Read the Conversation
Meeting highlights:
- Historical Legacy and Resilience: Klosterfrau has a rich, almost 200-year history, originating as a pioneering endeavor by Maria Clementine Martin, defying societal norms.
- Current Challenges in the German Pharmaceutical Landscape: Dr. Koch highlighted the decline in pharmacies due to technological changes, such as e-prescriptions, reducing the number of physical pharmacies from 22,000 to 17,000 within five years.
- Strategic Transformation and Innovation: Klosterfrau has shifted from maintaining stability to embracing innovation under Dr. Koch’s leadership. With a dynamic approach, the company plans to launch multiple new products annually.
- Sustainability and Purpose: Sustainability is deeply integrated into Klosterfrau’s operations, with initiatives like CO2-neutral production at its facilities. Dr. Koch emphasized ecological responsibility and fostered a sense of purpose, attracting employees who resonated with the company’s mission.
- Vision for the Future: Dr. Koch envisions a company that not only adapts to change but thrives by leveraging its heritage and innovative strategies. His message to employees emphasizes resilience, hope, and a collective commitment to advancing healthcare for the benefit of society.
EF: Could you give us an overview of the history of the company and how it evolved into the company it is today?
SK: Whenever I speak about the history of Klosterfrau, it immediately sparks a great deal of interest. It is a true story that begins in 1775 in Brussels, where a young girl named Maria Clementine Martin was born. Later in life, she became a nun and worked on European battlefields during the wars of that time, including the famous Battle of Waterloo. Remarkably, she aided soldiers from all sides—French, British, and Prussian.
This dedication to helping everyone, even enemy soldiers, led to her imprisonment by a Prussian general. However, the German Emperor learned of her actions and famously remarked, “This lady is more man than my entire army.” She was released and granted the right to use a special herbal formula known as “Melissengeist,” an alcoholic tincture that she began to distribute as a medicine across Europe.
Maria settled in Cologne, where she opened her first store near the cathedral in 1826. From this modest beginning, her business grew significantly. She was innovative for her time, using marketing to promote Melissengeist across Europe. To this day, the nun symbol remains a hallmark of our brand, making Klosterfrau one of the most recognized pharmaceutical brands in Germany and even in Europe’s OTC market.
Over the years, the company has evolved significantly. After World War II, Klosterfrau was transformed into a modern OTC Company; we expanded our product portfolio and acquired later other companies, such as FARCO-PHARMA and Maria Galland Paris, a luxury cosmetics brand.
During the last years, especially after the Covid pandemic, we have undergone a significant transformation. By focusing on our roots and strengths, we have become one of the fastest-growing OTC companies in Germany. The journey so far has been incredible, and we are optimistic about continuing this success in the years to come.
When I share this story with people, it is always amusing to frame it as a startup founded by a woman 200 years ago. Today, we have a lot of discussions about feminism and startups, and Klosterfrau’s story began long before these topics were in the spotlight. Maria Clementine Martin was a nun, working entirely independently, without any support or resources typically available to entrepreneurs. She truly embodied the spirit of a startup, building a company from the ground up. She accomplished what we now consider modern and progressive over two centuries ago. Her determination and vision remain an inspiring example of resilience and innovation.
EF: Could you share some insights into your turnaround, current priorities, and what we can look forward to from the company in 2025?
SK: Firstly, Klosterfrau's turnaround was relatively straightforward. Previously, there was an effort to transform Klosterfrau into a large, publicly traded, globally operating company. However, that approach did not align with who we truly are.
As I shared earlier, our identity is rooted in tradition. We are a sizable mid-sized company structured as a Foundation. We have a rich heritage, a meaningful story, and a clear purpose. I focused on reconnecting with these roots and realigning the company with its original mission—producing medicines and products that genuinely help people. For us, it is about being more than just a business. We are building something holistic that goes beyond the typical definition of a company.
This approach resonates deeply with our employees. We have no such issues in Germany, where there are challenges in attracting talent. People are eager to work with us because they sense our heritage and recognize our uniqueness. This sentiment is felt across all levels of the organization, from warehouse staff to senior leadership.
