Vifor Fresenius Medical Care Renal Pharma, a partnership of Vifor Pharma and Fresenius Medical Care –

Vifor Fresenius Medical Care Renal Pharma, a company of the Galenica Group

The changing Paradigm

Healthcare Disrupted – From Selling Pills to

sell Value

Hans-Peter Frank PhD, MBA; Global Head Integrated Solution

© Vifor Fresenius Medical Care Renal Pharma

© Vifor Pharma

Business Model Transformation

From products to outcomes

Drivers

of change

Business

Models

Value

proposition

Customer

► R&D productivity

► Globalization

► Demographics

► Pricing, Access &

reimbursement

changes

► Health Data Deals

e.g. Big Data

► Disruptive

Technologies

► Consumerism

► Value mining

Blockbuster

Drugs

Diversified Drugs

PortfolioHealth

Outcomes

PhysicianBudget Holder

Patient

© Vifor Fresenius Medical Care Renal Pharma

© Vifor Pharma

Vifor Fresenius Medical Renal Care Pharma (VFMCRP)

is a joint venture between Galenica and Fresenius Medical Care

VFMCRP’s mission is to become the customer’s partner of choice

for renal pharmaceuticals and in delivering patient centric solutions

Service- and

Distribution

Agreements

Service- and

Distribution

Agreements

Global leader in dialysis products,

dialysis care and renal

pharmaceuticals

500,000 patients treated

worldwide in 3418 clinics

~17 BUsd in sales

Vifor Pharma, part of the Galenica

group is the main shareholder

supporting VFMCRP with

products and medical sales force

in Europe

Flagship products include

Venofer® and Ferinject®

45% 55%

© Vifor Fresenius Medical Care Renal Pharma

© Vifor Pharma

Revenue

Competitive

Position

GROW

VFMCRP – is further building mid & long term growth opportunities:

Integrated, outcomes based patient centric and customer services

33%

by

2025

TRANSFORMIntegrated Services / Outcomes Based Solutions/ Customer

and Patient Centric Services

ESTABLISH

© Vifor Fresenius Medical Care Renal Pharma

© Vifor Pharma

Follow the Value Curve – What do Healthcare Systems

demand

Time

Deli

vere

d F

ea

ture

s

Simple

Product

Enhanced

Product

Integrated

Service

Living

Service

Drug/treatment

Provided to cure

specific patients’

conditions

Extend product, with

the coupling of

digital services(e.g.

web pages, apps

etc.) capturing data

and providing added

value and information

Integrated services is

an ecosystem

capturing data from

different sources

(remote sensor,

wearables, EMR etc.)

and allowing and

sharing feedback to

improve patients

outcome and health

provider effectiveness

• Services are

aware of the

context and

dynamic in

response to

individual patient’s

need

• Offered as a part

of a service

business and

revenue model

• Payment is on the

basis of population

or patient outcome

Around the Patient Value Innovators

© Vifor Fresenius Medical Care Renal Pharma

© Vifor Pharma

How is performance based prizing realized in other

industries?

47%

54%

Operational hours

of jet engine

© Vifor Fresenius Medical Care Renal Pharma

© Vifor Pharma

Rayaldee®

Anaemia

Management

Mineral & Bone

Management

Cardio-Renal

Management

VFMCRP – moving from strong brands to therapeutic area

focus by putting the patient into the center

Kidney

ProtectionTransplantation

Diabetic

Nephropathy

Polycystic Kidney

Disease

ChemoCentryx’

