Read the Conversation
EF: What space does Brazil occupy in the dermo-cosmetics market, and what trends are you detecting in Brazil? What is Brazil's importance to the entire Merz Aesthetics ecosystem?
GP: Brazil plays a crucial role for Merz Aesthetics globally. We consistently rank third in net revenue, a position we've maintained for the past four to five years. Given that our sales are in Brazilian Real, achieving this rank is even more impressive when converted to euros, especially compared to the US and South Korea, the top two markets. This success is driven by Brazilian healthcare professionals, customers, and patients who prioritize skin care, beauty, and overall well-being. Our treatments improve appearance and boost self-confidence, preparing individuals to face daily challenges professionally and personally.
I recently met with female CEOs from various sectors to share perspectives and strategies for facing challenges. We agreed to prioritize self-care before our businesses. Self-care is not just about appearance but also encompasses mental and emotional health. In Brazil, healthcare professionals approach aesthetic treatments differently than their American, European, and Asian counterparts. This mindset shift is why the aesthetic market will continue to grow here.
In Latin America, we strive to innovate and set benchmarks for other regions. We don't just follow standard protocols; we explore new methods and combinations of treatments based on thorough scientific research. For example, we used Radiesse® eight years ago for a single indication. Brazilian professionals studied its broader potential, leading to new applications and improved patient outcomes. Today, Radiesse is globally recognized for its extensive benefits. This innovation highlights Brazil's significant contribution to the market and its positive impact on patients worldwide. As a family-owned company in its fifth generation, Merz prioritizes long-term sustainability over short-term profits. We're not focused on immediate returns or shareholder payouts but aim for the company's enduring success. Celebrating our 120th anniversary next year, we emphasize the lasting sustainability of Merz Aesthetics worldwide.
EF: What were the main takeaways from the female leadership event you attended last week?
GP: We were invited to a meeting with ten women, most of whom I knew from previous events, though not very well. The meeting was organized by two companies unrelated to us, aiming to discuss their strong ESG initiatives. One focus was their sponsorship of an NGO dedicated to preserving Onça-Pintada, a Brazilian leopard, native to the Pantanal region in Brazil. We recognized that innovation and growth stem from working with diverse individuals. While we know this, experiencing it firsthand in a group setting made it even more evident. We also discussed various career challenges and how we handle difficult situations and setbacks. This meeting provided valuable insights on balancing profitability with positive contributions to people, the community, and nature. We left feeling strongly driven to apply these lessons in our organizations and aim for improvement. It was a valuable experience.
EF: Are there any products in the pipeline or changes to the products you’re excited about?
GP: Currently, we have four main products in our portfolio, along with a few SKUs. Though our portfolio is concentrated, it includes some of the most important treatments in aesthetic procedures. Three of these products are injectables, and one is a device, each targeting different skin layers and indications. This allows healthcare professionals to comprehensively treat patients, helping them feel, look, and live better, which aligns with our mission to improve quality of life.
For instance, we have extensively studied Radiesse® and can confirm that it has a regenerative mode of action. This regenerative approach promotes collagen production in a healthy, non-inflammatory way - which means it acts on cell matrices to regenerate their function - significantly benefiting patients. Improved collagen production and skin organization lead to better results from other treatments, enhancing overall skin appearance safely and effectively.
Our focus on regeneration started eight years ago and has gained more attention across various fields, emphasizing its importance. We're excited about this direction and its positive impact on dermatology and patient outcomes. Additionally, two new product launches this year will improve our treatments and offer a better experience for healthcare professionals and patients. Although I can't share details yet, we are excited about these new developments.
EF: What are the three key pillars of a sustainable and safe business operation in Brazil?
GP: First, we must be attentive to the dynamics of the market and our clients, as they are changing rapidly. We must adapt quickly to meet their evolving needs. Second, our people are crucial. It's not just about having the right people but the best people in the best positions. Understanding and supporting our employees, ensuring they are in roles where they excel and feel fulfilled, will drive the company to new heights. Happy employees are more productive and committed to the company, even though not every day will be perfect. The third pillar of sustainability goes beyond philosophy; it's about community and impact. Sales and profit are a given, but genuine success comes from grasping market dynamics, having passionate people in suitable positions, and pursuing goals beyond mere profit. When we genuinely strive to do something bigger, success follows. Recent experiences have reinforced this belief, and I am confident this is the right approach.
EF: What role do you think technology can play in amplifying access to your treatments, and what metrics are you using to track technological advancement?
GP: We don't need to debate the impact of AI and other technologies; they are essential now and will become even more so in the future. One of my colleagues, who specializes in this area, highlighted that we often look at historical data when we analyze current trends. However, to predict the future, we should focus on what will happen in the next two to three years, not just the distant future. In our company, we invest 15% of our revenue in research and development, which is significant. This investment goes directly into scientific research. Many products don't make it to market because they don't meet our strict safety and performance standards, reflecting our commitment to quality and safety.
We constantly invest in new technologies to create cost-effective, high-performing, swiftly produced products. Beyond product sales, we aim to support healthcare professionals (HCPs) in maximizing the use of our products to fuel confidence. While skilled in the scientific aspects, they may need more expertise in creating a great patient experience or effectively marketing their services. Therefore, we also focus on using AI and innovation to enhance these areas, ensuring that HCPs can provide an exceptional experience and become desirable treatment providers.
While AI and technology will greatly improve our processes, we must continue to invest in human relationships. AI can never replace the value of genuine human interaction. Unfortunately, we're increasingly focusing on optimizing systems and processes with AI and neglecting how to improve ourselves and our relationships. This needs to change. In the future, the distinguishing factor between companies won't just be technology—many will offer similar products and services. What will set us apart is our relationships, service, and interactions. For example, aesthetic procedures are about more than just the physical results; they impact people's feelings about themselves. This involves understanding emotions and the deeper reasons behind their choices. At Merz, we must never lose sight of this human aspect. Our goal is to help people feel better, not just look better. This means our team must understand and utilize technology while maintaining our focus on genuine, empathetic human connections. This balance will ensure we provide exceptional care and service, now and in the future.
EF: In two years, when you celebrate your tenth anniversary at the company, what would you like to have achieved? And what decision are you making today that will impact Merz in the next ten years?
GP: It's clear that my purpose now is to shift the perception of aesthetic treatments. Many still see them as superficial or unnecessary. I want to change this mindset with the support of Merz and our employees. When I eventually leave Merz and the aesthetics industry, I want it to be seen completely differently than it is today. My leadership style involves celebrating achievements while continuously seeking improvement. For example, we've made great strides with Radiesse and its regenerative claim, but now I'm asking, “how can we build on this success?” I constantly seek improvement and challenge my team to do the same. This doesn't mean I'm unhappy; on the contrary, I'm very proud of our growth and our achievements. We have become the third largest in Merz globally and second for Radiesse among all countries. However, I want to achieve even more, not for myself but for the legacy we can create. Achieving something meaningful requires time, effort, sacrifice, and focus. It's like going to the gym—I may not always enjoy it, but I know it's necessary for my long-term health. Even on cold days when I'd rather stay in bed, I go because I know the results will be worth it. This mindset drives me at Merz and in my life, and it's how I challenge my team to strive to be better than yesterday.
