Read the Conversation
EF: How has the spin-off of Sandoz impacted your operations? What balance do you draw from your first independent year in Brazil?
MB: The spin-off was completed in October 2023, and since then, Sandoz has solidified its position as a global leader in generic and biosimilar products. This has allowed us to fully realize our potential and maintain an attractive and sustainable financial outlook. We are deeply committed to our shareholders and have provided them with our growth projections, including expectations of single-digit net sales growth over the next four to five years, and a plan to more than double our free cash flow by 2028. Additionally, we have gone public with an IPO in Switzerland, engaging key stakeholders worldwide.
In Brazil, we see significant opportunities. After the spin-off, we aligned our local strategy with our global plan, focusing on both generics and biosimilars. We have a local plant dedicated to generics, and for biosimilars, we are targeting both the private sector and the public market through partnership development programs (PDPs) with the government.
EF: Could you elaborate on the role Sandoz Brazil plays within the LATAM?
MB: Brazil is a key market for Sandoz, and it is our largest operation in Latin America. We have over 800 employees in Brazil, and our factory in Cambé is the only one in Latin America. In 2023, Sandoz Brazil recorded $257 million in sales, achieving nearly 19% growth compared to 2022.
In Brazil, we are working with a portfolio of around 100 molecules, including generics, mature brands, and biosimilar products, covering all major therapeutic areas. We aim to contribute more to public policies to improve healthcare access in the country and to expand our industrial capacity, particularly in biotechnology through PDPs. Additionally, access to medicines is very important to us. Recently, to respond to global market demands as a standalone company, Sandoz established a corporate affairs area led by Milena Bourroul to strengthen our relationship with the government.
EF: How do you see Brazil as a potential innovation hub for Latin America?
MB: We have had the chance to collaborate with different key organizations. In February 2020, Sandoz Brazil signed a partnership development program (PDP) with the government for Rituximab supply and technology transfer. Thanks to the success of this partnership, we have been able to provide treatment to around 12,000 patients in Brazil, while also advancing the promotion, development, and manufacturing of strategic products in the country.
We also signed another important PDP with the Butantan Institute to produce adalimumab. This partnership is particularly significant because it marks the Butantan Institute's first involvement with a monoclonal antibody, and it represents a historic milestone for us. This collaboration not only increases access to essential products but also strengthens Brazil's healthcare system by expanding the range of treatments available through public companies.
Moreover, the government recently introduced a new concept for PDPs, which includes several changes. We are collaborating closely with our partners to submit a revised executive project by the September deadline. This innovative approach to patient access and local technology development will position Brazil strongly over the next decade. Completing the technology transfer within the next six years is crucial for Brazil's public laboratories and the government, as it will expand patient access to biosimilar products and improve the quality of care.
EF: What are your thoughts on Brazil's new industry plan for increasing local generic production, and how can it ensure long-term sustainability for the pharma industry?
MB: In the retail sector, we are a leading player in Brazil, producing generic small-molecule drugs. Running at full capacity, we produce 100 million boxes annually, all sold within Brazil at competitive prices and high quality. These cover around 60 different molecule generics, including treatments for high blood pressure, cholesterol, and antibiotics.
On the biosimilar side, we are heavily invested in our pipeline, with plans to release 10 molecules over the next five years. Through PDPs and small molecule production, we are supporting the government’s efforts. These biosimilars cover areas like hematology, oncology, gastroenterology, dermatology, and treatments for conditions like psoriasis. We are continuously expanding into new therapeutic areas, and this is crucial because biosimilars offer important medications at affordable prices, making them more accessible to the population.
Our broader vision is to become the world’s leading and most valued company in generics and biosimilars, but our mission is to increase patient access. This mission is critical to us because every day, we work to make a difference. Last year alone, our medicines reached 500 million people globally. In Brazil, with a population of over 200 million, we are committed to prioritizing patient access every day.
EF: Could you elaborate on Sandoz’s market strategy to increase access to your products?
MB: In Latin America, our strategy is largely consistent across countries, with some adjustments for different regulatory environments, such as COFEPRIS in Mexico and ANVISA in Brazil. About 80% of our portfolio remains the same throughout the region, but our go-to-market models differ. For example, in Mexico, we use various promotional strategies, while in Brazil, our main focus is on the pharmacy sector. Pharmacies play a crucial role in our strategy—not just doctors or distributors. In Brazil, we cover the entire pharmacy chain, from large chains to independent pharmacies, either directly or through distributors.
EF: What are your main priorities for the next three years?
MB: We have five main priorities. First, we are deeply committed to driving Sandoz's growth and increasing free cash flow. Second, we are focused on preparing the organization for new PDPs, which are essential for our continued expansion. Third, we must maximize the potential of our generics by ensuring our plant operates at full capacity. Fourth, and perhaps most importantly, we are committed to our people. We have a robust plan to develop our team in Brazil, including transitioning some leaders within the company. Diversity and inclusion are also key areas of focus. Over the next three years, I expect Sandoz in Brazil to continue growing and launching high-quality, affordable products for the population.
EF: What makes Brazil unique, and why is an investment in Brazil more valuable than elsewhere?
MB: Brazil, with a population of 215 million, currently ranks between 8th and 10th among the world's largest pharmaceutical markets. The expansion of the pharmaceutical industry in emerging countries like Brazil is especially notable as growth slows in developed markets. The public health system, SUS, plays a crucial role in providing healthcare to most Brazilians, despite access challenges. Enhancing access is a key objective for Sandoz in Brazil, and we have consistently worked to ensure sustainable and responsible progress, balancing quality, supply, and fair pricing. Our generics and biosimilar markets are growing at double-digit rates, which is a significant achievement. Over the past four years, we have successfully introduced the biosimilar concept in Brazil and Latin America, making Brazil an increasingly important and attractive country for continued investment, advancement, and new product launches—not just in the private market, but also in the public sector through opportunities like PDPs.
EF: Is there any other topic you think is important to share?
MB: While I represent Sandoz in Brazil, I am also deeply involved in the ProGenéricos Association. Three years ago, I became the Vice President. We are working hard to ensure the sustainability of both generics and biosimilars. Just two months ago, we celebrated the 25th anniversary of the law that governs genetic products in Brazil. We marked this milestone in Brasília, alongside government officials, senators, and other participants.
