Nycomed Magazine PDF

ISSUE 13 Q2 2011
INSIDE The future is in our hands COMOPs ready to meet challenges From Russia with love Jostein Davidsen interview A spirit to succeed Nycomed Belgium in prole
New focus for deal makers

Business Development adapts to stay at the heart of the business
The Nycomed Magazine is a publication for Nycomed employees around the world.
ISSUE 13 Q2 2011
This is Nycomed
When we talk about strategy we often say we cant have Europe without emerging markets, and vice versa, if Nycomed is to expand. This issue backs that claim. In the Business Update, youll get a sense for how it all comes together: the importance of expanding our presence in growth markets and the importance of keeping up a strong, unied and protable Europe. Head of COMOPs Guido Oelkers talks about what we need to do in order to stay on course. He gives examples of how we are putting our emerging markets expansion strategy to work. He also cites the ONE Nycomed in Europe (ONE) initiative as an example of how we are readjusting the lens to take a broader European view when it comes to some of the larger strategic decisions we need to make. Its a push to look beyond local country borders for the benet of Nycomed as a whole. While were on the subject of Europe, check out the Belgium prole with Country Manager Chris Juliam. In the face of all sorts of challenges, Chris and her team just keep on posting solid results. No wonder: their rally cry is to always out-perform the market a cry that will now carry over to the new FraBeNe cluster shes leading as part of the One approach. And then theres the recent deal signing with Colombia-based Farmacol the latest strategic move in our emerging markets growth strategy. As Norbert Oppitz, our Head of the Latin America region, says if you want to be a player in Latin America, you need to establish a foothold in Colombia. And thats what weve done. One of our brightest stars on the emerging markets horizon is Russia/CIS. After reading the Prole with d Jostein Davidsen, Head of Russia/CIS, youll understand a bit better why this LOC keeps on shining bright.
This is Nycom ed
Editorial
Much of its success points to a hugely engaged leader who embodies a wonderful combination of business savvy and great love for the country, its people and way of life. A Norwegian converted forever. Our products, however and our commitment to quality know no borders. TachoSil is spanning continents as youll see in the Product Prole. Our Operational Excellence programme, or OpEx as the folks in Operations like to call it, is running full throttle. Youll read rst-hand from Black Belt Gesche Ahrens about the things she and her team are doing to improve processes and increase output. And our Daxas cross registration team is moving mountains to clear this most important rst hurdle in getting our COPD medicine to patients worldwide. Youll see we have attached a small booklet at the back of the magazine. Its called This is Nycomed. It will come in handy when telling the Nycomed story. It outlines in simple terms our vision, mission, strategy and key strategic pillars. Its easy to ip through and refer to for reference and inspiration. Ive only touched on a few of the topics covered in this issue. Theres plenty more awaiting you, such as meeting our Business Development team, a Hot Seat interview with our Head of Operations and some interesting results just in on our Values Survey results that show weve got a motivated global team ready to make our strategy happen. Enjoy the issue!
Megan MacRae
The Nycomed Magazine is produced by Corporate Communications and is intended for internal distribution only. All products in italics are registered trademarks of the Nycomed group.
Corporate Communications: Walter Vaterlaus Publisher: Birgit Gronkowski Managing Editor: Megan MacRae Editor: Nick Reed Design: Dave Johnson Contributors: Anna Artemeva, Martin Buschmann, Magali Coremans, Ward Geerts, Justin Hession, Lau Polinsio. Thanks to all Nycomed employees who have helped put this issue together. Print: Burger Druck, D-Waldkirch Paper: Wood-free Prosilk silkmatt coated. The contents of The Nycomed Magazine do not necessarily reect ofcial Nycomed views. Copyright for photographs and illustrations in The Nycomed Magazine are not always owned by Nycomed.
Nycomed International Management GmbH Thurgauerstrasse 130 8152 Glattpark-Opkon (Zurich) Switzerland www.nycomed.com Nycomed 2011 FEEDBACK is welcome, as are ideas for future issues. Please e-mail
megan.macrae@nycomed.com
Contents 4 8 9
Remaining Competitive
The future is in our hands

The ongoing transformation of COMOPs is helping Nycomed maximise opportunities and meet new business challenges. Business Update
Poised for growth in Latin America

The acquisition of Farmacol in Colombia helps regional consolidation. Business Update
TachoSil milestones reached

US launch continues globalisation, as sales pass 100 million mark.
10 ProleRussia withects on two eventful decades From love Jostein Davidsen re

orchestrating Nycomeds operations in Russia/CIS.
14 16
Teamwork drives Daxas registrations

How a cross-functional effort is keeping the global process of submissions and approvals for the COPD medicine on track. Meet the Team
New focus for deal makers

A functional reorganisation keeps Business Development at the heart of the business.
A spirit to succeed 20 Country Feature Belgium have helped Entrepreneurialism and creativity
Nycomed Belgium meet a number of signicant challenges. in the Life New ways 30 A Dayways of thinking, new Ahrens,of working Singen OpEx Black Belt, Gesche explains how she is inspired by the opportunity to add value.
32
Product Prole
Natures bodyguard
An in-depth look at Ulinastatin, Techpools inammatory agent to treat sepsis and acute pancreatitis.
34 Hot Seat Barthold Piening newemerging markets Operations adapting to challenges How does the strategic focus on
impact our production and distribution strategy?
36
Getting the measure of Nycomeds culture

One-third of the companys employees took part in the recent Values and Culture survey. How do they rate Nycomed as a place to work?
Focus Zydus 38 Partner inNycomed andCadila partner together A meeting of minds brought its Indian 12 years ago, and common goals are behind their continued collaboration. brief 39 In lookisatNycomed new Brand Portal, This A the companys new ofces open in Saudi Arabia, and a This is Nycomed booklet for you to keep.
FOUR
REMAINING COMPETITIVE
COMOPS
The future is in our hands
THE NYCOMED MAGAZINE ISSUE 13 Q2 2011
FIVE
The rapidly evolving global environment is making it increasingly complex for pharmaceutical companies to remain competitive. But the ongoing transformation of our Commercial Operations (COMOPs) function is set to help the company maximise opportunities and meet new business challenges.
Guido is certainly in the glass half full not glass half empty camp when it comes to business thinking, even if his drink is spiked with a healthy shot of realism. This company has plenty of tremendous opportunities for future growth, particularly with Daxas and in emerging Nycomed has an additional challenge to markets. We are actually one of the few contend with: while Pantoprazole sales stabilised towards the end of 2010, there is companies that has a product in the launch still a gap that needs bridging between the phase that makes a real difference, he says. And our specialty portfolio is also erosion that has inevitably resulted from enjoying double digit growth. But we the products loss of exclusivity and the arrival of meaningful revenue from Daxas. cant do everything. We have to prioritise the investment of resources in the areas where they best support our strategic One persons challenges, however, are aspirations, and retool the organisation anothers opportunities. Guido Oelkers, accordingly. So getting Daxas right and the companys head of COMOPs, is continuing to strengthen our presence in determined to see that our commercial emerging markets must be our two areas operations are properly structured to of principal focus. meet the needs of various stakeholders so that we remain competitive and can In particular we need to be targeting achieve our long-term objectives. That is protable and sustainable growth, rather the thinking behind a series of initiatives than just sales, he adds. And our local detailed in the following pages. organisations must move from a mindset of market management, where they are primarily concerned about optimising brands in their local geographies, to one of business management, where they take decisions based on what is best to sustainably grow cash ows. Growing pressure from healthcare authorities on pricing and reimbursement, intensied generic competition, escalating operating costs has life ever been tougher for the pharmaceutical industry? As Guido explains, the difference between the respective environments of the new, emerging markets and those that are more mature couldnt be more marked. In the former you have dynamic growth, in the latter it is very limited if not virtual stagnation. he says. The focus in emerging markets, which now accounts for 39% of our net turnover, has been on investment and the creation of
new local operations in countries such as South Korea, Indonesia and Colombia, the reinforcement of our presence in MENA, including new LOCs in Turkey and Saudi Arabia, and a major acquisition in China with Techpool Bio-Pharma. In Europe and Canada, meanwhile, its all about building sustainable positions and staying protable in an environment characterised by cost containment. Protability will be driven by making Daxas a success, optimising our portfolio and repositioning underperforming brands, while keeping a constant eye on the cost base. Europe has already taken a major step forward in this respect with the adoption of its ONE One Nycomed in Europe strategy, which is based on six clusters as major performance cells and a new governance structure in the form of a European Leadership Team (see panel on page 7). Managing Europe as one entity will give us more coherence, help us prioritise better and nd solutions that help us generate the kind of sustainable protability we want, Guido says.
CONTINUED ON PAGE SIX
We cant do everything. We have to prioritise the investment of resources in the areas where they best support our strategic aspirations.
SIX
COMOPS
CONTINUED FROM PAGE FIVE
Refocusing of OTC
The strong growth potential in emerging markets and stagnation in most of Europe is also behind changes at Nycomeds OTC organisation, which aim to help the function better serve emerging markets while focusing on selected countries in Europe where our position is sufciently strong. We will not reach the necessary critical mass in OTC in each market, Guido says. With an emphasis on emerging markets and selected clusters in Europe, we are repositioning this business to concentrate on countries with the best growth opportunities for Nycomed. The central OTC team will now focus on global strategy and new product development initiatives in dened categories and geographies.
Business Management and PIM gives direction to the business Commercial Effectiveness join forces Portfolio and Interface Management (PIM)
The Business Management and Commercial Effectiveness groups now form one team, working with regional heads, country managers and corporate stakeholders such as the SBUs to drive prot generation and sharing of best practice across the company. While the LOCs and Area Management remain responsible to drive sales and prots, Business Management will support them in a practical and measurable way, covering all aspects of Business Management, including Commercial, Marketing and Channel Excellence and Performance Measurement. The Max 2010 commercial performance project has successfully achieved its objectives. The productivity improvements and savings have been incorporated into the LOCs 2011 budgets, and activities developed under the initiative, such as Marketing Mix optimisation and Pharmacy Excellence, are now being implemented. Commercial Effectiveness is now to become a permanent way of thinking and operating to build the overall competitiveness our set up. provides data and strategic analysis to advise the business on how to make our product portfolio t for the future and get the geographical focus right. It is also the interface for R&D, Business Development, Finance and other key functions for business cases of prelaunch products up to phase II, in-licensing, and mergers and acquisitions. These moves create two clearly dened support functions, says Guido. PIM now has a more long-term oriented portfolio and project orientation, while Business Management will focus on our current portfolios in the LOCs and how to get the very best out of them.
Post-launch pricing
As well as keeping a sharp focus on driving the successful roll-out of Daxas, the International Pricing and Market Access team will also take on post-launch price management, in addition to the prelaunch focus already in place. This will allow them to address pricing-related questions more efciently for products already marketed, and provide the information needed for discussions around potential price cuts. The opportunities presented by Daxas and other key products, allied to the growth potential in emerging markets and our strength in Europe, give us the platform for an exciting future, Guido concludes. Determining just how exciting this is, however, lies in our own hands. We need to grow, deliver on our targets, simplify and prioritise if we are to achieve our goals. These changes to our commercial operations will help us do exactly that.
Brand Management consolidation

