The main drive in pharmacy are the professional public and patients who are looking for new and more effective therapies
It is undeniable that the global pandemic will leave deep traces on supply chains and production sites, as well as on the entire market. All predictions go in the direction of reducing the degree of globalization with the regionalization of production facilities and supply chains, says Marko Novović, the chief executive officer of the pharmaceutical company Varus, in an interview for Factor. Varus has been on the market for 30 years and celebrates its anniversary in specific conditions for global health. Novović says that they enter the future plans with a strategy based on the internationalization of activities and significant expansion in the global market. At the moment, Varus is also active in the markets of Albania and Kosovo, and the portfolio of products that they exclusively represent in the countries from the region are mainly those of the Merck company from Germany, the oldest pharmaceutical chemical company in the world and one of the leaders in this industry. Their portfolio also includes manufacturers Kurita, Tutnauer, Hitachi and Bionica Pharmaceuticals. He says that the domestic pharmaceutical industry has great potential for growth.
You are celebrating a significant anniversary of the company, three decades since the foundation of Varus. The pharmaceutical industry is extremely dynamic. From this perspective, how do you evaluate the past 30 years in the development, primarily of the industry, but also of your company?
Novović: The pharmaceutical industry is very dynamic and has changed drastically in the last 30 years. As main drive of the changes, on the one hand there are experts and the general public, i.e. patients who are increasingly familiar with the drugs that are prescribed and are looking for new and more effective therapies, clinically better than the existing ones. On the other hand, there are countries that largely regulate prices with a tendency to reduce them, direct the budgets for treatments and raise the already very high-quality standards. In response to these influences and with the help of extremely rapid advances in science, technology and clinical researches, the trends of today’s pharmaceutical companies span from personalized medicine and biological treatments to genetic engineering and genome modification (although still in the experimental phase), instead of the traditional and still dominant chemical therapies. Emphasis is increasingly placed on prevention and the influence of risk factors that lead to diseases in order to prevent them.
Within these tendencies, Varus is focused on active monitoring of innovations, their introduction in treatments and commitment to make the knowledge and experiences that today’s medicine and technology has, available to the professional public. I am happy to say that we succeed in keeping pace with current industry trends, and in some areas, to be leaders in providing new formulas and treatments. We have accumulated expertise and experience and can respond to trends.
You started as one of the first private companies in the country with wholesale of drugs, chemicals, reagents, but you are also exclusive representatives of several renowned pharmaceutical companies from around the world. What exactly does the Varus portfolio include, whom are the products you operate with intended to?
Novović: The portfolio of products that we exclusively represent in the countries of the region are mainly those of Merck from Germany, the oldest pharmaceutical chemical company in the world and one of the leaders in this industry. Other manufacturers that are in our portfolio are Kurita, Tutnauer, Hitachi, and of course Bionic Pharmaceuticals. The portfolio is conventionally divided into two segments, pharmaceutical products and chemical products. In the field of pharmacy, we have a particularly large participation in cardiology, endocrinology, neurology, oncology, gynecology and gastroenterohepatology. While in the other segment with chemicals, it is about products for processing and laboratory solutions and encourage innovations, improvements, savings in production and analytical laboratories.
“Varus” is also present on other markets in the Western Balkans for many years. What challenges do you face in conquering these markets? Are you considering further expansion of the company in the region?
Novović: In addition to the market in Macedonia, Varus is also active in Albania and Kosovo. We also cover the markets of the entire region of Southeast Europe through the companies of our group such as Novos from Belgrade and the production company Bionika Pharmaceuticals from Skopje. In the past period, we completed the regional strategy and now we are opening a new stage in our strategic development aimed at greater internationalization. Our goal is strategic partnerships for development of innovative products and services with added value.
You practically function as one group with Bionika Pharmaceuticals and Novos Serbia. Do you consider working in a group as an advantage for business development?
Novović: In any case, our working in a group is an advantage. It gives us the opportunity to use the potentials of a larger geographical region, to collect experiences, knowledge and information from different countries and to put them to work for joint development and growth of companies. On the other hand, separate entities leave us with the possibility of adjustments to certain specific characteristics that each market has.
