At the center of smarter life sciencesis an increasingly more networked operation focused on the end patient. The result is also a safe, effective and valued treatment solution targeted at the patient.

1. George Mattathil -
5/17/2011
Let’s Build A Smarter Planet:
What will it mean for Life Sciences?
© 2010 IBM Corporation

2. The reality of living in a globally integrated world is upon us.
 Safety, quality, efficacy of products is challenged more than ever before
 Outdated and inefficient (drug) research and development (R&D) has contributed
to expiring patents, dry pipelines and cost
 Generic alternatives abound as pricing pressures increase
 Globalization efforts and the new economic environment have
constrained resources
The world is connected:
economically, socially and technically.
© 2010 IBM Corporation

3. The need for progress is clear.
50% 65.2 billion
of patients drop out of their Dollars invested in US pharma
treatment within the first and biotech R&D in 2008. Only 4
year.20% of prescriptions go truly innovative products were
unfilled in hard economic times delivered in the same period.2
and 30% of prescriptions are
not refilled.1
90% 74 billion
of drugs work in only Dollars US lost due to
30-50% of people3 a 10% counterfeit
drug supply4
1 ―ECONOMIC CRISIS : Pharma Sales Will Drop As Patients Cut Back on Prescriptions‖
2 R&D Spending by U.S. Biopharmaceutical Companies Reaches Record Levels in 2008 Despite Economic Challenges, March 10, 2009
3 ―Demolished - the myth that allows drugs giants to sell more‖. , The Independent, Dec. 8, 2003.
4 ―Partnership for Safe Medicines Arms Public Against Counterfeit Drugs‖ Dec. 2, 2008 and IBM analysis
© 2010 IBM Corporation

4. The opportunity for progress is clear.
Better compliance with treatment More innovative discovery
& development
Smarter Life Sciences: Smarter Life Sciences:
Merit Foundation Ecole Polytechnique Federale de Lausanne
A Netherlands based non-commercial, international A major Swiss research institute harnesses the
medical organization accesses thousands of power of supercomputers to model the human brain,
anonymous patient records and monitors patients’ speeding the search for causes and cures of
progress and benchmark responses to treatment neurological and psychiatric diseases with the ability
against information about others to run simulations in close to real time
Improved patient insights Reduced risk from counterfeits
Smarter Life Sciences: Smarter Life Sciences:
Metabasis therapeutics, Inc. GSMS, Inc.
A biopharmaceutical company in the U.S. A small U.S. wholesale pharmaceuticals distributor,
speeds time to market for metabolic- and liver- contract manufacturer and packaging company
disease therapies deploys a pharmaceutical track and trace solution
ahead of the competition
The demand for change is strong
The 2008 Global CEO Study: ―The Enterprise of the Future‖
© 2010 IBM Corporation

5. The demand for change is strong.
LIFE SCIENCES CEO’S GLOBAL CEO’S
8 in 10
Life Sciences leaders
anticipate substantial
change ahead.
22%
Gap between envisioned
change and past success
at managing it.
Change Needed
© 2010 IBM Corporation

6. For life sciences companies, this means leading in the face of
global challenges brought on by three key drivers while overcoming
two key inhibitors.
DRIVERS INHIBITORS
BETTER UNDERSTANDING OF THE COST AND REVENUE PRESSURES
FUNDAMENTALS OF THE DISEASE GROWING RAPIDLY
Predictability of a treatment’s efficacy and Restructured business models to
safety will drive improved outcomes streamline overall operations including
strategic outsourcing, partnering and
turning to emerging markets
PRODUCT MODELS MOVE TO BIOLOGICS
Drugs targeted at a defined population
as well as disease-modifying and preventative REGULATORY, POLITICAL AND SOCIETAL
in nature PRESSURES INTENSIFYING
Legislation is forcing investments in
supply chain traceability and promotional
DISRUPTIVE SCIENCE AND spending analysis
TECHNOLOGY EMERGING
Increased use of medical imaging and
biomarkers in the move to targeted treatments
and personalized medicine
© 2010 IBM Corporation