Brand Management has been consolidated into two product-based teams, moving away from the lifecycle management approach. The Global Osteoporosis and SBS (short bowel syndrome) management team will handle Preotact, Circadin, Calcium, Steovess, and Revestive (teduglutide), while the Global Tissue and Pain Management will support Xefo, Matrifen, Instanyl and TachoSil.
We need to grow, deliver on our targets, simplify and prioritise if we are to achieve our goals.
SEVEN
Shared accountability for an integrated Europe

Lothar Boesch (left) and Timo Tiivola (right)
While emerging markets will fuel Nycomeds growth in the immediate future at least, Europe, together with Canada, still contributes half of the companys sales and prots. It therefore remains the backbone of our business. The new ONE (One Nycomed in Europe) strategy is designed to ensure that, while top line growth opportunities in the region may be increasingly challenged by healthcare cost containment, the European organisation is successfully managed to achieve sustained protability. ONE is based on six country clusters operating as major performance cells, and a new European Leadership Team (ELT), comprised of the area and cluster heads. As a mature market with many similarities to Europe, Canada is also included in the new set up. ELTs primary focus is to maximise protability on a European level by optimising investment decisions and business opportunities across countries. This will allow a number of key decisions to be taken from the vantage point of a broader European perspective versus on an individual country basis. This new approach will lead to synergies and economies of scale, but most importantly it ensures that investment goes where it will generate maximum protability. There will be a permanent and close alignment between the ELT, the regions, the clusters, and the local operating companies, explains Lothar Boesch, Head of Central, South & Eastern Europe. We need to avoid a silo mentality if we want Europe as a whole to be protable. Country Managers will, of course, remain fully responsible for the protability of his or her
country, maximising the potential of our EU portfolio while tightly managing their cost base. The ELT will have overall accountability for P&L (prot and loss) in Europe and
Canada or EUCAN which will enable us to be fast and exible in our decision making, based on the priorities of the region as a whole, says Timo Tiivola, Head of Western Europe, Canada, MENA & South Africa. Entrepreneurship in the LOC (local operating company) teams will be crucial to identify business cases for growth initiatives with a European as well as local scope. And they will also have a key role to play in supporting the evaluation of managing non-core brands for protability. The role of the LOC is shifting from country to business management, Lothar says. Its a two-way process. We certainly need their contribution to the overall European business, and we are sure they will benet from good ideas initiated in other parts of the region that could be replicated in their own territory.
European Leadership Team (ELT)

Ghita Astrup Nordics, UK & Ireland Lothar Boesch Central, South & Eastern Europe DACH (Germany, Austria, Switzerland) Pier Colli GR-IT (Greece, Italy) Chris Juliam FraBeNe (France, Belgium, Netherlands) Frank Rotmann CEE (Central & Eastern Europe) Timo Tiivola Western Europe, Canada, MENA & South Africa Lide Verdugo Iberia (Spain, Portugal)
ONE Nycomed in Europe
EIGHT
BUSINESS UPDATE
COLOMBIA DEAL
E USIN B
SS
E DAT UP
Nycomeds recent signing of a deal to acquire Laboratorios Farmacol S.A. in Colombia is an important milestone in our growth strategy for Latin America.
Poised for growth in Latin America

If you want to be a major player in Latin America, you have to be in Colombia. Its a simple strategic imperative voiced by Norbert Oppitz, the head of Nycomeds Latin American organisation, when explaining a recent deal signed to acquire the countrys tenth largest pharmaceutical company, Laboratorios Farmacol S.A. (Farmacol). But its one that is backed by hard facts. Colombia is Latin Americas fth largest pharmaceutical market, with annual growth of 14%. It is recognised as one of the regions most dynamic economies, with great potential. And it is currently investing heavily in industrialisation, education and infrastructure. Latin America is dominated by two big markets Brazil (a separate Nycomed region in its own right) and Mexico as well as three mid-sized markets Argentina, Colombia and Venezuela. Colombia is the only one in which Nycomed has previously had no direct presence. The new Colombian company will become a fully-edged Nycomed entity headed by Michael Himmel, formerly Commercial Director for the region and someone who, like Norbert, has lived and worked in Latin America for the past decade. Michael will also lead a new Founded in 1969 and based in the Colombian capital, Bogota, Farmacol has always been a family run and familyowned business, with a similar culture to Nycomeds. It currently employs about 70 people who are passionate about The acquisition of Farmacol gives us delivering quality products that make a access to one of the fastest growing pharmaceutical markets in Latin America, difference. as well as some very interesting brands, Norbert says. It also helps us consolidate The company has a strong portfolio of branded medicines in the areas regionally. With the creation of the Andean cluster, we are now adopting the of gastroenterology, respiratory and gynaecology, as well as internationalCo-ordinating Country Concept model, standard production facilities that which will transition us from a host of isolated countries to one unied regional manufacture liquids, solids, semi-solids player comprising Mexico, Argentina and and effervescent products. Its leading products include the anti-spasmodic the new cluster. Espasmobil and varicose veins treatment According to Norbert, the Farmacol deal Vasoton. is a small transaction but one that is Nycomed aims to not only launch highly strategic. products such as Omnaris and Daxas in I see this latest deal as evolutionary, not the country, as well as regional brands such as Alevian Duo, Dagla and Tecta, revolutionary. It gives us an excellent but also to analyse the potential of base, making us even more attractive introducing Farmacol products to other to licensing partners as we continue parts of the Andean region. to grow our presence here. Ive always said that we want to be the preferred Colombia is a very competitive market, marketing and sales partner for every but also very exciting, Michael Himmel company seeking to license a product in Latin America. I want to see them lining says. As with the rest of Latin America, up outside our door, and this transaction, we are anticipating a lot of launches in a very short period of time, but that in addition to the turnarounds weve is a challenge we are all really looking completed in Mexico, Argentina and Venezuela, should help make that a reality. forward to. Andean cluster that includes Venezuela, Ecuador, Peru and Columbia. Nycomed products in Ecuador and Peru are currently handled by local partners.
Platform for growth The head of Nycomeds Latin American organisation, Norbert Oppitz (left), discusses business strategy with Michael Himmel, head of the new Andean cluster.
The Farmacol acquisition gives us access to one of the fastest growing pharmaceutical markets in Latin America, and helps us consolidate regionally.
TACHOSIL
US LAUNCH/SALES MILESTONE
NINE
The US launch of Nycomeds haemostatic surgical patch marks an important stage in the products globalisation, while sales hit an all-time high.
TachoSil milestones reached

TachoSil has passed two important milestones on its journey into a global brand. In September 2010 Nycomeds haemostatic surgical patch was launched in the US, the worlds largest pharmaceutical market, by the companys exclusive marketing and distribution partner, Baxter International Inc. And the year ended with sales having broken through the magical 100 million barrier for the rst time.
2011 promises to be equally eventful. Not only will efforts continue to ensure the right focus in existing European markets, but business cases for TachoSil are currently being evaluated in several key emerging markets. There are also a number of projects under way, focusing on line extensions and further indications. TachoSil, which combines a collagen patch with a coating of the human coagulation factors brinogen and thrombin, is the rst and only adjunctive haemostatic agent available in the US. Following 18 months of intensive premarketing activity, which included the establishment of advisory boards and a Centre of Excellence involving some of the countrys leading surgeons, around 130 Baxter sales reps are now detailing it to more than 60 hospitals. It is currently used in cardiovascular surgery. Dr Yoshiya Toyoda, head of cardiothoracic transplantation at the University of Pittsburgh Medical Center, has used it in heart transplant operations. And Dr Michael Reardon, a cardiac surgeon at the Methodist DeBakey Heart and Vascular Center in Houston, Texas, is one of many opinion leaders who have reported a positive clinical experience. My team and I have used TachoSil in combination with sutures to control bleeding in complex cases of cardiovascular surgery, he explains. In cardiovascular surgery, particularly complex surgery, surgeons may face many different and difcult types of bleed-control challenges. The ability to use sutures plus an adjunctive haemostatic agent such as TachoSil offers a new approach that gives us both exibility and condence to control bleeding during these situations. The approval and subsequent commercialisation of TachoSil has been a welcome addition to Baxters BioSurgery product portfolio, which provides a range of adjunctive haemostasis and sealing options to cardiovascular surgeons depending on the surgical situation and need. Dr Mauricio Ede, Medical Director for Baxters Regenerative Medicine
business, comments: The ready-touse TachoSil patch offers a new and different option in the armamentarium of adjunctive haemostasis products used in cardiovascular surgery in the US. Martin Sigl, Senior International Brand Manager within SBU Specialty Products and OTC, adds: At the moment we only have approval for cardiovascular surgery in the US, but we are currently conducting trials with a view to applying for the use of TachoSil in general haemostasis indications. This would open the market up signicantly, and the clinical experience of surgeons so far will clearly support our application. TachoSil is now available in more than 40 countries worldwide, and sales topped 100 million at the beginning of December 2010. By the end of the year, this gure rose to 108 million.
POTENTIAL
Helping nature take its course

TachoSil is the third generation in a dynasty of haemostatic patches after TachoComb and TachoComb H. It is a ready-to-use patch that can be applied directly to a bleeding area either wet or dry. When it comes into contact with blood or other body uids such as lymph or physiological saline solution, the brinogen and thrombin dissolve and partly diffuse into the wounds surface. This leads to a reaction between the two coagulants that initiates the nal phase of the bodys natural blood clotting process: the thrombin converts the brinogen into a brin clot that sticks TachoSil to the tissue surface and achieves haemostasis (control of bleeding). The patch is absorbed by the body within weeks.
TachoSil offers a new approach that gives us both exibility and condence to control bleeding.
The extraordinary thing about TachoSil is that it still has enormous growth potential, even though it has been around for 18 years if you take its predecessor TachoComb into account as well, says Jrgen Persson, Senior Director, SBU Specialty Products. We anticipate double digit growth up to 2015 at least, not only in existing countries and segments, but also from new segments and through geographical expansion. These really are exciting times for TachoSil.
TEN
PROFILE
JOSTEIN DAVIDSEN
ELEVEN
From Russia with love

