Johnson & Johnson, Pharmaceuticals: Dr Paul Stoffels shares his views in a “SWOT” analysis of the biopharmaceutical industry

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Video title: Johnson & Johnson, Pharmaceuticals: Dr Paul Stoffels shares his views in a “SWOT” analysis of the biopharmaceutical industry
Released on: August 22, 2012. © PharmaTelevision Ltd
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In this episode of PharmaTelevision News Review filmed at #BIO 2012 in Boston Fintan Walton talks to Dr Paul Stoffels, Worldwide Chairman, Pharmaceuticals, Johnson & Johnson
Paul Stoffels's views: Strengths of pharmaceutical industry right now
Fintan Walton:
Hello and welcome to PharmaTelevision News Review here at BIO in Boston, in 2012. On this show I have Paul Stoffels, who is Worldwide Chairman of Janssen , welcome. So Paul, as the Worldwide Chairman of a significant corporation in the pharmaceutical sector, I want you to just do a quick swot analysis from your perspective of our pharmaceutical industry. So let's just start up with strengths, what do you think the strengths are of the pharmaceutical industry right now?
Paul Stoffels:
Well the strengths of the pharmaceutical industry I think is bringing new products globally for patients, to society which really make some differences, like treatment for cancer, diabetics and many diseases which I think we as an industry have brought significant solutions to physicians to help get to better healthcare. So the fact that we are global that we have the capital which it takes to get developments done on a global basis, the infrastructure to produce and bring new products on a global basis I think that's a big strength of the pharmaceutical industry.
Fintan Walton:
So it also means that you are sometimes considered in a negative way in by public as you look this large corporations, so how do you deal with that issue?
Paul Stoffels:
Well I thinks it's a perception as a large corporation and that we are be making profit in healthcare is not always a simple thing as budgets are on the pressure everywhere, but if people know that the amount of capital we have to invest over many, many years and the amount of risk we have to take in order to get to new products we need to provide an acceptable return on investments to shareholders and to investors and that's where as a big corporation you are in the dilemma of doing good for the world, but also having a profitable model which keep your sustainable business and that's why sometimes we are twisted between the two situations here.
Paul Stoffels's views: Weaknesses within pharmaceutical industry
Fintan Walton:
Okay, so let's deal with another issue which is weaknesses as part of the swot analysis. What are the weaknesses within the pharmaceutical industry now? What are the issues that present themselves to you as Chairman of Janssen ?
Paul Stoffels:
Well I think the weakness especially has to do with bringing transformational innovation. I think simple diseases have been solved and what's so simple it would have been solved a long time ago, so today we are dealing with really big challenges as I said earlier cancer, Alzheimer, diabetics just to name a few are not easy, easy things to be solved and therefore accessing innovation which brings sufficient value to society to be rewarded for it it's one of the big challenges for us and finding enough innovation to sustain pipelines is one of our challenge.
Fintan Walton:
So how does your company deal with those weaknesses?
Paul Stoffels:
Well with a very open mind on how you collaborate in the world. I think each of the partners in the scientific society as you may say so the academics, institutions, the biotechnology companies and us, each of our strengths, and I think the scientists in our biotechnology companies have the thinking and probably the risk taking thinking on how to tackle problems in a different way than we can do that in large pharma. So I think the diversity of science, the diversity of people, the diversity of access to dissolving problems in a different way that's where I think we can learn a lot from other partners in society.
Janssen 's arrangements with Index Ventures and Polaris
Fintan Walton:
I suppose one element of the capital markets is the venture capital, but you've recently announced a number of arrangements that you've come into one with Index Ventures as well as Polaris, can you tell us a little bit about those?
Paul Stoffels:
Well I think using capital to foster innovation is one of the platforms we can offer and I think we should offer, allowing innovation in the venture capital, in the biotechnology companies is important making sure that there is a flow of capital going there and us joining in investing in companies I think gives the trust that we put our money where we have markets, yes we say we want to share in taking that risk that's one, but second I think we also have capabilities which can assist biotechnology companies to get better. We failed a lot in our lives, so learning about our failures and sharing the information we also won a lot of times in our life and also sharing that on how to best and optimize, best optimize new product development I think that are opportunities and bringing that together the capital we deploy and the capabilities we have I think can enhance the outcome of investments significantly.
Fintan Walton:
So it's all about de-risking in the end?
Paul Stoffels:
It's de-risking and using whatever know-how there is in the world for doing that.
Paul's perspective: Opportunities in pharma industry
Fintan Walton:
Okay, let's move to next one, opportunities. What are the opportunities in the industry as you see them?
Paul Stoffels:
Opportunities I think for us as a healthcare industry there are exceptional opportunities. I think if you look over the last 50-years the healthcare industry has brought probably one third to half of the expectation, life expectation and life expectation went up significantly, I think half of that came from contributions from the healthcare industry with bringing better drugs, bringing better technologies and so much more to be done. So I think the advancement in science with the genomics revelation, with the new platforms in antibodies all of that can bring much better solutions for many severe diseases, and I think it's a fantastic opportunity to work in this industry, how difficult it is there is still so much important problems out there to be fascinated and to be motivated with and I think that is what keeps us going both in the biotechnology industry and in the pharmaceutical industry.
Importance of emerging markets
Fintan Walton:
And what about the, I mean people often talk about the emerging markets it's another opportunity, but how important are the emerging markets?
