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HEALTHCARE
LIFE SCIENCES
REVIEW
&
PHARMACEUTICALS:
HARDER,
BETTER,
SHAKING
UP THE SYSTEM
FASTER, STRONGER
PAGE 21
PAGE 14
CARVING OUT A MEDICAL
INNOVATION
OUTSIDE
DEVICE MARKET
THE LAB
PAGE
56
PAGE 24
INTERVIEW:
DR. BR SHETTY, CEO CONVERGENCE IN ACTION:
NMC
CASE STUDY: SILANES
FOCUS
ONHEALTHCARE
DIABETES
BIOTECH: MADE
IN
UAE
& NEOPHARMA
PAGE 70
PAGE 82
PAGE 32
PAGE 34
MEXICO 2013
COFEPRIS
Revamped
FLUSH WITH
CASH, BETTING
ON HEALTH
U.A.E.
Mikel Arriola, the man who changed an institution and an industry PAGE 18
published in association with
March 2014
2013
PAGE 8
More exclusive interviews
and country reports are
available at
www.pharmaboardroom.com
UAE MArch 2014
3
Acknowledgements:
PharmaBoardroom would like to thank all
individuals, institutions and companies involved
in producing this report.
Special thanks to:
Dr. Amin Al Amiri, Assistant
Undersecretary for Medical Practices and
Licensing, UAE Ministry of Health and
Joe Henein of Newbridge Pharmaceuticals,
Paolo Carli of Merck Serono, Tara Banasi
of Aspen Pharmaceuticals and
Ashraf Allam who showed us their
particularly strong support and interest
throughout this project. We highly
appreciate the time they dedicated to share
their invaluable insights with our staff.
We also warmly thank all other interviewees who
contributed to the success of this report.
UAE March 2014
5
contents
7
UAE: AN ARID INDUSTRY UNVEILS AN OASIS
8
FLUSH WITH CASH, BETTING ON HEALTH
12 BRIDGING EAST AND WEST FOR BIOTECH
14 HARDER, BETTER, FASTER, STRONGER
15 MAKING A STAND FOR RARE DISEASES
17 TAILORING DIABETES TO THE MIDDLE EAST
18 PROPPING UP A HEALTHCARE ECOSYSTEM
22 WORKING OUT THE KINKS
24 GLOBAL LESSONS UNLEASHED IN THE MIDDLE EAST
24 INNOVATION OUTSIDE THE LAB
INTERVIEWS
28
Interview with:
Marwan Abdulaziz, Executive Director – Dubiotech
30
Interview with:
Karim Smaira & Kamel Ghammachi, Managing Partners – GENPHARM
32 Interview with:
Dr. Ayman Sahli, CEO - Julphar Pharmaceuticals
34 Interview with:
DR. BR Shetty, CEO - NMC Healthcare & Neopharma
36 Interview with:
Walid Kattouha, Head of Middle East Cluster – Novartis
38 Interview with:
Moritz Hartmann, General Manager Middle East - Roche Diagnostics
40 Interview with:
Waclaw Lukowicz, CEO - Siemens Healthcare Middle East
This report was prepared by Focus Reports
Project Director: Leonardo Barquero
Project Publisher: Diana Viola
Project Coordinator: Aleksandra Klassen
Copyright
All rights reserved. No part of this publication maybe reproduced in any form or by any means, whether electronic, mechanical or otherwise including
photocopying, recording or any information storage or retrieval system without prior written consent of Focus Reports.
While every attempt is made to ensure the accuracy of the information contained in this report, neither Focus Reports nor the authors accept any
liabilities for errors and omissions. Opinions expressed in this report are not necessarily those of the authors.
UAE March 2014
At GSK our mission is to improve the quality of human life
by enabling people to do more, feel better and live longer.
www.gsk.com
UAE march 2014
7
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UAE:
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An Arid Industry
Unveils An Oasis
R
umor has it the BRIC palace is crumbling. Perhaps that’s
overdramatic, but at the very least the BRIC oven is cooling
off. Where to now? The US and Europe remain in a state of
languid stagnation, while Asia and Africa are largely addressing
basic healthcare needs with low-cost generic medicine.
As the world reveled in the glory of
the BRICs and the MISTs (Mexico, Indonesia, South Korea and Turkey) for
the past decade, the Middle East and
North Africa (MENA) region was generally disregarded as a blind spot for
the pharmaceutical industry. Decades
of conflict and strife in the region have
done a great disservice to attract business, but recent events like the Arab
Spring have unveiled a vibrant MENA,
eager to shed its inadequate reputation.
Leading this move for international
recognition is the United Arab Emir-
This sponsored supplement
was produced by Focus Reports.
Project Director: Leonardo Barquero
Project Coordinator: Aleksandra Klassen
Project Publisher: Diana Viola
For exclusive interviews and more info, please
log onto www.pharmaboardroom.com
or write to contact@focusreports.net
ates (UAE), who for more than a decade has dazzled the world with its
economic growth and opulent lifestyle.
Holding the seventh largest crude oil
reserves in the world, the UAE experienced one of the most unprecedented
transformations from a land of desert
UAE
March
octoBer 2013
FOCUS
REPORTS2014
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8 pharmaboardroom.com
Uae report
This trend of increased expenditures
dwellers and seafaring trade-posts 40
in healthcare can be seen across the
years ago, to becoming a global busientire Middle East and North Africa
ness foci and tourist destination. As we
(MENA) region, yet it is led by the oil
speak, this tiny nation of 4.8 million is
rich Gulf Cooperation Council (GCC)
bidding to host the 2020 World Expo
countries whose spending on healthcare
and has made it a sport to break world
has averaged a 7.9% annual increase
records.
since 2000. “Within the Middle East,
Striving to diversify their economy
demand is driving the development of
away from oil revenues, the visionary From left: H.E. Amin Al Amiri, assistant
advanced infrastructure, inclusive of
royal leaders have most recently en- undersecretary for medical practices and
licensing, Ministry of Health; Ayman Sahli,
clinics, hospitals and universities. It is
deavored to transform the nation into a ceo of Gulf Pharmaceutical Industries
essential that local and regional compamodel of healthcare development, suc- (Julphar)
nies focus on supplying these modern
cessfully attracting pharmaceutical comorganizations with the right pharmaceuticals”, adds Sahli.
panies of every nationality and erecting dozens of world-class
Recent years have shown that for GCC countries, the right
hospitals. In many ways, the UAE is leading the Middle East
pharmaceuticals have generally been the most innovative
region as the new source of satiety for pharmaceutical comand advanced treatments available.
panies. At last, an oasis for the industry surfaces; and no, it
The sharp rise of healthcare spending is commensurate to
is not a mirage.
the demographics of the region, with more than 50% of the
population under 25 years of age and fertility rates higher
Flush With Cash, Betting on health
than those of India, China and the US. In light of such a
“Over the past twenty years, we have seen a drastic change in
young and expanding population, governments are takthe socio-economic climate of the Gulf region and neighboring heed of a future ballooning healthcare burden and are
ing countries. There has been considerable growth in terms
therefore laying the ground to rein in forthcoming costs. It
of wealth and a sharp increase in health expenditures, which
is estimated that GCC health expenditures will reach US$79
was mandated by the Ministry of Health”, explains Ayman
billion for a population of almost 50 million by 2015, of
Sahli, CEO of Gulf Pharmaceutical Industries (Julphar), the
which 64% will come from government coffers. By 2020, the
UAE’s leading manufacturer.
ME forecast*: Sales and growth
Saudi Arabia
Egypt
Iran
Sales
(USD const. bn)
UAE
All others
ME* Region
2010–2014 (CAGR)
Growth (%)
(USD const.)
Saudi Arabia
Egypt
Iran
Lebanon
UAE
0
2010 (f)
2011 (f)
2012 (f)
2013 (f)
2014 (f)
0
Source: IMS Health MIDAS, Market Prognosis September 2010; Market size ranking in Constant US$,
*ME includes:Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Qatar, Saudi Arabia, UAE, Algeria 10-12%
Tunisia & Morocco:9-10%
S3 FOCUS REPORTS
octoBer 2013
UAE march 2014
7–10%
10–13%
6–9%
9–12%
13–16%
Jordan
8–11%
Kuwait
6–9%
ME
8–11%
9
pharmaceutical market alone is expected to reach US$20
billion.
Burgeoning wealth has also sparked a shift towards
westernized lifestyles that have raised the prevalence
of diseases typically related to unfit diets and sedentary
routines, such as diabetes and cardiovascular conditions.
It is no coincidence that Qatar, the UAE and Kuwait all
rank amongst the top 10 countries with highest GDPs per
capita, while at the same time standing within the top 10
countries with the highest prevalence of diabetes alongside
the rest of the GCC nations.
“The incidence of diabetes is a major issue for Gulf
countries, and it must be addressed today. Whereas current estimates place the incidence of diabetes at 1 out of
4 people, this is soon expected to reach 2 out of 4 given current trends”, details Paolo Carli, head of Middle
East, Saudi Arabia (KSA) & Egypt for Merck Serono.
There are many factors that exacerbate the situation, including environmental, genetic and lifestyle conditions.
Environmentally, the weather here is simply too hot for
people to be sufficiently active outside, particularly since
air conditioning is now a staple comfort in all settings.
People move from their air conditioned home, to their
air conditioned car to reach their air conditioned office,
and so on.”
“Furthermore, given that locals were originally desert
dwellers, their genetic makeup had adapted to live under
conditions of general food scarcity and strenuous conditions. These genetic predispositions are now overwhelmed
with modern eating and lifestyle habits, which include lack
of exercise, consumption of excess sugar and non-healthy
food. Finally, there is an added factor of Arab culture that
values great hospitality involving long meals with abundant food. When you combine all these factors it becomes
evident that we have a ticking bomb on our hands that we
must avert as best we can. The same goes for hypertension, which is diagnosed in 25% of the population”, Carli
concludes.
Pharmaceutical companies, both local and international, have been feverishly working with health authorities to
address this spike in lifestyle diseases before costs overtake
national budgets. Whereas most of Big Pharma used to operate in the region through local distributors, the last five
years have witnessed the greatest wave of investments the
Middle East has ever seen from the pharmaceutical industry. Most of the top 20 companies have established dedicated sales & marketing offices throughout the region, and
in some cases even localized training centers, logistics depots and manufacturing facilities. The UAE has snatched
the bulk of these investments due to its political and economic stability, coupled with a keen penchant to cater to
international businesses.
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Johnson and Johnson
Sıhhi Malzeme San. ve Tic. Ltd. Şti.
octoBer 2013
FOCUS REPORTS S4
UAE March 2014
Uae report
“Over the past 3-4 years we have
started very comprehensively to attract foreign investments in the field of
pharmaceutical industry and medical
practice”, asserts Amin Al Amiri, undersecretary for medical practice and
license at the UAE’s Ministry of Health
(MOH). “In general we have been very
convincing in getting international
pharmaceutical companies here, considering that almost 90% of them have
opened regional offices here and UAE is
their hub for this region.”
