London, United Kingdom – Pedersen & Partners, a leading global Executive Search, Leadership Consulting and Board Services firm with 54 wholly owned offices in 50 countries, is delighted to welcome Sam Salomon as Client Partner. In his new role, Mr. Salomon will focus on leading and executing Executive Search mandates within the Life Sciences & Healthcare sector.

Mr. Salomon brings prior entrepreneurial and commercial experience, as well as over a decade of Executive Search expertise. He has worked with clients from the pharmaceutical, biotech, medtech and diagnostic industries to support them as they build and maintain high-performing, multinational executive teams over their lifecycle and through periods of transformation. Throughout his career, Mr. Salomon has gained experience in building senior-level relationships and successfully completing searches across a broad range of executive, governance and technical research-led positions.

“We are very pleased to welcome Sam to our team in the UK. He pairs a strong track record and extensive experience across the pharmaceutical, biotech, medtech and diagnostic industries with a wide executive, governance and technical research-led functional reach, and this synergy will certainly bring value to our clients. I am confident that Sam’s energy and dedication will fit seamlessly into our company’s commitment to excellence and will help strengthen our Life Sciences & Healthcare Practice even more,” stated Mark Paviour, Client Partner, Country Manager United Kingdom, Global Head of the Board Services Practice Group, Pedersen & Partners.

“Throughout my years of experience, I have often been tasked to deliver impactful long and short-term benefits to aid businesses in carrying out robust talent acquisition strategies. I am eager to join an international company such as Pedersen & Partners, with its extensive geographical footprint, collaborative environment and client-centric approach to search execution, and I look forward to working with our clients as they transform their organisations,” added Sam Salomon, Client Partner, Pedersen & Partners.

Pedersen & Partners is a leading global Executive Search, Leadership Consulting and Board Services firm. We operate 54 wholly owned offices in 50 countries across Europe, the Middle East, Africa, Asia & the Americas. Our values Trust, Relationship and Professionalism apply to our interaction with clients as well as executives. More information about Pedersen & Partners is available at www.pedersenandpartners.com

July 4, 2022 – Zurich, Switzerland – Pedersen & Partners, a leading international Executive Search and Leadership Consulting firm with 54 wholly owned offices in 50 countries, is pleased to welcome Stan Kalinin as a Client Partner in the Life Sciences & Healthcare Practice.

Stan Kalinin draws on an extensive track record of more than 14 years of search and executive team-building expertise, with particular focus on Medical Devices and Technologies (cardiology, heart failure, robotics surgery, robotics imaging, diagnostics, and pathology, IVD, laparoscopy, spine surgery, drug delivery devices) covering Western and Central Europe, MENA, and APAC (Singapore, Japan, South Korea). He has built teams for start-ups and supported growth hiring for large multinational MedTech companies across multiple regions and divisions, providing bespoke candidate search and selection services, specifically designed for the MedTech industry. Prior to joining the firm, Mr. Kalinin placed senior level executives for search mandates across the Medical Technology, Real Estate, Energy, and Pharma sectors across Europe, MENA, and CIS.

“Drawing from his in-depth understanding of the critical issues faced by the Life Sciences sector, particularly the Medical Devices and Technologies and Pharma sectors, Stan will help our clients reshape their leadership talent strategies. We are excited to welcome him to our global Life Sciences & Healthcare team,” said Guido Bormann, Partner and Regional Manager at Pedersen & Partners.

“I’m delighted to join Pedersen & Partners and help our clients transform their organisations. MedTech companies are under continuous pressure to navigate the shifting dynamics of a fast-expanding industry, in which job profiles are transforming and the demand for skilled senior-level professionals is constantly increasing. I look forward to partnering with my Life Sciences & Healthcare colleagues in this challenging environment, and to growing our clients’ senior executive teams,” added Stan Kalinin, Client Partner, Life Sciences & Healthcare Practice at Pedersen & Partners.

Pedersen & Partners is a leading international Executive Search and Leadership Consulting firm. We operate 54 wholly owned offices in 50 countries across Europe, the Middle East, Africa, Asia & the Americas. Our values Trust, Relationship and Professionalism apply to our interaction with clients as well as executives. More information about Pedersen & Partners is available at www.pedersenandpartners.com

If you would like to conduct an interview with a representative of Pedersen & Partners, or have other media-related requests, please contact: Diana Danu, Marketing and Communications Manager at: diana.danu@pedersenandpartners.com

Pedersen & Partners’ Life Sciences & Healthcare Practice Team had the pleasure of welcoming Dr. Markwin Velders, an experienced biotech professional and the Chairman of HollandBIO (an association of 225 biotech companies).

