Read the Conversation
EF: What was your mission when you were appointed?
MH: Leo Pharma is undergoing a transformation from its longstanding heritage as a privately owned company into a publicly listed company by modernizing not only our product portfolio but also by moving into biologics and specialty care. That will affect how we view milestones and measure performance and will have an impact on the final business goals and growth targets we have as an organization.
Therefore, the primary objective when I joined Leo Pharma was to guide the organization through that transformation process from a leadership and cultural perspective, taking into account how we see ourselves as an organization and how we work in the market. Part of our mission was to determine the best go-to-market model and the best alignment of the processes that we could implement that could make us successful in the future. Since then, we have taken some progressive steps to position ourselves as a leading sales organization in Germany in the field of dermatology.
Similar to other pharmaceutical companies, we are dealing with the post-pandemic consequences of accrued healthcare costs that need to be recovered. With limited resources available in a closed system, providers are currently more focused on cost containment measures than on transforming the healthcare system. In that sense, the German market is quite an interesting place to co-design. By transforming an outdated sales and marketing approach and changing the perspective on how we want to navigate and contribute to the market, we can introduce our expertise as a pharmaceutical company in the healthcare sector.
We are primarily a dermatology company with a presence in thrombosis and anticoagulation and attempting to become leaders in all these fields. That does not necessarily implicate making sales but deepening our expertise and our knowledge about the diseases in all our areas. By revising our processes and set-ups we are not only taking a responsible approach as a profitable company but also looking into the health system and figuring out how we can advance standards of care and contribute to a positive transformation.
Changes start with implementing a different working culture and accepting smaller margins and this also encapsulates environmental protection. We are at a convergence point precipitated by the pandemic, and we need to agree on the components of the future sales model. This, for example, can lead us to rethink how to best reach customers, patients, and physicians without the need to supply a car for every sales representative. The traditional sales model, even if enriched by different tools, is outdated, and has not significantly transformed how we contribute to the system or how we sell our products.
While the need for an element of human interaction is undeniable, we must still think about future-proof solutions and determine how we can provide a fulfilling environment where people can thrive and develop. This applies to customer interaction as well as to the back office and does not simply translate into profitable salaries. People in the pharmaceutical industry do carry out a bigger mission: We want to help patients. As a General Manager, I have been lucky to work for companies that develop products that add value to society and I have the responsibility to ensure every one of my employees that they can profitably serve that cause. The heavy work schedules of Leo Pharma´s managers make this commitment evident.
Society's recognition of medical professionals and caregivers has risen, but the structural problems are still unsolved. There is a need to rethink the role of the pharmaceutical industry as it holds the responsibility to drive the standard of care in a more meaningful way than we have been able to in the past. That was what excited me to return to Germany after a few years in different countries.
EF: How are you handling the transformation process in the face of new regulations and political frameworks?
MH: Transformation comes with a change of perspective. The pharmaceutical industry and the healthcare sector have always been very slow-moving, and compared to other industries, especially the fast-moving consumer goods industries, I consider this as a benefit. For good reasons, we are a highly regulated industry, but nevertheless, we need to apply management and leadership approaches from other industry types to be able to succeed in the future and open up towards calculated risk-taking and compliance to continue being a leading pharmaceutical organization. We have to accept a more volatile environment that requires a faster pace and more agility. However, we are still operating within a rigid framework that hinders us. The changes are coming, and opening up opportunities to co-design and embark on for a future benefit. Even if often takes the pharmaceutical industry months to go from the idea to marketing and launch and our product life cycles are different and clear-cut, the pricing and value life cycles are becoming shorter and shorter, urging us to be more efficient in how we market our products.
EF: How would you encourage customers to buy science-backed products instead of unregulated brands?
MH: The fascinating thing about dermatology in Germany is that you have broad customer groups, in which one can find beauty-focused dermatologists and specialists in classical dermatology and autoimmune infectiology whose focus lies on chronic diseases. They all are professionals on a journey to cure patients and help individuals either with their beauty or their chronic diseases.
