Recession in the global economy creates unprecedented pressure on cost efficiency. Generic pharmaceutical companies are naturally positioned to strengthen their position in difficult times. The shrinking portfolio of patented drugs, increasing cost pressure from regulatory agencies and the appearance of loosening patent claims lead to an entirely new market environment and create new opportunities for generics.
Key players in the generics industry are increasingly expanding their geographical presence and increasing advantages of economy of scale in product development, supply chain and commercial activities – becoming truly global players with all the complexity of multinational organizations.
What skills are needed now?
The nature of the industry, with largely commoditized products, the intrinsic difficulty of building a distinguished brand, the increasing consolidation, globalization, and growing complexity, makes new demands on management capabilities. Generics companies must not only find executives able to manage a global business, but at the same time maintain the entrepreneurial culture on which their competitive advantage depends.
New talent and new capabilities will be required in three critical areas:
Operations: With increasing globalization, economies of scale will be critical, in particular in manufacturing and raw materials sourcing in an environment that is already seeing shortages
Strategic marketing: In global markets with varying characteristics, the ability to develop and manage different models will be essential
Talent management: With a largely commoditized product, the ability to attract and manage top talent will be decisive in gaining competitive advantage.
How can Egon Zehnder support the generics industry?
Best-in-class talent management will become the key element of differentiation and further growth for generics companies in the years ahead. The big winners will be those companies that are able not only to attract top talent, but also to ensure that they thoroughly implement talent management disciplines. They will develop competencies not just for today but for future needs, proactively manage succession, develop appropriate retention and career planning programs, and constantly benchmark management versus the market.
Egon Zehnder’s global Generics Practice supports clients in all aspects of talent management – including executive search, appraisal, industry benchmarking, team assessment, development and pre and post-acquisition integration.
How we operate
Egon Zehnder partners with organizations to raise their level of talent. We work across the talent management continuum to provide search, assessment and development services. Our consultants were all experienced business leaders before entering our firm and can therefore understand your business problem when developing a talent solution for you.
Our Executive Assessment and Development Practice offers proven expertise in systematically evaluating and benchmarking companies’ existing management portfolio at both individual and team levels. This strategic approach to creating top-class management teams can only be realized with the backing of a company’s CEO and more particularly its board. Both need experience of leading their companies through turbulent times.
All of our Life Sciences Practice consultants acquired extensive professional experience in the healthcare industry before joining Egon Zehnder. This expertise is embedded in our global network. Our entire firm operates as a single profit center, which both encourages and rewards collaboration.