Dr. Velders’ career in the biotech industry includes management roles in research, development, quality management and business development. He has worked as CSO at Dutch AM-Pharma, Business Unit Manager at TNO Biosciences, and CEO at SomantiX. After mediating the sale of the start-up T Cell Factory to Kite Pharma, he joined Kite Pharma to establish the company’s EU headquarters in Amsterdam, helping to advance clinical development, and playing a key role in preparing the commercial launch in Europe after Kite’s acquisition by Gilead. Most recently, he has been involved in the establishment of Kite’s chimeric antigen receptor (CAR-T) commercial manufacturing site in Hoofddorp, Netherlands.

Dr. Velders runs his own consultancy firm Prime Life Science, holds a PhD in Molecular Immunology and has authored or co-authored 40 scientific papers and publications.

The team enjoyed Dr. Velders’ presentation of McKinsey’s report (in association with HollandBIO) on key milestones and recent biotech advances, and shared a discussion about current successes and challenges in the development and commercialisation of gene therapies.

We live in unprecedented times when it comes to breakthroughs in the biological sciences. These are a few of the key scientific milestones achieved within the last 20 years.

Impact of the “Biological Revolution” on society and economic growth – McKinsey Report

Since the Human Genome Project was declared complete, we have been witnessing very rapid progress across the entire spectrum of biological science.

The potential impact of the global Bio Revolution can be recognised across four key domains:

• Human health & performance
• Agriculture, aquaculture & food
• Consumer products & services
• Materials, chemicals & energy
   

The Bio Revolution has already opened up many possibilities, and this is only set to increase.

In the area of human health, the Bio Revolution contributes not only to reduced disease burden, but also indirectly to increased happiness; it saves and extends lives, produces increased knowledge, promotes the development of new skills and talent, and influences productivity, GDP, exports and jobs.

McKinsey’s study shows that the Bio Revolution could generate a direct global economic impact amounting to EUR 2.5-4.2 trillion per annum up to 2050. Working with HollandBIO, McKinsey Institute has calculated that in the Netherlands alone, this contribution could amount to EUR 27-37 billion per year across various sectors, with the most significant effects on human health and performance, and agriculture.

The study developed different growth scenarios for 2030, in order to decide which one shows the best potential for the Netherlands as a leading EU biotech hub. Scaling biotech in the Netherlands could create about 60,000 additional jobs & raise annual GDP by approximately EUR 3 billion by 2030.

Key Challenges in Biotech Commercialisation

Cell and gene sector marketed products are still limited to a few key players, but it is clear that a lot of new technologies are being developed: applications, targets and the like. We are still in the beginning, and it is vital that we nurture ongoing developments, new ideas and technological improvements. As more attention is paid to these developments, the general interest will increase, and more money will flow into the innovation surrounding the technology. We are only at the start of what is possible in the field of cell and gene therapy. This field is far too expensive now, so what we need to do is to bring the price down. For example, we may not need to take the cells out of the patient; we may be able to treat in-patient and still get the same result. However, a lot of things need to happen in order for this scenario to be possible.

Competition is growing in centralised production facilities as well as hospital labs, and a lot of new ideas and opportunities can be seen. It is obvious that more money is available in the United States than in Europe; this is something that research organisations and governments should have in mind, and they should try to attract some of that money in order to facilitate research as well as commercialisation.

Attracting talent is proving to be key to success, but this challenge is not difficult to overcome with today’s mobility and knowledge.

Earlier this year, the COVID-19 pandemic immediately drew the world’s attention to the fact that major issues can arise due to supply chain disruptions. It has become clear that individuals and organisations are far too dependent on extended global supply chain networks. The failure of supply chains in the life science and healthcare sector during a global pandemic can be a literal matter of life and death.

In preparing this article, we sought insights from Pedersen & Partners colleagues who focus on Supply Chain and Life Sciences & Healthcare, based in diverse locations across the world: UK, Switzerland, UAE (Dubai), and India. 
 

COUNTRY FOCUS: Switzerland

Our colleague Thomas Heeger, based in Zurich, shares the following insights from Switzerland:

In Switzerland, all shortages of pharmaceutical drugs are registered in a central database. A quick check of the drugshortage.ch database will show that hundreds of drugs (including many generics) are permanently unavailable, and need to be replaced by others with the same active ingredients. Heeger adds that drug shortages were a problem in Switzerland and many other European countries even before the pandemic.

During the height of the outbreak, most pharmacies and wholesalers were completely cleaned out of the drug Plaquenil (hydroxychloroquine), and the supply was eventually coordinated by the state through the Swiss army. In addition, several drugs could not be sold via pharmacies as usual; instead, GPs had to send their prescriptions to the hospital, where the hospital pharmacist approved the prescriptions, filled them, and mailed or delivered the drugs to the patients. Likewise, the Swiss army was responsible for securing hospital supplies of equipment such as masks, gloves, surgical instruments, ventilators, anaesthetics such as propofol, and disinfectants.

Swiss textile companies have retooled their machines in order to produce masks, part of a trend that we have seen in textile companies across Europe. In Romania, Pedersen & Partners have been instrumental in helping to find and recruit a CEO for such a textile business, which has quickly responded to changing market needs with a new medical venture, and is able to serve the EU from within the borders of the single market.