Nycomeds spectacular growth in Russia/CIS is one of the companys greatest success stories, and it has been orchestrated for more than two decades by the same man Jostein Davidsen. As he admits, however, he hasnt always been the countrys biggest fan.
Jostein Davidsen readily acknowledges that Nycomeds outstanding success in Russia/CIS over the past decade or so owes much to the companys knack for being in the right place at the right time. He is fully aware of the irony, therefore, when admitting that his rst experience of the region left him with a distinct sense of being in rather the wrong place at the wrong time. That was in January1988. Jostein was one of a handful of enthusiastic young Norwegians that had been taken on by Nycomed a couple of months earlier as international trainees to drive the expansion of what was then an Oslo-based company involved principally in diagnostic imaging. He had been allocated responsibility for the Soviet Union and Eastern Europe. I felt a bit unlucky to be honest, and my rst trip to Moscow did nothing to change that opinion, he says. It was dark, damp and cold minus 30. There were no lights, no advertisements, no restaurants, no bars and very little trafc. I couldnt wait to leave. How times change. A decidedly happier Jostein has spent 16 of the subsequent 23 years living in the city that made such a bad rst impression, falling in love with the entire region and its people in the process. Having weathered a rollercoaster rst ten years at the helm, he now heads a company that employs 1,400 people across the region as a whole and, with sustained annual growth of 20%, is on course to achieve sales of 1 billion by 2014. Perhaps most importantly for him, he also now has extremely personal ties. Russia has been very good to me, the 51-year-old says. It has given me my beautiful wife, Irina, and two gorgeous kids Michael, who is three, and Anastasia, who is just eight months old as well as a hugely exciting professional life. Youre either touched by Russia/CIS or youre not, he explains. For me its like a drug its addictive. Its the sheer size of the place, for a start theres always an adventure to be had somewhere, and theres nothing I like more than an adventure. Its a rich and vibrant region and there is something emotional, almost spiritual, that keeps you here. The people are really warm and hospitable. And its a place where everything is possible and everything is impossible. All you can do is trust yourself, and that is a really stimulating way to live. There have been plenty of tough times, especially in the 1990s when there was a lot of corruption and lawlessness and the business world was a jungle. Still, its an incredibly dynamic part of the world from a commercial point of view and the rapid pace of change provides a whole host of challenges and opportunities. Of course there is still a lot of bureaucracy, but I cant think of anywhere on earth that is more exciting than Russia at the moment in terms of energy, drive and growth prospects.
CONTINUED ON PAGE THIRTEEN
Youre either touched by Russia/CIS or youre not theres always an adventure to be had somewhere, and theres nothing I like more than an adventure.
TWELVE
PROFILE
JOSTEIN DAVIDSEN
Unbridled enthusiasm Jostein Davidsen strongly believes that Nycomeds new plant at Yaroslavl, plans for which were viewed by Russian Prime Minister, Vladimir Putin, last year, demonstrate the companys commitment to the future of Russia and its people.
I still have a lot of energy and drive, and there are lots of things I still want to achieve here not least to see the completion of our new state of the art factory at Yaroslavl.
THIRTEEN
CONTINUED FROM PAGE ELEVEN
Josteins unbridled enthusiasm today contrasts starkly with his mood in 1988. Born and brought up on the small island of Askoy, near Norways second biggest city, Bergen, he had spent four years studying at the Oslo School of Business and Administration, as well as two years working for the Norwegian Trade Council in Dusseldorf, Germany, before taking up his traineeship with Nycomed. I was always focused on an international career and, for young Norwegians, Nycomed was the place to be at the time, he says. At rst I was based in Vienna, so my initial disillusionment with Moscow wasnt really a major problem. I began warming to the city when I spent virtually the whole summer of 1991 there to negotiate a major contract for Nycomed to become a state partner. Fortunately for us, that was signed just a month before the collapse of the Soviet Union, and the state banks covered the deal. It was the rst example of right place, right time for the company, which grew rapidly thanks to clever investment decisions and rapid expansion into the newly established CIS (Commonwealth of Independent States). Jostein moved permanently to Moscow in 1994, only for disaster to strike four years later when the Russian economy collapsed. The rouble was devalued by 350%, the country entered a severe depression, and our sales virtually disappeared, he recalls. I seriously considered asking to move, but in my stomach I knew the problems would be short term and I wanted to stay and ght for what I believed in. Head Ofce was asking why we werent pulling out, like all the other multinational pharmas, but Id spent ten years building the company from scratch and I begged them for a chance to turn it around. I have never defended a company more. I presented a restructuring strategy that involved putting together a new portfolio, signicantly reducing the number of employees, cutting salaries and moving to a new ofce and warehouse. I guaranteed we
Today 50% of our sales in Russia/CIS comes from partner products, and we now have ten different partnerships that have been established over the past decade. Our proven track record has established Nycomed as a strong partner in the region, and this will be vital to our future growth. New products will also play a vital role, of course. Nycomed Russia/CIS started selling Pantoprazole this year and is cautiously optimistic, according to Jostein, about the prospects for Daxas, which is due to be registered during the rst half of 2011. Life expectancy for people in this region is quite low, so COPD has never really been a priority, he explains. Thats changing, though. Around 40% smoke, and it is placing an increasing burden on healthcare budgets. Its estimated that 17% of all deaths here are caused by smoking. Thats 400,000 people a year, so the potential is huge for us to help people suffering from respiratory illness. The positive impact on Nycomeds reputation in the region would be enormous.
IN THE BLOOD
would break even by the end of 1999 and was told by the Nycomed board to prove it or lose it. Given our subsequent growth and current sales forecast, it has to be one of the best investment decisions they have ever made. Needless to say, Jostein delivered on his promise. Nycomed Russia/CIS not only broke even on schedule, but also returned to growth within 18 months. It was fairly modest at rst, but started accelerating to more spectacular levels around 2002: not only did rising oil prices provide a boost to local economies, but Nycomed also took advantage of other companies absence in the region to sign an exclusive agreement with Merck Germany for a range of branded generics. These were worth around DM3 million when we took them over, but they now represent a 150 million business 30% of our total turnover, Jostein says.
The passion with which Jostein talks about his adopted home and the business hes built begs an obvious question: is Russia/CIS now in his blood, and could he ever leave for pastures new? Its a joke among friends and colleagues, he admits. I keep saying two or three years more the trouble is, Ive been saying it ever since I arrived. I miss the mountains and the clean air of Norway. Im an outdoors man at heart, someone who likes hiking, shing and cross-country skiing, so maybe one day Ill move. But I still have a lot of energy and drive, and there are plenty of things I still want to achieve here not least to see the completion of our new state of the art factory at Yaroslavl. One things for sure, though. Wherever my life takes me in the future, a very big part of my heart will always belong to Russia/CIS.
FOURTEEN
DAXAS REGISTRATION UPDATE
Teamwork keeps Daxas registrations on course

As the registration of Daxas with regulatory authorities continues worldwide, we look at the successful cross-functional team effort that is driving the process.
On course and according to plan. Thats the assessment of Senior Regulatory Affairs Manager, Christoph Bunte, when asked how the global process of submissions and approvals for Daxas is going. As this issue of the Nycomed Magazine went to press, Nycomeds new COPD drug has been approved in 34 countries, including 27 in the EU and most recently in the US, where the product will be called Dalisrep. Marketing authorisation procedures are under way in a further 21 markets, and further submissions are planned in some 50 more. Some countries have moved quicker than we expected Ukraine and Brazil being the obvious examples while others are moving more slowly, often because of challenging questions or requests from the regulatory authorities during review, Christoph says.
MAJOR CHALLENGE
Typically this will be 80% the same as the European dossier, and 20% tailored to local requirements in each country. Most R&D functions will work with Regulatory Affairs to deliver quality and analytics, preclinical as well as clinical information, while the LOCs will be heavily involved to ensure the nal documents meet local requirements and are submitted to their local authorities in the required time frames. We will provide a CoPP (Certicate of a Pharmaceutical Product) if required. This is issued by the European Medicines Agency (EMA) based on the approval of Daxas, Christoph explains. The patient information leaet and the prescriber information are usually prepared locally with our support, and based on existing corporate documents. Larger markets typically do their own assessments of
Everyone knows what they are supposed to be doing Eva Ammon.
clinical data, while smaller authorities usually follow the decision of leading regulatory authorities such as EMA in the EU or the Food and Drug Administration (FDA) in the US. Sometimes there are local requirements that need specic input. For example, some countries such as Mexico, Korea and Taiwan ask for local clinical data. In these cases, a specic expert report is written by several R&D functions, demonstrating that the drugs efcacy and safety in the local population is comparable to the results in the overall study population of our major global clinical studies. The Nycomed cross-functional collaboration continues after the dossier has actually been submitted. LOCs often get asked by their authorities to supply drug samples, specic legal documents and other information one even asked for facility plans of the manufacturing sites involved. Frequently, the LOCs will also come back to Regulatory Affairs with specic questions that have been raised by their regulators during review: since most authorities have no xed schedule, these can crop up at any time. In each case the questions are passed on to those corporate functions that have the best knowledge about these particular issues, with their written answers then fed back to the individual markets via Regulatory Affairs. The responses to authority questions pose the main burden for the corporate team, since there are usually tough timelines for the feedback to authorities.
These different questions or requests represent a major challenge for Christoph and his Daxas Registration Team, as the Regulatory sub-team is called, and which he co-chairs together with Eva Ammon, Director, Daxas Project Management. The crossfunctional nature of the registration process is a critical success factor because of these challenges not only between corporate functions, but also between Headquarters and the local operating companies (LOCs), he says. The collaboration starts with the preparation of a regulatory dossier itself.
FIFTEEN
Some authorities insist on inspecting manufacturing sites as part of the registration process ofcials from Turkey went to our nished product site at Oranienburg, for example, while inspectors from the FDA visited one of our providers involved in drug substance manufacturing, Eva says. This obviously brings our colleagues in Operations and Quality Assurance into the collaborative process. Other authorities can request meetings with the company to discuss the submission, which often means we have to invite various corporate experts and senior managers. At a meeting with the Australian authority TGA last October, for example, there were Nycomed representatives from Drug Safety, Clinical, Clinical Pharmacology and Regulatory Affairs all present, as well as Anders Ullman, the head of R&D.
makes the process a lot smoother, and gives us the exibility to react faster. As co-chairs of the Daxas Registration Team, Eva and I work closely together to organise the team and keep everybody informed on a daily basis. At the corporate level, we had three meetings a week during the European registration process. And we still meet once a week to make sure we are aligned. We have also worked closely with our US partner, Forest, which has been responsible for driving the successful US regulatory process and which we supported strongly since the beginning of our collaboration in August 2009. Eva adds: Most of us working in the Daxas Registration Team were involved in the preparation of our dossiers for the EU and US, so we know each other pretty well. Everyone knows what they are supposed to be doing and is committed to being exible to support one another. Most of us are based in Constance too, so theres a lot of informal interaction that helps us to address issues quickly. Its a fully empowered team, too. We are obviously linked closely with the Daxas Global Launch Team, but unlike in other companies we have responsibility, accountability and are able to make decisions.
A true team effort Christoph Bunte.
Many regulatory processes run in parallel with busy periods for the team, of course LOCs may be launching other products, for example, while the corporate functions need to juggle the demands of Daxas with their numerous other activities. The general rule is that there is never a dull moment: even weekends or the period between Christmas and New Year can be busy, depending on questions and deadlines to respond. The only way we can manage all this is through a truly cross-functional team effort, Christoph says. Fortunately, the whole of Nycomed is supporting the Daxas registration and launch. This
The whole of Nycomed is supporting the Daxas registration and launch this makes the process smoother and gives us the exibility to react faster.
Daxas update
The European approval for Daxas covers all 27 EU countries, as well as Norway, Iceland and Liechtenstein. Other approvals have been gained in the US, Canada, Ukraine and Brazil. Launches took place in 2010 in Germany, the UK, Denmark, Romania and Norway, and more recently in Canada, Sweden, and Spain. In the US, Daliresp (the trademark for roumilast in the US) is expected to be available to wholesalers in the second calendar quarter of 2011.
SIXTEEN
MEET THE TEAM
BUSINESS DEVELOPMENT
NEW FOCUS FOR NYCOMEDS DEAL MAKERS

