IQVIA Holdings, Inc. · NYSE:IQV
IQVIA — Quintiles — Investor Day (2014)
134 slides from IQVIA's investor day presentation, 2014
Slide 1: Quintiles Analyst Day
Quintiles Analyst Day Tom Pike Chief Executive Officer © Copyright 2014 Quintiles
Slide 2: Forward Looking Statements and Use of Non-GAAP Financial Measures
Forward Looking Statements and Use of Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements refl
Slide 3: 32 Years and a Strong Foundation
32 Years and a Strong Foundation Financial Track Record Service Revenues (mm) $3,808 $4,000 $3,000 • Founded by Dr. Dennis Gillings in 1982 $1,299* $2,000 • Industry pioneer $1,000 • Mathematical roots, intellectually strong $0 2002 2013 • Navigated the past, difficult decade with unparalleled succe
Slide 4: Enterprise Vision and Strategy
Enterprise Vision and Strategy Quintiles We bring people and Vision knowledge together for a healthier world Our Strategic Agenda Profitable growth at above market rates Lead with investments Biopharma Product Integrated that leverage our scale Healthcare Services Development Our Customer Promise an
Slide 5: Separation from Competitors
“Separation” from Competitors Quintiles’ value proposition has created superior industry margin Quintiles’ performance . vs. publicly traded CROs since 2008 1.29x 2013 and trailing twelve month 700 Book-to-Bill; 5 year average of 1.23x 600 Quintiles Adjusted EBITDA Added more backlog in last year
Slide 6: Quintiles Leader in BioPharma Services
Quintiles Leader in BioPharma Services Growing Markets Differentiated Service Offerings & Well Run Company Relationships Clear Industry Leader Financial Strength and Execution Momentum 6
Slide 7: Agenda
Agenda Improve Your Probability of Success 8:00 – Introduction and Welcome Tom Pike, Chief Executive Officer 8:15 – The Landscape Adrian McKemey, Senior Vice President, Quintiles Consulting 8:30 – Customer Relationship Management Paul Spreen, Senior Vice President, Enterprise Sales and Enterprise Sa
Slide 8: Quintiles Analyst Day Presenters
Quintiles Analyst Day Presenters Tom Pike Adrian McKemey, MD Paul Spreen Paula Brown Stafford Chief Executive Officer Senior Vice President, Senior Vice President, President, Clinical Quintiles Consulting Enterprise Sales Development Years of Experience: 33 (3rd year at Quintiles) Years of Experienc
Slide 9: Landscape, Changes and Opportunities
Landscape, Changes and Opportunities Adrian McKemey Senior Vice President Consulting © Copyright 2014 Quintiles
Slide 10: Burgeoning landscape of disease
Burgeoning landscape of disease 10
Slide 11: Burgeoning landscape of disease statistics
CV disease deaths this year Today 1,500,000 5,700 39,000 people in China and patients with worldwide 1,370,000 asthma will visit will be diagnosed Russia & India an emergency with cancer room in the United States today Somewhere in Every the world every minute 4 seconds a child dies of Alzheimer’s r
Slide 12: Burgeoning landscape of disease + Unprecedented health-ecosystem changes
Burgeoning landscape of disease + Unprecedented health-ecosystem changes 12
Slide 13: Regionalization and pipeline proliferation
Discovery Phase I Phase II Real World Phase III 90% of Regionalization Population Over 10,000 oncology New and pipeline Value-based commercial proliferation outcomes forin compounds isevidence of biomarker models adoption care Payer accountable pipeline Phase IV partnered criteria Health care Market
Slide 14: Biomarkers and Genomics
Biomarkers Phase I and Genomics Phase II Real World Phase III Payer Phase IV Health care Market delivery access Commercial 14
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Slide 16: Closing the Whitespace
Closing the Whitespace Limits of current model Increase revenue Development productivity Pricing Cost efficiency* M&A Reduce cost * Including outsourcing 16
Slide 17: The reactions and demands from healthcare eco-system customers
The reactions and demands from healthcare eco-system customers Take care of Leverage bigger Variabilize cumulative ‘chunks’ of cost knowledge value chain for Design Create new Link research commerciali- Connect up to real-world zation all the data outcomes models 17
Slide 18: Unparalleled opportunity
Burgeoning landscape of disease + Unprecedented health-ecosystem changes Unparalleled opportunity 18
Slide 19: Winning the race to capture the opportunity
Winning the race to capture the opportunity: Scale • Comprehensive services from first in human, through clinic, to commercialization and real-world evidence • Global talent in each discipline in every market Insight • Proven ability to variabilize cost • Innovative and connective technologies Quali
Slide 20: Total market of ~$200bn across both segments
Total market of ~$200bn across both segments with increasing outsourcing penetration which drives estimated growth of 5% – 8% per year from 2013 – 2016 (1) Based on Company estimates (2) Includes market access, reimbursement, observational studies, comparative effectiveness research, health economic
