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Meeting highlights:
- Zydus' Priorities and Focus: Access to medicine in terms of cost and availability, growth through innovation, pursuing unique opportunities, and taking a patient-centered approach through integral solutions.
- The importance of partnerships to tap new markets, develop further R&D, and better access to high-quality solutions. For example, with academia or hospitals and nursing schools to create a sustainable ecosystem, promoting health and wealth.
- Learnings from the pandemic transformed into a new strategy: diversification and risk management. India and Zydus demonstrated resilience by maintaining supply chains and meeting required demands.
- The importance of talent and human capital: Zydus provides development opportunities and a thriving future-oriented work environment.
- India's Potential: Assets and capabilities to become a leader in R&D-fueled innovation, showcased by Zydus' unprecedented development times in fields like vaccines and biosimilars.
EF: During these transformative times in the Indian healthcare Industry, what are your main priorities as the managing director of Zydus Lifesciences?
SP: Three key points come to mind when discussing our achievements at Zydus and within the Indian pharmaceutical industry. First, we have excelled in making medicines accessible in terms of cost and availability, especially when they are scarce. India has been pivotal in this effort, and at Zydus, we continue to build on this principle. We focus on generics, biosimilars, immunization vaccines, and treatments for neglected diseases like leishmania. Our strategic goal is to ensure broad access to these essential medicines.
Secondly, we aim to foster differentiated innovation. Beyond generics, Zydus focuses on orphan and rare diseases, as well as certain neglected tropical diseases. Whether it is biologics for post-rabies treatment, new anti-cancer biologics, or anti-complement products, we are advancing in fields like liver diseases and pediatric rare diseases. We have two to three drugs in the access program, starting in the US and expanding globally. This innovation is crucial for our company and significantly impacts the world.
The third focus is becoming a more patient-centric organization. While we work on the scientific and medical aspects, we must also focus on the patient journey. We aim to build services and care beyond just providing medicine and offering better patient solutions. This includes reaching out through hospitals and building our hospitals for the needy and underprivileged.
EF: How are you managing the shift to niche areas like rare diseases and building partnerships with other players to ensure patient containment?
SP: Our strategy involves building our capabilities and partnering with others to advance important medical treatments. This dual approach is exciting and effective. We focus on areas that few companies do because they aren't as commercially incentivized. We form partnerships with academia for early discovery and development or with organizations like the NIH and WHO. Additionally, we take on programs other companies can only partially develop due to funding issues. We complete the clinical journey and bring these programs to market, particularly in pediatric areas. This approach has allowed us to create access to important medicines.
Beyond partnerships, our own R&D and science teams identify critical diseases. Currently, we are focused on ALS. We have one drug in development, expected to market in two years. We're excited about developing these products internally from start to finish.
As for our initiatives on the hospital side, we built a 1,000-bed unit in a tribal area of our state where there was no critical healthcare setup. This hospital offers free care to anyone who needs it. It has been recognized as one of the best partnership projects with the government, ensuring high-quality, accessible healthcare for underserved communities. This project taught us much about building high-quality care with government collaboration. We have also established a medical and nursing school there, making the region self-sufficient in healthcare and creating employment opportunities. This high-quality healthcare setup has significantly improved the local ecosystem, providing better outcomes and opportunities for the community.
EF: From your perspective, how can we shift to a more sustainable supply system on a global level when it comes to access to pharmaceuticals?
SP: India plays a critical role in global healthcare, producing almost 50% of the world's medicines. This is evident in developed markets like the US, where high-quality generic drugs from India significantly reduce healthcare costs.
Moreover, India's supply chain resilience has been proven, especially during COVID-19. Despite global disruptions, India continued supplying life-saving medicines and increased production of essential drugs. This resilience ensured that countries were not left behind.
Looking ahead, Indian companies, including Zydus, are taking steps to strengthen supply chains. We diversify our input material sources by dual-sourcing key starting materials (KSMs) and active pharmaceutical ingredients (APIs) from different regions. This approach mitigates risks and prevents over-dependence on any single area, ensuring continuous supply even during global challenges.