GSK’s vice president and general
manager for the GCC and Levant, Mohammad Zafrullah, arouses awe when
speaking of the transformation that the
UAE has witnessed in the past decade
“If you came to Dubai 10 years ago,
you would not believe your eyes. What
this country, United Arab Emirates has
achieved in such a short period of time is
truly exceptional. This is the result of the
From left: Ashraf Allam, former managing
director of Middle East and Africa for
Amgen; Marwan Abdulaziz, executive
director of Dubiotech
partnerships not just with healthcare
authorities but also our business partners. There is trust in these relationships in the true sense of the word and
this has been developed over the years
on the basis of transparency and open
communication. Trust takes years to
build but can be broken in an instant,
so this is something we protect, no
matter what.” Their constant investment in the region, such as through
CAGR 2002-2010: Pharma growth (LCD) vs Healthcare spend growth (Per capita $US PPP)
Pharma spend CAGR
% Difference between pharma
and healthcare growth
25
Healthcare spend CAGR
20
15
+18.3
+18.2
+14.7
10
+7.7
5
+7.1
+10.0
+9.9
+1.9
+5.3
0
UAE
EGYPT
SAUDI LEBANON KUWAIT
ARABIA
JORDAN ALGERIA MOROCCO TUNISIA
Source: Pharma growth based on IMS MIDAS June 2012. Healthcare spend growth based on WHO
vision of the leadership of this country.
They haven’t done this without private
overseas investment, which has come
from all parts of the world. You see similar things beyond UAE in the region.”
GSK is the leading pharmaceutical
company in the UAE and most Middle
Eastern markets, due to its longstanding presence in the region for over
half a century. Zafrullah adds that
they “have managed to build strong
S5 FOCUS REPORTS
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UAE march 2014
the establishment of manufacturing
facilities in Saudi Arabia and Iraq, are
testaments to their conviction that this
region holds bountiful rewards.
Indeed this is the notion that the
UAE has been trying to sell to healthcare companies for the last ten years.
“What we are witnessing in the UAE
is a general move to diversify the country’s economy beyond oil revenues. As
part of this evolution, healthcare has
been identified as a priority segment
within which the government is investing heavily. This includes the construction of new hospitals, the updating of
the regulatory environment, as well as
setting in place business incentives for
healthcare companies to enter the market, such as through free trade zones
like Dubai Healthcare City and Dubiotech”, explain Bassem Abdallah, Bayer
Healthcare’s country division head for
Gulf states.
In 2002, the Prime Minister of the
UAE and Ruler of Dubai, HH Sheikh
Mohammed Bin Rashid Al Maktoum,
established Dubai Healthcare City
(DHCC) as the city’s prime location for
healthcare provision. Covering an area
of 4.1 million square feet comprised of
two hospitals and hundreds of laboratories and medical centers, DHCC
is the most comprehensive healthcare
conglomeration in the country, focusing on patient-centered solutions. The
vision behind this project was to attract
some of the most respected healthcare
companies to Dubai in order to offer
their first-class services to the local
population. In 2005 the city bolstered
appeal to such companies by setting up
the Dubai Biotechnology & Research
Park (DuBiotech).
“Aligned with the government’s vision of promoting this sector, DuBiotech was set up as a free zone to attract
foreign companies and investors. Our
aim is to be close to the companies that
set up their operations here by trying to
understand their needs and accommodating that as much as possible. Whether they are setting up a laboratory, or a
business center or a logistics warehouse,
it is up to us to make any possibility a
reality”, details Marwan Abdulaziz,
executive director of DuBiotech. As its
name suggests, this free zone area was
established by one of the UAE’s top real-estate developers, deeply tied to the
government, to attract research-based
scientific companies to Dubai.
Abdulaziz further adds that, “in addition to the infrastructure we provide,
11
UAE March 2014
Uae report
Bridging East and West for Biotech
Despite government efforts to attract pharmaceutical
companies to the region and boost the uptake of innovation, there are many medium- and small-sized biopharmaceutical companies that do not have the capacity to
directly market their products in the Middle East. Such
companies typically lack the financial backing and local
knowledge to venture on their own into a region that until Joe Henein, ceo
and president
very recently was considered off-limits.
of NewBridge
Having worked in Big Pharma for more than 30 years, Pharmaceuticals
most recently as Wyeth’s regional manager for the Middle East, Joe Henein identified the opportunity to leverage his local knowledge to in-license and market biopharmaceutical products that had not been introduced to the region. Since 2010, Dubai-based
NewBridge Pharmaceuticals has been acquiring the MENA distribution rights
to products in the therapeutic areas of immunology, CNS, oncology, gastroenterology and is considering moving into women’s health. They’ve already
managed to lure biotech giants such as UCB whose new products had not
been available in these markets.
“In the past these smaller companies would simply sell their assets to
Big Pharma as their main source of revenue in order to be able to continue
financing their R&D programs. Typically they would sell the licensing rights
for the products in the US and Europe and would give away all other markets
to Big Pharma as a bonus. However, ever since emerging markets started to
become a lot more attractive, the model has been shifting and the smaller
biotechs have been looking to capture the revenue of the emerging regions
by partnering with local companies in each market”, recounts Henein.
“This is where we saw our opportunity to assist them in the Middle East
given our extensive expertise in successfully marketing products in the region. We give them the advantage of dealing with a single partner for all the
markets in the region, rather than having to contact 25 different distributors; one for every single country. This is on top of all the other partnerships
they will have to manage in other emerging markets, because realistically,
the Middle East is one of the last priorities for smaller companies when
determining which emerging markets to enter.”
“Additionally, our team is composed of experienced talent, most of which
have worked in multinational pharmaceutical companies. Therefore we speak
the same language and hold the same ethical standards as any American
or European pharmaceutical company, and this is highly reassuring for our
partners who only want to operate with the highest standards of compliance
and pharmacovigilance. Ideally, we want our partners to perceive us as an
extension of their companies because we understand where they are coming
from and have knowledge of their therapeutic areas.”
Initially financed by venture capital firm Burrill & Co., earlier this year
NewBridge received a US$40 million capital injection from Elan Pharmaceuticals. With this money the company has proceeded to acquire a 50% stake
of the planned Pharmax manufacturing plant being built in Dubiotech. “We
also need to start looking at M&A opportunities to grow the business inorganically, including products, manufacturing facilities and sales. With Elan’s
involvement in the company we are very excited about the possibilities for
inorganic growth”, concludes Henein.
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we also have two unique services
that we offer companies. The first
is what we call ‘delivering partners’,
which entails connecting companies
who need each other or partners
outside of the park, such as distributors, investors, bankers, etc. The
second service we offer is providing regulatory advice for all types
of companies, in order to facilitate
the initial stages of their operations.” DuBiotech today boasts over
125 companies registered under
its name, including majors such as
Pfizer, Genzyme and Amgen, some
of which only came to the country
since the opening of the free zone.
Ashraf Allam, former regional
managing director of Middle East
& Africa (MEA) for Amgen, pioneered the company’s incursion into
the region when he established the
regional offices from scratch. “We
are very proud to have been the first
biotechnology company to establish itself in Dubai back in 2006. It
took us a couple of years to become
fully operational while we built up
our local team and waited for our
products to receive regulatory approvals from the local authorities.
Today, the MEA region is the fastest
growing area for Amgen across the
world, even more than other larger
emerging markets. Due to this, the
region is perceived as an icon of
success, and I am quite certain that
many multinational pharmaceutical companies view MEA as a key
growth region.” Last year Amgen
recorded 45% annual growth in
comparison to the previous year. Allam has since moved on to become
the vice president of Middle East &
Africa for Mundipharma.
“Unlike other governments in
the region, the UAE administration
is welcoming and understanding of
international companies, trying to
accommodate as much as possible
their needs. They treat companies
as customers rather than simply
13
NewBridge Pharmaceuticals, NBP is a leading specialty
therapeutics company focused on pharmaceuticals, biologics,
and diagnostics. NBP specializes in in-licensing, acquiring,
registering and commercializing FDA, EMA/European approved
therapeutics to address the unmet medical needs of diseases
with high regional prevalence. NBP also aims to bridge access
gaps by bringing innovation to the Middle East, Africa, Turkey
and Caspian (AfMET) Regions. Headquartered in Dubai, NBP is
financially backed by Burrill & Company (Burrill), a San
Francisco-based global leader in life sciences with activities in
venture capital, private equity, merchant banking and media; the
life science arm of National Technology Enterprises Company
(NTEC), a Kuwait investment authority mandated fund
operating out of Kuwait City, and Elan Corporation, plc, a
biotechnology company headquartered in Ireland.
NewBridge’s integrated and unique strategy of regional
expertise and strong international network makes NBP the
partner-of-choice, offering a one-stop-innovative model for
pharmaceutical, biotechnology and other healthcare companies
seeking to access the rapidly expanding markets of the Middle
East, Africa, Turkey and Caspian Regions.
NewBridge Pharmaceuticals FZLLC, Business Central Towers, Tower A, Office # 2405.
Tel: +971 4 429 8700 / Fax: +971 4 429 8706
www.nbpharma.com
UAE March 2014
Uae report
enforcing laws and regulations without listening to the industry. In some cases they go as far as assigning specific representatives to work together with a company, to facilitate the
start-up phase that typically involves large volumes of paperwork”, explains Allam. It is no wonder that some companies
who had regional offices in legacy markets, such as Egypt or
Turkey, have now opted for Dubai’s juicy offer of spanking
new buildings and affluent clients.
harder, Better, Faster, stronger
But how quickly can a country truly transform its healthcare
system, while making it sustainable for the future? The mindset of Emiratis is that anything that is feasible and beneficial
for the country should and will be done, regardless of the
cost. This is why health authorities have been moving at record speed to build new infrastructure and shape regulatory
frameworks worthy of a first-class healthcare system.
Al Amiri from the MOH augurs that “the UAE is different
from all other Arab countries. Certainly we are moving to
improve harmonization with GCC countries and other Arab
countries, but the UAE has a different situation. Our business
opportunities are unique, the system of governmental procedure and regulations implemented here in the Emirates are
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From left: Walid Kattouha, head of Middle East Cluster for Novartis;
Moritz Hartmann, general manager of Middle East for Roche
Diagnostics; Giles Platford, area head of Middle East, Africa &
Turkey for Takeda
completely different. We do everything as a fast-track process, we support foreign investment and we consider them as
strategic partners. The UAE does not have difficulties with
regulations because we are used to high transparency in our
work and are moving to digitalize our services so that they
are available online.”
While the transparency of the country’s government is
generally lauded as exceptional in the world, particularly
for the Middle East region, some inefficiencies regarding
health authorities do exist. Most notably is the tripartite
split of regulatory agencies, consisting of the MOH, Health
Authority Abu Dhabi (HAAD) and Dubai Health Authority (DHA). Similar to the American system of governance,
where states are responsible for the laws specific to their
geographies, the UAE is composed of seven Emirates, each
with its own government.
