Read the Conversation
Meeting highlights:
- Commitment to Innovation and Patient Access: Stressed the importance of timely patient access to innovations, highlighting Roche’s strong legacy in oncology, gene therapy, and diagnostics and the company’s successful portfolio transformation and rejuvenation.
- Policy and Stability Needs for Investment: Called for stable regulatory frameworks and praised German government efforts, like the National Pharma Strategy, to boost clinical research and growth.
- Germany’s Strategic Role for Roche: Emphasized Germany’s significance as a major Roche hub with 18,000 employees, supporting key investments in gene and cell therapies.
- Focus on Emerging Therapies and Complex Diseases: Highlighted Roche’s 72-molecule pipeline targeting Alzheimer’s and other diseases, with diagnostics enabling early detection and personalized care.
- Talent Development and Cultural Values: Highlighted Roche’s purpose-driven culture, diversity, and strong learning opportunities, backed by family ownership fostering long-term innovation.
EF: What attracted you to Roche, and what are your current priorities?
DS: What drives us in the industry is ensuring patients have timely access to the latest innovations and medical advancements. Achieving this requires a supportive policy environment that values and embraces innovation in all its forms, whether incremental progress or breakthrough treatments. When Pauline and I last spoke, there were disruptions in Germany due to legislative changes, but since then, we have moved forward and made some progress. However, the core goal has stayed the same.
What is new in my role at Roche is the different portfolio I now manage, which is particularly exciting. Roche has a long legacy, especially in oncology, but we are also delving into gene therapy, which is incredibly exciting. Another aspect I am passionate about is fostering a culture rooted in integrity, courage, and passion. It is becoming increasingly important for organizations to harness data and technology across all levels to shape the future of healthcare. This goes beyond the pharmaceutical value chain and involves collaborating with others in the ecosystem to maximize the potential of data.
In terms of Germany’s position, I still envision it maintaining its leadership role globally. It is crucial to our efforts to prevent, manage, or even cure the diseases that burden society, ultimately contributing to a healthier future for patients. Germany has always been a powerhouse for Roche, and that continues to be our aspiration.
EF: How has the national pharmaceutical strategy impacted the innovation and competitiveness landscape, and what role are Roche and the broader industry playing in shaping this system?
DS: The pharmaceutical industry operates with long innovation cycles and substantial investment, often ranging from €1 billion to €1.5 billion per product, with a 90% failure rate. It can take up to 13 to 15 years to bring a product to market, which in itself is a daunting process. However, the challenge becomes even greater when the policy frameworks we operate under are changed unpredictably. Unlike other industries that may seek subsidies, we simply ask for a stable environment that provides the security needed for long-term planning.
We constantly request a dialogue between all stakeholders involved in this ecosystem. Without open discussions, decisions can be made without fully understanding the broader implications, as we saw with recent legislative changes. These changes can harm the industry, patients, and the country’s economic footprint. When considering where to invest, stability is a key factor. Whether in countries A, B, or C, companies like ours need to know they can plan effectively.
What has changed, though, is that the government has recognized that the pharmaceutical and healthcare industries are among the few sectors less dependent on natural resources. Instead, they rely heavily on the creativity and ingenuity of their employees. The government has recognized the pharmaceutical industry as a key driver for growth and a leading industry. The goal is to retain and expand the industry, as Germany was once known as the "pharmacy of the world" but has since lost that standing. The focus is on keeping the existing infrastructure intact and fostering its growth.
Over the last two years, both the industry and Roche have demonstrated a willingness to invest, believing that the government understands the need for a stable operating environment. At the Pharma Summit held in late 2023, representatives from pharmaceutical companies, academic research institutions like the Helmholtz Institute, and industry associations gathered to discuss this issue. The government expressed its understanding that healthcare policy is inherently linked to industry and economic policy.
In response, they began drafting legislation aimed at strengthening Germany's position, particularly in clinical research. One of the first steps in this direction was the Medical Research Law, which aims to restore Germany's competitiveness in global clinical trials. This law addresses bureaucratic roadblocks and introduces incentives for pharmaceutical companies that conduct a significant portion of their trials in Germany, such as exemptions from certain pricing regulations.
Other legislative measures are also being considered, including the use of medical data for scientific research. Overall, these developments show positive intent and a commitment to making Germany a more attractive environment for pharmaceutical research and innovation. While the upcoming change in government will bring uncertainty, the industry remains hopeful that the momentum will continue. It will be interesting to see how things evolve, and we hope for a constructive dialogue with whoever takes charge. However, I am optimistic because the economic footprint we contribute, including the taxes we pay and the value we bring, is significant. This impact will remain meaningful regardless of the leadership in place.
EF: Can you share some insights into Germany's role on the global stage, particularly with its various sites, new gene therapies, and research centers? What can we expect from these and upcoming investments?