7. A smarter system forges partnerships in order to deliver
treatment solutions which are targeted at the individual patient.
Smarter Discovery
& Development
Collaboration with  People and the
 Other life sciences organization
companies Smarter life  Technology
 Biotech sciences  Processes
 Medical device organization
Smarter Smarter
and diagnostic Sales & Supply
manufacturers Marketing Chain  Enhanced
 Contract communication with
organizations end consumer
 Academic centers  Compliance
 Hospitals / clinics  Patient persistence
 Patients  Consumer insights
Network of
smart partners
Patient / consumer
insights
© 2010 IBM Corporation

8. It’s a new world—and life sciences organizations are key players
in an economy that demands increased value, safer solutions, better
outcomes, sustainability and accountability.
INNOVATE OPERATE EFFECTIVELY
Develop new business models to Align and optimize processes to
compete more effectively. Fuel support patient centered healthcare
innovation in R&D and drive delivery and patient safety to drive
greater discovery productivity. better outcomes and an enhanced
LIFE experience.
SCIENCES
ENGAGE
Enable life sciences to take an active
role in empower a healthier society and
patients by collaborating to improve
breakthrough therapies.
© 2010 IBM Corporation

9. + + =
An opportunity for life science organizations
to think and act in new ways.
Innovate Operate Effectively Engage
© 2010 IBM Corporation

10. Smart life sciences:
Innovate.
SMART IS SMART IS
Improving the efficiency of drug discovery Reducing attrition rates and costs
and development through to reformulation during discovery by use of high
of existing drug products to extend performance computing.
product life cycle.
SMART IS SMART IS
Fueling clinical innovation with much Integrating all relevant data, reproducing
more processing power while the control principles of a biological
decreasing operating costs. system and simulating how it
will respond.
© 2010 IBM Corporation

11. Smart life sciences:
Operate Effectively.
SMART IS SMART IS
Combating risk by building Automating baseline activities in the
intelligence into both products supply chain increases responsiveness to
and packaging. free up time for employees to manage
critical exceptions and focus on higher
value activities.
SMART IS SMART IS
Automatically analyzing and correlating Enabling research beyond the current
information from multiple sources to ―trial, file, and archive‖ data usage model
identify areas of risk and regulatory through clinical & safety data accessible
compliance exposures. across studies.
© 2010 IBM Corporation

12. Smart life sciences:
Engage.
SMART IS SMART IS
Driving more innovation and short term Identifying actions to stem the impact
revenues through collaboration. of chronic diseases like diabetes, heart
disease or stroke by modeling
disease progression.
SMART IS SMART IS
Monitoring impending disasters and
Building in interconnectivity across a
proactively responding so supply of
network to provide a hands-on view of
targeted treatment is available immediately.
the entire supply chain for all parties.
© 2010 IBM Corporation

13. Smart life sciences:
Innovate. Engage.
Ecole Polytechnique Federale de Lausanne (EPFL): Merit Foundation: developed METEOR – Measurement of
Embarked on Project Blue Brain, a joint research venture Efficacy of Treatment in the Era of Outcome in
with IBM to create a model of the fundamental building Rheumatology – an Internet-based solution that will
blocks of the human brain, unprecedented in its scope – revolutionize and improve patient treatment. Clinicians now
ultimately generating functional models for 10,000 have access to thousands of anonymous patient records,
morphologically complex neurons. covering several countries and many hospitals; they can
learn from one another on the best treatment for patients.
Innovate.Engage.
National Genographic: created a DNA analysis repository that lets researchers and scientists analyze gathered genetic
data and identify patterns among the samples. Private citizens can also contribute samples to the DNA repository, hosted in
an IBM DB2® data server, and view personalized ancestral migration profiles on the organization’s Web site. This has
Establishes one of the largest centralized collections of genetic information, increasing collaboration among scientists
and researchers.
© 2010 IBM Corporation