Abu Dhabi is the political seat of the country as well as
the oil basin, whereas Dubai has transformed itself into a financial powerhouse by leveraging a service-intensive economy. As both these Emirates have progressed light years
ahead of their five other counterparts, they each decided to
establish independent health authorities to regulate healthcare services. The MOH is responsible for country-wide
regulations, including product registration, import/export
processes and pricing, as well as overseeing healthcare provision in the less fortunate Emirates. In parallel, HAAD
and the DHA each establish independent regulations for
reimbursement and the distribution of products in their
respective Emirates. Basic economic theory would alert to
redundancies in such a system, where resources are wasted
due to overlap and fragmentation.
Despite this unusual set up, the common goal of bringing innovation as speedily as possible does seem to unite all
three parties. Executives in other parts of the world believe
that innovation comes late to the Middle East, but nothing
could be further from the truth. Whereas in the past the region was slow to bring innovation, doctors today are very
eager to use new products and to have access to them. Now
with the internet and all the available media, practitioners
learn about the latest treatments and immediately start
pharmaboardroom.com15
Uae report
Making a Stand for Rare Diseases
While most pharmaceutical companies in the
have attracted several partMiddle East region are investing heavily in
ners that are benefiting from
major disease areas, Genpharm Services is
sales upsides and early marbetting on specialty pharmaceuticals to drive
ket penetration in MENA.”
its growth. Founded and financed by former
Ghammachi is convinced
Big Pharma regional executives, Karim Smaithat beyond fast marra and Kamel Ghammachi, Genpharm’s ethos From left: Karim Smaira, ceo and
ket growth and increased
aims to provide alternative therapies or new managing partner; Kamel Ghammachi,
healthcare spending, this
therapies for patients that had nothing except managing partner of Genpharm
region holds unique opporsymptomatic treatments.
tunities for orphan disease
Smaira affirms that “the Middle East is not a focus for
companies. “Speaking about genetics, the Middle East
orphan companies, which are usually a one-drug company.
and North Africa population is roughly 300 million peoTheir typical launch cycle is US, Europe, and then five or six
ple and certain countries, like Saudi Arabia for example,
years later in Latin America, Asia and the MENA region.”
have about 60% of marriages that are consanguineous,
“The legislation in the MENA region allows earlier entry
which often lead to abnormalities. Hence we are workbut most companies do not know how to proceed due to
ing with LifeCodexx out of Germany, which has the only
lack of market and cultural knowledge. Product importaCE marked prenatal diagnostic test, PrenaTest. This is
tion is allowed in several instances right after the FDA or
the only clinically supported test looking at fetal trisoEMA approval. Once we raised awareness, we got sevmies 13, 18 and 21. It is through maternal blood testeral companies interested by the opportunity and have
ing rather than invasive techniques. We established
partnered with us early on. Now, one year later, we have
the concept in the MENA region, since DNA sequencing
experienced good traction. In this short period of time we
technology was little known here.”
Transforming the language
of life into vital medicines
At Amgen, we believe that the answers to medicine's most pressing questions are
written in the language of our DNA. As pioneers in biotechnology, we use our deep
understanding of that language to create vital medicines that address the unmet
needs of patients fighting serious illness – to dramatically improve their lives.
For more information about Amgen, our pioneering science and our vital medicines,
visit www.amgen.com
©2013 Amgen Inc. All rights reserved.
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AstraZeneca’s president for the Gulf, Samer Al
searching for ways to use these new products for
Hallaq, recounts that “generally the challenges in
their patients.
the Gulf region are related to the fast pace of the
Having arrived in Dubai only a few months ago
market, which demands the introduction of new
to head Takeda’s Middle East operations, Giles
products into these markets. I would say these are
Platford provides his first impressions of the GCC
positive challenges and we are lucky to be considmarkets. “The UAE and KSA are markets where
ered early launch markets within the Middle East,
you have very professional healthcare institutions.
because the healthcare system here allows for
Your private hospitals are like five-star hotels,
speedy approvals and registration. We can bring
you’ve got public hospitals that are like private hos- Mohammad
innovation very quickly to this part of the world
pitals in other countries. Definitely the standard of Zafrullah, vice
president and
because of this support to bring breakthrough and
care here is good. The willingness to receive inno- general manager
innovative medications.”
vation is very high. An efficient approval process of GCC and Levant
“The real challenge then becomes ensuring acis reflecting that. Typically, companies will foresee for GSK
cess to the medication for all patients in the market
that the UAE will be the first market to launch in
and in all parts of the country. Given that we have to deal with
the region. I think the perception of the UAE is very positive
both private and public sectors, and each one has a different
in the least.”
timeframe and approval process, bridging those two is our
Almost unanimously, the UAE is considered the fastest
priority. The advantage is that the private sector generally has
adopter of innovation in the Middle East, allowing for the
a quick uptake of innovative products, and governments supregistration of products immediately after they have been
port the fast entry of those products into the market to benefit
approved by the US FDA or the European Medicines Agency
those patients who can afford them.” This is particularly true
(EMA). This process can take as little as 3-4 months, which
for specialty and rare disease pharmaceuticals whose patient
has led some companies to designate the UAE as a priority
populations are tiny in a country as small as the UAE.
launch country ahead of any other emerging market.
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We have taken the unprecedented move of being the first IVD company to establish
our regional headquarters and subsidiary in the Middle East. Our local base of
operations reinforces the commitment to deliver global Roche Standards across
the region and is driven by a full team of vastly experienced specialists offering a
complete portfolio of services.
Our widespread regional presence means regardless of necessity, be it patient
requirements or general healthcare involvement, we are there to support your IVD
needs - because we believe without a profound and solid diagnosis there is no cure.
Roche Presence HP.indd 1
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Until June 2013, the pricing of pharmaceutical products
was entirely unregulated and companies were allowed to set
prices according to the general laws of market demand. On
average, the UAE had some of the highest prices in the region
for innovative products given that healthcare is free for all
Tailoring Diabetes to the Middle East
As part of its arsenal against diabetes, Lilly has been innovating
educational tools to raise awareness and allow patients to better
manage their disease. One of the
most notable initiatives sponsored by the company, in collaboration with the International
Diabetes Foundation (IDF) and
Huzur Devletsah,
Healthy Interactions, is the Diageneral manager of
betes Conversation Maps. This
the Gulf and Near
East for Lilly
is a highly visual non-promotional educational tool that is used
in small group sessions of 3-10
people to instigate dialogue amongst patients and
diabetes experts.
Through the maps, individuals learn key facts
about diabetes and realize key beliefs or attitudes
coloring their perception of the disease, along with
ways they can improve their life. Hearing the experience of other patients living with diabetes communicates to patients that they are not alone in their
struggle.
“The aim is to have an open discussion with health
professionals about all these issues, but also to have
patients learn from one another based on their own
personal experiences. Overall the Conversation Maps
have been very well-received in the Gulf region and
through it we have trained over 2,000 patients, making it one of our most successful initiatives”, elaborates Huzur Devletsah, Lilly’s general manager of the
Gulf and Near East. The initiative has been hailed as
a unique project and endorsed by the Ministries of
Health of Kuwait, Oman and the UAE.
Given the unparalleled prevalence of diabetes in
the Middle East region, Lilly has now progressed to
develop a newly integrated map with the aim to help
participants achieve a safer fasting experience during the Muslim holy month of Ramadan by encouraging awareness. It helps patients to discuss the
risks, create a diabetes and Ramadan management
plan and discuss what to do should complication
arise. The ultimate goal is to have patients prepared
and motivated to talk to their physicians for a preRamadan consultation.
Emiratis, and the majority of expatriates
(about 90% of the population) are insured by their employers. Furthermore,
80% of all pharmaceutical products
are imported from the US and Europe,
which inherently makes them more expensive than locally manufactured
drugs. European products in particular
experienced drastic markups given that
Bassem Abdallah,
country division
they were purchased in Euros, while the
head for Gulf
local currency is pegged to the dollar,
States at Bayer
which exposed those products to curHealthcare
rency exchange fluctuations.
In a move to stabilize such oscillations, this past June the
government implemented a round of price cuts that affected over 6600 pharmaceutical products out of a total 7500
registered. Beyond simple price slashing and price capping,
the new regulation mandates that all pharmaceutical products be priced according to their dollar value. As such, many
products experienced price decreases between 1-40%, while
some products actually saw small increases. Nevertheless,
the move has generally been welcomed by the industry as it
allows for improved forecasting now that prices will remain
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MILLIONS
constant. Furthermore, as the GCC countries move
towards greater harmonization of regulation and pricing, these lower prices are better referenced with those
of neighboring countries.
51
“Some markets like UAE and Kuwait are willing
.7
60
to pay premium prices for innovation, but then when
those products enter lower-income neighboring countries, there needs to be an alignment in terms of prices.
Typically this means that initially we have to set lower
prices in the higher-priced markets, so that they are
comparable to prices in other countries”, elaborates
40
26
AstraZeneca’s Al Hallaq.
.6
Bayer Healthcare’s Abdallah
explains that “at Bayer we have
established a policy of referenc19
.2
ing prices across the entire re20
0
203
gion. Eventually there might be
some variations in the final price
0
201
to consumers, but this is due to
markups imposed by agents and
3
0
20
TaraBanasi,
Banasi,
distributors, which of course vary Tara
Commercial
regional
Source:
Booz
Allen
Hamilton
&
WHO
0
Directormanager
— Middle
from country to country. Current- of
MENA
for Aspen
East
& North
Estimated Number of People Living with Diabetes in the MENA region
Africa,
Aspen
ly there are efforts to unify prices Pharmaceuticals
(94% increase between 2010 and 2030)
Healthcare
across all the GCC countries, including Saudi Arabia, with the
aim of protecting the final consumer.”
ProPPing uP a healthCare
eCosystem
There are not many countries in the
world where the government aims to
develop a role model type of healthcare
system not only for its own people, but Jan Van der Goten,
also to attract medical tourists whose managing director of
healthcare options back home are more the GCC for Janssen
limited. Following their success in turning the UAE into a financial, retail and tourist hub, Emirati
authorities have made clear their intentions to transform the
country into a preferred destination for world-class medical
services.
In fact, the UAE was the first country out of the Americas to have a hospital accredited by the Joint Commission
International when the American Hospital Dubai opened
its doors in mid 2000. Since then the hospital has been reaccredited an additional four times, the latest being in 2012.
In the meantime, other first-class hospitals are being built in
partnership with some of the world’s most respected healthcare providers, including Mayo and Cleveland Clinics. Even
public hospitals in the UAE will surpass global standards,
with the announcement in May that Dubai’s main public
healthcare institution, Rashid Hospital, will undergo a facelift costing more than US$800 million.
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is a win-win situation for the hospital
Similar colossal investment plans for
management to have the best design and
hospital infrastructure are underway in
for the patient to heal faster”, elucidates
other countries in the region, notably
Hussami.
