Business
Destination Moscow…
Merck & Co’s head of global pharmaceuticals Adam Schechter speaks with
Christopher Spillane about the world’s high-growth, emerging markets
and the company’s strategy for accessing them
helping him to “understand how they think multiple representatives with a detail bag that
ADAM SCHECHTER
about healthcare, and how they try and move contained samples, literature and patient
forward their agendas to advance healthcare”. education which looks almost the same today.
T
he draw of emerging markets to big Mr Schechter says that when thinking We need a new commercial model that utilises
pharma has been growing steadily in the about these growth markets, people should technology in addition to representatives and
face of looming patent expiries, more be careful not to group them into one which provides solutions for customers to
expensive drug development and a tougher consistent category. Instead, they should “look better improve human health.”
regulatory climate. at the individual countries and develop very Mr Schechter adds: “We have a lot of
The significance of emerging markets in specific strategies to be successful within the products in our portfolio today, including some
Europe, Asia and Latin America for big pharma’s individual countries”. that you would typically think of as older Merck
future growth can be seen in the quarterly In order to succeed in these territories, products that may be off patent in other
results of 2008. Growth in developed markets Merck has deployed strong country countries, such as the US. These assets may be
is in the mid-to-low single digits, while emerging management built upon a base of regional very important in emerging markets; for
markets are expanding by double digits. management. This kind of structure, example, Proscar (finasteride) remains a very
Furthermore, IMS health forecasts that Mr Schechter says, allows managers to make important product in a country like China.”
“pharmerging” markets, which it defines as appropriate decisions for those markets. “We will also look to see if there are local
China, Brazil, India, South Korea, Mexico, Turkey However, the key to breaking such markets business development opportunities that make
and Russia, will grow by 12-13% to around lies in the way the company executes its sense just for that country – it doesn’t
$115 billion [see p98]. By 2010, Merck & Co is approach, for example. “The commercial model necessarily have to be a global arrangement.”
anticipating sales of around $2 billion from we have will be very different in a country like And it’s this approach that highlights some of
emerging markets. the US or in Europe than it might be in China the issues that the pharma industry faces at the
It transpires that this interview neatly and India. I think the model and the way we moment. Although big pharma has a thirst to
punctuates Adam Schechter’s preparations for customise it to meet different customer needs discover new technologies and develop them, the
his next trip to a handful of emerging markets. will be very important,” Mr Schechter says. toughness of the regulatory climate, coupled with
Where is Merck’s head of global
Despite pharma recognising the need to
R&D costs and payers’ demand for cheaper drugs,
pharmaceuticals going? Well, this time it’s Russia,
tailor its strategy to meet consumer demands,
has made the environment harder.
Turkey and Dubai.
he notes that the industry has been slow to
Being able to roll out older and rigorously
“I try to get to as many of them as I can:
react to changes in its customer base and
tested drugs in newer, less regulated markets
Japan, Brazil, China, India. I like to go overseas
approach, particularly when compared with
could get around many of the sector’s
whenever possible so that I can understand the
the technological revolution, for example, in problems.
environment better and the different business
the laboratories.
possibilities available to us,” he says.
“25 years ago we didn’t have computers in
On Mr Schechter’s travels he likes to
the laboratory. We had to use chalkboards and
Christopher Spillane is
observe the current healthcare environment
write things in laboratory notebooks. Today, we
Scrip’s US reporter.
and then imagine how that structure will evolve
have high-throughput screening, genomics and
in the coming years. He uses his trips as an
protein analysis,” Mr Schechter continues. “You
opportunity to meet local businessmen, key
can see that things have fundamentally changed
opinion leaders and government officials,
in the industry, yet 25 years ago we sent in
www.scripnews.com/supplements Scrip 100
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