Rus News Journal

Our philosophy - to be the leader in narrow niches

This summer the management German Schering, one of the leading pharmaceutical companies of the world, declared the beginning of the scale reorganisation necessary for increase of profitableness of business. In Russia Manfred Paul who has headed representation in May of this year will be engaged in an embodiment of new strategic vision Schering. About steps which should raise overall performance of the company, he has told in interview of Council of Federation.

the philosophy remains former
the FIRM SECRET: Schering many years takes in the world leading positions in segments traditional for - in particular, in manufacture of preparations of hormonal contraception, contrast means reorganisation was necessary for diagnostics of diseases and etc. For what?
MANFRED PAUL:
last year we have analysed a company place in the market on such indicator as profitableness of business, and management Schering in Berlin had to recognise that some our competitors - for example, Merck Sharp & Dohme, Roche, Novartis, Pfizer - we work with bolshej profit, than. When such result has been received, in the company have created some the working groups which were engaged in studying of those possibilities which would allow to work in long-term prospect with bolshej return.

Council of Federation: What prevented Schering to achieve comparable indicators with competitors?
MT:
profitableness Decrease has been connected with the big investments of the company into working out of new preparations. Thus never there is no guarantee that scientists will find something really new, effective and profitable. We will tell, the big money has been enclosed in development of a direction of preparations for treatment of diseases warmly - vascular system. It would seem, this direction is claimed by the market and should make profit. However it was found out that many means are spent, and return is insufficient. Besides, at comparison of structures of leaders farmkompany it has appeared that in Schering a little razdut staff of administrative employees.

Council of Federation: Than, except the reduced staff, will differ new Schering from the former?
MT:
Philosophy Schering - to be the leader in narrow niches - remains former. But as a result of revision of strategy we have allocated four priority directions, a management with which will carry out global business - units. The major area of development for us there is a gynecology and andrology. The second direction - oncology. Besides, we concentrate on specialised methods of therapy and, in particular, over strengthening of positions betaferona . This preparation for multiple sclerosis treatment plays large role in business Schering, here again the company should solve a problem of the best organisation of management of medicine life cycle. More actively the direction of preparations for diagnostic visualisation where we take in the lead positions also will develop. As to dermatological preparations, specially founded affiliated company Intendis will be engaged in their working out, manufacture and sales.

Council of Federation: What role will play a management of business global business - units?
MT:
They are responsible for working out and advancement of preparations within the limits of strategic directions. Till now at us existed, we will tell so, disagreements between department of marketing and scientific department. Scientists spoke to experts in marketing: We have developed the best preparation, and you cannot favourably submit it, on what marketing answered: Your medicines, maybe, and quite good, but the market needs at all it . Now we hope, this contradiction will be removed. That is there was a double responsibility: at regional representations - for development in region of all business Schering, at business - units - for sales of preparations of their direction. For us it is new system, but, for example, in the American companies it operates some years.

Council of Federation: And what results it is supposed to reach thanks to such scheme of work?
MT:
In two years operational profit Schering should grow on 2 % and make 18 %.

Council of Federation: these plans are how much real, in your opinion?
MT:
It, certainly, uneasy strategy. But it is unique possibility for company development in the future.

Manfred Paul was born in 1951 in Yen (Germany). Has ended Jensky university on a speciality the engineer - the economist after study within seven years worked in pharmaceutical company Jenapharm. Since 1985 worked in Moscow in representation of German company Germed. In 1990 has returned in Jenapharm (in 1997 the company was a part Schering AG) on a post of the head of department of the international business. Since 2001 headed representation Schering in Ukraine, and in May 2004 has been appointed to a similar post in the Russian representative office. Mister Paul has a scientific degree in the field of economy.

We - some kind of a conductor
Council of Federation: you have headed the Russian representation just while the company declared new strategy. Something has changed in representation work?
MT:
it is global while changes nothing. But, of course, now we work in closer sheaf about business - units. At everyone business - directions exists certain general strategy. Representation - some kind of a conductor. Our problem consists in, on the one hand, to adapt this strategy for conditions of the concrete market, and with another - to represent to a management business - units the information on what in the country the competitive environment, what situation with scientific researches. In a word, that data which companies help with working out of new preparations.

Council of Federation: And how many the person works now in Schering in Russia?
MT:
in Advancement of our production is engaged more than 200 employees - for such country as Russia, it not so is a lot of. Besides Moscow at the company branches in Petersburg, Kazan, Rostov-on-Don, Ekaterinburg and Novosibirsk operate. Plus our representatives work in all cities - millionnikah. Gradually we start to leave and in cities with the smaller population.

Council of Federation: Whether is not present at Schering plans to follow the lead of companies Gedeon Richter and KRKA, opened manufacture in Russia? As in the beginning of the last century two factories here worked for you
MT:
While we do not plan building of factories here - we accept our capacities in other countries. But theoretically we think of we could realise what parts of production with the Russian partners.

In Europe such growth is already impossible
Council of Federation: in 1998 of analytics PricewaterhouseCoopers predicted branches global crisis from - for sales volume decrease retsepturnyh preparations. They were right?
MT:
About such crisis I did not hear, and objective preconditions for it are not present. The role dzhenerikov grows that, of course, affects sales original retsepturnyh preparations. But this process occurs systematically, not landslide .

