Read the Conversation
EF: Teva is a unique company, having a ‘one of a kind’ business model. How do you see the upcoming years for Teva, as a challenge or an opportunity?
JM: To provide a comprehensive perspective, it is essential to zoom out and grasp the broader context. Teva operates on the foundation of generics and innovation, including biosimilars. Such a strategic setup has spurred considerable debate within academia and the industry, as this approach is different from traditional go-to-market models and corporate structures.
Teva’s unique strategy is underpinned by a simple yet powerful concept: the stability derived from our robust generics portfolio, which boasts an annual global sales figure exceeding 8 billion dollars. This stability allows Teva to diversify into innovative pipelines, a move we call 'Pivot to Growth,’ which will provide incremental growth.
Generics are extremely important for us, remaining the business foundation allowing Teva, for example, to develop exclusive collaborations such as the one we have now with Sanofi to deliver inflammatory bowel disease treatment. These types of projects have direct implications in Poland and the broader European landscape.
In terms of the results of Teva's operations in my region, spanning from Estonia in the north to Romania in the south, we have consistently demonstrated exceptional market performance, despite the challenging times we are going through. I am confident that this will remain the case, and the Central and Eastern Europe (CEE) region will continue to be an important Generics Powerhouse for Teva.
EF: Could you elaborate on the trends of therapeutic areas within Poland?
JM: In Poland, Teva faces distinctive market dynamics that demand adaptability. Despite these challenges, I take pride in Teva's robust position. Our focus predominantly lies in generics and OTC products. These segments, especially CNS (Central Nervous System) and antimigraine treatments, hold significant importance in our local context. On a global scale, our attention is on CNS, including noteworthy innovations for migraine. While these areas have their impact globally, the situation in Central and Eastern Europe, especially Poland, presents unique hurdles. The CEE region, including Poland, experiences a lower GDP per capita compared to most Western European countries, influencing factors like reimbursement and access to expensive innovative medications.
EF: Could you elaborate on your operations in Poland and Central Eastern Europe?
JM: For many years Teva’s strategy for growth relied on mergers and acquisitions. Thanks to them, at the moment, Teva has over 20 European manufacturing sites, and 8 of them are located in Central Eastern Europe. This positions the region as a Production Powerhouse. One of the sites is located in Krakow. In this facility, we produce solid forms, liquids, hormones, and granulates - generics and OTC products. We produce for internal and external consumption within the EU. More than 500 people work there. In Hungary, Romania, and the Czech Republic, we also have several manufacturing sites. When it comes to biologics, Teva has two sites in Europe. One of them is located in Ulm, Germany, and the other one is in Vilnius, Lithuania.
In Teva, we are also proud to produce API within Europe, providing the region with self-reliance and maximizing the security of supply.
EF: How do you assess the level of awareness of prevention in Poland and Central Eastern Europe, and what initiatives can be performed to increase the level of prevention?
JM: The way I see it, prevention is not only about products that prevent diseases but even more importantly about education. Working on better habits and improving lifestyles could, for example, support the effectiveness of treatments for Type 2 diabetes or even mitigate their increasing number. It is imperative for the pharma industry to invest resources on this front.
Other areas, such as mental health, are where prevention can bring positive change. Addressing the challenges related to psychiatric and psychological issues is important because such problems often lead to burnout and other health difficulties. Unfortunately, these concerns are sometimes overlooked, even by medical professionals, who might dismiss them, for instance, as mere headaches. At Teva, we are committed to fostering a workplace culture where such issues are taken seriously, and individuals receive the support and understanding they need – as it is in the case of people suffering from migraines. I believe in the power of education and raising awareness - armed only with tablets and shots, we may not be able to improve people’s health in the long term.
EF: How do you attract the talent that accommodates the same idea that you have?
JM: The complexity of both our industry and life demands a level of expertise that goes beyond traditional education. Talent has emerged as a key driver of success for many companies, in the pharma sector as well. A talented workforce can elevate a company's prospects, while the absence of skilled individuals can impede progress significantly.
While there is no shortage of talented individuals, they are in high demand and often geographically dispersed, additionally having personal commitments that restrict their mobility. When faced with such situations, it's crucial to make strategic decisions. Placing functions where the talent resides, even if it means establishing operations in different cities or moving positions, has proven successful for us in Teva. To attract exceptional specialists in their fields, we align our approach with their needs. By doing so, it's a mutually beneficial arrangement - talented individuals find a workplace that suits them, and Teva gains the expertise necessary for growth. There are many examples in this regard in our CEE team, with leads for innovative medicines or ESG being one of them.
EF: If you had to define three pillars that craft a sustainable healthcare model, which ones would those be?
JM: Currently, Poland faces challenges akin to those across Europe and even in the US regarding healthcare. Despite breakthroughs and successes, the road ahead is far from easy. One significant area of focus for us, and a global decision embraced by Teva, is our commitment to environmental, social, and governance (ESG) principles.
Teva is deeply rooted in a green philosophy, emphasizing sustainability in every possible aspect. We've made substantial strides, transitioning several of our factories to renewable energy. Our annual report reflects double-digit growth in renewable energy usage, a testament to our dedication. In Poland, our initiatives include transitioning our vehicle fleet to greener options and actively participating in tree-planting campaigns, underscoring our environmental commitment.
Also, Teva’s commitment to inclusion and diversity is a source of immense pride. Our CEE management team boasts over half of women, demonstrating our belief in the power of diverse perspectives. I’m convinced that such an environment fosters creativity and better performance. We've implemented policies supporting families, recognizing the positive impact of diverse teams on our overall productivity.
Our focus on ESG principles, environmental initiatives, healthcare education, and diversity are integral components of a sustainable approach. These efforts reflect Teva's commitment to making a meaningful difference in both the healthcare sector and society at large.
EF: As you have been in this role for a year now, what would you like to celebrate, and what are you expecting for the next year?
JM: Thank you for your question; I'm glad you asked because I wanted to share an important development from my first year in this role. We undertook a significant organizational change in the Polish team, shifting our focus towards customer-centricity. While many CEOs claim to prioritize customers, the real challenge lies in the organizational structure. Traditionally, multinational companies organize themselves by therapeutic areas, but we decided to take a different approach.
In Poland, we have recently implemented a new organizational design based on major customer groups. Now we have dedicated divisions for pharmacists, medical doctors, and end users. Each division is supported by a customer excellence manager responsible for understanding the specific needs of that customer group. Such a customer-centric approach is unique in the pharmaceutical industry and has the potential to set a new standard.
Looking ahead, my goal is for people to remember Teva not just for the number of products we offer but for the value we bring to our customers. As a medical doctor, my primary focus is on improving people's health. This value extends to patients, ensuring accessibility, availability, and meeting their medical needs, while for medical professionals, we aim to provide essential support and resources.
I hope that Teva will be recognized as a company that delivers real value, and I am confident that our customer-centric approach will make a meaningful difference in the industry over time.
