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Risk-Sharing Model in the Face of Health Budget Challenges

Ana Longoria - Novartis
President and General Director

STORY INLINE POST

Wed, 09/05/2018 - 12:24

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Q: What are the priorities for a highly experienced health executive like you?

A: Our main priority is the patient, so Novartis plans to continue launching innovative, generic and bioequivalent medicines of the highest quality to continue supporting our solutions to more than one billion people around the world. Health systems around the world face great challenges such as the aging of the population. By the year 2030, there will be close to 1.4 billion people worldwide over 60 years, which will increase the prevalence of chronic-degenerative diseases. I want to bring more digital innovation and technology with comprehensive health services to have a greater impact in Mexico and the world.

Q: Most of Novartis messages are directed to patients, their families and doctors. What is the message for those other players who are crucial to you?

A: Novartis takes special care of all its relationships. From civil society to the authorities, going through our entire value chain, our message is from a leading company that is crossing the borders of medicine to prolong the lives of people. Regardless of the relationship scheme, whether employee, partner, supplier or any other type, our collaborators can rest assured that Novartis will always adhere to its code of ethics and the legal framework. Novartis is currently among the 20 companies with best reputation in Mexico, according to the ranking published by MERCO.

Q: Novartis invests around 20 percent of its profits in R&D for innovative products. What are the three most effective therapeutic areas in Mexico for Novartis?

A: Novartis has more than three therapeutic areas growing in Mexico. In our pharmaceutical and oncology divisions, we are bringing innovative solutions for cardiovascular diseases, breast cancer, autoimmune diseases, transplants, Alzheimer’s and migraine. Through our generic division, we are launching an HIV line to increase the population’s access to high-quality medicines. These solutions generate a cost-efficient relationship that benefits the health system. We have examples of transformative, innovative and high quality treatments in each therapeutic area of our portfolio. For example, Novartis treatment for refractory pediatric leukemia, approved by the FDA, has a worldwide presence. Yet, our Center of Excellence for the Treatment of Diabetes represents the main priority for Mexico. Today, we are achieving levels of diabetes control above the national average.

Q: How is Novartis planning to approach Mexico’s epidemiological changes and what opportunities are there for developing innovative medicines?

A: Novartis is addressing this transition in four different ways: through innovative medicines, quality in generics and bioequivalents, innovation in our business model and the incorporation of digital tools. When I talk about innovation, I do not only refer to the medicines we produce, but also to our business model, which allows new therapeutic solutions to be available for the population. Novartis applies in Mexico the Risk-Sharing Model, which is an example of an innovative business scheme used to face the budgetary challenges that afflict all public health systems throughout the world. The distinctive feature of this scheme is based on the pay-for-results approach and not the number of units sold. This dynamic transforms our relationship with public health institutes because we are evolving from a transactional model to a more advanced one in which we offer value-based health solutions.

Digitization is also essential to address the epidemiological transition in Mexico. Novartis is incorporating technological and digital tools in its operations to improve its next chapter of medical innovation. We believe that the companies that will be most successful in the future are those that see this transformation as an opportunity. Under this logic, we are re-imagining Novartis as a drug and data science company. We see our collection of data as a strategic asset that places us in a leading position to guide the digital revolution in the pharmaceutical industry.

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