Slide 21: Customer Relationship Management & Enterprise Sales
Quintiles Customer Relationship Management & Enterprise Sales Paul Spreen Senior Vice President, Enterprise Sales © Copyright 2014 Quintiles
Slide 22: Deep Customer Relationships
Deep Customer Relationships Largest backlog in industry with diversification and sustainability Worked with all top 20 biopharma companies in each of last 11 years All of our top 25 key customers worked with both Quintiles segments: PD and IHS $100mm+ service revenues from at least 8 customers in ea
Slide 23: Customer Partnering Evolution
Customer Partnering Evolution Needs vary by customers – we are positioned for growth across all models Transactional Partnered End-to-End Partnership Services Services Solutions Thinking Doing Thinking Doing Thinking Doing Service Provider BioPharma BioPharma Trusted BioPharma Partner Partner • Tran
Slide 24: Customer Relationship Management
Customer Relationship Management Driving a dynamic customer development strategy Segmenting, Developing & Managing Customers Based on: • Financial standing (R&D, Rx Sales) • Development pipeline and in-line products • Relationship with Quintiles Account Qualification • Ongoing work with Quintiles Se
Slide 25: Well managed business development processes
Customer Relationship Management Well managed business development processes Product Development Pipeline Integrated Healthcare Services Pipeline 25 Graphs not to same scale
Slide 26: World-Class Business Development Processes
World-Class Business Development Processes Largest pipeline and industry-leading NNB Therapeutic & Financial Screening Business Customer Relationship Development Win! Process • Existing Customers • Inside Sales • Unprecedented Insights and Knowledge • Prospects • Sales Reps • CRM Usage • Market Segm
Slide 27: Relationship Management & Enterprise Sales – Takeaways
Relationship Management & Enterprise Sales – Takeaways Industry leadership through differentiated value Largest backlog in industry of $10.3 billion with a trailing twelve month book to bill of 1.29 Diversified customer portfolio across Vision Be the thought-partner biopharma segments with tailored
Slide 28: Quintiles Product Development
Quintiles Product Development Paula Brown Stafford President Clinical Development © Copyright 2014 Quintiles
Slide 29: Product Development Market
Product Development Market 5%-8% estimated growth per year from 2013-2016 $93bn Product Development Market $51bn Addressable Market Phase I-IV Clinical $19bn Outsourced Phase I-IV Clinical Outsourcing is estimated to approach 47% by 2017 PRODUCT DECISION APPROVAL Clinical Development Regulatory Subm
Slide 30: Continued Momentum
Continued Momentum Six Months Ended June 30, 2014 FINANCIAL HIGHLIGHTS DRIVERS Strong pipeline across all customer 1.21 Book to Bill segments. Trailing twelve month book to bill of 1.22. Constant Currency Revenue 7.6% Growth Growth primarily from clinical operations, lab services and Novella, offset
Slide 31: Market Drivers
Market Drivers We understand the needs of biopharma and how the industry is evolving Improve Investigator and Patient Access Simplify the Increase R&D Complex Productivity Offer Provide Global Alternative Industry Scientific (Strategic) Demands Expertise Partnerships 31
Slide 32: Solutions that Meet Customer Needs: traditional partner
Solutions that Meet Customer Needs Traditional clinical development service partner Product Compound Operational Registration Drug Supply Trial Conduct Sourcing Strategy Planning and Launch Diligence and Manufacture IP and Ensure Drug Supply Source Oversee Trial Compounds Develop Plan Trial and Acti
Slide 33: Solutions that Meet Customer Needs: expanded dependency
Solutions that Meet Customer Needs The dependency on partners has expanded Product Compound Operational Registration Drug Supply Trial Conduct Sourcing Strategy Planning and Launch Diligence and Manufacture IP and Ensure Drug Supply Source Oversee Trial Activities; Adapt Manage Compounds Develop Lab
Slide 34: Our Customers
Our Customers Diversified portfolio of over 500 customers • Creating demand through our early engagement services and consulting • Seeing strong demand across all customer segments • Recognized differentiation by our technology, global reach, therapeutic expertise and ability to generate value for o
Slide 35: The Quintiles Difference
The Quintiles Difference Global Harmonized Deep Science, Therapeutic, Best in Class Processes Technology & Informatics & Regulatory Expertise & Workforce 950 Medical Doctors ~1,300 Prime & Partner Quintiles Infosario® Platform Sites Planning & Design 900 PhDs Global Safety System ~240,000 Investigat
Slide 36: Quintiles Strength in Asia
