Sanofi – aiming for number one in the world’s biggest diabetes market
pharmafile | December 18, 2012 | Feature | Manufacturing and Production, Medical Communications, Research and Development, Sales and Marketing | China, Sanofi, diabetes, obesity
Sanofi is no different from any other major pharma company in seeing China as the single most important growth market for the next decade and beyond. One of the things that sets it apart from competitor is heritage in the country – Sanofi was one of the very first foreign pharmaceutical companies to open offices in China, in 1982.
The firm is today one of the largest multinational pharma companies in China, and is committed to remaining a top player. Sanofi plans to do this by using its seven growth platforms.
These are: its diabetes franchise, human vaccines, innovative drugs, consumer healthcare, emerging markets, animal health and the new Genzyme.
Headquartered in Shanghai, it is supported by 11 regional offices in Beijing, Tianjin, Shenyang, Shanghai, Hangzhou, Nanjing, Wuhan, Chengdu, Guangzhou, Jinan and Urumqi. The company has six manufacturing facilities, in Beijing (pharmaceutical), Hangzhou (one pharmaceutical, one consumer healthcare), Nanchang (animal health), Shenzhen (vaccine), and Tangshan (consumer healthcare).
Sanofi is engaged in integrated research and development (R&D) in China, ranging from drug target identification to late-stage clinical studies. Its China R&D Centre and Asia-Pacific R&D Centre are based in Shanghai, supported by branches in Beijing and Chengdu. Since 2008, it has also established over 30 strategic collaborations on the discovery front, with top scientific institutions in China focusing on cutting-edge research in cancer, stem cell, diabetes and age-related diseases.
Jean-Luc Lowinski has served in the role of senior vice president of Sanofi Asia since 1 May 2012. Dr Lowinski is responsible for the company’s business and growth in Greater China, Southeast Asia (including the Philippines, Thailand, Indonesia, Singapore and Malaysia) and Indochina (including Vietnam, Laos and Cambodia).
Pharmafocus: What are the reasons behind the success of Sanofi China?
Jean-Luc Lowinski: “Although I have now been in China since May 2012, I previously worked in the country from 2002 to 2006, so this is my second time here.
“I can say with some certainty that the market has changed a great deal. Sanofi has indeed achieved great success in China and there are four reasons for this. The first is the early entry of Sanofi into China and the time the company has spent in this market. Sanofi has been in China since 1982, and we are about to celebrate our 30th anniversary. Our knowledge and familiarity with the country plays a big part.
“Secondly, we have a diversified portfolio, which matches the needs of the Chinese market. Thirdly, we are strongly embedded in Chinese society. Although we are an international company, we have a strong local network. We have six manufacturing plants across China, a far-reaching distribution network, over 4,000 sales people and eleven regional offices. We also have a strong network when it comes to R&D, with over 30 partnerships across China.
“Fourthly, and finally, there are of course our people. We have been very good at creating a strong team, mainly based on local talents – we have very few expatriate staff here.”
How does Sanofi’s portfolio and strategy differ from those of competitors? Why are you focusing on a diversified approach?
“If you look at Sanofi globally, we have a strategy of diversification and our seven growth platforms: diabetes solutions, human vaccines, innovative drugs, consumer healthcare, emerging markets, animal health and the new Genzyme.
“The idea is to generate growth through these platforms, so that we are not solely dependent on R&D. We are enjoying success with our innovative drugs, but we all know that R&D is a lengthy and risk-prone undertaking. What we do in China is very much in tune with our global strategy: we have a diversified portfolio, so there is a good match. The major needs in China are cardiovascular. Every 25 seconds, someone has a stroke in China.
“There is also a high incidence of hypertension: in a study carried out a couple of years ago, it was revealed that over 70% of adults have hypertension, which might come from the high intake of salt in food. Because strokes are a big issue, products such as Plavix have brought major solutions.
“Another big problem in China is diabetes, so the solutions we provide are very important. In addition, there is cancer – the main killer in China. We of course have an oncology line, Taxotere and Eloxatin, as well as the haematology brands acquired from Genzyme, which certainly answers the needs of the market.
“The products we offer are unique. We offer the only 5-in-1 combination vaccine for children. Approximately 16 million babies are born every year in China. If you use normal vaccines, you have to provide the equivalent of 12 injections; however, our vaccine can be dispensed in four injections.
“Inoculations are traumatic for kids and parents, so four has to be better than twelve. Ultimately, we bring a lot of innovation to the market. This is true of our animal health company Merial, for example. Merial currently has three joint ventures and a trading company in China, mainly producing Avian vaccines against diseases affecting poultry broilers and layers, as well as providing related vaccination equipment and technical services.”