In all European countries, there has been a push to obtain as many of the critical products as possible, using all available supply channels. This includes grey channels such as direct deliveries from Chinese dealers (sometimes at highly inflated prices), and can cause issues in the manufacturing countries. For example, Russian ventilator manufacturers have sold ventilators in Western Europe, despite domestic shortages causing disastrous situations in Russian hospitals.

Today, pharma companies and contract manufacturers are preparing for the production of coronavirus vaccines, without knowing exactly what they will be producing. Lonza/Basel Switzerland has received USD 200 million from Moderna to construct two manufacturing lines. Moderna’s drug is currently in Phase III of development, and Lonza/Basel’s share price has increased from 350 USD in January 2020 to over 500 USD in August 2020.

COUNTRY FOCUS: India

Our colleague Rakesh Sharma, based in the New Delhi region, shares the following insights about the market in India:

In India, the Life Sciences & Pharmaceutical industry has been deemed an essential industry under the current circumstances. The Indian government exempted employees and contractors in pharma and medical manufacturing and operations from lockdown, and manufacturing facilities remained operational, albeit at only 50% manpower availability.

Special attention was given to a number of key issues, including challenges for imports due to low shipping availability, lack of storage space at airports and inadequate staffing.

Indian companies scaled up operations to meet the increase in demand for chloroquine phosphate, which has antiviral effects and has been highlighted by the World Health Organisation as a research option to treat COVID-19. In addition, companies are ramping up production of vials (specifically, Type 1 Moulded Vials) in anticipation of the demand when a coronavirus vaccine is ready.

Since the beginning of the pandemic, the shortage of active pharmaceutical ingredients (APIs) and packing material from China has caused immediate disruption and led to drug shortages. India imports 70% of its APIs from China, so as the virus has spread, the pharmaceutical industry in India has inevitably faced higher material costs, as well as shortages that affect its export of generic medicines. The disruption has also affected clinical research into investigational drugs; such research relies on the availability of similar manufacturing plants. Clinical trials and long-term studies of drugs used for conditions such as Type 2 diabetes have been paused temporarily; there will be a concerted effort to create alternate supply sources, but this will take time to stabilise.

With regard to the domestic supply of drugs in India, there has been a gradual shift to online delivery as e-tailers start to provide last-mile solutions. However, they are new to the business of supplying medicines, and thus unfamiliar with pharmaceutical delivery SOPs.

Going forward, there is much that we can learn from this situation about the ways in which supply chain networks can be structured and managed in the future. One positive development for life science and healthcare supply chain leaders is that the crisis has highlighted the importance of supply chain oversight at all levels of an organisation: strategically from the perspective of the boardroom, and operationally from start to end – the sourcing of raw materials and manufacturing, right through to the last mile. As businesses start to adapt to what many of us are calling the New Normal, supply chain leaders will increasingly find themselves having to strike a balance between the long-term strategic visions of a business and the need for increased regularity of planning and forecasting, providing an ability to flex and pivot to meet changing market demands caused by unexpected events or disruptions.

Our Supply Chain experts, Brian Cartwright and Marc Kramers, have provided some insights into recent developments that will benefit Life Science & Healthcare Supply Chain leadership and networks:

Supply Chain leaders in the boardroom

In order for supply chain leaders to operate effectively at board level, it is important to give them wider exposure across the business so they can learn to speak the language of the boardroom as well as the language of the supply chain. The new skills and capabilities that supply chain leaders gain by having a wider understanding of the entire business will give them an understanding of shareholder value and expectations, which will ensure a smoother transition when they move to the role of Chief Supply Chain Offer (CSCO). The CSCO will play an increasingly crucial role in all manufacturing companies, adding real value to both bottom line and top line growth. Together with the CFO, the CSCO will become one of the key players in the boardroom and a crucial hire!

Real-time supply chain visibility, and a shift to manufacturing

The pandemic has helped to accelerate the digital agenda faster than ever before. The increased use of technology such as blockchain is helping to stop poor-quality and counterfeit medical equipment and medicines entering the supply chain. The way products are sold and distributed is changing, with manufacturers and retailers increasingly using omni-channel go-to-market strategies. Supply chain software platforms are constantly being developed and improved, with added efficiencies coming from the use of artificial intelligence and automation.

Advanced technology plays a major role in decision-making, and more and more start-ups are providing enterprise solutions to better predict demand, optimise production and provide more customised products on demand. Adapting to the new paradigm really is a case of damned if you do, damned if you don’t; companies must be prepared to make mistakes as they learn what works for their particular use cases. The Fourth Industrial Revolution will revolutionise the relationship between manufacturers and end-users through IoT (Internet of Things), but more importantly IoS (Internet of Services) – this is the real value creator.