Paul Stoffels:
Well they are important as (indiscernable), today you need to develop drugs globally to make it fire you know so it's not possible anymore to say we keep to that region and we invest and get a return on investments so I think drug development is global. The emerging markets have particular challenges and that's with the ability to pay so you have to have solutions adopted to those markets which help you to be successful there and of course the first big one is the generics and the biosimilars which are products 10-years later and they become off-patent and they are more accessible. So the challenge for us is to find innovation which is so good that it can be done in a very acceptable and cheaper way that it's acceptable, that is accessible to millions of people in the world and that is comparable to the cell phone industry on how cell phones evolved and became available to everyone in the world. So I think in our industry we have to think hard on how can we bring the medical innovation on a large scale in the world making a real difference and that's a fantastic opportunity.
Paul's perspective: Threats to the pharma industry
Fintan Walton:
Now we get to the final one which is are the threats, so what do you see what keeps you awake in night the threats that are emerging within the pharmaceutical industry?
Paul Stoffels:
I think the threats is that our innovation model is one of the long-term where we invest for 5, 10, 15 and even 20-years out where the capital markets are looking at the next quarter the next two-years and that's a threat where in especially at this moment where at short-term the financial markets are so volatile and so different to read and probably economic stability is far from there, investing in the long-term becomes a problem and therefore biotechnology companies today have a lot of challenge to attract capital. Now the big threat is that if our industry if capital gets away out of our industry then for society the tool of the machine which brings new innovation in healthcare disappears or get much more, much less effective and I think that's the big threat on the lack of capital flowing into our companies especially to the biotechnology companies and the markets not understanding the very long-term investment terms times for products and so that is a that's the challenge but I think we have ways to deal with that.
Paul's views: Future of pharma industry
Fintan Walton:
Right, so we've just completed the swot analysis of the pharmaceutical industry in a very few moment, in the end how do you view the future for the pharmaceutical industry taking all those various elements together?
Paul Stoffels:
I think the future is great and it's good, because we'll find a way in order to focus on those innovations which may bring the biggest value to society and that will always be respected. If we will bring new cancer therapies which cure 50 to 100% let's say of people with cancer well society will respect that, will be rewarded for it and I think that is where we as a pharmaceutical industry have to focus on this really on how can we make the and create the benefits for society and create the benefits for our society are basis for and that is a great opportunity and a great challenge to tackle.
Fintan Walton:
Paul Stoffels, thank you very much indeed for coming on the show.
Paul Stoffels:
Okay, thank you.
Fintan Walton
Dr Fintan Walton is the Founder and CEO of PharmaVentures . After completing his doctoral research on the genetics of cell proliferation at the University of Michigan(US)and Trinity College (Dublin, Ireland), Dr Walton gained broad commercial experience in biotechnology in management positions at Bass and Celltech plc (1982-1992).
Paul Stoffels
Worldwide Chairman
At the time of recording this PTV interview Paul Stoffels serves as Worldwide Chairman of Janssen Pharmaceutical Companies of Johnson & Johnson. Dr. Paul Stoffels is Worldwide Chairman, Janssen Pharmaceutical Companies of Johnson & Johnson, with responsibility for research and development, business development and global strategy and innovation. In this role, he leads global teams across Janssen to discover and develop new and innovative treatments for unmet medical needs in the therapeutic areas of cardiovascular/metabolic disease, immunology, infectious disease/vaccines, neuroscience and oncology. Dr. Stoffels studied medicine at the University of Diepenbeek and the University of Antwerp, Belgium and infectious diseases and tropical medicine at the Institute of Tropical Medicine, also in Antwerp. He began his career as a physician/researcher in Kinshasa, Congo and Kigali, Rwanda, where he focused on HIV/AIDS and infectious diseases. In 1991, he became the head of development for infectious diseases at Janssen Research Foundation in Beerse, Belgium, where he was instrumental in the development of antifungal drugs. Dr. Stoffels became CEO of Tibotec-Virco in 1997, where under his leadership the company evolved from a technology-based research company into an integrated pharmaceutical R&D organization focused on new drugs and diagnostics for HIV/AIDS and infectious diseases. The organizations were acquired by Johnson & Johnson in 2002, and he continued to lead the organizations, first as President of Tibotec, and later as Company Group Chairman for the Virology franchise and Global Clinical Operations. From 2006 to 2009, Dr. Stoffels led the CNS and Internal Medicine franchises as Company Group Chairman. Since 2009 and until his current role as Worldwide Chairman, Dr. Stoffels served as Global Head, Johnson & Johnson Pharmaceutical Research & Development.
PharmaVentures is a corporate finance and transactions advisory firm that has served hundreds of clients worldwide in relation to their strategic deal making in the pharmaceutical, life science and healthcare sectors. Our key offerings include: Transactions / deal negotiations; Product / technology valuations; Deal term advice; Due diligence & expert reports; Strategy formulation; Alliance management; and Expert opinion for litigation/arbitration cases. PharmaVentures provides the global expertise to ensure our clients generate the highest possible return on investment from all their deal making activities. We have experience of all therapeutic areas and can offer advice on both product and technology commercialisation.
Janssen Pharmaceutical
Janssen Pharmaceutical a pharmaceutical company of Johnson & Johnson, provides medicines for an array of health concerns in several therapeutic areas, including: attention deficit hyperactivity disorder (ADHD), general medicine (acid reflux disease, infectious diseases), mental health (bipolar I disorder, schizophrenia), neurologics (Alzheimer's disease, epilepsy, migraine prevention and treatment), pain management, and women's health . Headquartered in Titusville, New Jersey, Janssen is named after Dr. Paul Janssen, a leading Belgian researcher, pharmacologist, and general practitioner. Dr. Janssen led a group of researchers to discover a medicine that helped change the way mental health patients were treated. His company, Janssen Pharmaceutica, joined the Johnson & Johnson family of companies in 1961.