Read the Conversation
Meeting highlights:
- Strong Pipeline: Bayer is in a positive moment, with new clinical data in cardiology, prostate cancer, women´s health (menopause & contraception), and ophthalmology, advancing key treatments.
- New Era for Bayer: The Dynamic Shared Ownership program focuses on patient-centered outcomes, reducing bureaucracy, and empowering quicker, local decision-making.
- The Strategic Importance of Latin America: rapid double-digit growth, legacy of more than 100 years in many countries, launching key products in the region.
- Access and Affordability: Ensuring access to therapies at affordable prices is a challenge. Bayer is developing innovative pricing models like pay-for-performance.
- Health as an Investment: The importance of raising awareness of the cost of treatment, health as the backbone of other industries and economic growth.
- Product portfolio in Latin America: recent launch for chronic kidney disease (3 countries in the top 10 are in LATAM); we aim to be among the top 10 companies in Oncology until 2030, our most recent launch, for prostate cancer, has the potential of 3 billion euros in peak sales; strong footprint in ophthalmology; anticoagulants for heart diseases; leader in women’s health products; stage 2 for Parkinson’s.
EF: Why is it a pivotal moment to be at Bayer right now, and what is currently on your agenda?
AJ: It is an exciting time for the company. We have even dubbed it our "Magic September" due to the significant clinical data released for several key products. These developments are crucial for the company and have a broader impact on public health. We have seen progress in multiple therapeutic areas—cardiology, metabolism, oncology, and even ophthalmology.
In the past year, our major launch was the molecule finerenone, aimed at treating Diabetic Kidney Disease (DKD). This same molecule is also being studied for cardiovascular conditions. Bayer's Phase III FINEARTS-HF study, recently presented at the European Society of Cardiology (ESC) congress, demonstrated that it achieved its primary endpoint, with a 16% reduction in cardiovascular deaths.
On oncology, darolutamide, a molecule for the treatment of prostate cancer, has already received approval for two indications, and in September, positive results from the ARANOTE study were announced, indicating the molecule's efficacy for hormone-sensitive metastatic prostate cancer, reducing disease progression and mortality by 46%.
In Women's Health, in addition to our leadership in long-acting contraceptive methods, we are investing in the non-hormonal molecule elinzanetant for the treatment of vasomotor symptoms during menopause, such as hot flashes and insomnia.
To conclude this “Magic September” in Ophthalmology, the company has launched in several countries, including Brazil, Mexico, and Argentina, aflibercepte 8 mg, a formulation that has the potential to enhance the routine and journey of patients by reducing the number of treatment applications required. It is indicated for patients with Diabetic Macular Edema (DME) and Wet Age-Related Macular Degeneration (WAMD).
Our pipeline is advancing with new molecules and expanding indications for existing products, putting us in a strong position. Additionally, our cell therapy products, particularly for Parkinson's disease, have shown promising developments.
EF: Bayer is undergoing a radical transformation where roles are now defined by outcomes rather than solely by patients, how will this impact Latin America?
AJ: Mexico was one of five countries we identified as early starters or front runners in this transformation and started its transformational journey about a year before the other countries. Now, the whole Latin America region is already experiencing it. It is crucial to highlight that while outcomes have become a key focus, our patient-centered approach remains at the heart of our efforts. This shift does not replace our focus on patients; instead, it enhances it by moving the company’s priorities and energy outward, focusing on external results.
The goal is to become a leaner, less bureaucratic organization where decisions are made by the people directly responsible, with fewer layers of approval. The mission is clear: deliver better outcomes for clients, patients, and internal teams alike. Our pharmaceutical division, in particular, is transitioning to this dynamic shared ownership model, which allows us to be more agile, externally focused, and faster in delivering patient care.
While outputs remain important, as they represent the means of delivery, the primary focus is shifting toward outcomes—what actually needs to be achieved. This change is designed to make us more efficient and impactful in the marketplace.
EF: How do you assess the perception of health as an investment rather than an expense, and how do you evaluate the balance between the different markets under your oversight?
AJ: Firstly, if you ask me whether Latin America is important for a global multinational company, I would say absolutely. The market has shown consistent growth over the years, with countries like Brazil defying macroeconomic challenges and delivering double-digit growth. The outlook for the coming years follows the same trend, making it an exciting market to be in. Bayer, in particular, has a legacy of over 100 years in Latin America, with Brazil being a prime example, where we established ourselves 130 years ago as the first pharmaceutical company.
The region commands between 5-7% of the global pharmaceutical market, which is significant for Bayer. We are launching all our key products across major Latin American markets. If I had to summarize the biggest challenge in one word, it would be "access." Our primary focus is ensuring that these innovative products reach the patients who need them. It is not enough to develop groundbreaking therapies if they can’t reach regions like Mexico, Argentina, or other parts of the continent.