As sourcing and production move closer to end-users, most companies are now considering building new manufacturing facilities. Global supply chains were predominantly built to lower the cost base and reduce warehousing capacity, using the just-in-time delivery model. The weaknesses of just-in-time have been highlighted by the supply chain issues of the pandemic.

A global reset, not a new normal

The global Pharmaceutical & Life Sciences companies will overcome this pandemic with relative ease, due to their larger cash balances and diverse product portfolio. What is really hurting them right now is their lack of agility, and inability to bring enough of their high-value products to the end- users quickly enough. The supply chains are still too silo-focused, and it takes too much time to get from product innovation to final delivery. Moreover, the bigger brands do not appeal to the younger generation, as plenty of startups bring trendier brands to the market more quickly, and with a superior social media presence. These startups continue to eat away at the revenue stream of the large consulting firms, with more use cases and better-executed solutions.

Going back to the new normal is not the way forward; the old normal was broken in many of our global economies. In order to stay competitive, we need to press the reset button in order to compete independently and be less reliant on, for example, China and the USA.

It is now widely accepted we have entered the Fourth Industrial Revolution, and pretty much everyone gives it the German name: Industry 4.0. As with the previous industrial revolutions, Industry 4.0 is mainly centred around manufacturing, at least in the early stages of transformation. Are SMEs and large corporations adapting fast enough in digitising their supply chains? According to a CPG benchmark Factory of the Future report conducted by SmarterChains and sponsored by EY, under 10% of the factories assessed are at a stage of maturity in their incorporation of advanced technologies. This is a shocking figure, as some of these companies have vast cash reserves to invest. The obvious question is, why are we so slow to adapt?

Transformation starts with an inquisitive mindset. The curious mind leads to a desire to take risks, for instance by collaborating with startups on a user case basis – and if it works, helping them to scale across the enterprise. This can be contrasted with the current status quo, where large consultancy firms create a report (which is often the best-kept secret within the company) of which technologies to use. This system may not be the best solution; no two manufacturing plants are the same, and therefore a one-size-fits all solution does not scale and is not sustainable.

So what is the next step, if we want to be less reliable on global supply chains, from a cost point of view? Shorter supply chains are an obvious solution, but they inevitably bring higher costs with them. Ultimately, we as consumers will pay the price. If we bring manufacturing closer to the end-user, there will be a lack of capacity, and therefore new factories will have to be built (good news for lower-salary countries), together with new and expanded warehouses and distribution centres. It remains to be seen whether we forget the lessons learned from the current pandemic, and keep pushing forward with the ‘old’ model, which is typically risk-averse and keeps people safe in their jobs for a little while longer. It is our opinion that the more adventurous and agile companies will take a hard look at their leadership teams, and assess whether they are capable enough to bring their organisation through this crisis – and more importantly, how competitive they will be at the other end.

Clients and candidates in our Life Sciences & Healthcare practice are seeing the recent pandemic as a turning point in Telehealth, Health Technology and MedTech. Physicians, consumers and regulators are increasingly using connected or fully-digital technologies, with some describing it as a major revolution. After 20 centuries of medicine in which doctors invariably met patients in person – the same room at the same time – the use of telemedicine is a real paradigm shift.

Telehealth and Health Technology: an overview

In recent years, technological development enabling data analytics, artificial intelligence and the healthcare Internet of Things has disrupted traditional medical operations and transformed healthcare provision into what  is described as Healthcare 4.0.

The use of telemedicine is driven both by consumers, who seek to take advantage of technologies that can improve their health and quality of life, and by healthcare systems which are interested in providing quality services at reduced cost. Mobile health applications tend to target well-being and self-care (non-medical conditions), while medical devices and software dominate the market for treating medical conditions. Telemonitoring and preventative medicine are currently the predominant telemedicine interventions, along with teleconsultation.

Before the pandemic, the major area for telemedicine was primary care, with cardiovascular diseases (CVDs), chronic obstructive pulmonary diseases (COPDs) and diabetes the most common conditions targeted.

However, the use of telemedicine has skyrocketed during the Covid-19 crisis. Social distancing has become the new behavioural standard in our society, and direct personal contact is avoided where possible.

Telehealth services use smart devices for remote examination as the first point of contact with doctors; patients with mental health conditions can attend remote sessions from home.

Telemedicine triage has been made possible by AI Chatbots that make the initial diagnoses based on symptoms identified by patients. When patients show up in hospitals, they are treated in isolation rooms or wards, and hospitals use telemedicine platforms to interact, such as e-testing, e-diagnosis, e-consent and e-prescription.

Virtual visits, remote monitoring (wearable personal IoT devices used for tracking vital signs), and digital patient engagement tools are used to deliver evaluations, patient and caregiver education, physical therapy, occupational therapy, and speech therapy.

AI-powered tools are used for screening, capacity planning and monitoring.

Screening AI

Non-contact infrared sensor systems (such as facial thermal scans) are used to quickly single out individuals with a fever, even in crowds. Apps allow users to self-report symptoms, alerting them if they leave a “quarantine zone” in order to curb the impact of “super-spreaders”.