CCX168

Transplant

Preparation

Organ Rejection

TRANSFORM – Integrated Solutions

to

OUTCOMES

GROW – Licensing & Acquisition Targets

Rayaldee®

© Vifor Fresenius Medical Care Renal Pharma

© Vifor Pharma

VFMCRP – building a leading renal portfolio is a

cornerstone of the company

MANAGE TX* / POST TX*

MANAGE IMPACT OF LOSS IN RENAL FUNCTION

PRESERVE RENAL FUNCTION1

2

3

ND CKD Dialysis

Velphoro®

MBD

Ferinject®

Venofer®

ANAEMIA

– Immune suppressiva

– Prevention of delayed graft function

– Oral and i.v. Iron

– Current ESA

– HIF-PH

ANAEMIA

– Phosphate Binder

– Vitamin D

– Calcimimetic

MBD

– Anti-coagulation

– Potassium binder

Other

CKD PROGRESSION

– Diabetic Nephropathy

– Polycystic Kidney Disease

* Transplantation

© Vifor Fresenius Medical Care Renal Pharma

© Vifor Pharma

VFMCRP – building leading outcomes solutions for the

whole life cycle of nephrology patients

MANAGE TX* / POST TX*

MANAGE IMPACT OF LOSS IN RENAL FUNCTION

PRESERVE RENAL FUNCTION1

2

3

ND CKD Dialysis

Velphoro®

MBD

Ferinject®

Venofer®

ANAEMIA

– TRENSMAX – performance based kidney rejection management

– ANEMEX –performance based anemia management

ANAEMIA

– BONEMEX –performance based MBD

MBD

– CARDIMAX–performance based CR management

Other

CKD PROGRESSION

– DIABEX – performance based

diabetes management for

nephrology patients

– BPEX – performance based blood

preasure management for

nephrology patients

– NEPHDATEX – big data driven risk

monitor for CKD 3-5 patients

* Transplantation

© Vifor Fresenius Medical Care Renal Pharma

© Vifor Pharma

202020192017 20182016

MISSION – Milestones towards our VISION are moving

ESTABLISH

GROW

TRANSFORM

*non-dialysis chronic kidney disease

ANEMEX Study ANEMEX Commercial

BONEMEX Dev. & Verification

DIABEX Dev. & Verification

BONEMEX Commercial

BPEX Dev. & Verification

NEPHDATEX Dev. & Verific.

Preparation

© Vifor Fresenius Medical Care Renal Pharma

© Vifor Pharma

08.12.2016

Drugs Diversified drug portfolios Outcomes

Telecom

Governments

InsurersRetailers

Food

Providers IT

Biotech

Academia

Physicians

Social

mediaCROs

Med

device

PatientsPharmaMedical

technology

Consumer

goods

Pharmacies

Health

records

Informationcompanies

New Challengers gaining ground

Partnering with non traditional partners

© Vifor Fresenius Medical Care Renal Pharma

© Vifor Pharma

Competition is out there….

Newsflash April 2016

NHS signed more than 1500 contracts with

3rd party providers leveraging national health data.

© Vifor Fresenius Medical Care Renal Pharma

© Vifor Pharma

Bundled

Part

Non

Bundled

Strong Presence

of HD Chains

Strong Public Presence

of HD Centers

Market Overview

Top European 5 Countries Represent 70% of EMEA Dialysis Business

*Size of bubble represents number of relevant HD patients

© Vifor Fresenius Medical Care Renal Pharma

© Vifor Pharma

Pilot Country Preparation

First commercial Pilots: United Kingdom – Italy - France

First Wave Commercial

Pilot Countries

Second Wave

Commercial Countries

Third Wave

Commercial Countries

© Vifor Fresenius Medical Care Renal Pharma

© Vifor Pharma

Pathways to become a Value Innovator

1. Choose Projects close to your core business

3. Act proactively to get missing skills established

4. Develop outcomes based business models

5. Focus on regulatory registration pathways

7. Deliver – Deliver – Deliver - Deliver

6. Prepare the market – Prepare the organization

2. Realistic Business Cases – Take Risk

− © Vifor Fresenius Medical Care Renal Pharma

Skills needed to achieve value leadership Healthcare Delivery

08/12/2016

Requested Skills -10 -5 +5 +10

Drug – Device Reg Know How

Service Know How

Innovative Partnerships

Business Model Development

Co-Creation

Legal flexibility

Technological Leadership

Behavioral Economics

Gamification

Real World Data Analytics

Continuous Communication

Available Skillset

Needed Skillset

© Vifor Fresenius Medical Care Renal Pharma

© Vifor Pharma

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