KSA who in 2011 announced its intenNevertheless, Siemens Healthcare’s
tion to construct 121 hospitals over a
CEO for the Middle East, Waclaw Lukofive-year period. “The plan for the rewicz, counters that “it’s relatively easy to
gion by 2020 is to add almost 100,000
build a hospital; it will take two years to
beds, which is the number needed to
get the bricks and mortar and even outfit
match the international standards of From left: Paolo Carli, head of Middle
it with the latest equipment. On the othbeds per number of people. If by that East, KSA & Egypt for Merck Serono;
Samer Al Hallaq, president of Gulf for
er hand it will take between 10-15 years
year we reach the numbers that are fore- AstraZeneca
to train the necessary staff to run such
casted, the standards will certainly rise”,
a hospital. When I sit with some of the
deduces Jihad Hussami, managing direcministries we do exchange best practices on how to address
tor of Eastern Europe, Middle East and Africa for Hill-Rom.
this issue, because clearly the pool of local talent that is speAs a specialist in hospital beds, furniture and interiors,
cialized in those requirements is not very large. It’s really a
Hill-Rom has been tailoring its product offering to the Midbig challenge to do it and to get the right skill set. This is why
dle East’s discerning taste for luxury. “Even the aesthetics,
we are sitting down to have these discussions with authorities
such as the interior, are very important in this region. Most
in all countries.”
of the newly built hospitals requested VIP rooms, which is
“In Saudi Arabia, for example, we have hired local enwhere we have played a role as well. Certain Hill-Rom bed
gineers and then trained them at one of our global excelunits are designed for the patient not to feel as if they are in
lence centers. Sure this is a challenge, and there is no magia hospital. All the equipment needed for the patient is concal solution for it, but it is also something that governments
cealed, since comfort is associated with healing benefits. It
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understand. This is a very encouraging sign and they realize that it is a
key to their success. Nevertheless, it is
something that will take many years”,
opines Lukowicz.
Indeed the lack of local talent is a
challenge cited by both healthcare and
pharmaceutical companies. The reality
is that the UAE and wider region are Karim El-Alaoui,
deficient of healthcare practitioners managing
director of MENA
and educational institutions that can for Boehringer
train future generations in this field. Ingelheim
Until now they have been relying on
imported international talent by offering attractive salaries and benefits beyond what healthcare
practitioners can expect in their home markets.
Founder of the healthcare conglomerate, the NMC
Group, BR Shetty is an Indian national who arrived in
Dubai in 1973 and set up a one-room clinic out of his apartment. Today he is ranked one of the GCC top Indian billionaires owed to his chain of hospitals and pharmaceutical
distribution business. As an innate visionary, his next plan
is to provide more opportunities for medical education in
the UAE.
“The NMC group has gone initially from a pharmacy
to hospital and pharmaceutical distribution, to a manufacturing factory, and with the inclusion of R&D, it equals
one circle. On the healthcare end, I have started a clinic, a
medical center, a hospital, specialty hospitals, and now the
only element lacking is health education. Hence, I am intending to open a medical college in Abu Dhabi in collaboration with Duke University. It will focus on translational
research, with a center for entrepreneurship and innovation
on one integrated campus. The aim is to incorporate informatics and IT in order to advance our healthcare systems
and life sciences. This endeavor will be my dream come
true, since it is the final missing link to complete the cycle.”
Shetty’s pharmaceutical manufacturer, Neopharma, is
also setting precedents by establishing the first partnership
with a multinational company to manufacture one of their
products locally. Earlier this year the company signed an
agreement with Merck Serono to begin packaging two of
their products by the end of 2013, with a longer term plan
involving full production and a transfer of technology to
Neopharma.
Dubai Health Authoriy’s director of pharmaceutical
services, Ali Al Sayed, believes that “the increased presence of international pharmaceutical companies is raising
the prospect of research and trials to be conducted locally.
This is now one of our priorities. We are encouraging the
companies to do trials, to conduct research here. This is
one of the reasons many multinational companies moved
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their offices to Dubai. This city is becoming a hub for medicines and soon we expect companies to research and manufacture their own products here to then export them to other
countries.”
Most multinational companies sustain these convictions
given that they see localization as an integral part of the industry’s progression in the region. Takeda’s Platford goes as
far as expressing that “there are some countries in the region
where the localization is fundamental. In those cases acquisitions can make sense to establish a local footprint. It helps in
terms of access and it shows sustainable growth in that country.” Many predict that the market will be growing through
local manufacturing alliances, some of which we are already
witnessing in markets like Saudi Arabia. Furthermore, the
Middle East will become a logistics hub for the global industry, serving not only the immediate region but also Asia and
Africa. Dubai is certainly well-positioned to fulfill this role as
it is geographically very strategically located.
The newest trend amongst local manufacturers is to invest
in R&D, with some even venturing into biotechnology. UAE
leader Julphar is already producing recombinant insulin and
is the first Middle East company to successfully manufacture
and export a biotech product. Similarly, Neopharma already
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Manufacturing Agreement Signing Ceremony – Dr BR Shetty,
Managing Director and CEO of Neophama, and Dr Stefan
Oschmann, CEO of Merck Serono
has partnerships with Hetero Pharmaceuticals and Biocon.
Even smaller generic manufacturers are experiencing unprecedented growth that has allowed them to expand their operations and diversify their manufacturing activities. While
times are visibly propitious for the local industry there are
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still some growing pains ahead for the
UAE and wider Middle East region.
Working out the kinks
One of the main challenges that still
lurk for pharmaceutical companies in
the UAE is mostly tied to the lack of
a scientific and research base in the
country that is reflected in the lack of
market data. This issue is acknowledged by the government, who has
understood that without such metrics
it is difficult to gauge health outcomes
and the pharma-economics of specific
products. Over the last couple of years
authorities have been trying to implement advanced IT systems in order to
catch up and capture in figures the
results of their healthcare policies so
far.
“The UAE is shifting the way they
basically have been doing healthcare.
Over the last few years the country
has witnessed major changes in the
implementation of healthcare IT solutions. Abu Dhabi now processes all
prescriptions electronically, as well as
all reimbursement transactions. Dubai
is similarly moving in this direction,
which means there is a lot of data that
is available on these systems”, states
Omar Ghosheh, CEO and founder of
Dimensions Healthcare. As informatics experts, Dimensions has become
the sole provider of pharmacy benefit
DuBiotech
S17 FOCUS REPORTS
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From left: Jihad Hussami, managing
director of Eastern Europe, Middle East &
Africa for Hill-Rom; Waclaw Lukowicz, ceo
of Middle East for Siemens Healthcare
management (PBM) and E-claims
solutions for the DHA, and also works
closely with HAAD in improving their
IT platforms. The company was nominated as the top performing SME in
Dubai in 2011, and is well on track to
revolutionize healthcare in collaboration with the authorities.
“Both Abu Dhabi and Dubai are
aggressively installing IT systems to
increase the control and monitoring of
pharmaceutical products as a means to
improve their healthcare systems. They
will be looking for health outcomes;
they will be monitoring drug consumption, to then determine where their
strengths and weaknesses lie. Maybe
in two years time Dubai will have a
real example of how healthcare outcomes will be integrated into the entire decision-making process that will
ensure quality standards and sound
pharma-economics. It’s all very exciting”, concludes Ghosheh.
Latching on to the movement towards IT and e-technologies, Bayer
Healthcare has been moving to digitalize much of its interactions with
customers and health practitioners.
Certainly e-Health is a global trend,
but Bassem Abdallah explains why it
makes plenty of sense in the UAE:
“This is probably one of the regions where such initiatives are most
effective when estimates claim that
there are 2.3 cell phones per capita in
countries like the UAE. Since last year
we have converted our entire product
detailing into digital format and have
stopped printing such material. Occasionally, we still use some flyers but in
general most of the information that
we transmit to physicians is now digital and is presented to them on Ipads
with specially designed apps that we
have created for our products.
We have also created apps for the
general population, such as for multiple
sclerosis patients, that serves as a communication platform between patients,
doctors and nurses. This application is
entirely free and is not related to our
products in any way, but is simply a
unique way of raising awareness and
improving the lives of patients that live
with this disease. As a public service
we have made this application available for Apple and Android users.”
Beyond the risks involved in operating within a market that produces
minimal data to accurately forecast
sales, the UAE is also unique in that
it does not have a well-defined IP protection legislation that is essential to
pharmaceutical companies. Currently,
the industry operates under a sort of
gentleman’s agreement that ensures
their intellectual property will be protected by the government until the day
patents expire. Until today the agreement has held strong with few cases
of IP violations, nevertheless, most
companies still wish for a formal legal
framework to protect their assets.
23
Value through Innovation
After 128 years in the business, we’re still seriously
inquisitive – for our future generations’ sake.
Boehringer Ingelheim has retained its character
as an independent, family-owned company
since 1885 up until today’s global market.
Research, our driving force, is conducted in
numerous research centers around the world.
As a pharmaceutical company, we consider
success to be at one with the continuous
introduction of therapeutic innovations.
With around 46,200 employees worldwide we
are working to make the prospects of healthier
lives a reality.
www.boehringer-ingelheim.com
UAE March 2014
24
pharmaboardroom.com
Uae report
gloBal lessons unleashed in
the middle east
In 2012, Roche Diagnostics opened its
first management center outside of its
home country in Dubai, out of which it
manages 20 countries. The company’s
Middle East general manager, Moritz
Hartmann, affirms that “we are moving away from a traditional export approach as regards the Middle East region. In the past we used a centralized
department at our global logistics hub to
serve these markets. However, with the
diversification of our business and the
increasing importance of the medical
value of our products, we realized that
the Middle Eastern markets need a specific approach in order to succeed here.”
“On the one hand, one of the reasons to establish our management center in the UAE was to become a more
attractive organization to source talented people. On the other hand, the
need for qualified people within the region is very high. These countries need
to develop the skills of the population
to be able to fill such vacancies. This is
a perfect example of how Roche Diagnostics customizes to the local market.
We have set up our own training center here in Dubai, which is something
unique when compared to other mar-
From left: Mads Bo Larsen, vice president
of Africa, Gulf & India for Novo Nordisk;
Maher Abouzeid, president and ceo of
Middle East for GE Healthcare
kets. At the moment, this training center is still virtual and operates remotely,
however, we are now building a dedicated facility to start operating next
year”, concludes Hartmann.
The fact that the Middle East region
on average represents a mere 2% of a
global company’s pharmaceutical revenues is evidence of the vast untapped
potential that is latent in a region of almost 250 million people. It is further
indicative of the industry’s historical
tepid approach to conducting business
here, which is why innovative operational models are now required to harness recent growth in the region.
“Most people believe that the Middle East markets are all the same, but
this couldn’t be further from the truth.
