Day two of the 16th Annual BIO CEO & Investor Conference kicked off with a Fireside Chat featuring one of the longest tenured pharma CEOs, David E.I. Pyott, Chairman of the Board & Chief Executive Officer, Allergan.
The Chat, moderated by Seamus Fernandez, Managing Director, Major and Specialty Pharmaceuticals, Leerink Partners LLC, explored the multi-specialty healthcare model that Allegran has found success in which few realize is not just ophthalmology. Allergan has also found success in neurosciences, medical dermatology, dermal fillers and urologics.
When asked about his overall industry outlook, Pyott responded with “feeling rather good.” The last two quarters for Allergan have been the strongest in growth since before the recession. Pyott credits this growth with a strong emphasis on research and development. In 2013, the company dedicated $1B to research and development and Pyott estimates in five years that number will increase to $1.5B annually.
Of that considerable amount dedicated to R&D, 40 percent was strictly for ophthalmology. Pyott sees this as the biggest business for Allergan with Restasis being the huge driver, growing above worldwide market growth. Two factors can be attributed to this growth rate; a large investment in consumer advertising (according to Nielsen, in the much coveted 18-35 female market, Restasis was the #1 product in memorability) and a huge uptick in optometry as a whole.
Backed by Allergan’s recent successes, Fernandez took the opportunity to pick Pyott’s brain about new opportunities in aesthetics. The CEO emphasized that pharma execs must learn to understand consumer marketing. There is an obvious trend amongst consumers that they want to look and feel younger. Understanding their audience, Allergan has continued to explore advancements in neuromodulators, dermalogical fillers and topical skin care as these areas are growing at rate of 10 percent year over year. In looking ahead for long term growth opportunities, Pyott believes that compound sales will be the key. Allergan has experienced a 17 percent increase in this area since 1998.
Watch Pyott discuss innovation as it pertains to Allergan.