Quintiles Strength in Asia 32 Offices Employees with Dalian Sapporo 500+ vaccine experience Clinical Trials 950+ Beijing Osaka Tetsugakudo CHINA Seoul Tokyo Conducted/Ongoing Gotemba Ahmedabad Delhi Fukuoka INDIA Chiang Mai Shanghai Taipei 5,400+ Sites Hong Kong Mumbai Bangalore Hyderabad Bangkok Ha
Slide 37: Capability Enhancing Acquisitions
Capability Enhancing Acquisitions We continue to add niche capabilities to enhance our service offering and differentiation Expansion Adjacent Recent of today’s market track offerings segments record e.g. Oncology, e.g. Devices • Novella Clinical genomics • Expression Analysis • Advion 37
Slide 38: Product Development Services
Product Development Services • Clinical Data Management Operations • Study Design & Operational Planning • Biostatistical Services • Personalized Medicine • Investigator and Patient • Central Laboratories & Bioanalytical • Model Based Drug Recruitment Labs Development • Clinical Monitoring (includin
Slide 39: Planning & Design Challenges
Planning & Design Challenges Design processes are lengthy, unstructured, and consensus driven Constraints Tradeoffs Planning and design biases; single scenarios Risk Impact of design decision is not seen until late in the lifecycle; higher costs to develop & commercialize Time Costs Increasing risks
Slide 40: Quintiles Impact: Planning and Design
Quintiles Impact: Planning and Design Infosario Planning Design: Methodology Expertise: • Substantially reduced Protocol Amendments: • Developed SIDES methodology (subgroup seeing 60-80% reduction identification based on differential effects search) • Utilized proprietary design tool generating 1,00
Slide 41: Patient Recruitment & Retention
Patient Recruitment & Retention Quintiles outperforms the industry benchmark in multiple therapeutic areas 2013: FPR to LPR Metrics in Median # of Days 581 CMR Quintiles 467 364 356 265 179 133 104 85 55 Allergies Cardiovascular ID-ex vaccines ID-vaccines Oncology As much as 59% faster enrollment co
Slide 42: Quintiles Impact: Innovative Patient Access
Quintiles Impact: Innovative Patient Access Case Study: Pre-Recruitment Community Patient community recruiting 14k patients years in advance - significantly reducing timelines and cost a Quintiles sponsored community 42
Slide 43: Data-driven Trial Execution (DTE) at Quintiles
Data-driven Trial Execution (DTE) at Quintiles More than risk-based monitoring • Study Indicators • Delivered Centralized Data • FDA RBM Surveillance Unit • The Quintiles Data Draft • Automated Triggers / Alerts • Strategy • Initiated • Introduced documented Factory Matures Guidance • Historical Sit
Slide 44: Quintiles Impact: Productivity with DTE
Quintiles Impact: Productivity with DTE Our model decreases costs while improving quality 90% 80% Quintiles enabled model 70% provides the opportunity to redistribute on-site visits and 60% reduce site monitoring costs by ~20% % of Sites 50% 40% 30% Traditional Q enabled Model 20% 10% 0% 0 4 8 12 16
Slide 45: Quintiles Global Network of Laboratories
Quintiles Global Network of Laboratories Central lab market growth estimated at 4.5-5%* with an increase in test complexity Second largest lab in Globally harmonized, industry automated platforms Largest CAP-accredited Biomarker focused network in the industry Expertise across all 5 of 8
Slide 46: Quintiles Global Delivery Network (GDN)
Quintiles Global Delivery Network (GDN) “Best Practices” that stitch together our global capabilities while optimizing delivery costs What is our GDN? Integrated network of delivery locations, centrally managed for process consistency and > standardization Operate ‘as one’ in a virtual, coordinated
Slide 47: Quintiles Impact: Productivity in Data Management
Quintiles Impact: Productivity in Data Management Driving tangible outcomes through our Global Delivery Network 3 Month Rolling Page Productivity 240 26 220 200 22 ~40 % Volume ('000) Productivity improvement in 180 18 productivity 160 140 14 120 100 10 Volume Actuals Target “An innovation that will
Slide 48: Quintiles Impact: Productivity in Safety
Quintiles Impact: Productivity in Safety Driving tangible outcomes through our Global Delivery Network 5 Global Safety Operations 5 Case Productivity 50+% 4 improvement in productivity 4 3 3 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Productivity Linear “This is a ground breaking innovation th
Slide 49: Consulting Services For Early Engagement
Consulting Services For Early Engagement Quintiles Differentiation Product Development • Industry leading Intellectual + Capital on BioPharma Enterprise Sales Operate Transformation + • Consultative approach to Consulting surfacing and shaping demand • Unparalleled integrity in approach to translate
Slide 50: Product Development Services
Product Development Services The integration of solutions creates differentiated value • Clinical Data Management Operations • Study Design & Operational Planning • Biostatistical Services • Personalized Medicine • Investigator and Patient • Central Laboratories & Bioanalytical • Model Based Drug Re