Capacity planning AI

Hospitals and governments rely on AI to plan for critical care shortages in ICU staff, respiratory specialists per shift, care provider-to-patient ratios and ventilator availability.

Monitoring AI

Smart field hospitals have been built, staffed largely by robots. Patient vital signs are monitored using connected thermometers and bracelet-like devices, and intelligent robots deliver medicine and food to patients.

Trends and market examples

In the midst of the crisis, several of our clients and placements in Health Technology and MedTech have seen the accelerated acceptance and usage of solutions that combine AI, Digital, Health Technology and MedTech. For example, the US MedTech AliveCor – which Pedersen & Partners supported in their internationalisation – saw a major opportunity to monitor the cardiac irregularities caused by one of the medications used to treat severe Covid-19 cases. Instead of wired machines, doctors quickly adopted the wireless Cardiac ECG device. This is a simple handheld plate that is easily disinfected and displays a clinically solid diagnosis to nurses at a distance, via an app.

Another client company, Sensium, part of The Surgical Company Group, accurately monitors and reports heart rate, respiratory rate, and axilla temperature every two minutes. Smart algorithms continuously process and analyse all patient data, generating targeted notifications of patient deterioration, efficiently bringing the nurse to the deteriorating patient. Sensium was able to add value and facilitate the work of heavily-engaged ward staff; the sensors set off an alarm which would alert nurses in the event of instant deterioration.

As well as start-ups, we are also seeing leading medical multinationals with several decades of market leadership employ agility to shift their portfolio of products and solutions towards connectivity. There is an overall trend in the industry to wrap up Medical, ICT and Digital products into innovative offerings.

New leadership qualities for telehealth executives

The acceleration in telehealth and connected medical products requires tech-savvy leadership talent with the strategy to see the next opportunities ahead. Access to hospitals is likely to remain difficult, so it is important to create relationships at more senior levels and become part of the problem-solving team. With science leaping ahead, it is important for R&D and business to bring to the table new offerings that are efficient and comprehensive with value-based outcomes.

Digital doctor-patient collaborations mean new software, new services, new technologies, new processes and new organisations. We can say the same regarding the AI and big data revolution in the Life Sciences industry. 

The digital medicine paradigm shift creates new roles and the need for new leadership. Executive Search helps to define these roles and think outside the box to place successful leaders. Pedersen & Partners has an extensive track record of placing such executives, including CEO, CIO, Business Directors, International Marketing, Head of Technology Solutions and other leadership positions.

As the coronavirus pandemic starts to level off and the world prepares to return to the new normal, China’s pharmaceutical industry, including Biopharmaceuticals, Vaccines, Biotech, and Generics is becoming one of the most dynamic sectors in the global economy. The combination of favourable regulatory conditions, a huge population underserved by traditional western medicine, and a burgeoning economy have led to massive investment.

The pharmaceutical industry in China saw an 11% increase in annual growth in 2017, about four times the EU rate, and three times more than most Western European countries. Furthermore, a 2018 report from Ernst & Young predicted 14% growth every year between 2017 and 2020. The Chinese market is primed to continue its robust demand-driven growth, with 60% of China’s population living in cities by 2020, rising rates of chronic and lifestyle diseases such as cancer and hypertension, and increased acceptance of western medicines.

This growth has led to a spike in demand for pharmaceutical executives to manage this expansion. The sector demands experienced and erudite executives capable of steering and managing complex issues, including massive investments, accelerated development, and meticulous approval processes. Domestically-educated and internationally-educated Chinese executives are sought after and headhunted to meet these requirements, as are Overseas Chinese executives responding to heightened demand.

The Chinese government has stimulated growth in the industry by streamlining regulations and cutting red tape. It has set the following ambitious goals:

• Generic drugs will be modelled for about 90% of proprietary drugs as the patents expire;
• 100 Chinese pharmaceutical companies will earn export licenses from leading markets around the world;
• 5-10 new Chinese medicines will have FDA or EMA intellectual property rights by 2020;
• 20-30 innovative drugs will be industrialised by 2025.

Moreover, global pharma companies have flocked to China in order to capitalise on such a large and rapidly-expanding market. Official statistics from 2017 show foreign investments into Chinese high-tech industries surging 61.7% in 2017, to make up 28.6% of the total. Furthermore, foreign investments into medical treatment instruments and meter manufacturing soared by 28% annually. Multinational companies have often engaged with local partners to streamline processes and acquire market and clinical access that would be difficult to build from scratch, and global players have established joint ventures with local companies to tap into local market knowledge.

Investments have also been facilitated by changes to financial regulations, with the Hong Kong Stock Exchange changing its listing rules to attract more biotech companies. This has facilitated the financing and expansion of local companies, with Innovent Biologics, Hua Medicine, and Ascletis Pharma all benefitting from listing on the Hong Kong Stock Exchange.