14. Operate Effectively.
Metabasis Therapeutics: Highly-accurate, first-of-a- Golden State Medical Supply, Inc. (GSMS):
kind simulation software significantly lowers drug Implemented the Pharma Track & Trace Solution using
discovery time and costs by eliminating 80% of the two-dimensional barcodes, radio frequency
compounds to be synthesized and tested in the lab.1 identification (RFID) and other sensors to track
product movements. Puts GSMS in an advantageous
competitive position by making it one of the first
distributors to comply with the new regulations.
Fujita Pharmaceutical LTD, Co. : Improved its total Bilcare Limited: Developed a Track-and-Trace
project management capabilities. The new solution Solution framework to seamlessly integrated into any
helps the company minimize out-of-stock instances supply chain system, providing real-time product
by consistently managing sales, production, authentication. The technology helps detect
purchases of raw materials and accounting through a counterfeit goods, potentially saving millions of lives
single system.
© 2010 IBM Corporation

15. Smart life sciences: IBM Research Projects
New Intelligence Research Example Smart Work Research Example
Protecting the privacy of biometric data by Leveraging Blue Gene for large scale simulation
creating an anonymous biometrics recognition in the drug discovery process.
system that scales to large populations.
Dynamic Infrastructure Research Examples
Automatically analyzing and correlating Building governance and maintenance tools to
information from multiple sources to identify support benefit configuration, research, and
areas of risk and regulatory compliance exposures. correction processes.
© 2010 IBM Corporation

16. At the center of smarter life sciencesis an increasingly more
networked operation focused on the end patient.
IMPROVING COLLABORATING
operations internally with other biophamra, academia
MEASURING
your progress SHARING  IMPROVED PATIENT
and plan patient insights
INSIGHTS
 REDUCED RISK
FROM COUNTERFEITS
COMPLYING
with regulations  BETTER COMPLIANCE
WITH TREATMENT
 MORE INNOVATIVE
MONITORING UNDERSTANDING DISCOVERY &
and responding fundamental of the DEVELOPMENT
to signals
disease
CONVERGING INTEGRATING
across industries all relevant data both
internally and externally
The result is also a safe, effective and valued treatment
solution targeted at the patient.
© 2010 IBM Corporation

17. The imperative for life sciences today is clear.
INNOVATE OPERATE EFFECTIVELY ENGAGE
 Develop strategies in  Optimize core systems and  Interconnect researchers
support of advanced infrastructure to reduce costs from academic, industry and
therapies and technologies, and to more flexibly service regulators to bolster product
such as gene and cell new business demands pipelines
therapies and
 Use technology to  Bridge internal silos with
nanotechnology
communicate, share information better collaboration tools and
 Fuel drug discovery by and assist in decision-support infrastructures
investing in innovative
 Employ a fact-based,  Build an integrated network
decision-making
quantitative risk management of manufacturing, and
approaches
approach in the supply chain distribution partners
 Maximize development with and by building intelligence into
the integration of modeling products and packaging
and simulation into new
clinical trial programs
 Use social networking to
connect globally to gather
insights to fuel innovation
© 2010 IBM Corporation

18. IBM’s solution strategy is aligned with the needs
of all stakeholders of the life sciences companies.
LIFE SCIENCES SYSTEMS ARE FOCUSED ON… IBM IS INVESTING IN…
 Systems biology
Innovate and thrive
 Nanotechnology
 Smarter Analytics & Information Agenda
 Clinical decision support systems
 Customer segmentation / e-detailing
 Business process modeling, analytics and performance
management
 Life Sciences Hub
 Biopartnering strategy
 Interoperability
Streamline and transform  Medical home: Patient-centered collaborative care
 Patient portals
 Collaborative platforms & tools
 Risk Modeling
 Universal Data Model/Warehouse
Collaborate and empower  The New Pharma Commercial Model
 Marketing and Sales
 Regulatory Compliance
 Pharmacoviligence
 Content Management
 Pharma Track and Trace
© 2010 IBM Corporation

19. We’ve only just begun
to uncover what is possible on
a smarter planet.
 The world will continue to become smaller, flatter
and smarter. We are moving into the age of the
globally integrated and intelligent economy, society
and planet.
 To thrive in a smarter planet, life sciences
organizations need to transform so they are more
streamlined internally and collaborating effectively
externally to deliver more innovative products.
There’s no better time to start building a smarter life
sciences industry to provide more patient-centric
treatment for society.
Let’s work together to drive
real progress in our world.
© 2010 IBM Corporation

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IBM Corporation 2009
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