Slide 51: The Differentiated Value of Quintiles Product Development
The Differentiated Value of Quintiles Product Development 51
Slide 52: Delivering Value to Customers: accelerating timelines
Delivering Value to Customers Accelerating timelines through expertise, novel solutions plus technology 2013: PA to DBL Quintiles performs faster Metrics in Median # of Days across all Phases and CMR Quintiles multiple therapeutic areas 799 against CMR data: 689 556 594 577 552 548 551 539 Up to 1
Slide 53: Delivering Value to Customers: Phase III efficiencies
Delivering Value to Customers Realizing efficiencies through programmatic approach in Phase III Contracting/ Utilization PM & Tech Total Sales GDN Efficiencies Design Platform RBM Savings Realized through study design process Realized by centralized resources Realized by Q’s proprietary DTE processe
Slide 54: Delivering Value to Customers: end-to-end partnerships
Delivering Value to Customers Creating long term enterprise value for our customers through end-to-end partnerships Cost Reduced Sales Use of Global Delivery Use of Better Utilization of Costs Technology Efficiencies Network Resources • Optimized sales • Remote monitoring • Leverage data to • Resour
Slide 55: Product Development – Takeaways
Product Development – Takeaways Industry Leadership through Differentiation Market leader in Product Development services Harmonized processes underpinned by technology enabling productivity to maintain Vision best in class operating margins Transforming the way we deliver to improve customers’ prob
Slide 56: Integrated Healthcare Services
Integrated Healthcare Services W. Scott Evangelista President, Integrated Commercial Services © Copyright 2014 Quintiles
Slide 57: Integrated Healthcare Services: integrated solutions through lifecycle
Integrated Healthcare Services Optimized, integrated solutions through the product lifecycle PRODUCT DECISION APPROVAL BioPharma Regulators Payers Providers Patients Clinical Development Regulatory Submission Healthcare Delivery Preclinical Phase IV Phase I Phase II Phase III Phase IIIb Product Deve
Slide 58: Continued Momentum
Continued Momentum Financial results – Six months ended June 30, 2014 FINANCIAL HIGHLIGHTS DRIVERS Book-to-Bill Ratio 101.5% net new business growth. Strong demand in Japan 1.29 and North America Commercialization, coupled with strength in Real World Late Phase. Trailing twelve month book to bill of
Slide 59: Healthcare System Transformation
Healthcare System Transformation Moving towards value-based healthcare Moving from a Linear Model….. …..to an Interconnected System Opinion driven medicine Evidence-based medicine Payer Quintiles Confidential 59
Slide 60: Healthcare Industry Drivers
Healthcare Industry Drivers We understand customer needs and how the industry is evolving. Increasing Increasing Demand for Importance of Evidence & Providers & Market Access Patients Increasing Shifting Risk Price Pressure for Medical for our Outcomes Customers Healthcare Industry Demands 60
Slide 61: Integrated Healthcare Services: Our services at a glance
Integrated Healthcare Services Our services at a glance • Contract Sales • Observational Research and Registries • EHR Implementation • Integrated Channel Mgmt • EHR and Data Analytics • Meaningful Use and Quality Reporting • Market Access • Population Health Analytics and • Market Entry/Exit Interv
Slide 62: The Quintiles Difference
The Quintiles Difference Global Harmonized Deep Science, Therapeutic, Best in Class Processes Technology & Informatics & Regulatory Expertise & Workforce 950 Medical Doctors ~1,300 Prime & Partner Sites Infosario Platform Planning & Design 900 PhDs ~240,000 Investigators Global Safety System Analyti
Slide 63: Four Strategic Imperatives to Drive Success
Four Strategic Imperatives to Drive Success Integrated Healthcare Services • Grow CSO business leveraging current overhead • Scale new, higher margin services • Drive services to support evidence-based medicine • Expand into closely related markets 63
Slide 64: Grow CSO business leveraging current overhead
Four Strategic Imperatives to Drive Success Integrated Healthcare Services • Grow CSO business leveraging current overhead Scale new, higher margin services Drive services to support evidence-based medicine Expand into closely related markets 64
Slide 65: Drive toward Variabilization
Drive toward Variabilization Significant increase in new product launches in the midst of tight spending control is driving BioPharma toward variabilization of their resources Sales / forecasted sales ($B) lost to all IP expired products that year 1 40 35 • 35 new product launches 30 per year over n
Slide 66: Grow CSO Business Leveraging Current Overhead: sales effectiveness
Grow CSO Business Leveraging Current Overhead Quintiles Differentiation Representative Effectiveness • Proprietary Performance Management System Quintiles team 46% more effective than customer team • Superior Sales Force 16 Effectiveness 13.9 14 • Experience: > 1,000 sales Avg Rxs Per Team 12 teams