DS: Roche has been embedded in Germany for as long as the company itself has existed—127 years. The first German subsidiary was founded alongside Roche’s establishment in Switzerland, and the company has since grown its presence through both organic investments and strategic acquisitions, e.g. in Mannheim.
Today, Germany remains one of Roche’s largest global locations, with approximately 18,000 employees. The country plays a central role in managing the full value chain for both pharmaceuticals and diagnostics, including R&D and commercialization. Specifically, Roche operates sites focused on protein design and production, diagnostic reagents and tests, and, most recently, gene therapies. Additionally, the company is integrating artificial intelligence and data-driven projects into R&D efforts.
Despite being a Swiss company, Roche is considered by many in Germany as a key player in the pharmaceutical sector, reflecting its large size and deep commitment to the country.
Roche’s investment volume in expanding our production, research, and administrative facilities in Germany has totaled over 3 billion euros in the past five years, and the future will largely depend on continued support from the German government to improve the policy frameworks. With ongoing investment, Roche is poised to further expand its footprint in Germany, contributing to the country’s growth as a hub for the pharmaceutical industry.
EF: Looking at the pipeline from a broader perspective, which areas of upcoming treatments are you most excited about, and which do you believe will have a significant impact on healthcare?
DS: Recently, we conducted a review of our key focus areas, and there is a staggering number I would like to share. Roche currently has 72 new molecules in R&D across a broad range of diseases. The key therapeutic areas include oncology, hematology, neurology, immunology , cardiovascular and metabolic disorders, and ophthalmology—just on the pharmaceutical side.
In diagnostics, we are setting new standards with our mass spectrometry technology. There is a lot happening, and what excites me is how some of these areas are nicely interconnected. For instance, with Alzheimer's disease, we have a test for early detection, which is crucial when considering new treatments. We also have a product in the pipeline with brain shuttle technology, showing promising early clinical trial results. If this treatment reaches the market, it could make a real difference for patients and families affected by Alzheimer's, a disease that has historically been difficult to treat.
Additionally, we are also committed to advancing treatments for infectious diseases, especially antibiotics. Many companies have exited this area, but Roche continues to invest, as we believe it is crucial for humanity to have new antibiotics, even if the economic incentives are challenging. From antibiotics to cell and gene therapies, Roche’s pipeline spans a wide range, and that diversity is what truly excites me.
A personal experience I would like to share is that last Monday, I visited a university hospital in Germany specializing in neuropediatrics. When I walked in, I saw some young children in wheelchairs, many of whom were affected by diseases that, until recently, would have been considered fatal. These conditions would often result in early death, and the quality of life was significantly limited.
But things are changing. With the help of treatments, including those for SMA (Spinal Muscular Atrophy), there have been significant improvements in these children's lives. And now, we are on the cusp of potentially receiving approval for a gene therapy for Duchenne muscular dystrophy in Europe. Seeing these kids, I cannot help but keep my fingers crossed, hoping we can get these life-changing therapies to them as quickly as possible.
EF: How do you evaluate the national pharma strategy in terms of its ability to support the development and market access of more expensive and complex therapies? Do you see a clear pathway for bringing these treatments to market?
DS: This is a very challenging question, and I believe it underscores the need for dialogue among all stakeholders involved. What we are doing as an industry, and specifically as a company, is to engage in conversations with payers and other stakeholders.
For example, if we consider a rare disease like Duchenne muscular dystrophy (DMD), where gene therapies are highly expensive, you might argue that the number of patients is small. However, these treatments could significantly reduce the long-term cost of care, as they aim to slow down or even halt the disease's progression, reducing the need for ongoing treatments. This makes the therapy potentially more cost-effective in the long run.
The real challenge arises when we look at more common conditions, like Parkinson's, where cell and gene therapies and expensive treatments will affect a much larger population. Here, we need to explore alternative reimbursement models, such as pay-for-performance schemes, where payments are spread over time instead of being made upfront.
As an industry, we are open to having these conversations. These are personalized treatments prepared individually for each patient, which inherently adds to the cost. The R&D, as well as the production process, is highly sophisticated and expensive, and much of the conversation needs to take place at the societal level, involving payers and policymakers, to find sustainable pathways forward.
EF: Given Roche's significant footprint, how does it attract the best individuals but also keep them engaged and committed to the company over the long term?
DS: The key point here is that, while this applies to many companies, Roche stands out due to its long legacy and culture of innovation and purpose. Our mission, "doing now what patients need next," resonates deeply with people. It is purpose-driven and focuses on improving global health through groundbreaking pharmaceuticals—not just in oncology but also in areas like anti-infectives and other therapeutic research. Roche believes in creating a triple win—benefiting patients, society, and the company itself—by continually advancing innovation.
Additionally, Roche is highly attractive to younger talent, especially from a sustainability perspective, as we use fewer natural resources than other industries. Our commitment to high standards, both in terms of our products and our workplace environment, also plays a role. What stands out is our investment in learning and development. I recently spoke to some younger colleagues, and the opportunities for skill development, particularly in areas like AI and digital technologies, are remarkable. We invest heavily in these areas because we recognize how essential they are for the future.
