Global survey: Consumers will spend more for products befitting a healthier lifestyle
ZURICH — Bain & Co. released findings Thursday from an online survey of 1,200 people living in New York, Munich and New Delhi that found most would readily trade premium medical care for access to healthier living options, such as more nutritious food, health education, exercise and innovative healthcare technologies. In addition, respondents reported they were willing to pay more for improved health and well-being — underpinning an important shift in mindset away from health ‘care’ and toward ‘prevention’ that is hastening demand for products and services and creating significant business opportunities around the world.
According to the survey, 9-in-10 respondents, rich and poor, said they were willing to spend and invest more in products that support healthy living — even as much as 5% or more of household income. Eight-in-10 reported significant impediments created by everyday life that interfere with a healthy living regimen, such as stress, lack of time and poor habits.
More than half readily admit they are not meeting the World Health Organization’s recommended minimum physical activity levels. And more than 70% want health insurers to focus more on keeping people healthy, educating patients and rewarding them for healthy behavior.
“A healthy lifestyle is no longer just a story in the style section or something only fitness fanatics value. For a growing number of people around the world, health and well-being are becoming the new status symbol,” said Norbert Hültenschmidt, a Bain partner in Zurich who heads the firm’s Healthcare Practice in Europe, the Middle East and Africa and leader of Bain’s ‘healthy living’ global initiative. “Consumers understand what they need to do, but they need a lot more help doing it and enabling them to move from good intentions to healthy behaviors. The ‘new producers’ of healthy living, those that personalize their products and offerings creatively, or develop the market for a product yet to be invented, will create enormous value — for shareholders and the world.”
The survey findings carry broad implications for businesses, with the greatest opportunities seemingly in healthcare payers, providers, insurance, pharmaceuticals, medical and consumer technology and consumer goods.
New Yorkers report having the best understanding of what it takes to maintain a healthy living lifestyle (85%). Germans had an understanding nearly on par with New Yorkers, but had the least interest of the three groups in wanting to follow a healthier lifestyle, or saying that healthy living was among their top three personal priorities. Indians, for whom the survey sample skewed toward the more highly educated, were also the most eager for healthier options of all types, and were the most willing to spend on online health services; though responses in New Delhi revealed contradictions, such as reporting to be the most well-read on healthy living topics without demonstrating greater knowledge through their responses; and though Indians reported being the most engaged in physical activity, they were the group most preoccupied with chronic disease, with more than half of those under the age of 40 years citing a fear of contracting one within the decade.
High stress levels present the biggest impediment to healthier living for residents in New York and in New Delhi. Munich residents named poor habits as the biggest hurdle. New Delhi residents appeared the most constrained, citing such factors as time and expense.
New York and Munich residents were more inclined than Delhiites to oppose government regulation and intervention for healthier living (e.g., limiting calories, transfats and salts) and imposing higher insurance premiums for high risk factors such as obesity. New York and Munich respondents don’t trust food and beverage companies for reliable health information. Delhiites are more trusting across the board, especially for pharmaceutical firms; hence business barriers in India are potentially reduced.
While Munich residents were less likely overall to spend on healthy habits compared to New Yorkers and Delhiites, the one significant exception was for healthier food: More than half of Munich respondents said they would spend more for it.
Consumer goods companies — including food producers and retailers, sporting goods and exercise equipment makers — have significant potential upside from rising demand for healthier options, even at greater cost. But firms need to recalibrate their offerings to make them more personalized, convenient and accessible, the report found. Tech and telecommunications firms that can provide digital tools and other facilitating products and services will be in demand particularly in India, where demand for online health services is most pronounced.
Actavis realigns corporate structure
DUBLIN — Actavis on Friday announced a realignment of its global strategic business structure to maximize the company’s newly strengthened position as a leading specialty pharmaceutical developer, manufacturer and marketer, and to enhance Actavis’ position for continued long-term growth.
Under the new organizational structure announced at Actavis’ 2014 Investor Meeting in New York, Actavis’ global generics, specialty brands, branded generics, legacy brands, over-the-counter and third-party commercial operations and business development have been consolidated into a single new division, under the leadership of Siggi Olafsson, president of Actavis Pharma.
Actavis’ generic, brand, inhalation and biosimilars research and development organizations have been consolidated under the leadership of Fred Wilkinson, in the newly created position of president, Actavis Global Research and Development.
Olafsson and Wilkinson will continue to report directly to Paul Bisaro, chairman and CEO Actavis.