Slide 67: Grow CSO Business Leveraging Current Overhead
Grow CSO Business Leveraging Current Overhead Quintiles Differentiation Customer Feedback: “We felt like we got better all-round • Proprietary Performance quality with Quintiles than Management System competing CSO” • Superior Sales Force Head to Head Effectiveness • Experience: > 1,000 sales teams
Slide 68: Integrated Healthcare Solutions – Japan
Integrated Healthcare Solutions – Japan Market leader due to premium and differentiated services Quintiles Differentiation • Japan’s largest Commercial Outsourcing partner1 • Highest market share with Premium Foreign and Domestic Pharma companies • ~2,200 Employees in Japan as of 6/30/14 • Dedicated
Slide 69: Scale new, higher margin services
Four Strategic Imperatives to Drive Success Integrated Healthcare Services Grow CSO business leveraging current overhead • Scale new, higher margin services Drive services to support evidence-based medicine Expand into closely related markets 69
Slide 70: Focus on New, Higher-margin Services
Focus on New, Higher-margin Services Remote e-Detailing1 Quintiles e-detail vs. No Contact 4 3.5 Case: Value of eDetailing1 3 • Rxing output increased by 118% vs. no Average Rx/GP 2.5 contact 2 1.5 • Call duration 4x that of Customer’s own 1 F2F Reps 0.5 0 • 1:1 promotional contact rate 3x that of f
Slide 71: Drive services to support evidence-based medicine
Four Strategic Imperatives to Drive Success Integrated Healthcare Services Grow CSO business leveraging current overhead Scale new, higher margin services • Drive services to support evidence-based medicine Expand into closely related markets 71
Slide 72: Evidence-based Services: Market Access
Evidence-based Services: Market Access Quintiles Differentiation Field Sales • Market leading Real World + Market Access Evidence and HEOR Operate + • Best-in-class medical understanding Consulting of treatment pathways • Local knowledge of healthcare systems • HTA Suite • Established payer and prov
Slide 73: Expand into closely related markets
Four Strategic Imperatives to Drive Success Integrated Healthcare Services Grow CSO business leveraging current overhead Scale new, higher margin services Drive services to support evidence-based medicine • Expand into closely related markets 73
Slide 74: Expand into Closely Related Markets (Encore)
Expand into Closely Related Markets (Encore) Quintiles Differentiation Encore & Quintiles Synergies • Best-in-class core clinical and hospital workflow capability EHR Data Warehouse and Reporting • Deep provider relationships Program Delivery • Quintiles’ 30+ years experience in clinical analysis •
Slide 75: IHS – Takeaways
IHS – Takeaways Industry leadership through differentiation Market leader in Commercial and Real World Late Phase Scale new, higher margin services Vision Be the leader in integrated healthcare services, growing our core and driving Expand into and leverage closely increased value to our related mar
Slide 76: Real World & Late Phase Research
Quintiles Integrated Healthcare Services: Real World & Late Phase Research Cynthia Verst President Real World Late Phase © Copyright 2014 Quintiles
Slide 77: Addressing Increased Demand for Evidentiary Needs
Addressing Increased Demand for Evidentiary Needs Real World Evidence in today’s multi-stakeholder environment requires solutions to increase efficiency and effectiveness for biopharma, payers and providers both pre- and post-approval PRODUCT DECISION APPROVAL BioPharma Regulators Payers Providers P
Slide 78: Real World & Late Phase Market Evolution
Real World & Late Phase Market Evolution A complex market of increasingly local stakeholders who have different needs and different purposes Genomics Personalized Medicine Patient Reported Convenience, Quality of Life Research Approach Outcomes Observational Safety, Effectiveness & Value Research Pr
Slide 79: Real World & Late Phase Market & Trends
Real World & Late Phase Market & Trends The real world & late phase market is characterized by strong growth prospects Anticipating the Earlier Interest in Market Access Using Real (earlier in World Data product and Analytics Need for lifecycle) to Drive Productivity Decision Making Addressing Need
Slide 80: Quintiles' Real World & Late Phase Journey
Quintiles’ Real World & Late Phase Journey Outcome Sciences, Inc. New EHR data founded assets acquired 1982 1998 2011 2012 2014 Continuous capability Quintiles and improvement: Outcome Infosario Outcome Quintiles founded joined forces 2011 System 3.0 The industry leader in real world and late phase
Slide 81: Our Leadership Provides a Unique Vantage Point
Our Leadership Provides a Unique Vantage Point to Anticipate and Lead this Complex Market Complex customer study needs: Patients: 100’s – 1,000’s Increase in the number of ‘Mega Complexity Regions: Registries’ and Global + Regional + Local contract size (5-7x a typical registry) Innovation: Scalable