As the industry rapidly expands, two areas in particular have seen a massive increase in talent demand. Marketing is a crucial aspect for pharmaceutical companies, and specialised talent is needed to seek out current and former physicians who can coach doctors about how their patients can benefit from new drugs. The job description requires rigorous knowledge of the medicinal benefits of individual drugs, a good understanding of local regulations, and people skills. Locally-based Chinese executives with strong knowledge of customers, procedures, specific requirements, and other factors (such as government links) are particularly attractive to clients and search consultants.

Research and development is another area seeing a huge demand for talent. Previously, the local market concentrated on producing generics rather than the development of new compounds and medicines, as these require a long period of time to provide return on investment. Due to a somewhat less amicable relationship with the US, China is now pivoting to develop its own medicines, and aggressively ramping up research and development.

The pool of qualified candidates for these positions comes from a number of sources. Domestic Chinese firms can tap the broadest talent pool, employing home-grown talent without foreign language skills, as well as seeking those groomed abroad. Moreover, some Chinese companies have established subsidiaries in the US, which allows access to American experts as well.

Global companies are not as fortunate in this respect. They need to find candidates with foreign language skills, and they tend to prefer those with international experience as well. This makes the competition for talent in China especially fierce, which is then exacerbated by the drain of locals with language skills and international experience, as they seek lucrative positions in global pharmaceutical companies abroad.

While the Chinese pharmaceutical sector is poised to continue its dynamic growth, there are some clouds on the horizon, not least of which is the COVID-19 pandemic. The outbreak has already created supply chain disruptions within China, and even as the world slowly starts to come back to normal, the threat of a second wave of infection looms in the future. Even if no second wave develops, it will be impossible to escape the general global economic uncertainty that has spread along with the contagion. Although there are serious concerns, the outlook for the sector is still exceptionally bright.

Individuals with the right skills stand to see great opportunities, and recruiters will continue to see an exceptional level of competition in the search for the highest-calibre candidates.

China is out of lockdown and operating business as usual, except for mandatory masks and temperature checks. APAC, India, the Middle East, most of Europe and the Americas are in various phases of reopening. Following a time of crisis and confinement, we are seeing signs of a full restart – incorporating re-setting, re-thinking, re-positioning and re-launching.

Since presenting our insights in early May, the international Life Sciences consultants of Pedersen & Partners are seeing the following developments:

Developments in Life Sciences & Healthcare

Biopharmaceutical companies have jumped on the need for drugs to fight COVID-19, specifically vaccines to prevent infection and therapies to treat the severe effects of the disease. According to the World Health Organization, around 120 treatments and vaccines are in development worldwide.

In the global vaccine race, China has four companies with products at the clinical stage, while the USA has two and Germany has one. Gilead is currently leading the search for an effective antiviral with Remdesivir, and a Bangladeshi generics manufacturer is launching a biosimilar version.

We have already seen an incredible increase in demand for diagnostic testing products, resulting in supply issues. Testing for COVID-19 virus and/or antibodies will be pivotal for a return to post-lockdown life.

In Medical & Healthcare, we are seeing elective surgeries starting up again in many countries. After the postponement of all non-COVID medical activities, we predict that it could take up to a year for hospitals to catch up with the backlog and return to general levels. The initial figures confirm that the ensuing delay in the diagnosis of other diseases (including oncology and cardiology) will have an impact on the treatment of patients and even their life expectations.

Access to hospitals is likely to become more difficult, and this will create opportunity for telemedicine. Virtual care providers such as online doctors and pharmacies are increasingly accepted by the general public and authorities.

Hospitals and their suppliers reconsider end-to-end supply chains

Across the industry, there are calls to review and rethink the global end-to-end supply chain. Prior to the pandemic, Sanofi announced its intention to bring Active Pharmaceutical Ingredient production back to Europe. Hard lessons have been learned, and governmental institutions are raising the importance of having key products produced closer to home and thus more readily available.

Production capacities are being concentrated on the products that are immediately needed; Bode Chemie has doubled its production of hygiene products, while Medtronic and Philips have more than doubled the production of ventilators. New business opportunities are arising; in the face of plummeting demand for their conventional products, major luxury brands have converted perfume production facilities to manufacture hand sanitizer, and are now launching designer face masks. Many biopharmaceutical companies are reviewing their production capacities while stockpiling contract development and manufacturing capacity with third parties e.g. Lonza, Catalent and Thermo Fisher Scientific.

A new way of working

China has returned to work already, with temperature testing and facemasks. Europe is now gradually opening up, with the first few office workers returning. Some are hesitant, while others are happy to see their colleagues in the flesh again.

It is generally expected that remote working will become a standard part of the daily routine. The lockdown has presented a unique opportunity to learn and develop new skills, connectivity strategies and increased creativity, and it has had a positive effect on the speed of implementation of several digital tools/platforms. Moreover, lockdown has demonstrated that the management of teams working remotely demands an extra dimension of leadership, with increased coaching and motivation.