The impact of business development on Nycomeds evolution is reected in the impressive number of major partnership deals that have been completed in recent years. A new structure and focus now promises to keep the function at the heart of the business.
There has rarely been a quiet moment for Nycomeds Business Development (BD) team, but 2010 was almost certainly its busiest year ever. Not only was the function nalising important external agreements such as those with Guangdong Techpool Bio-Pharma (Techpool) in China and with Merck and Co (MSD) for the co-promotion of Daxas in parts of Europe and Canada, it was also implementing a new internal structure and adopting a new focus.
development and launch activities to most effectively meet current and future business demands.
BD adapted its strategy accordingly, and began to look at product and portfolio opportunities either already on the market or near commercialisation, rather than those in development. It also shifted to a regional rather than global focus to bring it closer to local operating companies, with an emphasis on emerging markets. All this while keeping What kick-started the transformation was the comprehensive open communication lines to COMOPs, Legal, Operations and other functions, so that sealing deals would continue to review of Nycomed R&D in 2009, which found that the happen without missing a beat. organisation had to shift its focus to supporting late stage
SEVENTEEN
We may be involved in different kinds of deals, but the expertise needed to identify, build and The changes have made the function leaner and more agile, clearing the way for BD to quickly identify opportunities that negotiate any deal is will keep Nycomed on its growth trajectory. the same.
The shift in focus also led to some downsizing, and today BD is a team of 24 people divided into four separate but complementary groups: Corporate Development (Mergers & Acquisitions/Strategic Intelligence); Strategic Partnering; Business Evaluation and Deal Structuring (BEADS); and Corporate Licensing. Since January of this year, all four groups are based at the Nycomed HQ in Zurich.
CONTINUED ON PAGE EIGHTEEN
EIGHTEEN
MEET THE TEAM
BUSINESS DEVELOPMENT
CONTINUED FROM PAGE SEVENTEEN
Key Nycomed partnerships

Bradley Acquisition of a complementary dermatology business in the US in 2008. EffRx Licensing agreement for Steovess (effervescent alendronate). Forest Laboratories Development, commercialisation and manufacturing agreement for Daliresp (roumilast) in the US. Guangdong Techpool Bio-Pharma Nycomed acquired a majority stake in the Chinese company in October 2010. Immunomedics Exclusive worldwide rights to develop, manufacture and commercialise the subcutaneous formulation of veltuzumab for all non-cancer indications. Merck & Co. (MSD) Commercialisation agreement for Daxas in major European markets and Canada. Micromet Collaboration on the development of anti-GM-CSF antibodies. Sano-Aventis/Zentiva Acquisition of 20 Zentiva branded generic products in several Central and Eastern European countries from Sano-Aventis. Sepracor Exclusive development, marketing and commercialisation rights for ciclesonide in the US.
When it comes down to it, we are deal makers at heart, explains Kerstin Valinder, Head of Business Development. We may be involved in different kinds of deals, but the expertise needed to identify, build and negotiate any agreement is the same whatever the life cycle stage of an asset. The size of the opportunities may often be smaller, too, but each deal requires the same amount of rigour. And because we are now focusing on a far more competitive area, we have to be quicker and sharper in our actions. This new set up helps us do this. Not surprisingly, given its new focus, BDs main interactions are now with colleagues in Commercial Operations (COMOPs), rather than R&D. This is reected in the new, aligned regional structures within BEADS and Corporate Licensing, for example, which are led respectively by Roger Lassing and Carlos de Sousa. We work very closely with COMOPs and Carloss team in the regions, supporting local business development and identifying which deals could be switched to other geographies, says Roger, who leads a team of ve. Carlos heads a group that includes ve Licensing Directors, who are responsible for identifying opportunities and coordinating their evaluation, as well as negotiating transactions. He also has a team of two people who look after Project Coordination. In addition to their specic regional remits, the Licensing Directors have crossgeographical key account responsibilities. The various groups within BD have always been closely aligned, but we are more coordinated with this new structure and theres more transparency, Carlos says. Our
The close working relationship between BEADS and Corporate Licensing has resulted in deals such as those for veltuzumab, Steovess and, more recently, with Roche for Bonviva in South East Asia and with Eurand for the pancreatic insufciency treatment Zenpep in Russia/CIS. The latter, in particular, also illustrates the rewards for effective collaboration between the business development functions at headquarters and the local operating companies. Both BEADS and Corporate Licensing also work closely with Mergers & Acquisitions (M&A)/Strategic Intelligence, headed by Gunnar Grdemyr, and Strategic Partnering, led by Thomas Trah. Gunnar and his two-member M&A team work closely with COMOPs to identify and evaluate deals, then work through due diligence with their Legal colleagues to complete the agreement. Nycomed has a long tradition of successful acquisitions, not least the deal with ALTANA Pharma. It was also the M&A team that co-ordinated the deals that led to the acquisitions of Zentiva branded products from Sano Zentiva in Central and Eastern Europe and Bradley in the US, as well as last years agreement with Techpool in China (see panel on page 19). A string of successes once again made possible as a result of working as one global team and a job that doesnt end once the ink dries on the contract. Even though the China deal is now complete, we are still involved in the integration of Techpool because we are well placed to help implement things that we learned during the due diligence process, Gunnar says. We also recently signed a deal to acquire Farmacol in Colombia, which
licensing directors have regular contact with their counterparts in Rogers team, as well as business development representatives in local markets. And our Project Coordination team keeps track of our activities, maintains our database and coordinates due diligence activities, making sure everyone is up to date with whats happening.
Its a deal The Nycomed Business Development team (from left to right) Thomas Trah, Kerstin Valinder, Roger Lassing, Gunnar Grdemyr and Carlos de Sousa.
NINETEEN
Holding out for the right deal

will give us another important sales and marketing platform. And we are well down the line in talks about an acquisition in India, which we are hoping to announce in the second quarter of this year. The team of two within Strategic Intelligence, meanwhile, is responsible for gathering and communicating market and competitor information that supports the companys commercial strategy as well as its business development targets. A major focus during 2010 was support for the Respiratory team as it prepared for the Daxas launch. The nal piece of the BD jigsaw puzzle is Strategic Partnering. This team looks after the out-licensing of Nycomeds products, particularly to major markets such as the US and Japan where the company has no direct presence, but also for broader territorial regions. Thomas Trah leads a team of three who have been responsible for several deals, including Sepracor for ciclesonide in the US and Forest (US) and MSD (EU/Canada) for Daxas, as well as the divestment of the companys oncology portfolio to BayerSchering and 4SC. We take a proactive approach in preparing our well structured competitive partnering process, collaborating closely with colleagues in R&D project management, COMOPs and Legal Thomas says. We also work closely with BEADS, which evaluates potential deals and calculates the business case. And we then structure the deal and its terms before making recommendations to, and getting nal approval by, the Nycomed Executive Committee. Strategic Partnerings work also doesnt end once a deal is signed. Were also responsible
Nycomeds majority shareholding acquisition in Chinese company Guangdong Techpool Bio-Pharma may have been completed in October 2010, but Business Development and COMOPs had been preparing for the deal since the end of 2008. Thats when the company nalised its strategy for Asia, which placed China as the priority market, followed by India and Indonesia. Gunnar Grdemyrs Mergers & Acquisitions team, working closely with their colleagues in COMOPs, started by contacting three investment banks with ideas on how to target companies, then chose one of them to help put a deal together. We looked at many companies, mainly public, evaluating them against strict criteria that included actionability: was the company likely to be receptive to an approach, Gunnar says. Out of that came a long list of 20 to 30 companies, around 15 of which were contacted. The list was then complemented by private companies identied by our Asian management. And then we drew up a short list of companies,which we examined closely during the due diligence process. The whole process took longer than we had hoped, but it was absolutely vital that we made sure it was the right deal for the company.
management, to discuss and renegotiate terms of the contract as necessary. BD has been extremely busy in recent years, and the steady pace of Nycomeds growth makes it unlikely that this will change in the short or medium term. The functions challenge, however, is to handle all that work with a much smaller team. We are addressing this by holding a series of boot camps for our staff, to make sure everyone has broad knowledge of what each function does in the group, Kerstin says. We need to stay as lean as possible, and want people who are exible and can work cross-functionally as required. Closing a deal is a hugely complex undertaking. Weve been successful to date because Nycomed knows how to work across borders and across functions. The energy we see every day to get the job done is something Im really proud of.
CLEAR PRIORITIES
for the implementation of a deal, and work with R&Ds Alliance Management team and, if the product is close to or already on the market, with COMOPs, to prepare an internal kick-off meeting and steering committee sessions with partners for the rst year or so, Thomas says. We also look after what I call contractual alliance
Looking ahead, BD has four clear priorities for 2011. We want to continue to expand Nycomeds geographical footprint in areas such as Asia, Latin America and MENA, Kerstin explains. We also want to add products to the companys existing portfolio at the corporate, regional and local levels. We want to make sure we have the right partners for Daxas in all parts of the world. And well continue to work with our R&D colleagues to identify and negotiate deals for any pipeline projects that could benet from strategic partnering. It will certainly be another busy year for us. But were very excited about the challenge and the contribution we can make to Nycomeds overall success.
We need to stay as lean as possible and we need people who are exible and can work cross-functionally as required.
TWENTY
COUNTRY FEATURE
BELGIUM
TWENTYONE
A SPIRIT TO SUCCEED
Belgium is famous for many things beer, chocolate, mussels, wafes and chips with mayonnaise to name just a mouth-watering few. But its unlikely that many people associate the country that is geographically and symbolically at the heart of Europe with political, cultural and economic challenges. Those realities, coupled with the global economic downturn and the loss of exclusivity with its number one product, are all part of the daily routine for Nycomed Belgium. But the company has responded to the situation with creativity, entrepreneurialism and a spirit to succeed that has not only seen the company keep its head above water, but even allow it to realistically start anticipating future growth.
TWENTYTWO
COUNTRY FEATURE
BELGIUM
Diversity and creativity drive remarkable performance