Our sustainability and social responsibility initiatives further set us apart. They are integral to who we are and create a sense of pride and belonging among our team. This distinctiveness is what makes Klosterfrau stand out compared to other companies.
EF: What is your perspective on the current pharmaceutical landscape, particularly in the OTC segment?
SK: Unfortunately, I must say that the current pharmaceutical landscape in Germany is facing significant challenges, making this one of the most difficult periods for the industry. Surprisingly, many seem unaware or unprepared for what lies ahead.
Germany's pharmaceutical industry is closely tied to its pharmacy network. Ten years ago, there were around 22,000 pharmacies across the country, serving a population of 80 million—approximately one pharmacy for every 4,000 people. However, the introduction of electronic prescriptions, which are digitally transmitted directly to pharmacies, has opened the door to mail-order pharmacies.
This shift has led to a dramatic decline in the number of physical pharmacies. From 22,000 ten years ago, the number has already fallen to 17,000—a loss of 5,000—and this trend is expected to continue. Estimates suggest that the total could drop to between 12,000 and 14,000 in the upcoming years.
This reduction will have profound consequences. In major cities like Berlin, Hamburg, and Cologne, access to pharmacies remains sufficient. However, people may need to travel 20, 30, or even 40 kilometers to obtain their medications in rural areas.
In response, the government is likely to explore alternative solutions.
This transformation will reshape Germany's pharmaceutical landscape. While we are already seeing the early effects, the full impact will become evident in the next years, resulting in a drastically different system compared to today.
EF: What do you think about the pharma national strategy and the way it is shaping Germany?
SK: The national strategy provides a contrasting perspective to the market challenges we discussed earlier and touches on Germany’s broader strategy in pharma. As a pharmacist by training, I have a deep connection to the idea of Germany as the "pharmacy of the world." This heritage ties closely to the nation’s potential to lead in pharmaceutical innovation.
For Germany to reclaim this leadership, it hinges on several factors: fostering an environment conducive to foundational research, encouraging innovation, and ensuring universities and institutions can develop new products without immediately transferring them abroad, particularly to the U.S.
While I see many changes happening in Germany, I believe this is a pivotal moment. With the car industry on a decline, the healthcare sector has become a critical focus for the government. I sense a strong commitment to creating an environment that drives innovation and positions the healthcare sector as a growth area.
Despite this, there are notable contradictions. Germany has one of the best healthcare systems globally, yet life expectancy is not as high as expected. This disparity highlights gaps in understanding and implementation that require deeper exploration to identify and address the underlying issues. While the previous government made several missteps, they also took some positive strides in healthcare and pharmaceuticals.
EF: What is your perspective on ecological sustainability within the pharmaceutical industry?
SK: I have four children, and I am deeply aware of the importance of creating an environment that ensures a good situation now and for future generations. However, I believe applying too much pressure can lead to resistance and significantly reduce potential outcomes.
To address this, we focused on fostering an environment where collaboration and incremental progress are encouraged. We engage employees by asking what they can do to improve things step by step. Town hall meetings, suggestion boxes, and open discussions are part of our approach. Participation is voluntary—we encourage those who wish to contribute to share their ideas, and the response has been incredible. We now have hundreds of ideas driving meaningful change within the company.
We have restructured to operate with small teams and a flat hierarchy, which allows for agility and quick decision-making. Responsibility teams have been formed, and we celebrate success stories to inspire further innovation.
On a larger scale, our sustainability efforts include major initiatives at our production sites. For example, we acquired two large plots of land where we are building facilities equipped with photovoltaic systems, solar rooftops, and sustainable garages. At one of these sites, we now generate 82% of our energy needs through CO2-neutral methods. Unlike some companies that rely on purchasing certificates, we are committed to direct action and tangible results.
This hands-on approach aligns with our belief in doing things properly or not at all, and we are proud of what we have achieved so far. Reaching 82% CO2-neutral energy at our first site is an accomplishment we find truly exciting.