Regarding local manufacturing, we have multiple partnerships with manufacturers in various countries guided by three key factors. First is capability and talent; the regional market must be able to manufacture the products. Second is cost; while we aim to manufacture locally, costs must be similar to what governments are used to, as no government wants an increased healthcare burden. This requires strong government support to create cost-effective solutions.
Lastly, we must increase access to life-saving drugs. In India, some monoclonal antibodies are only accessible to 1% to 5% of the population due to high prices. We can significantly increase access by introducing biosimilars at a fraction of the cost. Our biosimilars in markets like Mexico, Brazil, Colombia, and Venezuela can become first-line treatments in government programs due to their affordability.
EF: Why is a dollar invested in India better than anywhere else?
SP: India is exceptionally well-positioned in several areas. There is a wealth of scientific talent of Indian origin, both within the country and globally. Development costs are much lower in India than elsewhere, allowing more risks and projects. This enables us to run more programs, leveraging India's existing capacity and capabilities. India also has a large under-tested, under-treated, and under-diagnosed patient population, which is crucial for conducting new clinical trials and quickly recruiting patients, expediting market entry for medicines.
At Zydus, our story reflects this efficiency. Our first drug took 12-13 years to reach the West, but our next drug is expected in under six years. India's efficiency and success are evident in science and other fields like aerospace. With limited funds, we achieve high levels of innovation. This potential extends to healthcare, including medicines, vaccines, and medical devices. With more investment, India's experienced and efficient approach promises substantial returns.
The development of COVID-19 vaccines illustrates India's capabilities. Despite starting simultaneously with global efforts, India matched the speed and efficiency of other countries. We completed a 28,000-patient trial, recruited participants, and released data within the same timeframe as other global efforts. This demonstrates India's ability to conduct large-scale clinical trials and achieve rapid results.
EF: How does Zydus attract young talent, and how are you shaping this new workforce with the skills needed for tomorrow?
SP: Since starting in 1995 with 2,000 people, Zydus has grown to over 26,000 employees. Notably, over 60% of our workforce is under 40, giving us a youthful team. We've always been people-centric and now strive to be patient-centric. We want employees to understand the impact of their work on patients' lives and the broader ecosystem. COVID-19 highlighted our adaptability and execution skills, showcasing our ability to innovate and partner effectively. Trust and integrity are integral to how we view and reward our people.
We prioritize continuous training, skill development, and new opportunities for employees. We offer evolving roles, allowing individuals to take on more responsibility or shift functions. This ensures our employees do not remain stagnant. We provide opportunities for frontline employees and leaders to work across different functions and business units, promoting growth and engagement. Collaboration is encouraged through various projects, including digital initiatives, AI/ML, cost efficiency, and quality improvement. These projects provide diverse opportunities for our talent to engage, innovate, and add value.
People are the most critical part of any organization, including Zydus. With a younger workforce, we must go beyond what was done in the 1990s. Zydus's growth and innovation motivate our team. Launching pioneering products, like the first biosimilar for the first antibody-drug conjugate (ADC) and the first NCE in India, excites our teams and creates opportunities for groundbreaking achievements. This drive for innovation helps us retain and grow our talent.
EF: What are you most proud of over the past few years?
SP: I am especially proud of a few key achievements. During COVID, our vaccine development showcased exceptional science, which we can now build on. When India urgently needed antiviral medicine, we became the largest and lowest-cost supplier, providing it at half the cost of others, which built considerable goodwill. We focused on doing good rather than maximizing profits.
Our R&D successes include launching the first drug for a rare pediatric condition and introducing the first generic antibody-drug conjugate, expanding patient access from 5% to 45%. These milestones are crucial for reaching more patients and paving the way for future launches. In the US, we completed our first drug development from Phase I to Phase III trials this year. This is a major accomplishment, and if the data is positive, we hope to bring this product to market soon for our orphan indication.
