Read the Conversation
Meeting Highlights:
- Josip Meštrović’s Experience: Outstanding trajectory in generic pharma, working at Sanofi Generics since 2006, leading Zentiva since spinning off from Sanofi in 2018, turning Zentiva into one of the biggest generics partners for Germany.
- Priorities for 2025: Raise awareness of the importance of investing in medicine supply infrastructure in the context of Germany’s change of administration, actively shape the European pharmaceutical landscape towards a more sustainable system, and strengthen local production.
- Challenges and Opportunities for Generics in Germany: Regulatory burdens, cost pressures, dependency on other markets for supply, and geopolitical uncertainty.
- Industry Collaboration: Josip Meštrović is actively collaborating with key stakeholders and associations such as Pro Generika and Medicines for Europe to drive the generics sector forward in the region.
- Zentiva’s Footprint: More than 100 million packs are produced for the German market in Zentiva sites (Prague, Bucharest, Ankleshwar/ India), and more than 30% of the volume produced in the Prague site is produced exclusively for the German market.
- Zentiva’s Culture and Talent: The company operates with a startup mindset, fostering agility and innovation. Prioritizes diversity, inclusion, and learning from failure. “It is not what we are producing but how we get a bit better every time to provide people with medicines they need.”
EF: Could you give us an introduction and overview of your career trajectory?
JM: I was born in Germany, but my roots are in Croatia. I grew up in Frankfurt, where I studied economics. I've been in the generics industry my entire career. I started at IQVIA, but soon after, I started at Winthrop, now known as Zentiva. It was always part of the larger Sanofi group. Zentiva, or Winthrop as previously called, was always in generics, so you could say I'm a generic native.
EF: How has the company evolved since becoming independent from Sanofi?
JM: From 2017 to 2018, Sanofi shifted focus and stepped away from the generics business. It was sold to Advent International, one of the largest and most experienced global private equity investors. In Germany, this was a huge step toward becoming an independent business. We were starting from scratch, building everything from the ground up, hiring people, securing office space, and structuring the business. Our team grew continuously, and together, we worked to establish what has become one of Germany's leading generics companies and partners.
The last six to seven years have been incredibly exciting, especially with Advent as a strong strategic partner supporting our journey. There's a huge difference between being an independent company and being part of a big group like Sanofi, and that shift required a new focus. I stepped into the role of General Manager in 2016, taking on the team's leadership. It's been an honor to guide this company through its evolution.
EF: In this year of uncertainty and transition, could you tell us your current priorities and what we can expect from Zentiva?
JM: 2025 will be an important year, especially for the generics industry. With the elections in Germany, we are now seeing a new government taking shape, and major investments are expected in areas like defense, infrastructure, and climate, which is a positive step. From my perspective, ensuring a stable and reliable supply of medicines is as critical as investing in roads, public transport, or schools. Unfortunately, while Germany has neglected infrastructure for decades, the pressure on the pharmaceutical industry, particularly generics, has only increased. We are responsible for ensuring the new federal government understands that key reforms must start now in an aging society like Germany to secure long-term benefits. This situation brings both challenges and opportunities. We're fully committed to ensuring access to safe and affordable medicines and are looking forward to seeing improvements in market access as well as a reduction of unnecessary bureaucracy, which we consider important.
It’s incredible numbers, but generics account for 80% of all prescribed medicines in Germany but only for 8% of the total pharmaceutical spending by statutory health insurance. Our role as an industry is to ensure widespread access to essential healthcare while financially sustaining the system.
Still, instead of easing rules, we're seeing new burdens, like extended product stockpiling requirements and the Urban Wastewater Treatment Directive (UWWTD). Instead of making the market more attractive, regulations are piling up, and this needs to change. The UWWTD will have significant consequences in Germany and Europe, potentially jeopardizing millions of people's access to affordable medicines. In response, Zentiva has taken a strong position by filing a legal case with the European Court of Justice. We decided to oppose this directive to protect patients and uphold the generics industry.
EF: How will the Directive affect local supply chains and access to affordable medication?