Belgium may have been a sovereign nation for more than 180 years, but it is still suffering from something of an identity crisis. Effectively it is two countries in one, with 58% of the population living in the Dutch-speaking northern region of Flanders and 41% in the French-speaking Walloon community to the south. There is even a small German section to the west, while the capital, Brussels, is virtually a cosmopolitan city-state in its own right. This wouldnt normally have much impact on a company such as Nycomed. But the division and disagreement between the two main regions has left the country in a political vacuum, which in turn has created economic uncertainty. With the Flemish and Walloon parties unable to nd any room for agreement after elections last summer, there has been no government in Belgium for the best part of 300 days now and, consequently, no consensus on how to deal with a deepening national debt. Our fear is that whoever eventually forms a new government will immediately have to implement austerity measures, says Chris Juliam, the head of Nycomed Belgium and the France-Belgium-Netherlands (FraBeNe) country cluster. The healthcare budget would obviously be an easy target. Chris and her team also have to operate in one of Europes most highly regulated pharmaceutical environments. Marketing approval is not usually a problem, thanks to the EUs centralised system, but reimbursement is historically difcult. This was illustrated graphically in December 2010, when Daxas was one of nine innovative products that failed to win reimbursement by the authorities at the rst attempt. Given these challenges, Nycomed Belgiums recent performance is nothing short of remarkable. The loss of exclusivity with Pantoprazole has predictably led to a slight dip in sales, but an innovative and early intervention through the introduction of the companys own generic version, Pantomed, has ensured the softest of landings (see pages 24-25). The relentless pursuit of business development opportunities has also resulted in a portfolio that is not only rich and diverse, covering areas ranging from gastrointestinal, pain and dermatology to cough and cold, vitamins and antilice treatments, but also resilient. Thirty percent of the companys medicines are not reimbursed, and are therefore immune from the annual round of imposed price cuts. Pantomed, the generic Pantoprazole, remains Nycomed Belgiums biggest product. Asaow, an over-the-counter enteric coated aspirin, is another highvolume market leader, as are calcium treatment Steovit and the thyroid hormone replacement therapy, L-Thyroxine. New corporate products introduced in recent years include Matrifen, TachoSil and Circadin, while 2010 also saw the addition of two new in-licensed brands the anti-histamine Rupatall and incontinence treatment Mictonorm.
BALANCED PORTFOLIO
Having peaked at 98 million in 2008, sales fell to 90 million in 2009 and 87.5 million in 2010. With Pantomed returning to growth, however, Chris is optimistic that the decline is over. We are not dependent on one or two products any more. We have a large and balanced portfolio, she says. Our goal is always to out-perform the market, and weve constantly done that despite the issues weve faced. We also have a lot of know-how, expertise and creativity in the management team and at all levels of the company, and this forms a powerful combination as we look to return to growth.
Top table The Nycomed Belgium management team (above), and the companys Brussels manufacturing facility (below).
Belgium at a glance
Population of 10.5 million. Occupies an area of 30,528 sq km. Located in western Europe shares borders with France, the Netherlands, Germany and Luxembourg. A constitutional kingdom head of state is King Albert II. Became independent from the Netherlands in 1830. 11,626 active GPs 1 per 903 people 13,338 active specialists 1 per 787 people. 5,250 pharmacies 1 per 2,000 people (68% of pharmacists are women).
Vox pop What is the best thing about working for Nycomed? Its a very dynamic, positive and constructive working environment, and you really feel empowered. Theres always a chance to try different things, and I feel Im learning all the time. Franois Browet, Quality Control Assistant (above)
TWENTYTHREE
Our goal is always to out-perform the market, and weve constantly done that despite the issues weve faced.
Nycomed Belgium
History dates back to 1835, when Alphonse Christiaens rst formed a drug company under his name in Brussels. Halfslund Nycomed becomes owner of the company in 1992. Today the company employs around 200 people in its commercial organisation (including 100 sales representatives) and 100 in its manufacturing division. Key products Pantomed, Steovit, Asaow, L-Thyroxine, Glucadol (Twin), Brexine, Quatral. 13th largest pharmaceutical company in Belgium. Medical representatives are divided into four teams Christiaens, Exel, Sandipro and Nycomed plus one hospital, one TachoSil and one OTC team.
Surveys secure external recognition

Nycomed Belgium has four marketleading prescription products Pantomed (37% market share), Asaow (78%), Steovit (52%) and L-Thyroxine (76%) and it is widely recognised externally as one of the countrys best performing pharma companies. ZS, a company specialising in sales and marketing related quantications and measures, as well as sales force sizing, ranked it as one of the two best companies after a survey of reps and customers that covered selling skills, call preparation, delivery and follow-up . The company was also ranked in the top two following a targeting/ proling exercise audited by IMS, which found that Nycomed was more than 90% accurate. IMS also rated the Pantomed launch the best ever in Belgium achieving a 32% market share after just six months.
TWENTYFOUR
COUNTRY FEATURE
BELGIUM
Generic option ensures soft landing for Pantoprazole
Nycomed Belgiums Medical Director, Johan Imschoot (left), and Sales Director, Paul Maris (above).
Since Belgian doctors are second only to their Spanish counterparts in terms of the number of proton pump inhibitor (PPI) prescriptions they write, its easy to see why Pantoprazole has been by far the dominant product in the Nycomed Belgium portfolio for most of the past decade. As loss of exclusivity approached in 2009, therefore, the company knew it needed to take drastic action to protect a business built up through its twin product approach Pantozol and Zurcale. A generic Pantoprazole was the preferred option, but General Manager Chris Juliam knew that this would create a number of challenges both internally and externally. In the rst place we had to convince our stakeholders within Nycomed that it was the right decision, because we knew there would be opposition to any form of genericisation in some quarters of the company, she says. Perhaps even more
importantly, Belgian physicians are wellknown for not favouring generic products. We had to overcome that resistance. This all begs a simple question, of course: given the situation, why on earth was a generic Pantoprazole the preferred option in the rst place?
POWERFUL ARGUMENT
Pantoprazole is a very good PPI, and it was important for us that it was the rst generic available because of the governments requirements. Im delighted that the company took our views into consideration, and I rmly believe that this could be a model for the future. On 9 March 2009, ve weeks before LoE, Nycomed Belgium launched Pantomed at a price 72% lower than Pantozol and Zurcale. Within the rst year there was only a 12% drop in sales value, which effectively means sales volume had doubled. By the end of 2010, 18 months after the Pantomed launch, revenue was down just 20% on 2009 to 36 million a perfect illustration of the soft landing required by the company. If imitation is the sincerest form of attery, the decision by Astra Zeneca to follow suit and launch Nexium under a generic status in 2010 shows just what a good idea it was. There are still generics out there that are 50% cheaper than Pantomed, Chris says. But we were rst, and thats why our sales have held up. Further restrictions on doctors are likely in 2011, however, so we know that we have to be proactive and create strategic alliances with the government in key areas if we want that success to continue.
We must have been through more than 100 nancial scenarios over a three-year period and it was clear that the generic was the best. This was a powerful argument internally, Chris says. The issue with the physicians was solved for us by the Belgian government whether they liked it or not, physicians were told that 40% of their prescriptions had to be for generics or they would face penalties. With Pantoprazole being the PPI of choice for most doctors, they soon played an important role in making the generic proposal become a reality. We were approached by Nycomed to give our opinion. Once we heard that the company was considering a launch of its own generic, we urged it to hurry up, says Dr Patrick Dufraimont, who runs a practice in St Stevens Woluwe near Brussels.
Vox pop What are the key priorities for Nycomed Belgium in 2011? It is vital that we keep building relationships with our customers. We must always be absolutely customer-minded and strike the right balance between push and pull to maintain Nycomeds positive image. Tom Vierstraete, OTC Sales Representative (above)
TWENTYFIVE
We must have been through more than 100 nancial scenarios over a three-year period and it was clear that the generic option was the best.
International experts support Daxas case

The decision by Belgian authorities not to reimburse Daxas at the rst time of asking was disappointing, but not a surprise. In a notoriously complex environment, the same thing had happened in the past to Alvesco, and to numerous products submitted by other companies. The company now plans to launch the product without reimbursement, and to mobilise its advisory boards as it prepares for a further reimbursement round. It will also call on the support of some internationally renowned experts. I think Daxas deserves reimbursement. It is a breath of fresh air in the COPD eld, and I personally believe it fulls all the criteria of medical need, says COPD specialist, Professor Marc Decramer, who is Department Head of Pneumology at the Catholic University of Leuven, a member of Nycomeds Daxas Advisory Board and President of the European Respiratory Society. I think the authorities are looking for perhaps one more study to support the application, but clinical experience in other countries will also help. Johan Imschoot, Nycomed Belgiums Medical Director, comments: We will reconsider our case with Advisory Board members and try to convince authorities about the unmet medical need issue. Sales Director, Paul Maris, adds: Roumilast is now mentioned in the GOLD (Global initiative for chronic Obstructive Lung Disease) guidelines for COPD therapy, and that will support our future efforts.
Strategic alliances Physician Dr Patrick Dufraimont (below) and external expert Professor Marc Decramer (right).
TWENTYSIX
COUNTRY FEATURE
BELGIUM
All ears and eyes on Business Development
Distribution and licensing agreements have always been an important part of Nycomed Belgiums strategy, and partnerships with companies such as Kyowa and Chiesi have now been in place for more than 20 years.
and be supported by good clinical evidence. Not least, they must make a medical difference, he says.
Business Development Director, Pieter Huyghe (above).
Everyone can contribute to the growth and success of the company, and that is extremely motivating.
Two products that meet all these criteria were launched in 2010 the dual-action Before their merger, Nycomed and ALTANA anti-histamine Rupatall, which is licensed from Spanish company Uriach, and Pharma were also long-term co-marketing incontinence treatment Mictonorm, which partners in the country with Pantoprazole. is licensed from Apogepha of Germany. Both have been extremely successful, with In recent years, however, the process of Rupatall achieving sales of 1.5 million business development has intensied, in its rst year much to the delight of becoming more organised and focused to meet the demands of the countrys complex Nycomeds partners (see panel). reimbursement environment. We look The aim for 2011 is to keep this momentum for products that either dont need to be going, and we are currently looking at a reimbursed, or will easily be reimbursed, number of deals in areas that complement explains Pieter Huyghe, Business our existing portfolio, Pieter says. Our aim Development Director. is to have at least 2 million in business development sales each year. The company scours Europe for opportunities, Pieter explains, working with Nycomeds Corporate Licensing department NEW IDEAS and other European local operating One of the secrets to Nycomed Belgiums companies to exchange ideas and ensure success is that all employees in the company activities are aligned. Our targets must not are fully engaged. People are encouraged only be a sound nancial proposition, they to submit ideas and suggestions and they must also be registered or almost registered do: in 2010 more than 400 new ideas were reviewed by a multi-functional committee that includes General Manager Chris Juliam and Pieter himself, as well as representatives from the medical, regulatory and marketing departments. We ask everyone, especially our customers and our reps, to keep their ears and eyes open, Pieter says. It means they can all contribute to the growth and success of the company, and that is extremely motivating.
Vox pop What do the Nycomed values mean to you? They are not just words, they are a reality in both our professional and personal lives. Trust and empathy, in particular, are important characteristics of our organisation and in our dealings with customers. Nico Vandenrijn, Medical Representative, Hospital Team (above)
TWENTYSEVEN
Growth ambitions Plant Director, Renaat Baes (above).
Setting an example in partnering

Nycomeds passion for antihistamine treatment Rupatall not only secured the company a partnership deal with Uriach, but also ensured the products success. Thats the view of Lorena Farr, Licensing Manager at the Spanish company, who describes Nycomed Belgium as one of our best partners, which has established itself as the face of Uriach in the country. Rupatall sales were 40% over budget in its rst year. Thats a tremendous performance, Lorena says. We hold Belgium up to other countries as an example of what can be achieved. We will be working closely with Nycomed in 2011 in a number of areas, to build on this initial success and drive sales even further. Perhaps best of all, she adds, is the fact that Nycomed is a very easy company to work with. There is clear communication, both with us and within its own team, and that is reected in the results.
Operational Excellence supports factory expansion