Many offices are being redesigned to allow for the new 1.5m distance economy, with some companies considering reducing their office space in the future, as fewer workers are physically present.

One concern in developing economies is an expected labour shortage in the short to medium terms, which could have an impact on the end-to-end supply chain. This is likely to affect countries such as Brazil, where factory workers have expressed fear of returning to work, and India, which relies greatly on migratory and temporary labour for production.

Developments in senior recruitment: now and in the coming months

Our Human Resources contacts are starting to see preparations to pick up on postponed hiring and return to the business of recruitment. In most countries, personal meetings are becoming possible again under strict hygiene rules, but virtual conferencing will continue to play a strong role in the hiring process, as it saves both money and time. However, many managers have told us that they still see a final face-to-face interview as critical, so we expect to eventually see a balanced mix of virtual and face-to-face interviews.

Many Human Resources professionals see the unprecedented circumstances as an opportunity to modernise the recruitment process (e.g. with digitalisation, video interviews, online assessments and AI). In general, there is more caution about bringing new hires on board, but this is only expected to be temporary. When recruitment picks up again, the demand for strong leadership talent is expected to be even higher than before the pandemic.

Before the pandemic, we were already seeing an increasing demand for contemporary leadership as one of the trends in Life Sciences & Healthcare. Additional investment in Biopharmaceutical R&D and Manufacturing will lead to an even greater need for technical and scientific leadership, and simultaneously, more digitally-savvy commercial leadership will be required.

The take-home message is that key hires cannot be postponed for too long; there is an increasing demand for skilful leaders who can power through the crises and effect change with visionary ideas and strategic thinking.

A good portion of professionals continue to be highly risk-averse. They need to be inspired, reassured and convinced to even consider exploring a job change. For senior jobseekers, it is currently quite hard to find new opportunities, because companies have slowed down the recruitment process and fewer roles are available. However, this is set to change in the coming months, and the wave of postponed hirings will once again create a candidate’s market.

Communication is more critical than ever in times of crisis, and Executive Search Consultants can fill the skills gap with their network and knowledge of the market. With new leadership traits in demand, expert consultants will be able to make a more effective match.

The added value of Executive Search

In countries that are lifting the lockdown over the next few weeks, companies are also emerging from their bubble, and will need to decide on their next steps and strategies. Executive Search Consultants can help with strategizing about the new leadership roles and skills that will be required in the new normal.

Executive Search firms with experienced consultants add value in various ways, and specifically now:

• A contracted mandate adds credibility to the impression that the company is genuinely committed to making a senior hire.
• In order to prepare for hiring freezes to be lifted, Executive Search firms can proactively start tracking leadership talent for clients via tailored Market Mapping programs.
• Executive Search firms are well-placed to carry out Confidential searches for senior hires.
• An active search approach that actively promotes the company and its job opportunities can attract attention in a credible way.
• Companies can benefit from the wide circle of trusted contacts that experienced consultants bring.
• Last but not least, Executive Search firms can actively steer the hiring process, adapting it to dynamic environmental changes with a preferred finalist candidate to a mutually-beneficial closure.

Highlights:

• The average investment period will be delayed by at least 1-2 years
• A defensive scenario will be followed by a growth scenario. We expect the defensive scenario to last 3 to 8 months
• Some fund managers are taking advantage of the liquidity provided by central banks and governments to switch their private debt to bank debt
• There will be opportunities to identify companies at lower valuations.
• We foresee strong developments in areas related to healthcare and digital space
• The creativity and entrepreneurial capabilities of the management teams are key success factors for exit strategies
• Many leveraged portfolio firms will breach covenant clauses

An analysis performed by the Private Equity Practice Group of Pedersen & Partners following conversations with dozens of mid-sized PE funds in Europe has reached a conclusion that is in line with the opinions of the majority of the macroeconomic analyst firms. The impact on fund managers depends on two main factors: the fund type and the situation of the fund at the start of the crisis. The average investment period will be delayed by at least 1-2 years.

As for portfolio management, we foresee a defensive scenario followed by a growth scenario. However, analysts are failing to take the human factor into account, specifically the influence and capacity of skilful executives to lead their teams and manage their businesses through the complex situation caused by the SARS-CoV-2 pandemic.

Impact on Private Equity fund managers

Some funds are better designed to overcome this situation, and a few have even benefited. These are secondary funds, special situations and hybrids that have greater flexibility to consider alternatives when the crisis recedes.

For the fund managers that have done well, there is a certain luck factor which should not be overlooked. Many fund managers have benefited from a good cash position and the recent closing of a new fund, while others have a relatively broad portfolio of companies. Conversely the fund managers that will encounter the greatest obstacles to recovery are those who have acquired companies which are highly leveraged in vulnerable sectors such as entertainment, tourism and hospitality. Many leveraged portfolio firms will breach covenant clauses as EBITDA declines. Fund managers expect most debt providers to be flexible, but admit that debt providers will have a bigger say.