Our work in Latin America is centred around ensuring access, setting the right prices, and demonstrating to stakeholders that innovative treatments can often be more cost-effective than current options. This aligns with Bayer’s mission of "Health for All"—developing great pharmaceutical products and making them accessible to patients and healthcare providers where it truly matters.
EF: As gene and cell therapies become increasingly complex and costly, how can we ensure they are accessible to the patients who need them?
AJ: That is a critical question, especially as we look at the future of medicine. If you think about how biologics defined the 1990s and how immunotherapies shaped the 2000s, cell and gene therapies are now emerging as the next frontier. These therapies will not necessarily replace conventional pharmaceuticals but will likely be used in combination, particularly for diseases with a strong biological basis, like cancer.
Firstly, it is crucial to ensure that these therapies are priced affordably in the countries where they are offered. You cannot apply U.S. pricing models in countries like Brazil or Mexico. Bayer is mindful of this and works to set prices that align with the macroeconomic realities of each market. We do not have a global price—only a global framework that is adapted to local conditions.
Secondly, it is essential to educate authorities and stakeholders on the long-term cost benefits of therapy. You have to compare the cost of a one-time, potentially curative therapy to the cumulative costs of decades of chronic treatment.
Finally, more innovative pricing models are needed, such as pay-for-performance or risk-sharing agreements. These models, where payment is contingent on the therapy’s effectiveness, could help ease the financial burden on healthcare systems. You also need flexible financing options, as expecting governments to pay in full upfront is unrealistic.
In summary, it is a combination of factors—affordable pricing, education on long-term cost benefits, innovative funding models, and ensuring the therapies deliver on their promises—that will make cell and gene therapies more accessible to patients.
It is about looking at the overall cost of treatment. It is not just the price of drug A versus drug B or C, but the full treatment cost. This includes examinations, diagnostics, MRIs, blood tests, and even medications needed to manage side effects. Each of these adds up. Additionally, there are indirect costs, such as transportation for patients who need to visit the hospital regularly and the lost productivity when they spend a full day in treatment rather than working. All of these factors need to be considered when comparing a long-term treatment to a therapy that could potentially cure the patient. That is the kind of analysis that needs to be done.
EF: How do you cultivate a constant drive for innovation and a growth mindset within your team, encouraging them to continuously strive to improve patients' lives?
AJ: Several key elements are essential to fostering success in underdeveloped markets like Latin America. Having spent 15 years of my career in Europe, I have seen how established markets operate, but Latin America requires a different approach. I constantly encourage my team to embody entrepreneurial qualities because working in this region means dealing with unpredictability—both good and bad. For example, products may not always get listed when expected, but at the same time, opportunities can arise, like prolonging the legacy of mature products or seizing a tender opportunity.
Being entrepreneurial involves looking at the entire portfolio and identifying potential where it might not be immediately obvious. A mature product, for example, can open doors in a tender. We need to be flexible, agile, and willing to adapt to the circumstances, whether that means adjusting prices or reallocating resources across products or countries. Opportunities in Latin America can emerge quickly, and we need to respond just as fast—sometimes with only a week to prepare for a tender, a tech transfer, or other strategic moves.
Another important aspect is being patient-driven. Understanding the market dynamics can allow us to approach headquarters and advocate for what we need. We must be bold and courageous in challenging headquarters, explaining that Latin America is not like the U.S. or Germany. Educating them on our unique market conditions is critical to unlocking resources and support for the region.
We are launching every key product in Latin America, focusing on optimizing the region's potential. Markets like Brazil, Mexico, Colombia, Argentina, and Chile are particularly important, even for cutting-edge therapies like cell therapy. We are not selectively choosing which products are suited for the region; we are committed to launching every key product. Latin America has demonstrated strong performance with our recent launches, such as a product protecting the kidneys of diabetes patients from chronic kidney disease. Despite being out-of-pocket and not reimbursed, three countries in Latin America are already in the top ten in global revenue for this product, proving the region’s strength.
This shows the strong potential of the LATAM market, which has 600 million people. Almost every market has a growing middle class and a decent reimbursement system. The key is to continue working creatively to build access. As I mentioned earlier, countries in Latin America have high-quality medical science with exceptional doctors and scientists. The opportunity is significant, but it is up to us to unlock it effectively.
Bayer has built a strong institutional business in areas like cancer care and ophthalmology, which are more sophisticated and reimbursed. Companies need to balance both markets more effectively. It is the key to our continued success.