Key to the success of a company are investments in new products, services, modern technologies, advanced solutions, human capital, following global trends. In which areas does “Varus” direct its investments, what is the situation with investments in general in the pharmaceutical sector in our country?
Novović: Varus focuses its investments mostly on human capital because it is the basic prerequisite for our development. Directions in which we want to build our development are innovative new products with added value for consumers which production requires modern technologies and equipment. These are the main drives of our investment decisions and the goal we are heading towards.
What quality standards and control standards are used in the production and trade of pharmaceutical products?
Novović: The global pharmaceutical industry requires very high standards for quality assurance. The commitment to quality without compromise has been one of our basic postulates since the very foundation and the primary aspect by which we make all decisions. We have all the quality standards and certificates as a good production and distribution practice, and this enables us to market our products anywhere in the world. For a company that is already beyond the regional framework and aims towards internationalization, quality control has an absolute priority in our actions, because it represents the basis and beginning of every strategy for expanding markets.
What is the condition of the domestic pharmaceutical industry? What is new in the development in terms of drug innovation in recent years?
Novović: The pharmaceutical industry in Macedonia has a tradition and is recognized not only in the region but also much wider, thanks to several generations of specialists in the field who have contributed to the development and production of pharmaceutical products in the country for decades. That was one of the reasons for us to expand that story and offer other products from Macedonia that can, at least, be competitive on the international market. I believe that we as a country have the potential to work on the development of these industries with high level of added value which attract highly qualified staff and enable faster economic development, and are significant because they have a synergistic effect with many other industries and sectors.
The pandemic has completely turned the public’s attention to the pharmaceutical industry, expecting a cure and a vaccine for covid. Could it be that the companies you represent are in search for the solution?
Novović: The companies that are our partners are not directly part of the global consortia that are currently regarded as innovators of the covid vaccine. But with the growing need, type and volume of research to find a cure, vaccine or diagnostic tests for covid, Merck is a significant supporter of all the companies mentioned as leaders in the race for solutions to the covid pandemic. Merck provides innovation in raw materials, laboratory reagents and processing chemicals, and makes them available to companies working directly on the solutions. These activities and stages are as significant in the joint efforts of the entire pharmaceutical industry as the companies themselves that will emerge as innovators of the vaccine, drug or diagnostics for covid-19.
Companies share part of their success with the community through socially responsible projects, environment protection. Which socially responsible projects will you single out as the most significant that add value to the community, but also to you as a company?
Novović: The true values of the companies’ work are improving the place where they operate and making the quality of life higher. That’s why we see our impact on the environment where we belong as our company result. We live together and cooperate with many patient associations and non-governmental organizations in order to implement their activities and raise public awareness for certain diseases. We want to improve the conditions in our healthcare and we try to do it whenever we can. With a strong belief in better future, young people’s development, progress in science, values and protection of the environment, for the 30th anniversary of its foundation, “Varus” fully equipped an educational center for natural sciences “Karposh Children’s Cultural Center”, where children and young people will be able to upgrade their knowledge and practical skills. We hope that such activities will continue to be imperative to all companies. Let’s make our living place better.
Along with the anniversary, this year you rebranded the company as well. What was the motive for the change in the visual identity?
Novović: The new visual identities are result of the management integration of the companies and the new stage in development. Together with that integration, the three companies are visually connected, and their affiliation and identity is recognized. The logos are a reflection of history with a focus on the individual beginnings and development paths of each member of the group, but at the same time in accordance with the common strategy and development direction.
In which direction in the future do you think the pharmaceutical industry will move forward, given the new developments resulting from the pandemic? How does the company’s vision fit with the new global trends? What are your plans for the future?
Novović: It is undeniable that the global pandemic will leave deep traces on the supply chains and production locations, as well as on the entire market. All predictions go in the direction of reducing the degree of globalization with regionalization of production facilities and supply chains. That is why our strategy is based on the internationalization of our activities and expansion in the area of operation in those regions that will cover a larger geographical area, but will still be significantly smaller than the global market. Here we see our chance for realizing our strategy and greater international presence.