JM: This Directive seriously threatens our viability as a Europe-focused generics company. It creates an unacceptable risk to millions of people by potentially leading to medicine shortages, leaving behind our patients who depend on essential medicines every day. The Directive shifts the cost of water treatment processes onto us, along with the cosmetics industry, which would cost us millions and be an unreasonable burden. To be clear, we fully support clean water initiatives and the Green Deal. Safe water is crucial for life and medicine production, and we're not opposing environmental responsibility. However, the way this Directive is being implemented is simply discriminatory. We're willing to pay our share, but this feels more like an added tax that disproportionately affects the generics industry due to the sheer volume we handle. This is why we are raising concerns about the Directive, not because we oppose environmental responsibility but because the approach must be fair. Regulations should not disproportionately burden the generic industries while overlooking other sectors.
EF: Where do you see additional challenges given the current generics landscape and framework you are operating in?
The government has long recognized the pressure placed on the generics industry, but its policies, especially the tender system, are becoming increasingly restrictive. Regulatory policies that continuously drive down prices remain a challenge, and given the highly regulated framework we are operating in, we cannot finance additional taxes. Our priority is to ensure fair conditions for the generics industry and secure patients' access to our medicines.
Uncertainty is one of the biggest challenges. Stability is essential for daily operations and long-term investments in production lines and new sites. With two major European production facilities, Zentiva aims to minimize uncertainty wherever possible. Yet, we are already dealing with enough unpredictability: geopolitical conflicts, fluctuating pricing structures, inflation, and rising energy costs. This is why the European Union must be cautious about protecting pharmaceutical production within Europe. We must ensure that Europe remains self-sufficient in medicine manufacturing, reducing dependencies on China for active pharmaceutical ingredients (APIs). Recent global events have highlighted how reliant Europe has been. Over the past decades, there has been a growing realization across Europe of the need to regain control, and now we are seeing a shift toward strengthening domestic production.
As a European company, Zentiva strongly supports this movement. Although short-term geopolitical shifts, such as the postponed tariff wars, add to market volatility, our long-term goal remains clear: protecting pharmaceutical production in Europe. With almost 450 million people in the EU, we must ensure a stable and sustainable supply of medicines, including generics, to serve millions of patients. This is not just an industry concern. It's a fundamental responsibility.
EF: What is the strategic significance of the German market to Zentiva? How does the tendering process need to evolve to reflect a sustainable long-term vision?
JM: Germany remains our biggest market for generics, with a significant portion of production for this market coming from Zentiva's sites in Prague and Bucharest. Unfortunately, the core dynamics of the German generics market haven't shifted much. While there have been some changes, e.g., for antibiotics, the main rule for tenders stays the same: the lowest price still wins. Regardless of where a company manufactures, the quality standards it upholds, or whether it invests in green production, the decisive factor in tenders is still the lowest price.
This system may have functioned for 10-15 years, but times are changing. The pharmaceutical landscape is evolving, and the tendering process must adapt accordingly. A strong and sustainable healthcare system cannot rely only on cost-cutting. We need a new approach prioritizing quality, environmental responsibility, and long-term supply chain stability. My concern lies in how these new regulations are being shaped. Too often, new legislation is introduced without much consideration for or even discussion with the generic pharmaceutical industry. This shows just how complex Germany's regulatory landscape has become. Some political decision-makers seem unsure about what needs to be done, how to approach these issues, and how to support the industry. Over the past 20 years, the system has grown so complicated that they may not fully grasp the broader implications of their decisions. I'm not saying the tender system hasn't led to significant savings in healthcare. It has. But the system needs some breathing room. When we see fewer competitors in the market and an increasing risk of shortages, we should be willing to pause and reassess. Making the market more attractive will bring in new manufacturers and reduce the risk of shortages. We need a little more flexibility.
EF: What are the broader implications for Europe’s supply security?
JM: As long as tenders prioritize the lowest price, companies will keep shifting production outside Europe. This only deepens Europe's dependence on external suppliers. It's time to ask whether we want the cheapest price or will pay slightly more for secure, local production within Europe. The focus should be on keeping production within the European Union.
This isn't just about Zentiva. It's about ensuring that generics remain accessible to the broader population. Generics account for the vast majority of medicines dispensed in Germany. Zentiva specializes in large-scale production to meet that demand across Europe. If we make this segment less attractive, companies will naturally shift their focus to more profitable areas like biosimilars or OTC medicines. But that comes with consequences. Without a strong generics market, millions of people will be at risk of not having access to affordable drugs. Securing this segment isn't just about protecting businesses; it’s about ensuring a stable and reliable supply of medicine across Europe, which is also an ethical obligation.
EF: How are you leveraging common industry spaces to advance the sector, and how important is it for Zentiva to be part of these conversations that shape the industry in the future?
