON INDUSTRY PARTICIPANTS3.






In 2009, the French oncology therapeutic market represented a In 2009, the French oncology therapeutic market represented a €€3.3Bn 3.3Bn opportunity, fuelled by a singleopportunity, fuelled by a single--digit and slowing growth ratedigit and slowing growth rate

Dynamics of The French oncology market1

Sales (in €M)

Retail

Hospital

Growth

2008-2009

+6.0%

+4.7%

+6.6%

CAGR2

2005-2009

Total market +13.1%

+13.1%

+13.2%

3,277.5

+20.6%

Source: GERS, Bionest Partners

1 392.4

1 708.1 1 840.7

2 141.82 283.3

607.8

704.8

875.2

950.0

994.3

0

500

1 000

1 500

2 000

2 500

3 000

3 500

2005 2006 2007 2008 2009

3,091.8

2,715.8

2,412.9

2,000.2

+12.6%

+13.8%

+6.0%

30%

70%

30%

70%


In 2009, over 50% of French oncology therapeutic market sales weIn 2009, over 50% of French oncology therapeutic market sales were re in the hands of three players (i.e. Roche, in the hands of three players (i.e. Roche, SanofiSanofi--Aventis and Novartis)Aventis and Novartis)

Top 15 companies on the French oncology market in 2009

1 Including Mabthera sales in Rheumatoid Arthritis (commercialized in this indication since Sept-06)Source: GERS, Bionest Partners

ROCHE1

SANOFI AVENTIS

NOVARTIS

PFIZER

ASTRAZENECA

LILLY

FRANCE

MERCK SERONO

BAYER

SCHERING-P

LOUGH

TAKEDA

JANSSEN C

ILAG

MYLAN

IPSEN

TEVA

2009

sal

es in

€M

980.6

389.2291.0

189.3 185.1 179.9 158.0103.2 79.1 73.9 72.0 67.6 67.0 62.4 54.9

0

200

400

600

800

1,000

1,200

CELGENE

Market share 29.2%

CumulativeMarket Share

29.2%

Sales evolution vs. 2007

-17.6%

11.9%

41.8%

-15.3%

8.9%

50.7%

+45.9%

5.8%

56.5%

+2.7%

5.7%

62.1%

-7.1%

5.5%

67.6%

4.8%

72.4%

3.2%

75.6%

2.4%

78.0%

2.3%

80.2%

2.2%

82.4%

2.1%

84.5%

2.0%

86.5%

+10.2%

1.9%

88.4%

+1.9%

1.7%

90.1%

-2.5%+10.7% -3.8% +12.3% +4.7% +3.3% +35.8% +16.0%


Targeted therapies are the most dynamic drugs among the top 15 pTargeted therapies are the most dynamic drugs among the top 15 products roducts of the French oncology therapeutic marketof the French oncology therapeutic market

Overview of the French Oncology Market

Source: GERS, Bionest Partners

AVASTIN

374.2 €M

HERCEPTIN

264.8 €M

TAXOTERE220.9 €M

MABTHERA 1

220.4 €M

GLIVEC168.1 €M REVLIMID

131.1 €MELOXATINE121.3 €M

ALIMTA113.3 €M

ARIMIDEX112.2 €M

ERBITUX101.5 €M

CAMPTO81.2 €M

TARCEVA76.7€M

SUTENT65.7 €M

VELCADE65.4 €M

ENANTONE62.4 €M

4.0%

6.0%

-40 -20 0 20 40 60 80 100

Bubble size represents product sales in 2009 (in €M)

Cytotoxics

Targeted therapies

Others

2.0%

8.0%

10.0%

12.0%

13.0%

Drug incremental sales 08/09 (in €M)

Drug market share in 2009 (in %)

1 Including Mabthera sales in Rheumatoid Arthritis (commercialized in this indication since Sept-06)


Market trendsMarket trends

Overview of the French Oncology Market

� Roche will increase leadership thanks to wise lifecycle management initiatives and targeted partnerships with key stakeholders (e.g. InCA, learned societies)

� Genericization has already impacted lead players and will continue to do so (e.g. Sanofi / Taxotère)

� Biosimilars will become a threat, but only limited to supportive care treatments (EPO, GCSF); Mabs / targeted therapies will be challenged later (2014 onwards)

� Increasing governmental pressure on Price and Reimbursement of drugs






Customer analysis: a complex organization (!)Customer analysis: a complex organization (!)