There are so many specific characteristics to each market, due to their political situation and history, which require
us to operate very differently from one
country to the next. It is this adaptability that makes a real difference when it
comes to the success of a company in
the region. This is why local knowledge is essential to succeed in these
markets. One advantage of the region
is that we can learn from our lessons
in other markets around the world and
tailor those strategies to specific situations and conditions in the region”,
explains Walid Kattouha, head of the
Middle East Cluster for Novartis based
in Dubai.
“In the Middle East, it has only been
in recent years that pharmaceutical
companies are perceived as healthcare
partners by health authorities. This is
partly due to the fact that most major
pharmaceutical companies used to operate through representative offices and
local agents, meaning it was perceived
that they were only here to sell their
products, sometimes at very high prices. In the last 10 years there has been a
shift to build rapport with local health
authorities and to determine how the
expertise of companies around the
world can serve them in a better way.
innovation outside the laB
Julphar Manufacturing Facilities
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As the industry wakes up to the new reality of the Middle East, they have been
sourcing some of their brightest minds
to head their regional operations and
grow their businesses as quickly as possible. Jan Van der Goten, managing director for Janssen in the GCC, arrived
in Dubai in early 2013 with the task to
restructure the company’s regional organization to leverage a new portfolio
of breakthrough products. With vast
experience in marketing and strategic
roles at Janssen in the US and Europe,
Van der Goten is confident that some
of the innovative business approaches
implemented in those markets can be
rewired to the peculiarities of the Gulf
countries. In his esteem, collaboration
25
Novartis Pharma Services Inc. – UAE
P.O. Box : 23510, Dubai, United Arab Emirates
Tel: +971-4-4357049
www.novartis.com
UAE March 2014
26
pharmaboardroom.com
Uae report
with authorities, academia and other businesses is the only
way to reach a solution to the pressing health needs of the
region, such as diabetes.
“We have had preliminary discussions and there is a lot
of traction on these kinds of approaches. The authorities
are happy to work together in a different context. What the
new scenario is going to look like is still under discussion
and something that I am uncertain of myself. The important
thing at the moment is that we understand the framework
that needs to be implemented beyond a classical marketing
approach”, he claims.
“A fresh framework will take into account educational
needs as part of the budget, because right now is the key
moment to build needed awareness to curb the prevalence
of diabetes. This must be done now because the government still has sufficient funds to manage the burden of the
disease for decades to come, but that is only if we manage
to control and prevent further propagation. The answers
we seek together with the authorities are regarding how
to do this best. Clearly there are some inherent risks in
doing this, but the only way to innovate and generate true
changes in how we approach healthcare is by taking risks
and trying new things.”
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27 - 30 January 2014
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Karim El-Alaoui, managing director of MENA for Boheringer Ingelheim, echoes the need to strengthen alliances in order to drive business beyond the pills and sales rep
model. Contrary to traditional perceptions of competition,
Boehringer Ingelheim has forged a partnership with diabetes
expert, Lilly, in order to maximize their local efforts against
the disease. El-Alaoui boasts that “the main objective of this
alliance is to make sure that we can provide medications to
the patients who need it. By joining forces we will be able
to demonstrate that 1 + 1 = 3, in the sense that more investments will be made in the field of diabetes. As regards the
sales-force it will also be bolstered and essentially doubled as
both companies will be working together to ensure that more
patients have access to these products.”
“The reality is that as long as companies are enhancing
their diabetes portfolios, naturally, they would like to generate awareness around it. However, industry initiatives are
not sufficient – they will never be enough – because it all
has to be done in partnership with the Ministries of Health
and medical community of the countries we operate in. The
key to effective awareness is to work with the support and
hand-in-hand with local authorities so that we can tackle the
disease on all fronts.”
From such experiences it is evident that the Middle East
is serving as an entrepreneurial hotbed for pharmaceutical
executives who are keen to experiment with innovative business strategies. Pooling lessons from other markets and with
incomparable growth opportunities, managers are willing to
take greater risks to excel.
For the last two years Aspen Pharmaceuticals’ regional
manager for MENA, Tara Banasi, has been responsible for
launching the company’s tailored portfolio in the region,
which mostly consists of divested products acquired from
Big Pharma. At times this has meant launching 12 new
brands within in a 3-4 month period, which has demanded
new approaches to individual markets and a great deal of
experimentation.
pharmaboardroom.com
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Uae report
“Across the region, we have many third party distributors who simply take the goods from the warehouses to the
customers. I realized there was no one truly looking after
our business in those countries. Many of our distributors
lacked the necessary passion and know-how to drive our
products into the market as successfully as I would like. I
then decided to hire key account managers who could take
on that responsibility and manage a very strategic portfolio.
I started off hiring 20 people in Egypt through outsourcing
companies and many people thought I was crazy because
we are speaking about a country of 80 million people. The
outsourcing model, where you pay the people’s salary and
train them but are not liable for them, is really only seen
in Europe. So far it has paid off incredibly well and we are
trying to replicate it in other markets,” beams Banasi.
“You can’t call Aspen an innovative company because
all of our products are bought from other companies. Nevertheless, we have innovative business models where we are
doing something different. In KSA, for example, I decided to hire pure Saudis straight out of university. I molded
them, trained them and paid them well, and these are the
people who are responsible for growing our market share
by 30%. No one else had done this in KSA, and the authorities were very impressed by the initiative, which has gained
us much recognition in their eyes.”
All the signs are palpable that the Middle East region,
led by the UAE, will continue to set benchmarks for the development of healthcare. But for how long will this golden
era last for the global pharmaceutical industry? Estimates
predict that double digit growth will continue for the next
three years, after which annual increases will then stabilize
around 8-9% CAGR.
Genpharm’s Smaira summarizes this forecast succinctly
in saying that “the maturity of these markets is being accelerated. Today a product is launched in Europe and the
following year it is here, so these markets won’t be “emerging” for a very long term. As this is a transitional phase in
the pharmaceutical market, we think there are still windows of opportunity. The markets are heterogeneous and
strategies have to be different and flexible. Some markets
are very brand oriented others are moving towards a generic model.” For the time being, it seems like the Middle East
will remain the apple for most pharmaceutical companies
eyes.
Promoting Health
Improving Life
Science For A Better Life
There are approximately 30,000 different
diseases known today. A satisfactory form of
therapy is only available for one-third of
them.
Bayer HealthCare, a subgroup of Bayer AG,
develops innovative products to improve
health and quality of life for both humans and
animals. In addition to activities in the fields
of Animal Health, Consumer Care and Diabetes Care, the company also focuses on
specialty pharmaceuticals. Bayer HealthCare
is an international leader in this sector.
A strong community for a healthy future.
www bayer.com
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FOCUS REPORTS S22
UAE March 2014
28
Interview with: Marwan Abdulaziz, Executive Director - Dubiotech
INTERVIEW WITH:
Marwan Abdulaziz, Executive
Director - Dubiotech
Focus Reports: Dubiotech is the first UAE sci-
FR: What are the main opportunities that
ence park created in 2005. How did the idea
of this venture originate and what have
been its major challenges?
MARWAN ABDULAZIZ: Dubiotech was created
by one of Dubai’s most respected real estate
developers in response to the high growth
of the healthcare industry and the opportunities for investment that were identified
for that sector. Aligned with the government’s vision of promoting this sector,
Dubiotech was set up as a free zone to
attract foreign companies and investors.
Our aim is to be close to the companies that
set up their operations here by trying to
understand their needs and accommodating that as much as possible. Whether they
are setting up a laboratory, or a business
center or a logistics warehouse, it is up to
us to make any possibility a reality.
There have been a number of challenges
since the outset, beginning with the fact
that none of us on the management team
are technical people. None of us has scientific training, however, our different backgrounds provides us with a solid understanding of the business. In a certain way
we see ourselves as facilitators for the
industry, because we work very closely with
the government. Often, we will address an
industry challenge and take the matter to
the authorities on behalf of the industry.
Our discussions with the government have
always been very positive and they are
extremely supportive of our strategy and
activities. This has helped Dubiotech grow
rapidly in the last few years.
you identify for the industry as a whole?
MARWAN ABDULAZIZ: The industry is really
going through a massive shift with two
major trends being picked up by investors.
One is the generic manufacturing opportunity that emerges with many patents expiring, and we already see companies such as
Pharmax moving into this segment. Such
companies reinforce local manufacturing
capabilities and also work very closely with
the MOH to assist in the reduction of pharmaceutical prices given that today 80% of
products are imported. Imports are obviously subject to currency fluctuations,
shortages and political instabilities in other
parts of the world. This why there is a lot of
support for generic manufacturing.
The second major opportunity is more
scientific in nature and is related to the
personalization of medicine with companies that are looking to truly understand
people’s DNA. There are many exciting
developments in this field, including innovative diagnostics that can be applied to
determine everything from genetic predisposition to certain diseases, vitamin
and nutrient deficiencies. With such tests
one can then also begin exploring the food
supplement industry to provide tailormade solutions for people with specific
deficiencies.
Marwan Abdulaziz, EXECUTIVE DIRECTOR UAE MArch 2014
DUBIOTECH
FR: Dubai so far has very little heritage of
scientific research and scientific education.
How does Dubiotech address this talent
shortage?
29
MARWAN ABDULAZIZ: We perceive our role in
this as a facilitator and moderator that can
bring all three relevant parties – government, business and universities – together
so that scientific research can surge. We
have noticed over the years that the universities don’t really talk to the industry.
There’s a large gap between what happens
in the market and what’s talked about in
the university, and therefore there is a disconnect between both sectors. To address
this, we organized an event last year that
brought together both of those sectors so
that they could sit down and have fruitful
discussions to understand each other better with the aim of working together in the
future.
Such initiatives allow students to realize
what kind of opportunities exist in the
market and for them to understand that
we are encouraging the study of science.
There needs to be a shift in the mindset of
students so that it is clear that with a science degree there are still many exciting
opportunities for them in the future and
they will not necessarily be stuck in a lab
their entire lives.
What we are now seeing is a lot of universities offering biotechnology courses for
the first time, including PHd programs.
Universities are also seeing that there is
potential, there are opportunities and this
time it has to grow not only in dialogue but
also in terms of concrete actions.
FR: What’s next for Dubiotech?
MARWAN ABDULAZIZ: The way we see it is that
the industry moves in specific phases. The
first phase is the establishment of sales and
marketing offices by the major pharmaceutical companies. We have accomplished this
by attracting 14 companies and hosting
their commercial operations here.
There’s a large gap between what
happens in the market and what’s
talked about in the university
After this has been accomplished, companies then begin to realize that they need
to be closer to their customers, which bring
us to the second phase of development that
involves the localization of supply chains.
We already have a couple of companies that
have set up logistics and storage facilities
here in Dubiotech. So far the advantages of
this have been clear as companies can be
much more responsive to the local market.
The third phase is then the manufacturing of pharmaceutical products. Th is can
include repackaging, primary packaging
and secondary packaging, and blistering.
We are currently talking to at least five or
six companies exploring this possibility,
and already have Pharmax well into its construction plans of their manufacturing
plant. This is the phase where we see ourselves now.