Slide 82: Robust Study Design and Execution to Achieve Global & Local Evidence
Robust Study Design and Execution to Achieve Global & Local Real World Evidence to Satisfy Multiple Stakeholders Customer Need • Understand and overcome the multi-regional barriers to market access for a new- to-market endocrinology drug. Challenges & Complexities • 25+ countries in all regions of t
Slide 83: Real World & Late Phase Key Differentiators
Real World & Late Phase Key Differentiators Comprehensive, unrivaled capabilities Scientific Affairs expertise Market Global Specialized leading, breadth; local integrated experience Resources technology Innovative solutions 83
Slide 84: Specialization in Observational Research and Registries
Specialization in Observational Research and Registries We understand the unique challenges with designing and implementing observational programs that meet stakeholders’ real-world evidence requirements. Specialization Experience1 Therapeutic Expertise • Observational Studies • 185+ Patient Registr
Slide 85: Real World & Late Phase Scientific Expertise
Quintiles Real World & Late Phase Scientific Expertise We Help Set the Standards Across We Help Pioneer New Approaches Healthcare on how Studies are Performed to Data and Studies AHRQ Registries Handbook ROPR (Registry of Patient Registries) Best Practice Guidelines for Designing and A Central Repos
Slide 86: Scaleable & Sophisticated Technology, Data & Solutions
Scaleable & Sophisticated Technology, Data & Solutions Innovation & access to navigate the complex real-world landscape Proprietary Technology For Real Electronic Health Record (EHR) & World Research Data Analytics Patented Electronic Data Capture & High quality EHR, clinical, claims, and Reporting
Slide 87: Helping to Reduce Injuries
Helping to Reduce Injuries Since 2011, we have been working with the NFL to evaluate patterns of injury occurrence over time through question-driven reports - Collects data on injuries from the start of training camp through the Super Bowl - Focuses on concussions as well as any injury resulting in
Slide 88: Our Customers
Our Customers Diversified portfolio of over 100 customers • Continue to see strong demand across all customer segments: › Large, Mid & Small biopharma › Provider & Professional Associations • 10 new accounts in the first half of 2014 • 7 times more bookings in the first half of 2014 from Small Pharm
Slide 89: Real World & Late Phase Research – Takeaways
Real World & Late Phase Research – Takeaways Industry leadership through differentiation Market leader in Real World and Late Phase services Industry-defining scientific expertise Vision Market leader in comprehensive evidence generation to increase customers Market-specific technology probability o
Slide 90: Technology
Technology Richard Thomas Chief Information Officer © Copyright 2014 Quintiles
Slide 91: Industry Evolution
Industry Evolution Shifting to a digital, knowledge-centric ecosystem ELECTRONIC-ERA CLOUD-ERA Direct to Provider Monolithic Ramp-up Modular • Technology enables workers • Technology replacing workers Direct to Patient • Big infrastructure, big apps Ramp-up • No infrastructure, many apps • Complexit
Slide 92: Our Technology Journey, One Step at a Time
Our Technology Journey, One Step at a Time MediGuard Service Operations Center Quintiles Infosario Safety Data Driven Trial Engaging with patients Real-Time operational monitoring Global Safety System Execution (DTE) Launch Data Factory ECM (including Quintiles Centralised Data Infosario eTMF) Quint
Slide 93: Infosario Data Factory
Infosario Data Factory Data Integration is key to Unlocking the Productivity Puzzle Trial and Subject Data Electronic Health Records Infosario Analytics Patient Communities and Direct-to-Patient Research 93
Slide 94: Industry Leading Technology Capabilities
Industry Leading Technology Capabilities Research Real-world Design Execute Engage Commercialize Infosario Design Infosario Analytics Infosario Engagement Infosario Commercial Infosario Design Infosario Clinical ClinicalResearch.com eDetailing Site Targeting MediGuard.org Real-World Modeling Infosar
Slide 95: Driving Customer Value – Enabled by Technology
Driving Customer Value – Enabled by Technology Research Real-world Design Execute Engage Commercialize Data-Driven Design Data-Driven Execution Experience-Driven Engagement Implement Reduced SDV Optimizing recruitment Significantly Reduce with multi-level data through patient profiling Protocol Amen
Slide 96: Planning and Design – Infosario Design
Planning and Design – Infosario Design Enabling better design decisions Fully integrated, Expert-biased design Data-driven design Cost, time, and risk Single option designs trade-off scenarios Probability-based Operational guesstimates predictive analytics Integrated Program to Trial-by-trial object