We have to keep in mind, that in addition to being physicians, they are also entrepreneurs that require financial incomes, at a time when working efficiently in an office setting has become increasingly difficult. Staffing and profitability have become severe issues in the whole industry, due to changes in the insurance system, and as a consequence, patient numbers and diagnosis rates dropped. It is time to acknowledge the gap that has been created in the quality of patient care in dermatology, partly due to the pandemic, and partly due to the healthcare stabilization act and consider this evolution in our business planning. We need to understand where to take the right actions and adapt to the changing market environment, making the right strategic investments to obtain the expected returns.
EF: How are you using technology and digital tools to enhance your operations in Germany?
MH: The role of digital tools in dermatology has become increasingly important due to recent innovations and changes in disease treatment. As a result, the industry has taken notice of this specialty group. According to an analysis by IQVIA on post–pandemic development of Rep Access to physicians, dermatology still has the best access to specialty care. Companies in dermatology place a high value on personal interactions. However, a generational change is on the horizon in the dermatology field as younger and “digital-native” generations will soon enter the workforce. This shift in generations will bring about changes in how information is consumed.
The pharmaceutical industry has yet to grasp the digital behavior of its customers and their informational needs, as it has long relied on traditional sales models. Smaller organizations tend to be more agile in adopting new approaches. This is where Leo Pharma has an advantage; we have the critical mass to make an impact but are still small enough to adapt quickly to new settings. Our strategy is to build on proximity and customer intimacy and learn what is relevant to individual physicians. The pharmaceutical industry will need to obtain consent and adhere to new data privacy regulations, which may take time to adjust to. While we recognize the obstacles and shortcomings we face, we have been compelled to adopt digital technologies and are beginning to grasp both their advantages and drawbacks.
EF: How is Leo Pharma collaborating with other industry stakeholders, and how are you leveraging new partnerships for the advancement of the market?
MH: We're looking very closely into opening our datasets to the external world. This includes scientific data and commercial data. Even though the outlines are still not clear, open ecosystem data environments will shape the future. Learning to share data and engaging in open collaborations can lead to new opportunities. Data monopolies do not foster innovation. Limiting the sharing of data and ideas could impede the pace of evolution or even worsen it. However, to progress, we must overcome our fears and take calculated risks. These collaborations need to be thoughtful and within the regulations that exist.
Our offices are based in Neu-Isenburg, and we have a regional industry initiative where the general managers of big companies come together and discuss how the perception of our location to attract the best talent can be strengthened. All industries are facing the same challenge of creating diverse work environments that cater to the unique needs of their employees. There is no one-size-fits-all solution as the requirements vary depending on the nature of the job - be it lab work, production, or working on a laptop. In the past, it was enough to provide basic facilities like a lab bench, an office, and a parking lot. However, times have changed, and ensuring the happiness and productivity of employees has become more complex. While some employees may prefer working from home, others may thrive in a shared workspace with cross-functional teams. As a manager, it is crucial to strike a balance between providing a conducive environment for collaboration and allowing employees to work in a way that suits their individual working styles.
EF: What strategies is Leo Pharma using to attract top talent and expertise?
MH: Although a company that has undergone restructuring may not seem attractive to top talent, we are actively working on our employer branding to portray a positive narrative about the purpose of the change. Other companies have tried to improve their recruitment by providing miscellaneous benefits while failing to focus on fundamental elements required for a balanced life. We are prioritizing open communication about our employees' needs during the hiring process and throughout their careers in the organization. Our management and leadership styles have shifted to be more collaborative and less directive. At Leo Pharma, we seek individuals with a passion for working with people who possess patience, enjoy collaboration, and thrive on problem-solving. Our recruitment process is honest and transparent. We understand that some people may prefer to work long hours and take pride in doing so, but we do not expect everyone to work beyond their contractual obligations. We value each employee's contribution and encourage them to have fun while contributing their unique skills and strengths to the organization.
EF: What would you like to celebrate in five years?
MH: Apart from the performance aspects, I would like to celebrate reaching the goal of being the strongest and largest Leo Pharma affiliate in Europe, as we are always competing internally for that. In five years, I would like the team to look back and revel in having embarked on a learning journey where we successfully transformed and sought active solutions. I want the team to have a collaborative mindset that is consistently expressed throughout the organization.
