Richard Saynor, CEO of Sandoz, discusses the Swiss SP’s proposal for the federal government to acquire the generics manufacturer to address medicine shortages. He emphasizes Sandoz’s global reach and commitment to patient care while highlighting ongoing discussions with Health Minister Elisabeth Baume-Schneider regarding the value of generics in healthcare. Saynor addresses criticisms of profit maximization and outlines plans to develop generics for weight loss medications as patents expire, indicating the continued demand for existing treatments.
In an exclusive interview with SRF, Richard Saynor, CEO of Sandoz, addressed the recent call from the Social Democratic Party (SP) for the federal government to acquire the generics manufacturer. He also shared insights from a recent meeting with Health Minister Elisabeth Baume-Schneider.
SRF News: The SP advocated for the federal government to take over Sandoz at their party conference on Sunday. What are your thoughts on this?
Richard Saynor: Sandoz operates on a global scale, providing around 1,500 medicines to 800 million patients in over 100 countries. We are proud to be the world’s largest generics manufacturer, and our main focus is on continuing this mission. Beyond that, I can’t elaborate further.
What impact would a government purchase of Sandoz have?
We welcome anyone interested in purchasing our shares, and I appreciate all who choose to invest. It represents a solid opportunity both financially and for societal benefit. Our goal remains to increase our product offerings and meet patient needs globally, in Switzerland, Germany, the US, and beyond.
How do you personally feel about the SP’s proposition?
It’s gratifying to see Sandoz receiving this level of attention. We maintain a constructive relationship with the Swiss government, highlighted by my recent meeting with Federal Councillor Elisabeth Baume-Schneider. Sandoz is recognized as a crucial player in the healthcare sector, just as other governments worldwide view us.
What key topics were discussed with the Federal Councillor?
We highlighted the significance of Sandoz in the healthcare landscape. In Switzerland, the adoption of generics and biosimilars remains lower than in many European nations. We believe that increasing the use of these products could save the Swiss healthcare system several hundred million francs annually. Our discussions focused on strategies to facilitate this increase.
The SP is concerned that Sandoz may withdraw essential medications from the market if they fall short of profitability. How would you respond to that?
Patient welfare is our top priority; however, I must also manage a business. It wouldn’t make sense to continue selling a product that is unprofitable. This creates a constant balancing act. We meticulously analyze our product portfolio but remain committed to ensuring the availability of critical medications, like antibiotics, especially when we are one of the few suppliers remaining in the Western world. Despite the financial pressures, we continue to invest in antibiotic production for future generations.
There are accusations that your focus is purely on profit maximization. Some point to your goals of increasing profit margins after separating from Novartis.
I view this differently. To fund our growth and future investments, we need a sustainable profit margin. This margin is essential for us to expand, build new facilities, and invest in our workforce and sustainable practices. It serves as an important indicator of our potential for future growth.
The pharmaceutical industry is buzzing about weight loss injections. You’ve mentioned that you’re developing generics related to this trend. What’s your strategy?
We are indeed looking into the GLP-1 drug class. The patent for the diabetes indication will expire in Canada in 2026, with weight-loss applications following afterward. Our goal is to introduce a generic product on the market as the patent expires. Europe will follow suit in the early 2030s, with the US market expected by 2035. It’s an exciting field with vast potential due to the demand exceeding supply from original manufacturers.
Is there a risk that by the time generics are available, they may already be outdated?
That’s always a consideration. However, current drugs in phase II development are still several years away from market entry. The medications available today remain highly effective. Even as newer generations arrive, the global demand for existing drugs is likely to remain substantial.
This interview was conducted by Tobias Bossard.