Council of Federation: Who is the basic competitors in your segments of the market - the large western companies or manufacturers dzhenerikov?
MT:
It depends on, whether patent protection extends on a preparation. On those positions where patent period of validity has already expired, we should struggle with the companies which are letting out dzheneriki, and it not only Asian, but also the European firms. But at the moment we compete to manufacturers of original preparations more.

Council of Federation: And whether the Russian manufacturers to you can make a competition?
MT:
Why is not present? Recently I have learnt that one of the Russian companies, now engaged in import farmproduktsii, till 2007 intends to organise here manufacture onkogematologicheskogo a preparation. Certainly, occurrence of new competitors in the country cannot please us, but it is objective process.

Council of Federation: How you estimate a state role in branch development? In particular, from next year it is planned to stop financing of the federal target program on development of the medical industry
MT:
I know that now the state increases budgetary funds by the centralised purchases. That will be further - will show time.

Council of Federation: you work on the post-Soviet territory almost twenty years. Than you explain such constancy?
MT:
business, local mentality and conditions which influence success of work in this country are familiar To me. Certainly, me offers became to work in other regions, but it would be desirable to accept uchastiev those processes which occur now in Russia: here huge possibilities for development of business and in a management of representation I see for myself the big call.

Council of Federation: In what it is expressed?
MT:
Russia is interesting first of all in the sizes. Certainly, here while there is no such system of insurance medicine, as in the European countries but when, sooner or later, it will appear will open excellent prospects for growth. But also now in the country there are main conditions for business development - political and economic stability. Under forecasts, an annual gain of the pharmaceutical market in the nearest some years will make 8-10 %. Represent, what dynamics of business if the firm grows together with the market! In Europe such growth is already impossible. A maximum which shows, for example, the German market - 1-2 %.

Council of Federation: But after all and in Russia such situation cannot last eternally.
MT:
Yes, already now all is slightly more difficult, than three - four years ago when company business annually grew on 25-30 %. In - the first, naturally, the competition, and, in - the second grows, on some our preparations has expired term of patent protection. But there are also positive factors thanks to which following the results of this year we also expect good indicators - more than 30 %. In September we have deduced on the Russian market a new oral contraceptive JArina and by the present moment it is already sold 20 thousand packings. We will hope, sales will continue to grow. The second moment - we have won the tender for the centralised deliveries betaferona in the federal and Moscow centres of a multiple sclerosis. And certainly, we hope for growth of sales thanks to investments into expansion of staff of medical representatives which advance our preparations.

Council of Federation: What share in a company turn now is occupied with the Russian market?
MT:
On it it is necessary while only nearby 1 % of world turn Schering. Now the large increase of sales volumes at the expense of the market of the USA where Schering has had an opportunity actively is expected very much to develop. There we have deduced a new preparation - an oral contraceptive JAsmin which has managed to occupy 10 % of this market. Certainly, at growth of a share of the USA there will be indemnification of shares of the markets of other countries. Therefore for us to keep 1 % in the general structure of sales Schering is very quite good result.

Council of Federation: By the way, German Schering sometimes confuse with American Schering - Plough. It has to you any relation?
MT:
Present Schering - Plough initially was one of the enterprises opened by the founder of the company by Ernest Sheringom in the USA. After the Second World War all German actives have passed to territories of the country to the USA so now this company has to us no any relation.

Such methods are typical for the aggressive companies
Council of Federation: How many money Schering puts in business development in Russia?
MT:
Concrete figures, unfortunately, I can not name. The volume of investments into development depends on what our sales in region. Now the basic articles of the expense - expansion of staff and training of employees. On it goes about 25 % of annual investments into business.

Council of Federation: And on what the rest is spent?
MT:
it is necessary For us to provide the maintenance of enough big and technological warehouse for storage of medicines. Well and certainly, on registration new farmpreparatov and on marketing. On preparation of information materials for doctors, carrying out of medical conferences and symposiums on preparations Schering leave solid enough sums. In each direction the representation will annually organise some such actions. We will tell, on JArine we have spent eight meetings in different cities. It is very important, that doctors precisely knew, how our preparations, when and as they are necessary for applying operate.

Council of Federation: By the way, to convince medical workers to recommend certain preparations, the companies quite often use material arguments - not so long ago on payoff of doctors have caught Schering - Plough
MT:
Such methods are more likely typical for those companies which have chosen for itself aggressive strategy of a gain of the market. But it not our case. For Schering the main criterion consists in working according to ethics principles. Normal practice if the medical worker receives from our medical representative the handle or other souvenir with a logo of the company or the preparation name. As the unique basis for appointment as the doctor of preparations Schering real advantages of medicines serve.

Council of Federation: Known marks become more often than others object for fakes. This problem for Schering is how much actual?
MT:
To me only one case of a fake " is known; betaferona which extended through channels first aid . The matter is that the company works in such areas where to be engaged in falsifications is unprofitable. Nevertheless our employees regularly check drugstores and hospitals, and in the company is developed the action plan in case of detection of counterfeit preparations. We inform at once on it in corresponding departments, in particular in Ministry of Health, we inform pharmacists and doctors and, of course, management Schering in Germany.

Council of Federation: Now on television there passes your advertising campaign. Why before you did not aspire to popularise mark Schering among consumers?
MT:
We did not leave on television from - that basically we make retsepturnye preparations, a category which is rigidly regulated by antimonopoly bodies and the law on advertising. That campaign which is started now, directed on advancement of idea of contraception from Schering. One of problems - to create association between quality of this group of preparations and mark Schering.