EF: Could you elaborate further on the various brands in your portfolio and how the strategic acquisition of numerous companies over the years has contributed to building and strengthening this portfolio?
SK: It is quite a significant story. Klosterfrau operates as more or less a foundation, with its portfolio currently encompassing four business areas with four different companies. These include Klosterfrau FARCO-PHARMA, a medical device company; Maria Galland Paris, in the luxury cosmetics industry; and Artesan Pharma GmbH, a 3rd party CDMO which produces Klosterfrau products as well.
When people think of Klosterfrau, they primarily associate it with OTC products. While the companies within our group are diverse, the focus has often been on OTC products that were acquired around 20 years ago. This portfolio includes well-known market leaders in Germany, such as Neo-Angin, Bronchicum, and Nasic. However, after the acquisition phase, there was a noticeable slowdown in product innovation and development. The company maintained its focus on existing products, which was profitable, but there were no new launches for nearly a decade.
In recent years, we have dramatically shifted our strategy. Drawing from my 22 years of experience in the pharmaceutical and medical device industry, I adopted a faster, more agile approach—one that embraces experimentation, learns from failures, and moves forward quickly.
Now, we are heavily focused on innovation and expansion. This year alone, we will launch seven or eight new products—probably the highest number among OTC companies in Germany. Realistically, I expect only two of these to achieve significant success. However, having two successful products is a substantial improvement compared to having none, and this strategy reflects our commitment to growth and transformation.
This is precisely what I aim to instill in people: be brave, believe in yourself, and recognize that you have the power to change the world. Take action, be courageous, and make a difference. The environment around us has changed significantly, and the combination of a traditional company with 200 years of heritage and a young, motivated team working under the umbrella of sustainability has proven to be a fantastic formula for success.
EF: If you were to deliver a speech in celebration of your anniversary, what message would you share to inspire reflection on the journey so far and guide the vision for the future?
SK: In Germany especially, with the economy declining and so many challenges ahead, people seem more nervous and less courageous. My letter at the beginning of the year to all of my colleagues was a simple message: Believe in yourself. Yes, times have always been tough. The funny thing is, when we look back 20 years from now, we will likely say, "Those times were easier." It is all about perspective.
I encouraged them to embrace the opportunities of the next two years of celebrations. Let us build together and keep moving forward. I firmly believe that change is easier in a dynamic, shifting world than in a stable, unchanging one. In stable times, people are less inclined to adapt. But today, amidst so much change, we have the chance to ask important questions: What can we do? What are our needs? What does the future hold?
We have achieved so much during the last few years, especially after the End of the Pandemic. We have built a stable, strong, and modern organization, we have generated a full pipeline of new products, and we are investing a lot of money in our production sites. So, I believe we can look to the future with great optimism.
And this is the message I wanted to convey: We have an incredible team—a family. Some have been with us for 45 years, while others joined just two weeks ago. It is the combination of this heritage and deep knowledge with fresh, youthful energy that makes us unique. Together, we can achieve anything. The sky truly is the limit.
The feedback I received was encouraging. It was clear that people needed a message of hope and a reminder that it was not just about me as their leader. It is about them and the changes they are empowered to make.
EF: Do you have a final message for our readers?
SK: In Germany, there is a saying: “Health is not everything, but everything is nothing without health.” It captures a fundamental truth, and it resonates deeply in the pharmaceutical industry. Whatever we do as a company, we must always remember our duty—to produce and deliver the best products that keep people healthy.
This responsibility goes beyond our professional roles. We are not just working for ourselves; we are working for our parents, siblings, children, and communities. Every product we develop and market could someday be used by someone we love. The question we must constantly ask ourselves is: Are we proud of what we have done?
This is the message I would want to share: we work in a truly meaningful industry. Our duty is to ensure that our work reflects the significance of the pharmaceutical sector. We have the opportunity to make our products, our company, and ourselves truly relevant—and this can lead to remarkable progress.
