Home > Health > View from the Top

Withstanding the Test of Time

Pedro Galvis - Merck Sharp & Dohme
General Manager

STORY INLINE POST

Wed, 09/06/2017 - 15:38

share it

Q: What role will personalized medicine play in biopharma?

A: This is critical. We have been working on personalized medicine for some years and we were one of the first to do so in oncological treatments. For example, Erbitux is a product approved for treating metastatic colorectal cancer and locally advanced and recurrent metastatic head and neck cancer. We were among the first to implement and generate know-how of genomic testing in colorectal cancer. Depending on the mutational status of specific genes in a patient’s DNA, a doctor can decide on the best treatment for that individual. It has been interesting yet challenging because it entails much research, education and work with physicians and specialists.

Now, personalized medicine is part of our daily life. Many of the products in our pipeline will also be related to personalized medicine. Avelumab, recently approved in the US for an aggressive form of skin cancer, will be launched in the field of immuno-oncology.

Q: Merck is working with the Seguro Popular. To what extent is personalized medicine widely available?

A: It is starting to be increasingly available. Metastatic colorectal cancer was included in the Seguro Popular’s catalogue three years ago. It has taken some time for hospitals to get accreditation but now there are around 13-14 hospitals in Mexico that are accredited to provide this treatment on behalf of the Seguro Popular. We expect that very soon other catastrophic diseases like multiple sclerosis and Turner syndrome will also be included in the Seguro Popular catalogue to cover those patients in need.

Q: Merck operates in many areas, some highly competitive. What is its strategy to stand out in each?

A: The structure we have implemented allows us to focus on each business sector and especially on our patients’ needs and those of our customers. This latter point is key to di erentiating our products and services o er. We continuously adapt our strategy to the local environment and work closely with our team to take advantage of existing opportunities. We have high-quality, innovative products and a truly motivated and engaged team.

Q: How up-to-speed is regulation of personalized medicine in Mexico?

A: There are not many challenges in the area of regulation. It has not been a critical issue. The authorities have been open to discussing this and to integrating personalized medicine into treatments. It is also in the guidelines for most specialists.

Q: If regulation is not an issue, what are the main challenges that need to be overcome?

A: The biggest challenge we face as an industry is market access, as our innovative products must be available to the patients who need them. Unfortunately, this situation is not good enough at the moment and is definitely below the international standards set for a country with the size and population of Mexico. When compared to other OECD countries and those in the region, Mexico has one of the lowest access indexes, so we are working on this through AMIIF. First we collaborated with COFEPRIS to try to speed up the regulatory process for registration and approval. Then, we worked with the CSG and together we managed to improve processes. Finally, our next step will be to work with IMSS and ISSSTE. There is limited access to innovative products. There have been several budget cuts, the institutions were not financially viable and they were really struggling, but this is improving. While we understand the issues, the country needs to push for health to improve productivity.

Mexico’s economic situation is not that different to that of other countries, as budget constraints are an issue all over the world. We have been looking at alternative contracting models and risk-sharing options, among others ideas, to increase access to innovation.

Q: Generics have faced resistance in Mexico but are gaining ground. What are the advantages and disadvantages of selling a branded OTC?

A: In Mexico, generics are a large part of the Mexican pharmaceutical market. Merck had a generics division that was divested due to strategic reasons, but we understand it is an option to guarantee access to some products. However, the big issue continues to be the quality of these products. We believe in the value of our brands. Our growth hormone is one of several options in the market. Ours is differentiated through the quality of the product and because of the devices we use, such as our electronic auto-injector that keeps track of patient adherence and of past doses by recording the size and time of injections. Doctors can later use this device to know whether the patient is actually using the prescribed dose and how often.

Q: What is the company’s strategic advantage over other companies?

A: One of our board members once said: “We do not think in quarters, we think in generations.” That says a lot about the long-term approach this company takes in each of its businesses. Compared to other companies that are more focused on quarterly results for shareholders, for Merck, which is mostly a family company, this has been key. We are in each business for the long run and decisions are not made based on immediate results but for the long term. We say Merck is 350 years new, because 350 years may be a lot but we continuously innovate and every year we bring out new products and technologies. Innovation is at Merck’s core.

Q: What role do your chemicals play in healthcare?

A: What used to be the chemical division is now the life-sciences division. Most pharmaceutical research companies and academia use our portfolio of over 300,000 products, reagents, lab equipment and devices to solve the most difficult problems in the industry. We also supply raw materials, water systems, biopharmaceutical manufacturing systems and regulatory advice to our most important customers. The acquisition of Sigma Aldrich in 2015 significantly extended our portfolio and our e-commerce platform.

Q: What will your priorities be for 2017 and for the Mexican market?

A: We have achieved aggressive growth over the past four years, growing at double-digit rates, which is around three times that of the market. The challenge after four years is to continue this growth; we are having a positive year so far and so we hope to deliver on this expectation. We are doing this through our core products, but we will also launch new products in general medicine and cardio- metabolic care. In 2017, it is vital to prepare for new strategic launches in specialty care, such as Avelumab in immuno-oncology and Cladribine, a new product for multiple sclerosis.

You May Like

Most popular

Newsletter