Read the Conversation
Conversation highlights:
- A Century of Commitment in Spain: Merck prioritizes long-term sustainability, patient health, and strengthening its strategic position in Spain, home to major R&D and production operations, demonstrated through its 101-year legacy.
- Robust Industrial and Clinical Footprint: Merck in Spain has a solid industrial presence with three plants (biotechnological, pharmaceutical, and chemical) in the country and participates in 85% of Merck's global clinical trials.
- Driving Social Impact Beyond Medicine: The company promotes value beyond medicine through caregiver education (‘Embracing Carers’), gender equity projects ('Closing the gap'), and programs to integrate senior and younger generations in the workforce (‘Genera Talento’).
- Artificial Intelligence as a Strategic Enabler: AI is considered a strategic imperative at Merck, especially in drug discovery, production efficiency, and data analytics.
- A Vision for Broader Access and Industry Growth: Manuel Zafra’s objective is to leave a legacy of improved access to Merck’s innovative medicines (that currently benefit over 3 million patients annually) and strengthen the Spanish pharma ecosystem from his position as vice president of Farmaindustria.
EF: Merck celebrated its 100th anniversary in Spain last year. Could you share your current priorities for Spain?
MZR: I am very proud to lead this organization. Last year was exceptionally special for our company and its employees. However, this year is equally important due to our long-term commitment to patients, society, and the country. A company that has existed for 357 years has done so by prioritizing long-term thinking and sustainability. The leaders of the Merck family aim to pass the company on to the next generation in better shape than they received it. We focus on helping patients improve their health, enhancing society through our business activity, and contributing to the economy to ensure a better country and society for future generations.
Spain is a strategic country for Merck for several reasons. First and foremost, we have a 101-year legacy in the country. Additionally, Spain plays a crucial role in our research and development efforts, accounting for 85% of the clinical trials Merck conducts worldwide. We recognize the high quality of Spanish research centers and researchers, and we are committed to supporting the Spanish R&D ecosystem. Furthermore, our operations in Spain have significant historical importance, as the company established its production activities here 51 years ago. Today, we have a workforce of around 1,200 people, and we maintain a strong industrial presence in the country, with three production plants located across two sites, Madrid and Barcelona, in which we have invested more than €60 million over the last five years. Our top priority is to strengthen the company’s strategic position. We plan to achieve this by attracting new investments, implementing more efficient and productive planning, adopting the latest technologies, and bringing in new talent, both locally and internationally. We are dedicated to pursuing innovative R&D and building collaborative networks with public research centers. While we have a substantial mission ahead of us, we are pleased with the results we have achieved so far.
EF: What is your pitch to headquarters to attract investment to the country?
MZR: We all remember the Draghi report [the 2024 report addressing European competitiveness and the future of the European Union] on the importance of strategic autonomy and the pharma industry's role, and we need to defend Europe’s strategic autonomy. Geopolitical tensions make our world extremely dynamic, driving rapid change. I believe COVID and the current geopolitical situation have shown us that Europe needs to take action to make our strategic industrial autonomy a reality, and healthcare is a key element, as it is a strategic sector for Europe and therefore also for Spain. Farmaindustria [the Spanish Pharma Association] has been working with the government to be recognized as a strategic sector in Spain. The industry has signed the Pharma Industry Strategy with the government, based on three pillars: i) access to medicines, ii) research and innovation, and iii) industrial footprint, which provides an ecosystem that allows us to continue bringing innovative production and talent to the country, and will make Spain even more attractive for investment.
EF: How do you see the clinical trial footprint evolving in Spain, and what trends do you identify in the market?
MZR: Spain is one of the main countries for clinical trials. Right now, there are about 1,000 clinical trials underway in the country, with a special focus on oncology (39%) and rare diseases (20%). The approved fast track for phase 1 studies is a significant development for clinical trials. This fast track allows for expedited approval and implementation of Phase 1 studies, a positive step for Spanish research initiatives. Not all companies run Phase 1 studies in Spain, but Merck does. We participate in all the Phase I clinical trials - the most critical and complex moment- that the company launches internationally in oncology. There are many Phase 2 and Phase 3 studies, but few opportunities in Phase 1. We must also continue to work on the decentralization of the network of clinical trials. Creating networks that can encourage long-distance collaboration among clinical research centers would improve clinical trials in the country. Regarding public-private partnerships, this area is working well, but there is always room for improvement.