Brussels has been home to some form of pharmaceutical activity for more than 175 years, when Alphonse Christiaens rst opened a drug store near the centre of the city. Those activities were later moved to the district of Gentsesteenweg, to the site that now hosts Nycomed Belgiums commercial, administrative and manufacturing activities. The Nycomed Christiaens plant still carries the founders name in a tribute to its heritage. Today it employs just over 100 people in an 8,000m2 facility that produces and packs around 700 million tablets, 80 million capsules and 60,000 litres of liquids each year. Most products are destined for the Belgian market, but we also export to Scandinavia and the Netherlands, and pack Xefo Rapid for markets all over Europe, explains Plant Director, Renaat Baes. The production plant currently operates on double shift 16 hours a day, ve days a week but the ambition is to get up to three shifts a day, in line with the packaging operation. That would take us up to efcient capacity utilisation on our key equipment, Renaat says. The plant has fully embraced the philosophy of Operational Excellence too. As well as increasing utilisation, through both Nycomed products and more third party collaborations, one of our top priorities in 2011 is to embed the OpEx ethos even further in the organisation, Renaat explains. By increasing our customer service levels, reducing inventory and improving our performance, we aim to become a lean and agile organisation that can target a signicant reduction in costs per unit.
TWENTYEIGHT
COUNTRY FEATURE
BELGIUM
Common philosophy supports cluster optimism
Chris Juliam has faced plenty of business challenges in her life, but the head of Nycomed Belgium admits that the task of leading one of Nycomeds newest Coordinating Country Concept (CCC) clusters is probably her biggest to date. The FraBeNe cluster, which covers France, the Netherlands and Luxembourg as well as Belgium, was created in December 2010. Its precise structure and goals, as well as its specic initial actions, are still being dened. Chris understands that implementing the change and convincing people of its benets will be difcult initially, but she is encouraged by the fact that there is already a common philosophy shared between herself, Emmanuel de Rivoire and Mike Egli her counterparts in France and the Netherlands, respectively at the moment, although Mike is set to move to Canada in April. We are all extremely positive about this new approach and are committed to making it work, she says. Its easy to be negative about the cluster system and to look on it simply as a way to cut jobs or take away the independence of smaller markets. But Emmanuel, Mike and I really do look on it
as an opportunity to enhance and optimise each of our businesses and products through synergies and the sharing of best practice. There is already a commitment to bring together people from all levels within the same functions in the three businesses, to ensure that the identication of these synergies and sharing possibilities is decided on a bottom up rather than top down basis. And Chriss optimism is fuelled by the realistic acknowledgement that each market can benet from another.
MORE WITH LESS
We dont have that many overlaps, she explains. We all have our own portfolios, for a start, and the complexions of our markets differ greatly. We can also do a lot more with less: in Belgium, for example, we have no indirect procurement function, but they do in the Netherlands so we can tap into that. We also know that we can adapt and use some of the fantastic TachoSil materials that have been put together in France. For us its all a question of mindset. We believe that we can create cross-country teams that learn from and share with each other because of the cluster, so we will be doing everything in our power to make it a success. A physician by training, 50-year-old Chris graduated from the University of Ghent in 1985 and immediately joined Merck Sharp& Dohme as a medical representative. Eleven years later, having held successively senior commercial roles, she moved to Abbott as Business Unit Manager Ethical Care, and stayed for ten years before taking up an offer to head Nycomed Belgium in January 2006. I inherited a very well-run, highly entrepreneurial business and have tried to keep that approach in the new company, she says.
We have worked hard to embed the Nycomed culture and values in Belgium over the past few years, and are now reaping the rewards in terms of having a talented and highly motivated workforce that is really performing. After a small reorganisation last year, which saw a few changes to the management team, I feel we are now in a great position to face the future with condence.
Common philosophy Chris Juliams fellow FraBeNe cluster Country Managers Mike Egli of the Netherlands (top) and Emmanuel de Rivoire of France.
Vox pop What do you think are Nycomed Belgiums key characteristics?? We are dynamic, proactive and extremely good at adapting to change. The companys leaders listen to their people, and we are all empowered to make contributions. Most importantly, the management acts on those contributions, which creates a very stimulating and motivating working environment. Elisabeth Waumans, District Manager (above)
TWENTYNINE
A passion for collecting

Outside work Chris Juliam is a great collector mostly of antiques, but really of anything for the home that takes her fancy. I redecorate the house six times every year we have a yellow theme at Easter, green and red at Christmas and so on, she says. I love going to ea or antique markets and nding little things that look interesting.
It is important that we are perceived as a clean and loyal company one that is prudent and operates with integrity, and delivers what it promises.
THIRTY
A DAY IN THE LIFE
GESCHE AHRENS
New ways of thinking,

Gesche Ahrens thoroughly enjoys her job as an OpEx Black Belt not only because it is personally rewarding, but because she knows she is adding value to the business.
07:00hrs Gesche checks her e-mails on arrival (left). 08:30hrs Preparing for a workshop (top). 11:00hrs Reviewing progress with Plant Manager Jrgen Mahling (above). 13:30hrs Optimising printed data with mechanic Jrgen Bohner (right).
Gesche was introduced to Nycomed by a friend in 1997. She completed a oneyear post-doctorate fellowship in R&D, before taking increasingly senior positions in Quality Assurance, Production and the Supply Chain, most recently as head of Strategic Sourcing. This broad experience gave her deep insight into all parts of the business, which in turn made her an ideal One thing keeps her going she really loves choice for her current role. After 18 months of on the job training, she was certied as her job. one of the companys rst ve Black Belts in November 2010. Process improvement is something that really inspires me, and this role is a great During her Black Belt project she worked opportunity to be involved in that area with a team on the Pantoprazole i.v. cross-functionally and across all value production ow. The objective was to streams, she says. OpEx is very hands on. stabilise the process and increase the Running workshops with diverse teams output. The integration of OpEx in the is the fun part, and it helps us eliminate routine processes and opening the mind bottlenecks, reduce waste and create sets of people towards the change needed process ow. It is really satisfying that was also a major part of her certication. changes are usually immediate, so we get to see the fruits of our efforts very quickly. The training has not only made me a You also know that these efforts add tremendous value to the overall Operations competent pair of hands within an OpEx environment, but has also shown me function and therefore to Nycomed as how I can improve my broader business a whole. That is exciting, and extremely capabilities, she says. One important motivating. Winter mornings can be tough for Gesche Ahrens waking early when its dark, cold and often icy, with her husband and kids still asleep, and leaving the house at 6.15am for a 45-minute drive to Nycomeds production plant in Singen, Germany, where she works as an Operational Excellence (OpEx) Black Belt.
thing Ive learned is that OpEx is as much about teamwork as it is about tools and techniques, so I am also keen to help more people get involved. Gesches role as an OpEx Black Belt means that she is the primary OpEx contact for Singen. She helps all functions align their efforts with business priorities, and works with line managers to make sure OpEx principles are used to achieve their goals. OpEx is not just a set of tools and projects, she says: it changes the way she and her Operations colleagues think and work.
TALKING AND LISTENING
As a Black Belt, I support the identication of potential opportunities for process improvements, which in turn saves money and leads to smarter ways of working, she explains. This can be top-down site management coming up with ideas and actions to help individuals and teams achieve their goals. Or it can be bottomup talking and listening to people about what really matters to them, what their challenges are, and how they think things can be improved.
THIRTYONE
new ways of working
Gesche
What is the best thing about your job? The huge variety, the opportunity to work cross-functionally, and the fact that you see benets immediately. And the most frustrating? At rst it was trying to enthuse people about what they felt was just another quality initiative. That doesnt apply now, as people can see the benets. What two things can you not do without? My camera, because I need to record all innovative ideas and results of workshops, as well as the atmosphere in the teams. And my computer it has all the data, charts and photographs I need to use on a daily basis.
09:30hrs Reviewing nancial KPIs with Controller, Matthias Riester (top). 15:00hrs Running a workshop (above). 17:30hrs On the way home complete with camera, computer and work for the evening (right).
I believe that we achieve the best sustainability when OpEx is embedded into our daily processes and in the mindset of the organisation. Gesches working day begins at 7am usually with a cup of strong coffee as she checks her e-mails. Some days she will go straight into one of the regular workshops or coaching sessions she runs for Singens 40 trained Green Belts: on others she will inevitably be preparing for one of these sessions, or meeting with teams and individuals to discuss their issues. I try to take a break about 12.30pm for lunch. The canteen here is extremely good, she says. On really busy days, when Im rushing around, I have to take a sandwich back to my desk and keep working. Gesches daily and weekly routine is dictated by priorities and specic project plans, but she does have annual goals. Where possible, I try and plan my schedule at least ten days in advance, she explains.
One of the most satisfying things about OpEx is that changes are usually immediate, so we get to see the fruits of our efforts very quickly.
She adds: Whatever the workload, I try to nish at 5.30pm. This means I can get home in good time to sit down with my kids and hear what they have been up to during the day. They are seven and 11, and already they have very busy lives. After that I will just sit and chat with my husband, or maybe visit friends. But if Im running a workshop I will sometimes take home ip charts so that I can summarise them ready for the next day. Looking to the future, Gesche says she is keen to expand her experience and further develop her skills. When I rst started this job I had to accept that OpEx was an add-on initiative, and that resources were not easy to get, she says. Now that it is integrated in embedded teams and routine processes, and especially since we started to communicate success stories, the phone is always ringing, with managers wanting to kick off further projects and workshops. This has enabled us to increase the output of three production value streams and, for example, reduce the throughput time for one value stream by 30%. We achieved these results by introducing a completely new scheduling system for one area, reducing equipment downtimes, standardising processes, xing regular technical problems and much more.
THIRTYTWO
PRODUCT PROFILE
ULINASTATIN
One of the key products that will be promoted by Nycomed following the acquisition of a majority stake in Guangdong Techpool Bio-Pharma Co., Ltd. in China last year is the innovative protein medicine, Ulinastatin. So what is it, how does it work, and what are its prospects?
Natures bodyguard
Nycomeds decision to acquire a majority stake in Techpool BioPharma (Techpool) in China was driven largely by the fact that the two companies have highly complementary portfolios. Ulinastatin is a perfect example of this: a general inammatory agent used to treat conditions such as sepsis and acute pancreatitis, it is an impressive addition to Nycomeds existing critical care portfolio that includes Actovegin for post-stroke care and Ebrantil for emergency hypertension. Ulinastatin is a urinary trypsin inhibitor (UTI). Trypsin is an enzyme produced by the pancreas, and is one of three chemicals that help break down dietary protein molecules in the small intestine during the digestion process. Inammatory conditions such as acute pancreatitis and sepsis (see panel text opposite) involve the excessive release of trypsin, as well as inammatory mediators such as cytokines. These can lead to the development of systemic inammatory response syndrome (SIRS), which in turn can result in the potentially fatal multiple organ dysfunction syndrome (MODS). Ulinastatin is a natural, broad-acting protease inhibitor that is isolated from male human urine and consists of 143 amino acids. It inhibits the activities of the trypsin and prevents the body from producing an excessive inammatory response, so blocking SIRS and MODS and eventually reducing the incidence of multiple organ failure. Studies have shown that levels of Ulinastatin in urine are greatly increased in patients with inammation or infection, subsequently returning to normal levels as the particular disease gets cured. This indicates that it might be a natural safeguard for the human body. Ulinastatin was initially launched in 1985 in Japan by Mochida Pharma. Techpool developed the product through a project funded by the Chinese government, and began marketing it in China in 1999. Since then, Techpool has become the exclusive manufacturer of both the active pharmaceutical ingredient (API) and nished product in the Chinese market, and subsequently launched it in Korea in 2002. It is estimated that over 20 million vials of Ulinastatin have been sold in China alone, treating more than 1.5 million patients and demonstrating a great safety and clinical efcacy prole in the process.
Tertiary structure of Ulnastatin
Clinically, the medicine is used principally to treat sepsis, pancreatitis and other critical illnesses, but it also has application in certain surgical procedures. To support its use in sepsis, a multi-centre, randomised and controlled clinical trial has been conducted involving a total of 342 patients at 21 Chinese hospitals. The results indicate that Ulinastatin can signicantly reduce the mortality of sepsis patients. Based on the extensive clinical evidence available, Ulinastatin has been listed in the Catalogue of Drugs for Basic National Medical Insurance since 2005. This conrms that the effectiveness and solid safety prole of Ulinastatin are recognised by the Chinese authorities. Now the medicine is used routinely in 650 large, AAA hospitals (800+ beds) and 550 middlesized hospitals. This has seen annual sales of Ulinastatin grow at an average of 30% over the past three years, with turnover reaching $76 million in 2010 (around 57 million).
GREAT EXCITEMENT
That growth in China is expected to continue at the same rate, while there is great excitement about its potential in other international markets following Nycomeds majority stake acquisition of Techpool in November 2010. Of particular interest is Nycomeds focus on emerging markets, where most of Techpools registration information could be shared. At the 2010 annual COMOPs meeting in Istanbul, interest was shown in the potential of Ulinastatin in emerging markets such as CIS, Brazil, Latin America and Turkey, says YL Liew, head of Nycomeds North Asian Region We are now working closely with the Nycomed global team to exchange information, analyse any gaps in registration requirements and then roll out a strategy to get this medicine to a broader patient population.
Over 20 million vials of Ulinastatin have been sold in China, treating more than 1.5 million patients.
THIRTYTHREE
Ulinastatin mechanism of action
Ul nas at Ulinastatin asta
T EATE with TREATED with i Uli Ulinastati Ulinastatin inas UNT E TED UNTREATED TR Cl nical pplication Clinical application plicati lica Acut panc Acut pancreat tis Acute pancreatitis ncre Trauma (includin surger y) Trauma (including surg r y) nclud Bu n Burns Shoc Shoc Shock Sepsis Sepsis Others Others
Excess v Excessive rele s of release of hydrolases hydrolases, drol ses oxygen free xygen e radica an radical and cytokine cytokines
SIRS SIRS
MODS MODS
MO MOF OF
SIR Syste SIRS: Systemic inflamma ory response syndrome SIRS: Systemic inflammatory response syndrome y em inf a ma or y respons n am at ammat sp se po dr m d ome MODS: Multiple organ dy funct on syndrome MODS: Multiple organ dysfunction syndrome O Multip rg dys uncti sy dro u ys u ti unc yn r MO MOF ultipl rga ailure MOF: Multiple organ failure OF ult pl l p ga i re g ailur
Pancreatitis and sepsis