The final and fourth phase will be the
scientific research and I think that will be
the toughest one to crack because it
involves coordinating numerous other parties. I think this phase will be longer term
and very gradual to achieve, but we might
start seeing a move into this over the next
5 years.
At the same time Dubiotech wants to
make sure that whatever our shareholders
have invested will provide interesting
returns for them. We have realized that the
growth of the industry really brings the
results and not vice versa, so we are all in
this for the longrun. If we try to address
the challenges now and help the industry
grow, we know that the payoffs will come.
UAE MArch 2014
30
Interview with: Karim Smaira & Kamel Ghammachi, Managing Partners GENPHARM
INTERVIEW WITH:
Karim Smaira & Kamel
Ghammachi, Managing Partners
- GENPHARM
Focus Reports: Karim, can you speak to us about
the birth of Genpharm, and more broadly about
your personal transition from big pharma to
setting up your own venture?
KARIM SMAIRA & KAMEL GHAMMACHI: The transition was triggered by a couple of things.
Initially, it was the entrepreneurial spirit
that I had started to lack in a very centralized, corporate world. I was fortunate
enough to have a wealth of experience at an
early age and I found that it was the right
time, both from an experience and knowledge point of view to do it.
Once the decision was made, the next steps
were: 1- finding the right partner sharing the
same vision and the right background. Kamel’s
profile was a perfect fit, a vast experience in
both the corporate world and as an entrepreneur.
2- finding the appropriate niche. Looking
at the segments that are growing in the market and matching them with our expertise, we
needed to find where Genpharm could add
value.
The three segments that are currently
growing in the Middle East are generics,
branded generics and new, innovative biotech
products. Some of the largest disease areas are
oncology, respiratory diseases, and women’s
health, which governments have mandated as
focus areas.
Factoring in another element, after a long
period without new breakthrough products
being approved, 2012 saw a record of new
approvals by the FDA, which they expect to
UAE MArch 2014
surpass this year as well. Most of this activity
is coming from very niche indications—
orphan drugs, rare disease, and if not directly
from orphan drugs then usually in sub-indications. In neurology, like Alzheimer’s or MS
the sub-indication is spasticity, and in oncology it is pain management.
My experience has been selling evidence
based, clinically supported products. In the
years spent at Serono, we were pioneering the
launch of the early treatments for multiple
sclerosis (MS) and the hormones for fertility
treatment, while Kamel’s experience has been
has focused in the last years on Market access
of rare genetic diseases.
So, given these market dynamics and our
personal experiences, it was clear to us that
Genpharm could add value in these type of
segments. The key objective and the founding
principle is to provide alternative therapies or
new therapies for patients that had nothing
except symptomatic treatments.
In addition, the Middle East is not a focus
for orphan companies, which are usually a
one-drug company. Their typical launch cycle
is US, Europe, and then five or six years later
in Latin America, Asia and the MENA region.
In just one year we have attracted several
partners that are benefiting from sales upsides
and early market penetration in MENA.
FR: Karim, following your market analysis,
which areas of focus have you chosen for Genpharm?
KARIM SMAIRA & KAMEL GHAMMACHI: We decided
31
to focus on four pillars in the company: oncology, CNS, women’s health and rare disease.
Rare disease is one standing pillar. There are
usually a very limited number of treating physicians. This is also attractive for us since we
wanted a highly specialized model. Managing
200 medical reps that sell generics is not of interest. Instead, we wanted to compete on value and
science rather than price. Having said that, the
numbers needed to make sense in terms of
investments, disease awareness programs and
treatment awareness is costly. It is a where large
part of our effort and investment go. We are
mostly building markets from scratch for most
of the companies we are working with.
FR: Karim, is Genpharm self-funded?
KARIM SMAIRA & KAMEL GHAMMACHI: We are very
proud to be entirely self-funded; my partner,
Kamel Ghammachi and I have put up a nice
start-up capital for two individuals. The company value has already increased seven times
over the last year, which is only based on independent audits that have looked at the value of
our contracts and forecast of sales. We have had
a lot of interests from people and institutions to
invest with us early on.
The intention is to create value and then to
make sure that we have shareholders that also
add value. We are looking for people in the
healthcare business that are aligned with our
vision. We want to create a portfolio, establish
our credibility and a track record. Subsequently,
we are planning to develop our own brands, or
license-in brands.
FR: Karim, in terms of challenges, there are inherent risks in bringing these sorts of products here,
like a lack of a framework, IP regulation, etc. How
do you manage to convince these companies to
trust you with their products?
Like any start-up there are a number of challenges. For one, this is not a model that is very
common, so doing your homework before going
in is essential.
The first question we always receive is,
“what happens to our IP if we provide you with
our regulatory file?” It is our job to explain
that although a company might not have
100% percent protection, practice has shown
that IP has not been violated. This is because
in this region we don’t have the manufacturing capabilities to produce these type of innovative products. Also, the Ministry of Health
provides data exclusivity, which is another
way of protecting data for approximately 3-7
years, depending on the indication or products.
Another frequent concern is that there aren’t
approved therapies. But if a product has scientific backing and the FDA and EMA have already
approved it, the product can then be imported
on name patient sales for a period that can,
extend for up to 2-3 years.
Pricing is another risk element. The population is growing, as are the medical needs and
with all of the investments in clinics and hospitals, the healthcare bill is gigantic. Companies
need to make sure they have reimbursement for
these therapies, since counting only out of
pocket will limit them to very few patients in
the private sector.
Pricing has become more transparent. Today
there is a very clear pricing process. The harmonization of pricing is gradual, but it is taking
place.
The maturity of these markets is also being
accelerated. Today a product is launched in
Europe and the following year it is here, so these
markets won’t be “emerging” for a very long
term. As this is a transitional phase in the pharmaceutical market, we think there are still windows of opportunity. The markets are heterogeneous and strategies have to be different and
flexible. Some markets are very brand oriented
others are moving towards a generic model
UAE MArch 2014
32
Interview with: Dr. Ayman Sahli, CEO - Julphar Pharmaceuticals
INTERVIEW WITH:
Dr. Ayman Sahli, CEO - Julphar
Pharmaceuticals
Focus Reports: Under your leadership, Julphar
has established itself as a leading pharmaceutical company in the Middle East. What are the
next goals and benchmarks that you want to
achieve for the company?
DR. AYMAN SAHLI: Julphar always endeavors to
remain true to its core business which is providing high quality affordable medicines
within our region and emerging markets. Due
to the unfamiliar landscape and highly fragmented market, this area proves a challenge
to multinational companies, of who in the
past have refrained from well serving our
region with the introduction of new medicines.
Over the past twenty years, we have seen
a drastic change in the socio-economic climate of the gulf region and neighboring countries. There has been considerable growth in
terms of wealth and a sharp increase in health
expenditures, which was mandated by the
Ministry of Health. These factors have aided
our local objectives and also enabled us to better help under-served regions. This was further realized in 2013 via the inauguration of
our local manufacturing base in Ethiopia,
with capacities enabling coverage of the African region. Within the Middle East, demand
is driving the development of advanced infrastructure, inclusive of clinics, hospitals and
universities. It is essential that local and
regional companies focus on supplying these
modern organisations with the right pharmaceuticals.
Furthermore, we also see the importance
of not only being a manufacturer of medicines
but investing in educational support to doctors and healthcare providers; as a direct
Dr. Ayman Sahli, CEO - JULPHAR PHARMACEUTICALS
UAE MArch 2014
means of providing the latest pharmacological advances, and in turn improving patient
outcomes.
Julphar is currently working on developing Biotechnology resources within our locality. Biotechnology is more demanding from
a scientific and manufacturing perspective,
requiring time and investment in research
and operations. We are keen to play a significant role in this be instrumental within the
global Biotechnology arena.
FR: Julphar’s step into biotech was cemented
when you began producing insulin. Within the
biotech segment what are the next disease
areas and products that you are currently looking to produce?
DR. AYMAN SAHLI: The decision to enter into
Insulin was considered as part of the wider
Diabetes platform, complementing existing
products in our portfolio essential for the
management of the disease. Insulin can
prove challenging due to the availability of
raw material, and expanse and time connected with this. We are pleased to be currently in the midst of obtaining regulatory
approval from EMA in Europe. Furthermore
we are now in the process of expanding upon
our Diabetes portfolio and exploring newer
generations of longer acting insulins.
Our first venture into Biotech was via
Erythropoietin, with the objective of providing this at a significantly lower price, produced
by a regional company with an efficient distribution center, with all the additional services, i.e. the training for the healthcare provider. We are currently working on strategies
to expand our biotechnology portfolio, but
33
respect the demanding nature of this field and
the resources it requires. It is also important
to bear in mind that biotechnology is still an
unclear area in terms of the regulatory framework and processes.
FR: What role is Julphar playing in shaping
and creating a regulatory framework for biosimilars in the UAE?
DR. AYMAN SAHLI: Julphar intends to pave the
way and assist in bringing clarity to regulation, which will aid the smooth transition of
these products within our region. We gladly
welcome the incursion of other experienced
Biotech companies in this quest.
Access to complete resources is also key in
the development of biotech in the region.
Inclusive of attracting experts from other
regions, of who can bring with them experience. We must also accept that on the whole
it is a lengthy process likely to encompass
many hurdles and new challenges along the
way.
FR: Given the rapid influx of Big Pharma into
the region what opportunities do you see in
terms of partnering with multinational industries other for transfer technology for licensing
products etc.?
DR. AYMAN SAHLI: The region has a total of 300400 pharmaceutical companies, which illustrates the heavy fragmentation of the market.
We are the second or third biggest company
with AED1.4 billion of sales; and the only Middle Eastern company that has a registration
in all markets and actively enforces global
standards of practice. As the Ministry of
Health also enforces tighter regulations,
many smaller players will be pushed out of
the market, which enables the larger companies to dominate.
Furthermore, regulation within the Middle East is also fragmented. Julphar is expe-
rienced in this, however, multinational companies are generally used to single markets
with unified regulations. Thus, as a result it
is more difficult to gain market share of a
generic product, with many competitors, in
an emerging market.
When partnering with innovative companies, Julphars primary objective lies within
the transfer of technology in order to manufacture advanced products, locally. As this
region is still unknown territory to some,
many international companies are often
reluctant to engage despite the great opportunities here.
The differentiating factor of Julphar is that
we have a certain ambition that goes beyond
the traditional generic model, through our
investment in biotechnology. Along with this
we have the ability to access many countries
within this complex area and are actively
working to streamline and facilitate access via
regulators.
FR: What are your globalization plans for the
company?
DR. AYMAN SAHLI: We have a simple model
which is tied to our expertise in manufacturing great quality products at low costs. Leveraging this, we are able to expand into new
products and new markets. Our capacities
enable us to serve the wider region; and we
are developing partnerships in order to fulfill
the demand for technology transfers in
underserved areas.
