Giles Platford, Nycomed Brazil
Release Date: 2011-08-17
This past May Nycomed agreed in a takeover of its business by Takeda. It was obviously big news on a global level – what impact will it have on the operations in Brazil?Takeda is a major player within the global pharmaceutical market, so naturally this would bring – given a successful closing of the deal – an important scale to Nycomed in key markets such as Japan and the US. From a Brazil perspective, we are enthusiastic about the opportunity. Takeda invests around 20% of revenues in Research & Development, resulting in a robust pipe-line across important therapeutic areas such as Diabetes, Cardiovascular, CNS and Oncology. These would be new segments for Nycomed, allowing us to diversify dramatically our offering in Brazil via future product launches. For Takeda, Nycomed presence and growth in emerging markets, such as Brazil, was an important factor behind their decision to acquire the company. Takeda does not have its own commercial footprint in Brazil, so inheriting an organization of over 1,100 people, with local manufacturing capabilities, immediately gives critical mass, scale, and a platform to launch their pipe-line.
You mention Nycomed’s strength in emerging markets. What’s the importance of Brazil in the overall portfolio?
Our Brazil operation became the 2nd largest affiliate worldwide for Nycomed in 2010, following a strong performance which positioned us as one of the fastest growing multinationals in the Brazilian pharma market (IMS retail audit).
We have a broad portfolio of branded medicines in Brazil, many of which are household names and have been on the market for several decades. Bringing fresh ideas and innovation to these brands has been fundamental to our growth. However, the fact that we´ve achieved strong double digit with a predominantly mature brand portfolio speaks even more to the quality and competency of our people. Of course to sustain and sharpen that growth we need to launch new products, which is why we have worked hard over recent years to build a robust pipe-line. In 2011 we are launching 4 new products, and the potential addition of Takeda pipe-line will mean many more for the future. I am confident Brazil will continue to be an important driver of growth moving forward.
I read an interview you had done with IMS Health a few years ago talking about that 15% growth aspiration, and how it would be driven by three main strategic imperatives: expanding the OTC product line, launching COPD therapy roflumilast, and increasing capacity at the Jaguariúna plant. Can you speak to these and how they’ve panned out?
Neosaldina is the lead product in our OTC portfolio and ranks among the top 3 pharmaceutical products in the country. Representing 25% of our total sales, and growing ahead of the branded analgesics market, certainly Neosaldina is an important driver for us. This is a brand that we have continued to reinvent year after year with creative marketing campaigns, and alternative strategies to work with the Point of Sale (POS). In fact, last year Neosaldina campaign in Brazil was recognised by Nicholas Hall as the best OTC marketing campaign worldwide. This was the first time a Brazilian brand has won this prestigious award, and I believe is a testament to the creativity of our OTC marketing team. We remain optimistic about prospects for the future growth of Nycomed OTC portfolio.
To the second point; clearly the launch of Daxas (roflumilast) is a milestone for Nycomed both in Brazil and globally. It´s not often one has the opportunity to launch an innovative first-in-class drug which re-defines the way a chronic disease, such as COPD, is understood and treated. For Nycomed Brazil, it is an important step in further strengthening our presence in the Respiratory area. We already have a broad portfolio of treatments ranging from common colds, to rhinitis, to more severe diseases such as COPD. Daxas was launched in June 2011, and we received approval from ANVISA in the same month to launch a new patented anti-histamine medication, Alektos (bilastine). Our objective is to be in five years to the Respiratory community, what Nycomed is today to the Gastroenterology community.
With all these new products, timely registration is obviously an important factor. The Brazilian process has come under scrutiny in the past as being among the slowest, regionally. From Nycomed’s perspective, have there been any shortcomings in this regard?
In every emerging market compliance becomes more and more a topic for conversation as the market becomes increasingly regulated. I have spent the past 12 years working in a number of developing markets and I’ve seen this to various degrees. What’s happening today with ANVISA; the new legislations they’re putting in place, for example more stringent conditions for approval of branded copies (copies of original `reference` products), is a direction we expect to see and ANVISA should be commended for the initiative they’re taking in this area. Naturally, we must work closely with the authorities to ensure our submissions are aligned with current expectations and to achieve efficiency in the registration of our new products.
And on the third strategic driver of increasing capacity at the Jaguariúna plant?
In fact our facility in Jaguariúna is currently at 70% utilization on a three shift basis. This represents a significant increase versus two years ago, driven by strong growth of domestic sales, as well as additional contract manufacturing volume. We still have 30 million units of capacity which is sufficient to sustain our growth plans for the coming years; and the modular design of the plant makes expansion of capacity possible without disrupting other production areas. Our Jaguariúna facilities are cGMP certified and approved to export to the EU and various LATAM countries. Likewise we contract manufacture for best in class companies such as J&J, P&G and BMS, which means we are working to the highest quality standards.
You’ve managed teams in a variety of emerging markets. How would you compare and contrast your experiences and how they’ve informed your management style here in Brazil?
If there’s one thing I’ve learned from working in various markets around the world, it’s that you can´t generalize based on culture; you really have to adapt your management style to the individuals in your team, and the specific situation. Everybody has their different influences, backgrounds, and cultural heritage. That said, the two years I spent in China certainly helped prepare me for the scale and complexity of working in a continental country such as Brazil. Likewise having worked in the Philippines (and being married to a Filipina!) prepared me culturally, since the Latin legacy there puts emphasis on relationships above all. The same is certainly true in Brazil.
What do you find is the biggest challenge in this regard since you’ve arrived?
Coming to Brazil has been one of the most rewarding experiences of my personal and professional life. One of the big misconceptions is that Brazil is all about Samba and Football. Yes these things are an important part of the culture, but what is most compelling about Brazilians is the passion and positivity they put into everything they do. I am impressed daily by how hard people work, and their commitment to deliver results. If there is one challenge culturally, it is learning to interpret sometimes that optimism and commitment, particular when it comes to planning.
In the first three months of 2011, Nycomed Brazil hired 130 people to bring the organization forward. In the next five to 10 years, where you hope to have brought it?
I’d say we would have doubled sales in the next five years, without doubling the number of people in the organization. That’s what high-performance is all about - productivity improvement and achieving more with the same resources. We have worked hard to build a high performance culture in Brazil, and that starts with the people you recruit. It also speaks to how you develop and recognize your talent, as well how you manage those employees who are perhaps not reaching their full potential. It’s important to identify those colleagues and help them to shine, because if you get everyone working to the best of their ability, that’s when you get an organization performing at 110%.
What’s your final message to Pharmaceutical Executive readers?
It is often said that more can be achieved when we work together. This is something we firmly believe to be true in Brazil, and partnering is therefore central to Nycomed strategy locally. We have developed over the past 60 years in Brazil long-standing partnerships with a number of reputable pharmaceutical companies in contract manufacturing, licensing and co-promotion. In fact more than 30% of Nycomed Brazil revenues today come from in-licensed products, most of which have achieved market leadership positions in their respective therapeutic areas. We continue to explore opportunities for value creation via partnerships in the Prescription, Hospital and OTC areas, likewise in Contract Manufacturing. We will go on investing in Brazil over the coming years, and I believe Nycomed is well positioned as a partner of choice for any company looking to penetrate or strengthen their presence in this exciting market.
| Company: | Nycomed Brazil |
| Position: | General Manager |
| Country: | Brazil |