A decade ago, Bayer’s presence in Latin America was largely in the out-of-pocket segment, especially with products like oral contraceptives. However, Bayer has strategically shifted towards developing the institutional market and expanding its specialty care offerings over the years. Today, the company is a leader in oncology, particularly in prostate cancer and ophthalmology, where it dominates treatments for retinal diseases. Bayer also has a strong presence in hemophilia, catering to the region's significant patient populations.
Its ability to operate successfully in both out-of-pocket and institutional markets makes Bayer unique. This dual approach allows for greater flexibility, ensuring that the company is not overly reliant on one segment. However, this also presents a challenge because it means navigating different dynamics—on the one hand, addressing mass-market conditions like cardiovascular disease, which involves engaging with thousands of physicians, and on the other, managing the more focused, key-account work in oncology.
Certain diseases stand out when thinking about public health and market-oriented strategies due to their global impact and prevalence in key markets. Heart disease remains the leading cause of death worldwide, and Bayer is deeply involved with treatments for it, including anticoagulants and products that protect the kidneys. Recently, Bayer released strong data on heart failure, a condition that often goes underappreciated but has a five-year survival rate of only 50%, making it deadlier than many cancers.
Cancer, of course, is another major global health challenge, and Bayer is well-positioned with treatments across various types of tumours, such as prostate, liver, colorectal, and paediatric cancers. As the population ages, ophthalmology becomes increasingly important; for instance, retinal diseases that develop over time affect many older individuals, and Bayer offers state-of-the-art treatments in this space.
Women’s health is also a critical area, especially in terms of contraception and preventing unplanned pregnancies. Bayer provides not only modern contraceptive pills but also intrauterine devices like Mirena and Kylena, which offer long-term, reliable contraception and have different indications that go beyond contraception, such as during menopause.
Looking to the future, Bayer is also exploring advanced treatments like cell therapies for Parkinson’s disease, which could have a transformative impact on public health. As the company’s pipeline continues to grow, these efforts align with Bayer’s commitment to addressing some of the world’s most pressing health issues, including heart disease, cancer, women’s health, and ophthalmology, while staying adaptable to market needs.
EF: If you were to address the General Assembly from a healthcare perspective, what key message would you convey? In your view, what should be the primary focus in healthcare at this moment?
AJ: First, I emphasize the importance of increasing healthcare investment as a percentage of GDP. In many countries, including developed ones, we see disproportionate spending on military and defense compared to healthcare. A great example is Costa Rica, which has no army and invests heavily in the well-being of its population. As people age, they want to live well, not just live longer, and the cost of healthcare will rise even more if we do not prioritize keeping people healthy.
I would also advocate for more collaboration between governments and the healthcare industry. There is sometimes a misconception that the pharmaceutical industry is only focused on profit, but the COVID-19 pandemic demonstrated its vital role in saving lives. In just one year, vaccines were developed that saved millions of people. Imagine the devastation without that innovation.
So, my message would be about recognizing the critical importance of healthcare, respecting the value that the industry brings, and working together to achieve our common goal—ensuring people live healthier, longer lives. A healthier population drives productivity, contributes to economic growth, and ultimately leads to a better world.
Cancer is becoming the new pandemic. In many cases, the outlook for patients with some types of cancer today is comparable to those living with chronic conditions like diabetes. Of course, this progress is not solely due to the pharmaceutical industry—it also reflects advancements in medical devices, more accurate diagnostics, and improved surgical techniques. However, if you look at survival rates over the past 50 years, it is clear that the pharmaceutical industry has played a pivotal role.
The value of this industry was especially evident during the COVID-19 pandemic, where the speed of vaccine development demonstrated its critical importance. It is one of the most risk-intensive fields, requiring massive investment in innovation. With it, a top-ten pharmaceutical company could become relevant within 30 years due to patent expiration. Out of every 100 drug candidates, only one or two might reach the market after overcoming preclinical and clinical trial hurdles.
The pharmaceutical industry has had one of the most profound impacts on society, and it will continue to be essential for the future of healthcare. Universities alone cannot be relied upon to produce the innovations we need. While the industry must keep evolving and be mindful of pricing, world leaders must recognize its importance and build partnerships, like those we have seen with the Gates Foundation, to address global health challenges together.
During the pandemic, logistics played an equally crucial role. Even when airports and ports were closed, pharmaceutical companies worked with governments to ensure that the supply chain for essential medications continued. The level of care taken in pharmacovigilance and quality control is extraordinary—if there is even the slightest deviation in a product, it is destroyed immediately, with no hesitation. This demonstrates the industry's commitment to ensuring that patients and doctors can trust the medications they rely on. We believe that science, innovation, and access need to walk together. This is key to the success of Bayer in pharmaceuticals.