JM: Of course, it’s important. It’s about actively shaping and driving discussions. We’re not just passive participants; we sit on the boards, engage with decision-makers, and work to ensure they truly understand the complexities of these regulations. Zentiva can't do this alone. We need strong partnerships and a unified voice for the generic industry. In Germany, we've achieved this alignment through the Generics Association (Pro Generika), making it easier for stakeholders to engage with a single, coordinated perspective rather than multiple companies speaking separately. We're not here to oppose every change; we’re open-minded, realistic, and focused on securing a strong and reliable healthcare system in Germany.
Ultimately, we all share a common goal. We are citizens, too, with families in these communities, so ensuring a stable and secure pharmaceutical landscape benefits everyone. More and more key decisions are coming from the European Union, so tackling these challenges in Germany alone doesn't make sense. We must consolidate our efforts, collaborate with EU regulators, and ensure our industry's voice is heard at every level. Strong coordination between national and European associations is essential. As a global company, Zentiva is also a very active member of Medicines for Europe. Working together can only create meaningful, lasting change.
EF: How do you attract and retain the best talent?
JM: When you look at the generic industry, by law, the most generic products must be the same, no matter what the company. They are legally required to be similar in quality and composition. On top of that, pricing regulations ensure they are sold at nearly the same price. Unlike other industries, most of the generics can't differentiate through quality, pricing, or heavy promotion. If you apply the 4 P´s in marketing price, product, place, and promotion, none give a competitive edge in generics because everything is standardized and interchangeable. So, what makes the difference? It's not what; it’s the how and, most importantly, the people.
It’s about how we approach the market, how we streamline our processes, how efficiently we operate, and how we integrate digitalization. Speed, agility, and mindset become our real differentiators. Take Zentiva in Germany, for example; we are a young company, just seven years old, with a deep heritage of 500 years in the industry. This gives us a unique startup mentality at the heart of our operations. If you’ve ever been to Berlin, you’ll recognize this entrepreneurial spirit; it’s fast-moving, innovative, and open-minded. We are all sitting next to each other in an open space, which makes us make decisions quickly because we are communicating a lot within the entire team. Compared to large, well-established players, Zentiva operates differently. We thrive on agility, experimentation, and piloting new ideas. We’re looking for bold, talented individuals who are free to think differently and speak openly. With a flat hierarchy and a culture that encourages trying new things, we embrace change. It’s not about the product. It's about how we execute, innovate, and build. That's the true advantage.
We actively hunt for young talent and give them the freedom to operate, the freedom to fail, and, most importantly, the freedom to learn. Zentiva's success today doesn't come from being perfect; it comes from learning from our mistakes over the past five to seven years. Every stumble taught us something valuable. That mindset, paired with hard work and a fun and engaging culture, sets us apart in the generics industry.
I'm also really proud of how we've embraced diversity and gender balance. We don't just discuss equal opportunities; we ensure our workplace is balanced and inclusive. But let's be honest: attracting and keeping great talent isn't about flashy perks like smoothie bars or free veggies in the kitchen. It's about creating an environment where people feel valued, can grow, and truly belong. That's what we're focused on. It's about giving people the space to express themselves, develop, and build their careers. You can have direct access to leadership, including myself if needed. We believe in flat hierarchies and direct engagement, making young professionals feel heard and valued. At Zentiva, we foster a culture of piloting, innovation, and doing things right. It’s not always easy to find people who thrive in this fast-moving, experimental environment, but it's perfect when the fit is right. That's why I love this question: This mindset, culture, and drive are exactly what we're all about. That's the kind of open, dynamic, and global spirit we embrace, which we continue to push forward daily.
EF: What have been some of the things you have been most proud of during your years at Zentiva? What do you look forward to for the company in the future?
JM: One of my biggest energy drivers, and of which I’m truly proud, is the Zentiva Team. It took time, effort, and tough decision-making. But now, after all the challenges, we have the best team possible to drive this business forward. What makes me most proud isn’t just that we work together; it’s how we work together. It’s not about always agreeing; it’s about pushing each other, challenging each other, and continuously improving. That kind of dynamic is invaluable. I am privileged to have hired and surrounded myself with such exceptional people. I am privileged to have built this company from scratch, and now we led it to become one of the biggest players in Germany. Sometimes, I need to pause and reflect to truly appreciate how far we've come in such a short time. And when I do, it's incredible to see what we've built together.
