Pfizer looks at partnerships and acquisitions in the region

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Pfizer, the world's largest pharmaceutical company, is banking on the region's growing income level, improving regulations as well as on the changing health conditions as the main drivers for its growth here.

Pfizer has found that diseases are increasing in the region. Its studies reveal cardiovascular disease amounts to 28 per cent of all deaths in the UAE and that one in three Gulf residents suffer from arthritis.

According to the World Health Organisation, the UAE is among the top five countries with the highest percentage of adult diabetes sufferers. Obesity has also become a major problem in the country with more than 60 per cent of UAE nationals overweight.

"Things are changing very fast creating new opportunities," Jean-Michel Halfon, President and General Manager of Pfizer's Emerging Markets Business Unit told Emirates Business. And to capture these opportunities, the pharmaceutical giant, which recently acquired its rival Wyeth, is looking at acquisitions in the region as well as government and private sector partnerships.

You recently said Pfizer is seeking acquisitions in emerging markets, which include the Middle East. Have you earmarked any budgets for this?
I spoke about acquisition because it's one of our strategies for growth in emerging markets and obviously, the Middle East is an important part of the emerging market. But it's not that I am coming back with my money to buy anything. We have very rigorous ways of assessment and it takes time. We have just made the acquisition of Wyeth and this also takes time to integrate our capabilities with Wyeth. We have also signed a partnership deal with Indian company Aurobindo.

But have you set a timeline for the acquisition plan?
It is very difficult to answer this but in Pfizer we have a sense of urgency in this matter.

You have just mentioned Aurobindo, and indeed Pfizer had last month signed licensing deals with two Indian companies. Aurobindo will provide you with the rights to market 60 generic drugs in 70 countries, and Claris Lifesciences with a further 15 injectable medicines. This marks a big move to off-patent drugs not developed in-house. Will you be applying similar strategies here?
What we would like to introduce is branded generics in the Middle East and be able to compete in this market on the therapeutic class, for example cardio vascular, pain and inflammation and if the best way to do it is to partner in the way that we partnered in India with Aurobindo and Claris, then yes.

Is the Middle East your fastest-growing market?
This market is not the fastest growing part of the emerging market today because we compete with a number of global companies, but it is a growing part. When you speak about therapeutic class within the Middle East, our fastest-growing market is in oncology in the area of cancer; as well as in pain and inflammation. When you speak about the region within the emerging market, it is Asia. China is growing by 28 per cent; Asia is growing by double digit; Eastern Europe, Africa and the Middle East are growing by eight per cent and the Middle East in particular is growing by high single digit. Over the next five years, we expect the Middle East growing by double digits.

Where will the growth come from?
It will come from the increase of income. And the fact that access to healthcare is being reinforced it will increase the market. Third is epidemiology, the frequency of disease especially chronic diseases. Things are changing very fast, creating new opportunities.

Does the aim for double-digit growth translate to no job cuts here, as opposed to the January announcement of 10 per cent reduction in your workforce?
No we cannot say that because we constantly find ways to improve. Sometimes you reduce jobs here, or increase jobs here. But we are constantly trying to rationalise our organisation. The Middle East like in the emerging market is in the growing part of the Pfizer business. With the acquisition of Wyeth, Pfizer will never be the same again and that would bring in changes.

Your business unit has identified six priority markets - China, India, Brazil, Russia, Turkey and Mexico. Where does the Middle East and the UAE in particular fall in your strategy?
We see the Middle Eastern countries contributing significantly to the growth not of the level of Russia, China or Turkey but we do expect growth. We are trying to see how to position this region so that the Middle East becomes one of our key priorities in the emerging market. The action plan includes growth in Saudi and to create a regional hub for the Middle East and Africa in Dubai.

A number of countries within the emerging markets have been reliant with traditional organic medicines. Are you looking at exploring this area?
We're not specifically looking at that but we are monitoring what is happening in China's traditional medicine for example. We are doing R&D but not so much in this area.

Regulations are a major issue in your business for example some governments regulate pharmaceutical prices levels to control costs for the state-sponsored healthcare system. Do you have any problem with the regulations here?
We are concerned not so much about regulations as about the implementation of the regulations and the sharing of information about what is going on. This is why Pfizer is very active in partnering with different governments. They are working on new healthcare policies and regulatory reforms in terms of protection of IP rights is improving significantly. The fight against counterfeit is very active and we expect good results.

Jean-Michel Halfon, President and General Manager of Pfizer's Emerging Markets Business Unit
Prior to assuming this role, he served as Area President of Canada-Latin-America-Africa/Middle East Pharmaceutical Operations, a position he held since January 2007.

Halfon joined Pfizer more than 30 years ago and worked in manufacturing, market research and sales in France. After 10 years at Pfizer, he joined Merck as a marketing director in France. Jean-Michel returned to Pfizer France with marketing and sales responsibilities and launched Zithromax, Norvasc and Zoloft.

By Karen Remo-Listana

© Emirates Business 24/7 2009