Business
A
t Hofstra University in Hempstead, “I think it’s good that both candidates will Pharmacia Corporation.
New York, Bob Schieffer, an American try to expand healthcare insurance,” said Soon after completing this merger in 2001,
news anchor and moderator for the Mr Hassan, but he believes the basic model in Mr Hassan called his front line managers in
third and final US presidential debate, turned which the private sector provides health Northern Europe to a meeting in Berlin,
to his left and said: “All right, let’s go to a new coverage is the correct way of implementation. repeating this exercise in Rome for managers
topic: healthcare.”
Although Mr Hassan was keeping his political in Southern Europe. He also spoke directly
Both presidential candidates at the time,
doors open (an advisor to the CEO called with front line managers throughout Europe,
Barack Obama of the Democratic party and
following the interview to confirm this), his South Africa and the Middle East.
the Republicans’ John McCain, composed
comments could be interpreted as an Fast forward to April 2003, when
themselves and smiled intently after a heated
endorsement of Republican healthcare policy, Mr Hassan joined Schering-Plough, and within
discourse about US dependence on foreign
particularly as he has been a critic of his first days at the company, he had shared
oil.
Democratic takes on healthcare reform in the his five-step action agenda (stabilise; repair;
“Given the current economic situation,”
past. turnaround; build the base; and breakout)
continued Mr Schieffer, “would either of you
Mr Hassan talked of Hillary Clinton’s both with employees and Schering-Plough’s
now favour controlling healthcare costs over
healthcare proposals of 1994, which were board.
expanding healthcare coverage? The question
ultimately thrown out. Republicans derided Mr Hassan had inherited a morass of
is first to Senator Obama.”
the reform as an example of “big challenges, including two federal investigations
After some dalliance, with Mr Obama
government”, criticising its bureaucratic nature (into improper marketing practices, including
vaguely outlining his universal healthcare
and restriction of patient choice. There were alleged kickbacks) and a $500 million fine
manifesto, he eventually said: “We’ll negotiate
a series of extensive and influential television from the US FDA for breaching good
with the drug companies for the cheapest
advertisements condemning the plan, and the manufacturing practices. Since then he has
available price on drugs.”
reform subsequently drowned in red tape. turned Schering-Plough around and guided
Mr Schieffer then invited Mr McCain’s
“Both candidates have recognised that the the company towards 17 consecutive
thoughts, which hovered around insurance
1993-94 experience did not do much and quarters of revenue growth.
premiums and the need for online records,
was probably not a good idea, especially at a More impressively, he took Schering-Plough
before swiftly returning to political tit-for-tat
time when they were stretched on the away from a reliance on a single blockbuster
and point scoring. And with that, the
financials,” commented Mr Hassan, adding that (the antihistamine, Claritin (loratadine)),
pharmaceutical industry entered and swiftly
the “Clinton document [was] over- diversifying the company’s much-maligned
left the political debate.
complicated, very hard to read and pipeline, most recently with the $15 billion
While other companies, particularly those
understand, and too ambitious”. acquisition of Organon Biosciences from
from the financial and energy sectors, were
Our conversation moved on to Europe Akzo Nobel.
named and shamed, the drugs industry
where, noting my British accent, Mr Hassan “I work very hard to reach out to the front
escaped the debates relatively unscathed. In
started off with the UK. He thinks progress is line,” explained Mr Hassan. “My philosophy is
fact, this was the only time the pharma
being made with Gordon Brown’s Labour that the front line manager directly influences
industry was mentioned in close to four-and-
government in the sense that our staff as they [provide] the motivation and
a-half hours of presidential debates that were
“pharmaceuticals need to have more morale [to] the people who do the work.”
investment at times like these because it is What about different cultures? Surely the
broadcast to more than 173 million
the most efficient component of the manner in which you approach a manager in
Americans. But to the 62-year-old CEO of
healthcare system”. Saudi Arabia is different from a conversation
Schering-Plough, this came as no surprise.
with someone in England? I could barely
Although “working, travelling and early
punctuate the sentence before Mr Hassan
nights” meant that Fred Hassan wasn’t one of
Pharmaceuticals need to have
asserted: “I don’t think natural cultures come
the millions of Americans (he’s a naturalised
more investment at times like
in the way of wanting to have shared
citizen) watching the final debate, he has
been keeping abreast of the clashes. these because it is the most
accountability, or people wanting to
continuously improve, or people wanting to
In a calm and confident American accent,
effi cient component of the approach other people.”
peppered with his native Pakistani intonation,
Mr Hassan told me: “I don’t think that once
healthcare system
Pausing briefly, he continued: “These are
very basic behaviours for people – they are
they understand all of the facts here, that the
very intrinsic. It used to be said that [in]
pharmaceutical industry will be their main
Things have also gone well in discussions certain cultures, say [in] Latin America, that
target to cut costs. There are other areas to
with other European governments. “Even this sort of thing wouldn’t happen, but I’ve
reduce healthcare costs.”
though sometimes we might meet a health been there and it worked just as well as it
He explained that pharmaceuticals
minister with a slightly different point of view, worked anywhere else.”
represent around 10% of total US healthcare
the overall dialogue is pretty good.” Mr Hassan explained that he tries to tailor
costs, pointing out that even if the industry’s
“I met the person in charge of broader his own, and Schering-Plough’s, approach to a
profits were taken away, only 1-2% of costs
health education welfare in the [Silvio] given situation; for example the way the firm
would be saved. He added poignantly: “And
Berlusconi government [in Italy] about three engages with Francophone Africa may differ
then you’ve lost that innovation engine.”
weeks after he was installed,” continued from its approach to English-speaking regions
So, what about the presidential candidates?
Mr Hassan, adding proudly: “I was the first of the continent. He also likes managers in
Even before the result, Mr Hassan
multinational CEO to see him.” each country to help maintain a local
understood clearly what each man had to This disclosure led our discussion presence, although some nations lack the
offer: “One wants to rely more on tax towards one of Mr Hassan’s better known necessary infrastructure to support such a
incentives and one candidate would like to qualities – his personal and personable strategy.
put [in place] some more mandates,” painting approach to business, as exemplified by his However, Mr Hassan doesn’t believe that
Mr McCain as the former and Mr Obama the leadership of the merger of Pharmacia & obstacle should prevent Schering-Plough from
latter. Upjohn with Monsanto/Searle to create developing in those markets. “The one thing I
16
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