Slide 97: Planning and Design – Infosario Design
Planning and Design – Infosario Design Enabling better design decisions >12K >240K 487 >61M Protocols Investigators Indications Patient Lives Facilitated Interactive Computer Assisted Design Balance time, cost and risk to improve probability of technical success 100 different molecules, generating 1
Slide 98: Planning and Design – Infosario Design Studio
Planning and Design – Infosario Design A unique setting - The design studio bringing experts & data together 98
Slide 99: Clinical Development Program Planning
Clinical Development Program Planning Concept Map Clinical Development Program Scenarios Clinical Trial Package 99
Slide 100: Trial Design Planning
Trial Design Planning Digital Memory - Concept Map and Assumption Tracking 100
Slide 101: Predictive Analytics
Predictive Analytics Combining 61M Patients EHR data with 30 Years of Operational Knowledge Standard of Care Predictive Analytics based on EHR data Country Analytics Multiple Sources, Detailed Country Profiles Trial Investigator Analytics Quintiles Investigator Performance DB (& Sponsor Investigator
Slide 102: Predictive Analytics: Running Multiple Models in Real-time
Predictive Analytics Running Multiple Models in Real-time Patient Enrollment Modeling Algorithm integrates data from prior Country/Investigator Analytics Investigator Costs Model costs across countries as scenarios are created 102
Slide 103: Multiple Clinical Development Planning Scenarios
Multiple Clinical Development Planning Scenarios Cost, Time, Risk & Patient Burden Tradeoff Decisions in real-time 103
Slide 104: Risk Based Monitoring – Infosario Clinical & Analytics
Risk Based Monitoring – Infosario Clinical & Analytics Better execution through an integrated clinical ecosystem Data integration across any Data in multiple, siloed systems CTMS, eDC, IVR, Lab, ECG Days, weeks, months to Real time, holistic collect and review data review and oversight Numerous manu
Slide 105: Risk Based Monitoring – Infosario Clinical & Analytics
Risk Based Monitoring – Infosario Clinical & Analytics Better execution through an integrated clinical ecosystem >95 >20,000 >250,000 Studies Sites Patients Infosario Clinical Infosario Analytics Solutions that bring as much as 25% cost reduction 105
Slide 106: Risk Based Monitoring: Technology enabled execution
Risk Based Monitoring – Infosario Clinical & Analytics Technology enabled execution Upfront Risk Assessment (from Planning & Design) Medical / Medical Non-triggered Project Management Surveillance issue escalation Triggers & Alerts Centralized Monitoring Infosario Clinical Data Subject-Level Trigger
Slide 107: Graphical Patient Profile
Graphical Patient Profile Integrated view of all subject data 107
Slide 108: Vital Signs Review
Vital Signs Review Trend analysis 108
Slide 109: Lab Analyte Reviews
Lab Analyte Reviews Real-time access to safety lab reviews 109
Slide 110: Clinical Project Management
Clinical Project Management Study project manager review of global sites – Alert from medical review in Bangalore Medical Reviewer Bangalore, India Project Manager Raleigh, USA 110
Slide 111: Patient and Provider Engagement – Infosario Engagement
Patient and Provider Engagement – Infosario Engagement Technology enables direct-to-patient long term relationships Recruitment driven by Recruitment optimized through Provider/Patient Relationship direct to Patient Digital Engagement Infrastructure and digital tools Multi-factor patient retention s
Slide 112: Patient and Provider Engagement – Infosario Engagement
Patient and Provider Engagement – Infosario Engagement Technology enables direct-to-patient long term relationships >3.2M >400 >220 Patient Direct-to-Patient Product Launches Relationships Studies across across our 30 countries communities Infosario Engagement Building digital relationships directly
Slide 113: MediGuard.org
MediGuard.org Medication monitoring for our community of >2.6M members in 7 countries since 2007 113
Slide 114: ClinicalResearch.com
ClinicalResearch.com Clinical study matching service 114
Slide 115: ClinicalResearch.com
Cc Cli linicalResearch.com nicalResearch.com QUINTILES we here ne | For Specific Conditi Lupus GET TRIAL Better Medicines. Because there's more sept to life than Lupus. Receive email alerts 0 latest clinical trial health news. SIGN UP NOW R SPECIFIC CONDITIONS Aizheimer’s @)) FIND Lupus Ea >» STUDIE
Slide 116: I Am More Than Lupus
I Am More Than Lupus Quintiles condition specific communities on Facebook 116
Slide 117: Technology Solutions – As a Service
Technology Solutions – As a Service Leveraging our investments to transform customer operations >130 2012 >80,000 Billable Began Providing Industry Users FTE’s IT Services Tried & Tested Solutions Industry transformation driving demand for Quintiles IT services and solutions 117
Slide 118: Technology Solutions – As a Service