We are well positioned to enter atypical
emerging markets which currently stretch as
far as Ecuador. To add to this our local base
in Ethiopia has opened up a lot of opportunities. We are a young and emerging company,
we are flexible and this is the leverage that
sets us apart from larger, western orientated
organisations.
UAE MArch 2014
34
Interview with: DR. BR Shetty, CEO - NMC Health & Neopharma
INTERVIEW WITH:
DR. BR Shetty, CEO - NMC
Healthcare & Neopharma
Focus Reports: You originally came to the
UAE to open a one-room clinic, with nothing
else but your pharmacist training, and
today your name is renowned. Can you
speak to us about this evolution?
DR. BR SHETTY: I came to this country
exactly 40 years ago in 1973, with just a
blessing from my mother. “Where ever you
go my son, be good to people around you,”
she said. I remember watching black and
white TV and seeing his Highness, Sheikh
Zayed bin Sultan Al Nahyan, the father of
the nation. Every time he spoke, people
were watching and standing transfi xed.
One of the things I concluded from his
speeches was that he was committed to
establishing quality health care for all at
an affordable cost.
So keeping these two things in mind—
people and service— I became the first outdoor salesman in the country and that’s
how the idea behind NMC Health was born.
I first started a private medical center,
which was half my house and half my office.
It was separated into a dental clinic, a
pathology laboratory, and a pharmacy
below.
This is how I also started my wholesale
pharmaceutical division. I took some agencies (which at the time was still possible)
and went to the market. The concept of
going out and selling was non-existent, so
I began by scientifically promoting the
product to doctors. Back then the warehouses didn’t have proper storage of medicines and therefore they also sometimes
carried defective stock. I practically revo-
Dr. Br Shetty, CEO - NMC HEALTH & NEOPHARMA
UAE MArch 2014
lutionized the system and made sure that
everything was sold in a systematic way,
on a first come first serve basis, with a
proper expiry date, and this made a very
good impact on the market. Given that we
didn’t have manpower at that time, I personally lifted the cartons and delivered the
goods to doctors’ doorsteps, supermarkets,
and other pharmacies. To this day I am still
reaping that goodwill.
Having a pharmacist background, I realized that with wholesale agencies and retail
pharmacies, I could also integrate pharmaceutical manufacturing. This was my aim,
and it finally was achieved with Neopharma
Pharmaceuticals. The factory was inaugurated in 2003 by Dr. Abdul Kalam, a scientist, who was also the president of India at
the time. When he saw the facilities he
asked what my market was, when I said the
Middle East he simply replied: “No, you
should go global.” There were his golden
words and I’ve valued all the blessings I
received.
As of today, we are doing extremely well
and we are the best generic pharmacy company in the region. We have partnerships
with Hetero Pharmaceuticals and Biocon.
We are in the initial phases of biopharma
and biotech for breast cancer. We are also
producing a cardiovascular treatment in
the form of tablets with Hetero pharmaceuticals in Abu Dhabi, also known as Nexgen Pharmaceuticals. Nexgen is a joint venture between Neopharma and Hetero
Group.
The most recent development has been
35
the Dr. BR Shetty Research Centre; the first
research center in the country, opened last
year.
FR: Coming back to the Merck Serono deal,
how was Neopharma chosen as their local
partner of choice?
DR. BR SHETTY: It was not an easy process;
Merck Serono audited all the factories in
the area until they concluded that Neopharma had the best facilities. Also, I
believe they realized that as a company
committed to R&D, we do not compromise
on quality.
I am of course honored by their decision
and am extremely grateful. We are looking
forward to working together and are prepared to go to any measure to maintain
quality and continue our relationship.
FR: Considering that you have presence in
all the segments of the healthcare ecosystem, what is the trend that you see in the
future for this company?
DR. BR SHETTY: NMC group has gone initially from a pharmacy to pharmaceutical
distribution, to a manufacturing factory,
and with the inclusion of R&D, it equals
one circle. On the healthcare end, I have
started a clinic, a medical center, a hospital,
specialty hospitals, and now the only element lacking is health education. Hence, I
am intending to open a medical college in
Abu Dhabi in collaboration with Duke University. It will focus on translational
research, with a center for entrepreneurship and innovation on one integrated campus. The aim is to incorporate informatics
and IT in order to advance our healthcare
systems and life sciences. All that is left
now is to obtain the blessing from his Highness so that we can start building as soon
as possible.
I am intending to open a medical college
in Abu Dhabi in collaboration with
Duke University.
Th is endeavor will be my dream come
true, since it is the fi nal missing link to
complete the cycle.
Medical devices is another sector we are
exploring. Initially the products will be
branded under Neopharma, but after that
we will brand them separately. We already
have an imaging system called Unity that
takes x-rays, but soon we are getting a new
unit that enables x-rays in motion, so the
doctor can know which vertebra has a problem. This is also very useful for animal care,
especially for horses and camels.
FR: As a young man, did you ever dream of
making it big in a foreign country?
DR. BR SHETTY: I first came to this country
to clear my liability back home. The day I
cleared it, I declared I am the richest person
in the world. After that I started taking
risks. But this company was built on hard
work alone; Shetty’s sweat is the capital,
since I didn’t bring anything from India.
I am grateful to this country and the
royalty for the opportunity they gave me
to realize my dreams, and to be so successful in this country. I can proudly say I am
successful now. I am the fi rst one in the
GCC to be listed on the London stock
exchange, which paves the way for others.
UAE MArch 2014
36
Interview with: Walid Kattouha, Head of Middle East Cluster - Novartis
INTERVIEW WITH:
Walid Kattouha, Head of Middle
East Cluster - Novartis
Focus Reports: Speak to us about Novartis’
strategy in the Middle East that has positioned you as a leading pharmaceutical company in the region.
WALID KATTOUHA: Most people believe that
the Middle East markets are all the same,
but this couldn’t be further from the truth.
There are so many specific characteristics
to each market, due to their political situation and history, which require us to operate very differently from one country to the
next. It is this adaptability that makes a
real difference when it comes to the success
of a company in the region. This is why local
knowledge is essential to succeed in these
markets. One advantage of the region is
that we can learn from our lessons in other
markets around the world and tailor those
strategies to specific situations and conditions in the region.
As part of our wider strategy we are trying to go beyond simply selling pills. We
realize that we are experts in disease areas
that are of great importance to this country, and as such we feel that we have much
value to add in terms of improving the
healthcare conditions of the UAE and
greater region. The aim is to become essential healthcare partners to the government
rather than simply being viewed as a pharmaceutical company selling products
through the traditional way of marketing.
In the Middle East, it has only been in
recent years that pharmaceutical companies are perceived as healthcare partners
by health authorities. This is partly due to
the fact that most major pharmaceutical
Walid Kattouha, HEAD OF MIDDLE EAST CLUSTER - NOVARTIS
UAE MArch 2014
companies used to operate through representative offices and local agents, meaning
it was perceived that they were only here
to sell their products, sometimes at very
high prices. In the last 10 years there has
been a shift to build rapport with local
health authorities and to determine how
the expertise of global pharmaceutical
companies around the world can serve
them in a better way.
FR: Given Novartis’ long-time experience in
these markets, and the trust authorities
have in your company, what remains the
biggest challenge for Novartis in the Middle
East?
WALID KATTOUHA: The challenges for the
pharmaceutical industry are typically the
same throughout the world, so the challenges that we experience today in the Middle East are very similar to what we were
experiencing in Europe ten years ago.
Whereas European countries are today
using similar benchmarks and employing
strategies that are alike, this was not
always the case and in the past we also had
to deal with very different regulatory environments in each of the European countries.
Overall the underlying challenge for the
Middle Eastern region comes down to
improving access to treatments. This is particularly important at this time when lifestyles are changing across the region, and
diseases related to these changes, such as
hypertension, obesity and diabetes, are
becoming more prevalent. Such diseases
37
are also causing a greater burden for health
expenditures in the countries, while in parallel the cost of innovation for pharmaceutical companies has been rising over the
years. Given such trends, we must fi nd a
middle ground together with health
authorities to reign in health expenditures
while at the same time rewarding innovation appropriately with adequate pricing
and reimbursement schemes, according to
locally applicable regulations. If we all
agree that the common goal is to improve
the outcome of patients, then we can collaboratively work through this challenge
to create an effective healthcare system in
this region.
Furthermore, considering that the
pharmaceutical market is growing so
quickly in the Middle East, this has led
companies to rethink their operational
models, to maximize their capabilities and
build local talent that can support such levels of growth. This includes hiring skilled
people locally and providing them with
international experience so that they can
be exposed to best practices in other markets. Training this local talent demands
heavy investment from our side, which is
also a challenge for us. In parallel, health
authorities are also improving their own
capabilities in order to speed up access to
medicines and improve overall medical
practices. In this regard, global pharmaceutical companies also have an important role
to play to assist local authorities through
this evolution by sharing our expertise
with them and providing the best advice
based on our experiences.
Another challenge that we experience
in this region is related to the protection
of intellection property (IP), as many countries do not have clear legal frameworks for
patent protection. Overall, most countries
do respect patents despite the lack of legal
protection and IP violation is not a major
issue. Nevertheless, some countries would
certainly improve the overall business
environment and generate greater confidence for the pharmaceutical industry by
defining clear or clearer laws for IP protection.
Finally, the last difficulty of working in
the Middle East is related to the political
instability found in some of the countries
in the region that also affect neighboring
markets. This requires that we become very
agile and quick in our response to situations so that we can shift our operational
models according to different political realities. Despite these difficulties, we always
try to find the right way to ensure that
patients in those countries still have access
to our medicines. We must keep serving
the patients.
FR: As disease profiles are shifting and
healthcare sectors are being shaped, what
role does research have to play within this
context?
WALID KATTOUHA: That is a very relevant
question because I am certain that these
rapid lifestyle changes will eventually lead
to medical scenarios that are specific to
this region. Th is is the right time to pair
the capabilities of pharmaceutical companies and government in order to boost
research in the Middle East so that we can
better assess the needs of patients and the
different ways that we can meet those.
There is a general lack of Disease prevalence
and Health economics data in the Middle
East, which is something that we can easily
improve if we all focus on this and collaborate on obtaining the right indicators that
can help to better assess healthcare needs.
UAE MArch 2014
38
Interview with: Moritz Hartmann, General Manager Middle East - Roche
Diagnostics
INTERVIEW WITH:
Moritz Hartmann, General
Manager Middle East - Roche
Diagnostics
Focus Reports: The first management center
for Roche Diagnostics outside of Switzerland was set up here in Dubai in 2012. From
an investment perspective, why was Dubai
chosen as a preferred location?
MORITZ HARTMANN: First of all, you have to
understand that we are moving away from
a traditional export approach as regards
the Middle East region. In the past we used
a centralized department at our global
logistics hub to serve these markets. However, with the diversification of our business and the increasing importance of the
medical value of our products, we realized
that the Middle Eastern markets need a
specific approach in order to succeed here.