Diversification
“All in all, Sanofi has undergone a major transformation in the last four years,” says Lowinski. “It has diversified significantly, for example by strengthening itself with various acquisitions worldwide, and also through the reintroduction of Merial. We are strengthening our generic platform worldwide, paying increasing attention to emerging markets, and moving towards our seven growth platforms. Our business in China is a good illustration of that transformation.”
Sanofi has stated its ambition to be the leader in treating diabetes in China, the world’s largest diabetes market. How do you intend to contribute to this?
“China has the world’s largest diabetes population, of 92 million, with significant numbers of people thought to be undiagnosed and not receiving insulin. Although an increasing number of patients do receive insulin, diabetes cannot really be said to be controlled, bearing in mind the impact it has on other diseases, on people’s suffering, and its cost to society.
“We have a unique insulin Lantus and a portfolio that offers a genuine opportunity for people to control their diabetes. Lantus is a basal insulin analogue which has a long-acting profile that provides 24-hour basal coverage with no peak. It is the most widely used insulin worldwide, and we brought it to patients in China in 2004.
“Increasing numbers of patients in China are moving to basal treatment, and this is where we believe we can play a major role. Possibly the most important treatment is the management of patients, embracing education and the amount of time the doctor spends with a patient. In China, much medical coverage actually takes place in hospitals.
“There is not an infrastructure of general practitioners. Of course, the doctors in Chinese hospitals are very professional, but do not necessarily have the time they would like to spend with patients to explain issues such as lifestyle, eating and working habits or how to manage treatments.
“We launched a five-year initiative in 2011 to train 500 emerging diabetes experts and to extend this to 10,000 community and county doctors, so that they can treat patients properly and get their blood glucose levels under control. Diabetes does not only exist in big cities; we need to go into the communities and rural areas, where the situation is almost that of an epidemic.”
What is the customer profile in China and how does this differ from other regions? What makes the Chinese customer profile challenging and/or beneficial for your business?
“Compared to my first time in China, there are some major differences. There is a very strong drive from the government to bring medical insurance coverage to almost all of the Chinese population. Today, almost 95% of the population has some kind of insurance. The government is also heavily committed to healthcare reforms.
“It has created a five-year plan and, since 2009, has invested heavily in building over 2,000 county hospitals. The authorities are making major investments into improving healthcare structures, especially outside of cities and in rural areas, as addition to broader insurance coverage for the Chinese population. This is a unique opportunity to provide access to better healthcare and makes a major difference for us.
“At the same time, the government is controlling costs to make sure that healthcare is affordable. This is something we want to be part of. We are active in the field of highly innovative drugs, but we believe there are also ways to make quality drugs which are affordable to a major part of the Chinese population.”
What do you bring to your role in China?
“What I want to bring is a great passion for this country and this region. I have spent 20 years of my life in Asia, which covers the large part of my career. I have memories of working all over Asia – I spent over eight years in Japan, four in China, two each in Korea, Singapore, India and Thailand.
“I think China is a fascinating country. And, as a professional in this industry, it is a fascinating time to be part of the healthcare business in China. I have also spent 20 years in the healthcare industry and previously worked for a highly diversified German company, ending up as the head of an animal health business before joining Sanofi earlier this year.”
What are the unique aspects of doing business in China?
“I would like to highlight the strong drive and clear vision of the country and the government, in terms of what they want to achieve. There is a clear direction and understanding of what the country wants to achieve. Obviously there are challenges as well as opportunities. But there is also a very strong ‘can do’ attitude.
“China is writing a brand new page. It cannot copy what other countries have done, because no other country has experienced the challenges of providing healthcare to a 1.3 billion population within a broad territory and a fast-growing environment. The private sector also offers the same ‘can do’ spirit.
“It’s interesting to be here and to try to do things differently. I also enjoy considerable support from our head office, in terms of acquisitions, trying new initiatives and focusing on making a genuine difference.”
What do you find most challenging and exciting?
“The biggest challenge lies on the people side; we need talent and we are not the only ones to do so. In addition to the task of attracting talent to the organisation, there is that of retaining them once you have them, encouraging them to grow into the organisation and feel passionate about us and our business. We have a very young workforce due to the dynamics of this country.
“Thus, while there is a ‘can do’ attitude, we also need to train people and bring experiences to them. That’s the greatest challenge from a human resources point of view.
“It’s exciting, however. Working alongside the authorities and healthcare professionals, we can do a lot of new things to make a difference, for example by tackling stroke and diabetes problems. I find this very motivating.”
How are you impacted by the perceived cultural differences of working here?
“Our total China-based workforce of over 6,500 people probably includes fewer than 20 western expatriates. We depend very greatly on local talent and I think that this is an important part of our success.
“At the same time, I think that people’s talents are very international. Many local Chinese have lived, studied and worked abroad. The lines are blurred, giving a positive mix of Chinese, international and indeed French cultures.”
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