EF: Could you elaborate on Merck’s initiatives on providing ‘value beyond the pill’ in Spain? Value for patients, including education or access programs that complement medicine.
MZR: Our mission extends beyond working for Merck and delivering medicines to patients; we are also dedicated to serving society. One example of the added value we provide is caregiver education, as patients' lives affect those around them. Over a year ago, we established the first school for caregivers of people with multiple sclerosis (MS) together with the Gregorio Marañón Hospital in Madrid, and this initiative has since expanded to other hospitals across different regions. The collaboration with hospitals aims to support and educate caregivers and families of MS patients. We teach them not only from a medical perspective but also by addressing factors such as work, legal issues, social dynamics, and other elements that impact their lives. But we serve society in many other ways: we are committed to educating and inspiring the next generation of researchers by making science appealing to students in schools through our SPARK Program. To address gender disparity, we established in 2018 an association called ‘Closingap’ to analyze the impact of gender gaps on GDP across sectors. We already have 18 reports on how gender disparity affects GDP across sectors such as healthcare, mobility, and leisure, among others. We are currently working on a project to maximize talent across generations in the workforce called Genera Talento. As the population ages and retirement is extended, we are beginning to see a situation where four generations are sharing the workload. It is essential to harness the strengths of both younger and senior workers. In Spain, the retirement age has changed significantly over the past two decades. Our challenge is to keep these senior generations motivated, engaged, and up to date with new technologies. This is a pressing issue for Spain as it confronts the realities of an ageing population. We are dedicating resources to address this industry-wide challenge and raising awareness through public discussions on how companies should adapt to this evolving landscape.
EF: Could you elaborate on the Curious Talent program you have for attracting and developing Young Talent?
MZR: This year, we have approximately 40 young talents who bring fresh energy and unique perspectives that differ from those of millennials. Their presence keeps us engaged and helps the organization evolve to stay attractive and relevant to younger generations. This connection is vital for our survival. An important lesson we have learned is that, whether working with younger generations, senior employees, or addressing gender diversity, the key element is to listen. We have one mouth and two ears for a reason; we should speak less and listen twice as much. I make it a priority to listen to the younger generations, what worries them, what they need, and their concerns about the future. We have conducted several surveys to gather their insights and understand their perspectives. It is more important to listen to them than to talk about them. By listening, we can identify what truly matters to them and look for ways to support their needs.
EF: How can the right framework be established for the correct use of AI? What needs to change for the sustainable development of AI?
MZR: AI has already disrupted the market; it has evolved from being a competitive advantage to being a strategic imperative. AI is here, and we need to use it. In the pharma industry, there are three key areas where AI has the highest impact:
- Drug discovery: the combination of big data created in clinical research and drug discovery development is huge, and can be analyzed faster, more efficiently, and effectively thanks to AI. All pharma companies are invested in this, and I am proud to say Merck Group is ranked Number two in AI adoption in the Pharma AI readiness. Moreover, last September, we signed an agreement with Siemens to combine their platforms with our Life Science portfolio to accelerate R&D.
- Production efficiency: this area covers all sectors, not only pharma. Cutting-edge AI technology in production changes the productivity of our production sites.
- LLMs, Large Language Models, impact pharma and everything else. However, we must first develop safe systems. Our task is to create a secure environment and use it for documentation, individual productivity, and a language query model for data analytics, which will change how we work.
EF: How would you like to be remembered? What would you want your legacy to be?
MZR: I would like to be remembered for leaving the company in better shape than when I received it, for future generations. And leaving it in better shape means improving the health and lives of our many patients and their families. Today, in Spain, we impact more than 3 million lives per year with our therapies. Moreover, I would like to be remembered for contributing to the evolution of the Spanish pharma industry ecosystem. As the vice president of Farmaindustria, I am working closely with different stakeholders to facilitate access to innovative drugs to the Spanish population. EFPIA Patients W.A.I.T. Report cites a 616-day average for access to new medicines, when legally it should be 180 days. Innovation, R&D, clinical research, and AI mean nothing at all if innovation does not reach patients. It is crucial to reduce the time patients must wait to access innovation. The ‘how’ is also important, as there are many restrictions on the use of drugs for budgetary reasons, all of which need to be addressed.