"Over the past several years, Actavis has evolved into a leading specialty pharmaceutical company with a solid global commercial footprint and a research-and-development capability unmatched within the industry," Bisaro said. "This organization will provide unprecedented management focus on driving our company to the next stage in our evolution and ensure our successful evolution into the world’s premier, global specialty pharmaceutical leader."
In concert with the realignment, Bisaro established four strategic pillars of growth for the continued expansion of Actavis:
- Maximize the company’s commercial structure to capitalize on the value of the pharmaceutical products being delivered to customers, regardless of whether they are generic, brand, branded generic, OTC and ultimately biosimilars;
- Ensure continued focus on organic growth through maximization of the company’s research and development expertise;
- Emphasize operational excellence and cost control across the company’s global manufacturing and distribution network; and
- Deploy capital to drive the continued expansion of the company’s commercial, portfolio and technology capabilities through strategic mergers, acquisitions and business development initiatives that deliver growth multiples that complement investments in sustainable organic growth.
"By placing all commercial pharmaceutical sales and marketing functions under Siggi, our new commercial structure will better position us to respond to market needs and compete more effectively on the global specialty pharmaceutical stage," Bisaro said. "Actavis currently participates in more than 60 markets, and we are focused on expanding our commercial footprint. Siggi’s knowledge of global markets and understanding of the intricacies of delivering pharmaceuticals that meet the needs of specific market dynamics — brand, generic, branded generic and OTC products — ensures we are capitalizing on opportunities to drive revenues and earnings growth. Combining our commercial operations will dramatically strengthen Actavis’ position as a global provider of pharmaceutical products to our patients in our diverse customer base," he said.
"By combining generic, brand, inhalation and biosimilar research and development, global regulatory affairs and global pharmacovigilance activities under Fred, we capitalize on his pharmaceutical industry expertise and intimate knowledge of commercial realities to direct and deliver on our investment in R&D, which is expected to exceed $800 million in 2014," Bisaro added. "Fred’s expertise in our core brand therapeutic categories, his management of our biosimilar initiatives and his decades-long experience in the generic pharmaceutical universe brings real world marketing realities to ensuring new products developed achieve their full potential. Under Fred’s leadership, we will dramatically enhance our ability to deliver on a fully integrated, global pharmaceutical pipeline and ensure we maximize value for every dollar we spend."
In addition to the commercial and R&D changes, Actavis announced that Robert Stewart, president Global Operations, will be charged with an expanded role driving efficiencies across the organization and capitalizing on the most efficient utilization of human and financial resources, as well as harnessing the capabilities of Actavis’ global manufacturing and distribution functions, including the continued oversight of Anda. Marc Lehnen, SVP Global Integration Management and Patrick Eagan, chief human resources officer, will now report to Stewart.
"Bob will drive synergy capture and value creation from organic and acquired assets resulting from mergers and acquisitions. Given the breadth of Bob’s responsibilities across our organization, I have also asked him to lead our efforts to realize the full potential of our global team by managing our Global Human Resources function," Bisaro said. "Bob has a proven track record of delivering operational excellence while providing exceptional cost control across our global network. By assuming responsibility for integration management and human resources, we expand the capabilities available to Bob as he continues to optimize our operational strengths."
NAD refers Brain Research Labs to FTC
NEW YORK — The National Advertising Division has referred to the Federal Trade Commission advertising claims made by Brain Research Labs, for Procera AVH, following the company’s failure to abide by the terms of an NAD decision.
In an underlying 2009 decision, NAD recommended that the advertiser discontinue a wide range of claims and testimonials for Procera AVH, including the unqualified claim that Procera AVH was “clinically shown to restore the memory and brain power you had 10-15 years ago" and claims that the product is “fast-acting.”
NAD also determined that a key ingredient in the product, vinpocetine, had not been demonstrated to provide increased oxygen delivery, uptake and utilization by the brain. NAD recommended the advertiser discontinue such claims.
NAD contacted the advertiser when it learned that the company was again making claims similar to those it agreed to discontinue in 2009.
The advertiser, in response, agreed to discontinue all the challenged claims except for the claim that Procera AVH has “vinpocetine, a substance that helps deliver increased oxygen and glucose to your brain.”
The advertiser asserted that a more recently conducted study supports the claim. However, an advertiser in an NAD proceeding may not, absent extraordinary circumstances, submit new evidence after the fact as support for claims that were the subject of an earlier proceeding.
Based on the advertiser’s actions, NAD has referred the matter to the Federal Trade Commission for further review.
NAD is an investigative unit of the advertising industry’s system of self-regulation. It is administered by the Council of Better Business Bureaus.