Roche also emphasizes continuous learning, mentorship programs, leadership training, and personalized career paths. It’s not just about being a number—employees have the chance to sit down and chart their career development, whether that means exploring roles within pharma, diagnostics, or even moving abroad.
When I first arrived in Basel, I was surprised by how international the environment is. The diversity is palpable. I remember swimming in the Rhine River during the summer and hearing people speak German, English, Portuguese, Italian, Spanish and many more languages all around me. It is a reminder of just how global and inclusive Roche is.
Finally, Roche has always been a company that values diversity and inclusion. This commitment to diversity and inclusion goes beyond the current gender and DEI discussions—it is embedded in Roche’s culture, which believes that diversity is key to our success.
One other thing that stands out is Roche’s approach to talent matching and role clarity. We ensure that every role is clearly defined, and we focus on matching the right talent to the right positions and developing that talent when necessary. Thanks to Roche's strong reputation, we do not struggle with attracting top-tier talent.
EF: What changes or innovations would you like to see at Roche over the next five years? As you take on this significant role in Germany, what initiatives or improvements are you hoping to bring about?
DS: For a long time, Roche’s mantra has been "follow the science," which served us well. However, given the increasing complexity of the technologies, diseases, and competitive landscape, we must focus our efforts more strategically. We need to narrow our focus and concentrate on a few key areas.
What Thomas Schineker, Roche’s CEO, is doing is introducing a set of criteria to help align the R&D organization. This ensures we focus on areas where we can apply the highest level of knowledge to develop first- or best-in-class medicines that also have a clear path to value. After all, the company needs to generate returns on investment to fund the next cycle of innovation.
I am also excited to work with the team to ensure that technology will transform every part of our value chain, especially in how we interact with healthcare professionals. We need to ensure that they have all the information they need to make the best decisions for their patients. Additionally, I hope we can leverage the synergies between our diagnostics and pharma businesses to detect diseases earlier and offer complementary therapies tailored to individual patients.
We want to move to more targeted treatments, improving our success rate with every patient. The potential is vast—there are way over 10,000 known diseases, and only half of them have treatments, many of which do not fully cure the disease. But there is a lot of hope that we can offer patients and their families.
AI will play a crucial role in all of this. The complexity of our research is enormous, with thousands of cell types, 20,000 genes, and countless combinations. It is impossible to process all of this in a lab without computing power, which is why we have partnered with NVIDIA. This strategic partnership and others ensure we have the computing power necessary for advanced research, including the cutting-edge technology required for what we call "lap in the loop."
I have high hopes that, in Germany and in other markets, we will soon be able to access all the available health data, as long as it is anonymized. Imagine if this data were available for companies to analyze using sophisticated algorithms, including large language models, to identify patterns. This could lead to the generation of new hypotheses on how to approach and treat certain diseases. The potential for breakthroughs in research is truly mind-boggling.
Roche is a company that is on another level. For example, we hosted a patient summit at our local affiliate, where we invited patients to join us for two days of conversations about their diseases and how we can support them. I gave a short speech during the event, and as I was about to leave to take a phone call, a woman hurried after me. She had multiple sclerosis and was in her mid-30s. She thanked me, saying, "Your medicinesaved my life. I am a single mother of three, and because of this treatment, I can raise my kids, I can work, and I do not have to worry as much."
At that moment, I realized why we do this work. Another gentleman named Thomas came up to me and said, "Because of your medicine, I was able to get out of my wheelchair." This is why we work in this industry. Despite the negative rhetoric that politicians sometimes throw at the pharmaceutical sector, accusing it of greed, we are making a real difference. We create great jobs for scientists and specialists, pay taxes, and contribute to social security income. But above all, we provide hope.
I always say that an innovative drug, like the ones we are developing now, will eventually become generic after it loses its patent and will enter into what I call the "World Heritage of Pharmacy." The high standards of care we enjoy today, including the availability of generics, are the result of innovators taking the risks to develop these drugs. If we reduce the economic incentives for developing new treatments, medical progress will come to a halt. We need to keep this in mind. Sometimes people think, "Oh, you've developed something, so now you should give it away for free." But that is simply impossible.
I was just coming from a production facility where we are currently building a new sterile production environment—a first of its kind. We are partnering with one of the major pharmaceutical machinery manufacturers to do something that has never been done before. We do not even know if it will work. But if it does, we plan to replicate it worldwide, and the machine manufacturer can then offer it to other pharmaceutical companies. However, someone has to be the first to take the risk, to break away from conventional methods, and to test something new.
This mindset of innovation, risk-taking, and long-term commitment is something I see throughout Roche. It really goes back to being willing to invest in the future, not just looking for quick wins.
