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Living Longer LIVING LONGER BETTER AND HEALTHIER LIVES Celgene Key Facts MEDICAL INNOVATION = V + A + L + U + E Increased societal VALUE ADVANCING the quality of life Greater LONGEVITY UNENCUMBERED access ECONOMIC impact Every 1 percent reduction Patients are not just surviving; New medicines account for 73 Between 1990 and 2010, the The overall economic impact in United States cancer they are thriving—spending percent of the increase in life average time spent in the of the biopharmaceutical related deaths = $500 billion less time in hospitals,3 more expectancy.4 Between 1990– hospital by cancer patients sector on the U.S. economy in societal value.1 Since 1990, time with their families, able to 2014, the number of cancer declined by 70 percent, sav­ totals about $790 billion on cancer patients in the U.S. continue with jobs and careers. survivors more than doubled— ing $250 billion, that is directly an annual basis when direct, have enjoyed 50 million addi­ from six million to 14.5 million.5,6 attributable to access to medi­ indirect and induced effects tional years of life and gener­ cal innovation.7 are considered.8 ated $4.1 trillion in additional economic activity.2 KEY FACTS 2015 CELGENE IS COMMITTED TO IMPROVING THE MEDICAL INNOVATION IN CANCER LIVES OF PATIENTS WORLDWIDE • Over the last two decades, there has been a 22 percent • More than 46,000 patients have been helped by Celgene’s decrease in cancer-related deaths in the U.S.22 Patient Support® Program.9 • As of 2014, the U.S. five-year relative survival rate for all • Celgene’s broad and deep pipeline currently has 50 programs cancers diagnosed between 2003 and 2009 is 68 percent.23 in pre-clinical development, 25 treatments in clinical trials and • U.S. cancer survivorship has more than doubled, with nearly 15 pivotal Phase III programs underway.10 14.5 million cancer survivors alive today.24 • Celgene Annual Reports 2010–2014 reflect average research • For decades, treating cancer has remained just five percent and development (R&D) investment of 32.29 percent of total of the total U.S. healthcare expenditure.25,26,27,28,29 revenue based on U.S. GAAP.11 • Eighty-three percent of survival gains since 1975 in cancer are • Celgene’s R&D expenditure per employee is approximately attributable to new medicines.30 $265,000.12 • The chances that a cancer patient will live five years or more has increased by 39 percent since 1975.31 • Survival rates for childhood cancers have increased 58 percent KEY HEALTHCARE STATISTICS over the last several decades.32 • Advances in medical innovation have yielded large societal gains. There has been a 96 percent decrease in deaths per 100,000 people and a 62 percent increase in life expectancy COST OF DEVELOPING NEW THERAPIES since 1900.13 According to the Tufts Center for the Study of Drug Development, • For every $1 spent on innovative medicines, total healthcare the average cost to develop one new approved therapy more spending in the U.S. is reduced by $6.20.14 than tripled between the late 1990s and 2014, costing up to • Only 10 percent of U.S. healthcare spending is dedicated to $2.6 billion.33 biopharmaceuticals, with new targeted cancer-related therapies accounting for approximately one percent. That percentage has remained constant for decades and is expected to remain MEDICAL INNOVATION IN INFLAMMATION AND the same through the next decade.15,16,17 IMMUNOLOGY (I&I) • Innovative medicines accounted for 73 percent of the increase • A first-of-its-kind multinational survey examined the impact of in life expectancy between 2000 and 2009.18,19 psoriasis and psoriatic arthritis on patients’ lives. The survey • Every 1 percent increase in prescriptions filled among Medicare revealed several areas that warrant further attention and action, beneficiaries lowers Medicare spending for other health services including high rates of under-treatment, a mismatch between by 0.2 percent.20 patient/physician assessment of the disease and the desire for new treatment options.34 • Based on the same survey, half of psoriasis and psoriatic ACCESS AND ADHERENCE arthritis patients found their current traditional or biologic treat- According to a 2011 Journal of the American Medical Associ ation ments burdensome.35 (JAMA) study, improved access and adherence to medicines • The estimated economic burden for psoriasis, psoriatic arthritis, through Part D saves Medicare about $1,200 per year in hospital, Chron’s disease and rheumatoid arthritis is approximately $51 nursing home and other costs for each individual who previously billion.36,37,38,39,40 lacked comprehensive prescription drug coverage. This reduction • There are more than 80 medicines in development for immune achieved about $13 billion in overall savings during the first full disorders