Pancreatitis is inammation of the pancreas, associated with alcohol, trauma, or pancreaticduct obstruction. It involves activated enzymes escaping into pancreatic tissues causing irritation and inammation. If left untreated bleeding, tissue scarring, pus formation, infection and death may occur. Symptoms include severe pain, low fever, nausea, and hypertension. Sepsis, sometimes called blood poisoning, is a potentially serious medical condition characterised by a whole-body inammatory state and the presence of a known or suspected infection. The body may develop this inammatory response by the immune system to microbes in the blood, urine, lungs, skin, or other tissues.
THIRTYFOUR
HOT SEAT
BARTHOLD PIENING
HOT SEAT
Operations adapting to new challenges
Nycomed is looking more and more to the emerging markets for its future growth, so how does this impact our production and distribution strategy? We put Barthold Piening, Head of Global Operations, in the Hot Seat to nd out.
Flexible and adaptable Barthold Piening, Head of Global Operations at Zurich headquarters (above) in Brazil on the solids packaging line during a recent visit to the Jaguarina plant (right) and addressing a meeting of all employees (far right).
Wha What is the potential and signicance of manufacturing plants in emerging markets: will we reinforce our network here? eme We have been doing so, and will continue to do so where it makes sense for the company. We have the foundation to be exible and adaptable, and to expand at the same time since our strategic focus is on the three pillars of manufacturing, supply chain and developing our people. Look at what were doing in India, China and Russia. Theres a lot of technology transfer and investment, but also plenty of guring out how to work in a different culture. We need to be able to lean back and reect on how weve done things, and what weve learned. One result of that reection is that now Miguel Ayala, Claus van der Stouwe and Rainer Wiartalla are adding responsibility for facilities in new markets on top of their regional roles.
Does it always make sense to build or acquire a manufacturing plant to gain or maintain market access? Everything depends on the business case. Regulations vary from country to country for example, we may opt for a local packaging plant for pharmaceuticals produced elsewhere if that satises regulatory requirements. Political factors also come into play. Previously we had to have manufacturing plants in pretty much every European country, but as the EU became more of a reality we didnt need to maintain plants everywhere. In the longer term we have to follow political and regulatory changes in the regions where we are active, and plan our network and activities accordingly.
THIRTYFIVE
We are getting better with standardising processes and, if we run efciently and with high economies of scale, we can stay very competitive.
How does this impact our global supply chain strategy? The supply chain is, in some ways, more complex than manufacturing. Its about planning, order handling, exibility and timely communication and needs a lot of soft skills. To be a truly efcient, supply chain-driven organisation requires strong and active communication with colleagues in COMOPs and in all LOCs and markets. In big markets such as Russia/CIS weve even established a fully-edged supply chain team. Weve also just appointed Jrg Michaelis to coordinate new supply chain initiatives towards emerging markets. This will help to make sure that were serving the new markets right from the start. Plus, we have one of our most experienced managers, Joseph Simons, solely dedicated to emerging market projects.
Even with APIs coming from Zydus Nycomed in India, can we be competitive on cost if we manufacture most global products in Europe? Direct labour costs are only a small part of our production costs. Most of them are the APIs, raw materials, packaging materials and here we dont cut corners. There is no compromise on quality: we invest a lot of time and money to bring manufacturing in low-cost countries up to our mature market/high quality standards. But there is more we can do. We need to look at product design, other formulations that we can offer at lower cost in growth markets. Obviously we sit together with R&D to work this out, but there is a lot that Global Operations with its manufacturing expertise can offer.
Where does our global supply chain work especially well? Latin America is a good example. We combine our products coming from Europe with a strong local component, for instance Neosaldina in Brazil. The cooperation between Marketing and Operations in Brazil is a perfect example of how our supply chain strategy should work. Plant Manager Luiz Fortuna spends a xed part of his working week in the sales ofces in So Paulo, so he knows exactly what the sales needs are.
Serving new markets means delivering increased volumes and possibly broadening our product portfolio. Is our network set up to do this cost-effectively? We are very exible. We have sophisticated technologies such as sterile liquids in Singen and Linz, while our core solids production is handled efciently in Asker and Oranienburg. We also have access to countries such as India and China, which offer low-cost manufacturing opportunities. So we stay competitive with a healthy mix of cost-attractive sourcing from Asia, and manufacturing highly efciently and creatively in mature market sites. We also have a good network of external partners manufacturing various products with specialised technologies. Russia is not a typical low-cost manufacturing site, but a case of moving production to enhance our market position. Thats why were now doing a lot of technology transfer to the new Yaroslavl plant from our competence centres, such as Linz for Actovegin and Asker for calcium. Historically we are used to a broad product portfolio, since we have often grown by acquiring companies with a huge range of products. This leads to complex manufacturing in small batches, but we handle it our plants in Brussels and Hobro do this extremely well. We have a lot to do this year. In our established sites we can optimise our sophisticated production even further, and this is where Operational Excellence plays a key role. We are getting better with standardising processes and, if we run efciently and with high economies of scale, we can stay very competitive. So Im condent we have the right strategy and the right structures to meet our challenges.
What does the emerging markets shift mean for Global Operations, with its concentration in Europe? Our core technical knowledge and process capabilities will stay focused in Europe, with large-scale production in countries where technology and quality is up to our standards. For example, while a calcium product may not seem so complex on rst sight, in fact it requires special know-how, and in Asker they have the necessary expertise in the particular manufacturing technology to come up with new formulations. So we will transfer technology where required and feasible weve done it with the API (active pharmaceutical ingredient) transfers to India, and are working intensively on technology transfer of products to the new plant in Russia.
THIRTYSIX
VALUES AND CULTURE SURVEY
Getting the measure of Nycomeds culture

One-third of all Nycomed employees took part in the recent Values and Culture survey. So how do you rate the company as a place to work?
Plenty of organisations claim to have a culture that is something special, but Nycomeds claim is better than most after a recent company survey found that nine out of ten employees not only identify with the culture personally, but also understand how the values can be of practical use in their daily work. These results are pretty positive, especially when you consider that the survey was conducted against the backdrop of a lot of change in the company, says Nikolaj Knudtzon, head of the Culture and Values initiative. The Nycomed Values and Culture survey also identies areas for improvement. Nearly 20% of people surveyed say they dont think theres enough trust and openness between departments, Nikolaj explains. Thats a pretty strong signal to all of us that more of an effort needs to be made in creating an atmosphere of trust. He adds: The notion of being a Role Model starts from the top, so I was really happy to see that the results on this were positive. Seventy percent of people said that Nycomed leaders were committed to developing their teams, with a similar number saying that global leaders and local managers were successful Role Models. Employees rate this as one of the most important categories, with around 90% saying it mattered to them that leaders and managers were effective Role Models, Nikolaj says. Leadership development is a big part of our work with the values and Ill be using these numbers to stress the importance of leaders challenging themselves on whether they are walking the talk.
BIG QUESTION
Adoption and effect of the values

Agreement and disagreement with the following statements:
The values have a positive effect on performance in my workgroup
41%
Familiarity and connection with the values

Agreement and disagreement with the following statements:
I see a clear connection between the values and Nycomeds long-term strategy
33%
18%
5%
3%
37%
31%
17%
9%
6%
At Nycomed peoples contribution is more important than their status
36%
I understand how the values can be of practical use in my daily work
So what about the biggest question of all how do employees rate Nycomed as a place to work? An organisation survey carried out in 2007, just after the acquisition of Altana Pharma, found that employees were uncertain about many things, including what kind of company the new organisation would be to work for.
9%
31%
19%
5%
56%
32%
6%
3%
3% At Nycomed people are encouraged to develop innovative ideas
33%
We are moving in the right direction the efforts of the past few years are being felt by employees worldwide.
36% Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree 8%
19%
4%
THIRTYSEVEN
Survey highlights
% 90% of employees identify personally with the culture.
% 90% understand how the values can be of practical use in their daily work.
75% see a clear connection between the values and building a high performance organisation.
75% think the values have a positive effect on their work group.
66% feel that Nycomed has a culture that promotes and recognises innovation and improvement.
45% think Nycomed has a more motivating culture than it did three years ago.
67% think the culture will be even more motivating in three years time.
The values being lived by leaders and colleagues