Cancéropôles

HAD

Site de référenceSite orienté

Site de proximitéSite relais

SROS

Cellules deCoordination en

Cancérologie3C

Europe EORTC…

Psycho-Oncologie

SFPO

Staffs hospitaliers

Patient

Assoc. Patients

Pharmaciens Hospit/Ville

Infirmières

Oncologue/RTSpé. d’organe

AFIC Kiné, Nutrition…

UCPO

Réseaux de soinsTerritoriaux

RCP

CoordinationVille-Hôpital

FormationEFEC

BECTSOR

FNCLCC

Thésaurus

INCA

INSERM

Cancer info service

CNRS HAS

Ligue contrele cancer

ARC

IARC

Groupes Coopérateurs

SociétésSavantes

IFCTGOLF

Buyinggroup

Centralesd’achat

Etablissements Privés (60%)

Structures deréférencement

Réseaux de soinsRégionaux

ARS

ARH URCAM


France boasts an attractive environment in the organization of oFrance boasts an attractive environment in the organization of oncology care ncology care and R&D funding /support (1/2)and R&D funding /support (1/2)

� Launched in 2005 under the authority of both Ministry of Health

and Ministry of Research

� 100+ M€ budget per year to fund research initiatives in oncology

(~50% of budget), patient care and information as well as other

public health missions

� Some international collaborations (e.g. US NCI for selected

clinical trials)

STARTING POINT: NATIONAL CANCER PLAN #1 (2003-2007)

� 640M€ over a 3-year period to boost cancer diagnostic and screening campaigns, organization of care, access to innovative drugs, research, and training

� One of the most emblematic measure was the creation of National Cancer Institute (INCA)

A NEW NATIONAL CANCER PLAN (2009-2013)

� Launched with 750M€ funding to amplify initiatives of the first plan


France boasts an attractive environment in the organization of oFrance boasts an attractive environment in the organization of oncology care ncology care and R&D funding / support (2/2)and R&D funding / support (2/2)

FNCLCC

� Gathers twenty cancer centres spread across the whole French

Territory

� Created in 1945 as private structures but with public funding

� Dedicated to oncology treatment, FNCLCC has a role of prevention,

research, cares & training within strict quality rules

� Centers function as public service hospitals which brings together

surgeons, medical oncologists and radiotherapists in a cross-

disciplinary fashion

� The 7 « Canceropoles » are regional structures with goal to develop

the link between patient care and research

� Four main missions:

� Set up of tumor banks

� Development of R&D platforms (genomics, proteomics, …)

� Funding of clinical trials in oncology

� Promotion of ad hoc studies in social and human sciences

Cancéropôles

EXAMPLES OF NETWORKS ACROSS THE FRENCH TERRITORY






A dynamic network of biotech startA dynamic network of biotech start--ups and ups and SMEsSMEs both involved both involved in the development of diagnostics tools and advanced oncology drin the development of diagnostics tools and advanced oncology drugsugs

Besides Pharma giant Sanofi and mid-pharmas active in oncology such as Ipsenor Pierre Fabre, France has some innovative SMEs in the oncology field

Source: Bionest Partners analysis

Biopharma

32%R&D Tools & Services

28%

Vaccines3%

in vitro Diagnostic

8%Med Devices

24% in vivo Diagnostic

5%

185 Life sciences SMEs in France Relevant players in oncology

� Transgene, Innate Pharma,

Bioalliance Pharma, Cytheris,

Erytech Pharma,…

� Ipsogen, Exonhit, Imaxio

� Supersonic Imagine, Mauna Kea Technologies

14

19, rue du Général Foy75008 Paris

France

Tel: +33 1 58 05 14 00Fax: +33 1 58 05 14 09

14 Wall Street, 20th floorNew York, NY 10005

USA

Tel: +1 646 386 2900Fax: +1 212 832 3227

[email protected]

www.bionest.com

Health & Medicine

Snapshot on the French Oncology Market March 2010