like psoriasis, psoriatic arthritis, rheumatoid arthritis year of Part D.21 and Chron’s disease.41,42 Living Longer, Better and Healthier Lives focus is on building long-term strategic partnerships with Sustaining a these groups that provide important insights to advance research and clinical trial design, access, medical inno- Virtuous Cycle of vation, patient policies and education. It extends to our research partners who work with us to Medical Innovation build and expand next generation capabilities, including new treatment combinations that have never been tried before. Our history of perseverance in the name of scien- tific discovery, even when the outcome was unclear and Medical innovation is a virtuous the benefit uncertain, along with our willingness to demon- strate the courage to think differently, act boldly and set cycle. A cycle in which each high aspirations, has created a reputation that positions Celgene as a partner of choice for global thought leaders action creates the building blocks in science and medicine. for next-generation therapies, Of great importance is the strength of our business improved healthcare, longer life model, a unique model that positions us in a leadership role in the fields of hematology, oncology, and now, and economic growth. forging ahead with our paradigm-shifting therapies for immune-inflammatory diseases. Our belief in the potential At Celgene, we take our role in the healthcare ecosystem of this new business is so strong that we decided to build very seriously, and we strive to embody our position as a an entirely new franchise that can benefit patients world- leader in medical innovation, pursuing transformational wide with immune-mediated diseases. science that will translate into life-enhancing medicines. We believe that being a leader in healthcare means that Our ultimate goal is to change the course of human health we drive in new scientific solutions, innovative medicines, while promising to always put patients first. We do this by patient and health economic outcomes and social/economic protecting and nurturing an environment, inside Celgene benefits. It means that we lead not just within our own and across the larger healthcare ecosystem, where inno- industry, but across the entire healthcare ecosystem. vation can flourish. This is paramount to us because patients are at the center of our mission. Patients want to This profile—Living Longer, Better and Healthier Lives— live longer, better and healthier lives. Patients want the provides an overview of how Celgene’s core commitment strength to do what matters most to them. Patients want to patients supports the virtuous cycle of medical innova- to be active participants in the lives of their loved ones tion across many spheres. In Chapter 1, we explore how and communities. our work has resulted in patients living longer, better and healthier lives through breakthroughs in blood cancers, Biopharmaceutical leadership is inherently expressed in solid tumors and inflammation and immunology. Chapter the virtuous cycle: through medical innovation that has 2 focuses on the impact of Celgene’s commitment to increased U.S. life expectancy from 68 years in 1950 reducing the burden of disease through improved quality to 79 years in 2010;43 through research that generates a of life, better outcomes, reduced hospitalizations and seven fold savings in healthcare expenditures; through increased productivity, as seen through the eyes of patients. biopharmaceutical investment that is more than ten times The role of medical innovation in boosting economic pros- the amount of R&D per employee than manufacturing perity, societal benefit and the healthcare ecosystem industries overall;44 and through patient access support is highlighted in Chapter 3. Celgene’s immensely deep programs. The Celgene Patient Support Program has and diverse pipeline of high-potential compounds across impacted over 50,000 patients since 2007.45 hematology, oncology, inflammation and immunology and The virtuous cycle also extends to helping patients advo- cellular therapeutics comprises the topic of turning science cate for their needs. Celgene works with nearly 150 patient into reality for patients in Chapter 4. And in Chapter 5, we advocacy groups worldwide that are dedicated to support- discuss the future of medical innovation and our role in ing and advocating for patients and their families. Our reaching toward a world free from cancer. 1 Celgene Contents CONTENTS Innovation leads to the discovery and development of therapies that save and extend lives46—the primary goal of any healthcare program. And by doing that, innovation helps keep healthcare costs down and drives economic growth.47,48,49 Thanks to medical innovation patients are living longer,
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