Importance that the following groups act as role models for living the values:
2% 12% 20% Nycomeds senior global leaders 2%
At the time, just 16% of employees said they thought Nycomed was a good place to work, a number that Nikolaj says provided the impetus for the subsequent values efforts. It was clear that more had to be done to ensure Nycomeds culture and spirit could assert itself, he says. We wanted to send a clear signal about our aspirations for Nycomed, and have employees sign up by saying this is the kind of place where I want to work. Four years were spent promoting and embedding the Nycomed values of Empathy, Trust, Courage and Motivation, and the concept of being a Role Model, before the recent survey was made available in ten languages. This was created in electronic form via iNside and in printed format for countries that requested it. In just three weeks, around 3,500 Nycomed employees took part. The response rate alone told us that this is something people really care about, Nikolaj says. The results show the progress Nycomed has made as an organisation. Forty-ve per cent of employees think Nycomed has a more motivating culture than it did three years ago that it is a good place to work. More importantly, 67% think
the culture will be even more motivating in three years time. What I take from this is that we are moving in the right direction that the efforts of the past few years are being felt by employees worldwide. There is still plenty of room for improvement, but employees are telling us that they are optimistic, that they see how things have changed and hope that the momentum will continue. Nikolaj and his team now want to make sure Nycomeds culture continues to develop positively by taking many of the survey ndings and building them into their business plan. The survey told us that employees want more guidance on using the values in real work scenarios, and they want more stories about how colleagues have been role models. They also want more opportunities to discuss what the values mean to them in a team setting. Most importantly, they want to see their managers and leaders being exemplary Role Models of how to live the values, in good times and bad. We cant be complacent, he concludes. Clearly, theres still work to be done, but for now these results are a signal of approval and cautious optimism.
64%
1% 4% 16%
Your local leadership team
79%
Very important Important Moderately important Of little importance Unimportant
The Values Journey

2007 The Values and Role Model concept are launched 2008 Nearly 1,000 managers participate in values workshops worldwide Train the trainer sessions for 85 values ambassadors who roll-out the dialogue-mats in 22 languages 2009 Dedicated intranet area launched for values resources; values give-aways launched Leadership programme on coaching skills launched, with every session fully subscribed Values implementation survey assesses progress in every country 2010 Nycomed Stories video project gathers nearly 90 stories from employees A global Values and Culture survey receives around 3,500 responses
Visit the Values site to see the full results. http://inside.nycomed.local/corporate/values/Values_Culture%20Survey/Documents/Values%20and%20Culture%20Survey_Results.pdf
THIRTYEIGHT
PARTNER IN FOCUS
ZYDUS CADILA
partner in rtner n r
The transfer of Nycomeds Active Pharmaceutical Ingredient (API) production from Singen and Linz to the newly-expanded plant at Zydus Nycomed in Mumbai is almost complete. So what do we know about our Indian partners in the joint venture, Zydus Cadila?
A meeting of minds
It was a meeting of minds, a common interest that laid the foundations of the Indian joint venture between Zydus Cadila and Nycomed, according to Zydus Cadila Chairman and Managing Director, Pankaj R Patel. And it is those same qualities, he says, that have kept the two partners together for more than 12 years. It was December 1998 when Mr Patel shook hands with Heinz Bull, Chairman of what was then still Byk Gulden, on an agreement that initially involved clinical trials collaboration and then the manufacture of key intermediates for the production of Pantoprazole in a brand new state of the art plant in Mumbai. The plant now provides intermediates for around 60% of the global Pantoprazole supply.
chain management perfectly complement Nycomeds product know-how, engineering expertise and quality assurance ability. But these are not the only reasons why the two companies are such a good t. For any joint venture to be successful, there must be shared understanding, mutual respect and openness between the partners. Both partners must also be committed to common goals, and that is exactly what we have at Zydus Nycomed, says Mr Patel. It is reected not just in the objectives, but also in the work ethos. Zydus Nycomed embodies the spirit of excellence and the desire to reach out and do better. Zydus Nycomed is on a road where each effort is an improvement on the one before. If we look back on the developments so far, we see a chain of accomplishments. Each effort is an important one, and together they link up to form a piece that is strong and enduring. Ravi Chandran, Managing Director of Zydus Nycomed, adds: Trust is a key factor in the success of the joint venture. While our Indian partners have remained the same, the European representatives have changed from Byk Gulden to ALTANA Pharma and now Nycomed, with different cultures and working styles each time. It is common beliefs and goals that cement the two parties, and a trust in each others commitment.
Zydus Nycomed embodies the spirit of excellence and the desire to reach out and do better.
Zydus Cadila at a glance
Zydus Cadila had an interest in the eld of gastrointestinals in fact, it continues to be one of our core areas, Mr Patel says. While developing new processes for several molecules in the segment, including Pantoprazole, we approached Byk Gulden and shared our experiences with them. Within just four years of setting up the joint venture, the company had made a successful transition from the project stage to commencing commercial operations. It has become a very successful JV company model in the industry and a benchmark for high quality production at the most competitive prices. A new era for the partnership began in March 2008, when Zydus Cadila and Nycomed signed a deal to make Zydus Nycomed one of the hubs for our global supply of active pharmaceutical ingredients (APIs). This not only includes annual production of 35 tonnes of Pantoprazole Sodium, the API in Pantoprazole, but also APIs for other branded generics such as Urapidil, Policresulen, Lornoxicam and Sulfametrole. Since the existing plant was unable to accommodate the expected increase in volumes, a new API plant has been built on the existing plot, comprising ofces, quality control and microbiology laboratories, as well as a storage facility for chemicals. This was inaugurated in September 2010. Zydus Cadila is one of Indias major health care providers and its high level of expertise in the areas of manufacturing and supply
Zydus Cadila was founded in 1952 and is now one of Indias top ve pharma companies. Headquartered in the Indian city of Ahmedabad, it has over 12,000 employees worldwide, a world-class research and development centre dedicated to discovery research, and eight state of the art manufacturing plants. The company expects its sales to pass the US$1 billion (740 billion) mark in 2011. It was named Indias Emerging Company of the Year by the Economic Times Awards for Corporate Excellence 2010.
Mutual respect Shared understanding, trust and openness are key factors in the success of Zydus Nycomed, say Pankaj Patel (top) and Ravi Chandran.
IN BRIEF
THIRTYNINE
New Brand Portal helps coherent communication

Its not often you nd something that makes life easier for employees AND saves the company money. But thats exactly what Nycomeds new Brand Portal manages to achieve. The portal, launched in March, provides a one stop shop on all things brand from the colours and images we choose to the language we use. It provides a variety of templates, applications and a branding hotline. And even working with agencies is easier because they can have external access. One of Corporate Communications main objectives is to ensure a globally coherent image of Nycomed. To do this in a cost efcient way, we provide tools, templates and services for everyone that are ready-touse. One of these is the newly developed Brand Portal, explains Dagmar Ldtke, Nycomeds Brand Manager. The Nycomed brand is much more than a unique visual identity. It inuences all Nycomed stakeholders on both emotional and intellectual levels. The Brand Portal helps distinguish the company in terms of messaging and appearance, and supports the companys business strategy. When every Nycomed employee consistently presents the company not only visually and in the written word, but also in their behaviour, our story and what we stand for becomes a clear differentiator in a competitive industry, Dagmar explains. The portal features the Nycomed Brand Story who we are and what we stand for including our brand essence Everything we do matters to somebody. It gives Visual Identity guidance in terms of how to use the Nycomed logo, colours, fonts, design elements and photography style. It also includes our company glossary and writing style guide. Theres a download area with a range of print and electronic media templates, and a Services section that includes news and contact details for the Branding Hotline. When we use the guidelines consistently on a global level, our values and what we stand for come through loud and clear. The Nycomed Brand Portal can be accessed through the intranet iNside no password is needed. Agencies can also access it after registration at www.nycomed.com/ brandportal/
New ofce paves way for Quantum Leap in Saudi Arabia

Nycomed Saudi Arabia has paved the way for its next stage of expansion by moving to a new ofce in the port city of Jeddah. The company, which contributes 22% of all Nycomed sales in the Middle East North Africa (MENA) region, has plans to increase turnover from its current level of 17.7 million to 70 million by 2015. It aims to do so by launching new medicines such as Daxas and Omnaris, forging inlicensing partnerships and improving market access. To be ready for this Quantum Leap development we need a suitable working environment for our ofce-based staff of 30 people, says Country Manager Ahdy Abdul Salam El Sayes. Our new ofces in Jeddah t the bill perfectly in that regard.
Settling in Nycomed Saudi Arabia Professional Sales Representatives Sherif Nabil (left) and Ahmed Fahmy in the reception of the companys new ofce.
What we are all about

This little booklet serves as a strategic compass. It holds in its tiny frame statements that back up our strategy. Combined, they tell the Nycomed story. What we are about, where we are going and how we plan to get there. It includes the ve pillar statements that support our strategic direction, like what we mean when we say we have strength in dynamic markets, or that we provide medicines that matter or weve entered a new phase of growth. The booklet is available online, along with the new This is Nycomed poster. You can nd them on iNside, under About us > Our Strategy. Theres also an interactive version that includes more details or proofpoints that further support our strategic positioning.
This is Nycomed

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ISSUE 13 Q2 2011

New focus for deal makers

The future is in our hands

Poised for growth in Latin America

TachoSil milestones reached

10 ProleRussia withects on two eventful decades From love Jostein Davidsen re

Teamwork drives Daxas registrations

New focus for deal makers

Getting the measure of Nycomeds culture

The future is in our hands

THE NYCOMED MAGAZINE ISSUE 13 Q2 2011

CONTINUED FROM PAGE FIVE

Brand Management consolidation

THE NYCOMED MAGAZINE ISSUE 13 Q2 2011

Shared accountability for an integrated Europe

European Leadership Team (ELT)

ONE Nycomed in Europe

Poised for growth in Latin America

THE NYCOMED MAGAZINE ISSUE 13 Q2 2011

TachoSil milestones reached

Helping nature take its course

THE NYCOMED MAGAZINE ISSUE 13 Q2 2011

From Russia with love

THE NYCOMED MAGAZINE ISSUE 13 Q2 2011

CONTINUED FROM PAGE ELEVEN

DAXAS REGISTRATION UPDATE

Teamwork keeps Daxas registrations on course

THE NYCOMED MAGAZINE ISSUE 13 Q2 2011

A true team effort Christoph Bunte.

MEET THE TEAM

NEW FOCUS FOR NYCOMEDS DEAL MAKERS

THE NYCOMED MAGAZINE ISSUE 13 Q2 2011

MEET THE TEAM

CONTINUED FROM PAGE SEVENTEEN

Key Nycomed partnerships

THE NYCOMED MAGAZINE ISSUE 13 Q2 2011

Holding out for the right deal

THE NYCOMED MAGAZINE ISSUE 13 Q2 2011

Diversity and creativity drive remarkable performance

THE NYCOMED MAGAZINE ISSUE 13 Q2 2011

Surveys secure external recognition

Generic option ensures soft landing for Pantoprazole

THE NYCOMED MAGAZINE ISSUE 13 Q2 2011

International experts support Daxas case

All ears and eyes on Business Development

Business Development Director, Pieter Huyghe (above).

THE NYCOMED MAGAZINE ISSUE 13 Q2 2011

Growth ambitions Plant Director, Renaat Baes (above).

Setting an example in partnering

Operational Excellence supports factory expansion

Common philosophy supports cluster optimism

THE NYCOMED MAGAZINE ISSUE 13 Q2 2011

A passion for collecting

A DAY IN THE LIFE

New ways of thinking,

THE NYCOMED MAGAZINE ISSUE 13 Q2 2011

new ways of working

Tertiary structure of Ulnastatin

THE NYCOMED MAGAZINE ISSUE 13 Q2 2011

Ulinastatin mechanism of action

Ul nas at Ulinastatin asta

Pancreatitis and sepsis

Operations adapting to new challenges