Given the great opportunities that this
region holds and the overall trend of local
governments investing heavily in healthcare, we decided this would be an opportune location to expand our management
center model.
Previously, most of the focus of our customer service was on the ease of work flow
which is something that we can support
relatively easily. Today we are more concerned in providing integral solutions and
support to our clients by ensuring they
have the adequate medical knowledge and
tools to make the most of our products. For
example, the medical content that runs on
the diagnostics machine itself, i.e. the
selection of blood tests, their availability
and the knowledge about such tests is
becoming increasingly important for in-
vitro diagnostics. Th is sort of support is
obviously far more complex and varies per
country because of genetic differences.
In order to attend to such market needs,
we decided to regionalize the export business. Within this context, the Middle East
has been the number one focus. We were
the first region receiving its own regional
management center. Technically, the center
is a subsidiary of the Roche group in the
Middle East in Dubai (UAE). From here, we
closely support our distribution partners
of the different countries to make sure that
the knowledge, the training, the backup
functions and the remote support is set up
to meet European and North American
standards in terms of our response time,
and of how we serve customers in the market to the same levels and standards.
We have noticed that the government
truly wants to raise the quality levels of its
healthcare system. We want to be there and
act as partners by being closely available
for them to customize and develop a modern healthcare sector.
There are not many countries in the
world where the government aims to
develop a role model type of healthcare system. Th is is an exciting opportunity for
Roche to be part of. It is very exciting in
terms of the market needs and demands.
With our unique combination of pharmaceuticals and diagnostics we believe that
this is the region where we should be and
support. Of course, the region as well is
Moritz hartmann, GENERAL MANAGER MIDDLE EAST - ROCHE DIAGNOSTICS
UAE MArch 2014
39
quite complex, due to its political scenario,
which is another reason why Dubai was
chosen as a logistics hub.
FR: One of the greatest challenges of setting
up large-scale operations in a developing
market is finding the right human resources.
What has been your experience in the UAE
so far?
MORITZ HARTMANN: On the one hand, one of
the reasons to establish our management
center in the UAE was to become a more
attractive organization to source talented
people. On the other hand, the need for
qualified people within the region is very
high. These countries need to develop the
skills of the population to be able to fi ll
such vacancies.
Th is is the perfect example of how we
customize to the local market. We have set
up our own training center here in Dubai,
which is something unique when compared
to other markets. At the moment, this
training center is still virtual and operates
remotely, however, we are now building a
dedicated facility to start operating next
year. We will have our own training facility
in order to provide a significant amount of
trainings to healthcare providers, in particular at a technical level – we need to
make sure that knowledge provides value.
Nevertheless, continuous education is a
necessity anywhere, from laboratories to
managerial levels.
FR: While HR is a challenge that can be
solved internally, the Middle East can still
be overbearing in terms of the numerous
regulatory and pricing and environments
that one must deal with. How do you
approach this situation?
MORITZ HARTMANN: There are always two
ways to approach this situation. One is to
In the Middle East it is very
important to not just come and try
to make fast money.
complain and do nothing, and the other is
to try to understand what the driving force
behind such differences is. We see and
understand why each country is taking specifics steps. Each and every step is in some
way logical and understandable when
places within the context of each country’s
healthcare system.
As an example, in Saudi Arabia there are
extremely rigid controls of temperatures
for the transportation of sensitive products. It is just a logical thing because it gets
very hot in KSA and some of the airports
do not have enough facilities to handle the
goods appropriately. All they are doing in
Saudi Arabia is enforcing the quality of the
products, even though this means a higher
operating cost for us because the temperature must always be monitored. From our
side, we do all we can to support this,
because we understand that it is a safety
issue at the end of the day.
In any case, it is true that complying
with regulations for 20 countries is not an
easy task and it requires a lot of resources.
FR: What would you advise to a manager
entering a regional role such as this?
MORITZ HARTMANN: In the Middle East it is
very important to not just come and try to
make fast money. One can get distracted
by a lot of the visible wealth here, but those
days are over. If you want to be successful
in the Middle East you have to come for the
long run. You have to build a long term relationship and deliver in the long term. It is
about providing superior services rather
than a product alone.
UAE MArch 2014
40
Interview with: Waclaw Lukowicz, CEO - Siemens Healthcare Middle East
INTERVIEW WITH:
Waclaw Lukowicz, CEO Siemens Healthcare Middle East
Focus Reports: What is Siemens’ vision
for healthcare in the Middle East, and
what strategy is the company employing
to achieve its goals?
WACLAW LUKOWICZ: Our global strategy
centers on innovation. That’s really at
the core of our DNA and it fits very well
into the regional strategy for the Middle
East. We notice that regional developments aim to bring healthcare closer to
the people and to bring the highest quality of service to them. This is combined
with our longstanding presence, through
which we aim to do the same. We’ve been
striving for the same goals for decades;
in Egypt, for example, we recently celebrated our 110th Anniversary. This
combination put us in a unique position
as we are able to provide our innovation
through our established presence.
The market here is somewhat unique
because you see the growing demand for
health. You see a population that is still
very young, but it is going to be alert
because of better lifestyle, better health
care. They are actually going to live
older, and they are going to face the
same lifestyle diseases that we see in
developed countries. We need to create
the right healthcare systems to prepare
for this. Geographically and demographically speaking, the Middle East is a vast
region and the recent wealth of these
countries are creating a huge demand for
healthcare. This is what makes this
region so attractive and interesting at
the moment.
Waclaw Lukowicz, CEO - SIEMENS HEALTHCARE MIDDLE EAST
UAE MArch 2014
FR: In the Middle East we still see a strong
division between public and private
healthcare, with a recent surge in private
spending. How is Siemens addressing this
dichotomy given that your strategy is centered on partnering with public stakeholders?
WACLAW LUKOWICZ: We are addressing both
segments in different ways. A trend that
we see in the private sector are crossnational hospital chains that we are focusing on at the moment. On average, I believe
that the public market is still more important with larger investments. On the other
hand, the private sector is very much
focused on efficiency, cost and providing
the most advanced technologies.
When we speak about maximizing
efficiency, this is not only related to the
actual medical procedures, but it’s also
relevant to the whole work flow of a hospital or clinic. It’s how fast can you do it,
how difficult it is, what kind of time you
need to prepare the patient to do the
examinations, how complicated the
workflow is. In this regard there is also
a shift towards the automation of processes, and our diagnostics products are
very much focused on this automation
trend.
Furthermore, as the ageing population
increases and the burden of lifestyle diseases increases the public healthcare burden, then the move to provide cost-effective solutions will become essential. At
the point it no longer becomes a discussion regarding whether our equipment is
41
too costly but rather how this equipment
can reduce the overall cost treatment.
With early detection we can save lives
and reduce the time for treatments,
therefore minimizing total healthcare
costs.
FR: Have the government authorities have
been receptive of this holistic approach to
healthcare costs?
WACLAW LUKOWICZ: They definitely have.
One of the best examples that I can think
of is the work we have done with breast
cancer screening. This involves a very large
campaign, because it’s a very serious disease that touches every one of us. We all
know somebody in his or her surrounding
that is affected by breast cancer.
Early detection is the most effective tool
against this disease, and our products are
the most advanced in detecting any tumors.
Health authorities have understood this
and are investing in providing the necessary educational and early detection opportunities to minimize costs in the actual
treatment of the disease. With a holistic
outlook in healthcare you have the human
aspect and the economic considerations.
The human side is related to saving and
improving lives, while the economic element determines that spending money in
early detection is much cheaper than curing a disease that has broken out. In the
long run this mentality is not something
specific to developed countries, but rather
the global healthcare sector will be outcome-based.
FR: How difficult has it been for you to find
the skilled labour and talent that goes parallel with the equipment?
WACLAW LUKOWICZ: Let’s put it this way; the
talent that actually works with the equip-
“You see a population that is still very
young, but it is going to be alert because of
better lifestyle, better health care.”
ment is with the customers. The issue of
talent is probably one of the greatest challenges for our clients, for us and most other
companies operating in this region.
When I sit with some of the ministries
we do exchange best practices on how to
address this issue, because clearly the pool
of local talent that is specialized in those
requirements is not very large. If you look
at the population in the UAE, the vast
majority are experts like you and me. It’s
really a big challenge to do it and to get the
right skill set. Th is is why we are sitting
down to have these discussions with
authorities in all countries.
In Saudi Arabia, for example, we have
hired local engineers and then trained
them at one of our global excellence centers. Sure this is a challenge, and there is
no magical solution for it, but it is also
something that governments understand.
Th is is a very encouraging sign and they
realize that it is a key to their success. Nevertheless, it is something that will take
many years.
It’s relatively easy to build a hospital; it
will take two years to get the bricks and
mortar and even outfit it with the latest
equipment. On the other hand it will take
between 10-15 years to train the necessary
staff to run such a hospital. So yes, this is
a challenge that will take time.
UAE MArch 2014
42
Company index
American Hospital Dubai................... 17
International Diabetes Foundation...... 16
Amgen..................................................11
Janssen ............................................... 23
Android................................................ 21
Kuwait Investment Authority ........... 13
Apple.............................................. 21, 26
Aspen Pharmaceuticals................ 25, 26
AstraZeneca.................................. 15, 17
Bayer........................................... 9, 17, 21
Biocon ........................................... 20, 33
LifeCodexx .......................................... 14
Lilly ............................................... 16, 25
Mayo Clinic ......................................... 17
Merck Serono ........................... 8, 19, 34
Boehringer Ingelheim ....................... 25
Ministry of Health – Kuwait .............. 16
Burrill & Co. .........................................11
Ministry of Health – Oman ............... 16
Cleveland Clinic ................................. 17
Ministry of Health – UAE .................. 16
Dimensions Healthcare ..................... 21
Mundipharma ....................................11
Dubai Health Authority ............... 13, 19
Dubai Healthcare City ......................... 9
Dubiotech ........................... 9, 11, 27, 28
Duke University .......................... 19, 34
Elan Pharmaceuticals .........................11
Neopharma .......................19, 20, 33, 34
NewBridge Pharmaceuticals .............11
NMC Group .................................. 19, 34
Novartis ....................................... 23, 35
European Medicines Agency ............ 15
Pfizer ....................................................11
GE Healthcare ................................... 24
Pharmax Pharmaceuticals ..... 11, 27, 28
Genpharm Services ......... 14, 26, 29, 30
Rashid Hospital................................... 17
Genzyme ............................................11
Roche Diagnostics ...................... 23, 37
GSK ....................................................... 9
Siemens Healthcare .................... 18, 39
Gulf Pharmaceutical Industries
(Julphar) .............................................. 7
Takeda ........................................... 20, 15
Health Authority Abu Dhabi .............. 13
UCB ....................................................11
Hetero Pharmaceuticals ............. 20, 33
US FDA .............................................. 15
Hill-Rom .............................................. 18
Wyeth ................................................11
UAE march 2014
43
UAE March 2014

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