Technology Solutions – As a Service Leveraging our investments to transform customer operations Research Real-world Product Development & Integrated Health Services Leveraging technology in delivering Quintiles services Technology Solutions embedded in Quintiles Services Technology Data Advanced Com
Slide 119: Industry Evolution: Differentiating Technology
Industry Evolution Shifting to a digital, knowledge-centric ecosystem CLOUD-ERA 1. 1 Differentiating Technology - Q is a Different Kind of Partner Direct to Provider Ramp-up Modular 2. 2 Q Integration is key to unlocking Direct to Patient • Technology replacing workers • No infrastructure, many apps
Slide 120: Analyst Day - Financial Overview
Analyst Day - Financial Overview Kevin Gordon Chief Financial Officer © Copyright 2014 Quintiles
Slide 121: Track Record of Profitable Growth and Consistency
Track Record of Profitable Growth and Consistency Long term Performance Underpinned with a Diversified Customer Portfolio Adjusted Service Revenues(1) Adjusted EBITDA(2) ’10 – ’13 CAGR = 8.3% ’10 – ’13 CAGR = 9.7% 4,500 700 $663 $3,977 $3,808 (5) $612 4,000 $3,692 600 $544 3,500 $3,295 $490 $2,997 5
Slide 122: Continued Momentum in 2014
Continued Momentum in 2014 Six Months Ended June 30, 2014 FINANCIAL HIGHLIGHTS OTHER HIGHLIGHTS 8.5% Constant Currency Revenue(1) 1.23x Book-to-bill ratio - 7.6% in Product Development - 1.21x in Product Development -11.5% in Integrated Healthcare - 1.29x in Integrated Healthcare Services Services 9
Slide 123: Globally Diversified Business and Services in a Growing Market
Globally Diversified Business and Services in a Growing Market Diversified by Geography and Services Service Revenues by Segment Segment Income from Operations Product Product Development Development 93% 75% Integrated Healthcare Services 25% Integrated Healthcare Services 7% Service Revenues by Geo
Slide 124: Capital Deployment
Capital Deployment Consistent free cash flow growth Free Cash Flow Capital Deployment Strategies • Invest to support organic growth $400 $350 • Supplement capabilities & growth $300 through acquisitions $ millions $250 › Novella acquisition ($146.5mm) $200 › Encore acquisition ($93.6mm) $150 $100 $5
Slide 125: Strategy Drives Growth, Margins, and Quality
Strategy Drives Growth, Margins, and Quality Growth • Dedicated customer relationship teams translate customer needs to Quintiles solutions • World class sales organization driving proposals and pricing • Targeted segment solutions for high growth markets • Strategic partnerships • Commitment to man
Slide 126: Quintiles An Attractive Investment
Quintiles An Attractive Investment Strong free cash flow Best in industry operating margins with a consistent focus on process and productivity leverage Deep and diverse customer relationships with no customer contributing 10% or more of revenues Long-term consistent financial performance First move
Slide 127: Quintiles An Attractive Investment: 2014 Guidance
Quintiles An Attractive Investment 2014 Guidance Estimates Growth Strong free cash flow Revenue $4.20bn - $4.24bn 10.3% - 11.3% Adjusted EPS $2.57 - $2.67 22.4% - 27.1% Best in industry operating margins with a consistent focus on process and productivity leverage Deep and diverse customer relations
Slide 128: Appendix
Appendix O QUINTILES’ 128
Slide 129: Adjusted Service Revenues Reconciliation
Adjusted Service Revenues Reconciliation Adjusted Service Revenues Reconciliation Year Ended December 31 (In Thousands) Six Months Trailing Twelve 2013 2012 2011 2010 Ended June Months Ended 30, 2014 June 30, 2014 Non-GAAP Adjusted Service Revenues: GAAP Service Revenues as Reported $2,040,764 3,977
Slide 130: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation Year Ended December 31 (In Thousands) Six Months Trailing 12 2013 2012 2011 2010 Ended June Months 30, 2014 Ended June 30, 2014 Non-GAAP Adjusted EBITDA: GAAP Net Income as Reported $175,324 $314,842 $226,027 $176,631 $240,327 $165,255 In
Slide 131: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Adjusted Net Income Reconciliation Year Ended December 31 (In Thousands) Six Months Trailing 12 2013 2012 2011 2010 Ended Months June 30, Ended 2014 June 30, 2014 Non-GAAP Adjusted Net Income: GAAP Net Income as Reported $175,324 $314,842 $226,027 $176,631 $240,327
Slide 132: Constant Currency Reconciliation
Constant Currency Reconciliation Service Revenues and Income from Operations (millions of dollars) Three Months Ended June 30 Year on Year Growth Exchange Exchange Consolidated Actual Impact Constant Actual Impact Constant Service Revenues $ 1,035.5 $ 10.1 $ 1,025.4 9.7% 1.1% 8.6% Income from Operat
Slide 133: Closing
Closing O QUINTILES’ 133
Slide 134: Quintiles Leader in BioPharma Services
Quintiles Leader in BioPharma Services Growing Markets Differentiated Service Offerings & Well Run Company Relationships Clear Industry Leader Financial Strength and Execution Momentum 134