Some fund managers are taking advantage of the liquidity provided by central banks and governments to switch their private debt to bank debt, benefiting from lower interest rates and obtaining a liquidity security support.

Impact on Portfolio Firms

The members of our Private Equity Practice have had conversations with multiple funds and CEOs, and our conclusion is that a defensive strategy will be initiated first, followed by a growth scenario.

We expect this defensive scenario to last from 3 to 8 months, depending on the leadership skills of the fund managers, their management teams and the particular situation of each investee. During this phase, management teams will address the immediate problems related to liquidity, and will improve cost burdens, while effecting a redesign of business plans and a re-orientation of strategy.

Once this initial defensive stage is overcome, the fund managers will refocus on growth. There will be opportunities to identify companies at lower valuations. Before the crisis, there had been a problem of inflation in company valuations, and this will be eliminated. Furthermore, competition will decrease as some fund managers will take longer than others to recover.

In our opinion, the success factors for portfolio firms will be:

• Management teams with strong leadership capable of maintaining the focus on business, while motivating teams with the creative and entrepreneurial capacity to look for alternatives.
• A timely transition from the defensive phase to the growth phase.
• The ability to align the entire organisation in refocusing from the defensive phase to the growth phase.

Investment opportunities

In terms of areas of opportunity, we foresee strong developments in areas related to healthcare and digital space.

For a long time, Private Equity has seen Tech and BioTech/MedTech/Health Technologies as highly attractive industry segments for investment, and we have heard this stated repeatedly at the Pedersen & Partners PE Breakfasts that we have hosted across the world. The Covid-19 pandemic is creating disruption and uncertainty for the medical technology industry in ways that were unimaginable a few short weeks ago. Potential risks and opportunities lie ahead in this precarious business environment; whilst clinical studies are suffering from the priority given to battling the pandemic crisis, pre-clinical Biotech is seeing ‘business as usual’. Moreover, MedTech and Health Technologies could gain traction, with new ways of working more rapidly embraced by hospitals and other healthcare institutions during and following this crisis.

The Covid-19 crisis has already sparked a review of legislation and policies on broadband connectivity, e-learning, e-government, e-health, sustainable mobility and data sharing. Regulatory initiatives will accelerate the adaptation of these technologies. Foundational technologies such as IoT (Internet of Things), machine learning and AI will get a further boost as they enable further automation and the release of human capacity. Finally, IT developments will further dissolve borders between classic industry verticals, and disintermediate related value chains.

If you would like to conduct an interview with a representative of Pedersen & Partners, or have other media-related requests, please contact: Diana Danu, Marketing and Communications Manager at: diana.danu@pedersenandpartners.com

The word “quarantine” is derived from the Italian word quarantena, the 40-day isolation period demanded during the Middle Ages before a ship was permitted to enter port, in order  to protect the port city from disease. Humans are social animals, and as we endure our 40 days of self-isolation and lockdown across the globe, we are starting to feel stressed and to long for some short to mid-term perspectives.

The following observations were made by the international Life Sciences team at Pedersen & Partners:

Short-term and long-term winners

• Biopharmaceutical companies have jumped on the urgent need for drugs, including vaccines for immunisation and medications to treat the severe effects of Covid-19. According to the World Health Organisation, at least 70 treatments and vaccines are currently in development. The leading European vaccine manufacturers GSK and Sanofi are joining forces, while biotech companies such as BioNTech collaborate with big pharma players like Pfizer. Another example is Gilead; promising results for Gilead’s antiviral remdesivir in clinical studies resulted in a 16% stock increase in one day.

• Medical & Diagnostic products for critical care and testing are seeing an incredible increase in demand, resulting in supply issues. Companies focusing on Primary & Acute Care, such as BBraun and Hillrom, are benefiting in the short term. Our clients anticipate a significant acceleration in connectivity, with opportunities for telemedicine being created as access to hospitals becomes more difficult. In Diagnostics, tests for the Covid-19 virus and antibodies will be pivotal for ending or reducing lockdown and returning to some sort of daily life. Moreover, secondary suppliers to vaccine research, development and manufacturing are all doing well.

All unrelated activities in Life Sciences & Healthcare are being postponed: clinical studies (both big pharma and biotech), non-critical surgeries, etc. However, over the medium to long term we expect to see more hospital work being performed virtually, with connected hospital equipment. This represents a strong opportunity for Health Technology with remote testing via apps (AI etc) e.g. AliveCor. In some regions, there have been supply issues for certain products, as a consequence of worldwide concentration in certain geographies. As a result, there have been intensive talks about bringing production back to local regions, e.g. API (Active Pharmaceutical Ingredients), CMO (Contract Manufacturing Organisations), and OEM (Original Equipment Manufacturers). Finally, the public may start to demand better pandemic preparation from its national and regional authorities. An expanded market for diagnostic kits and tests will be the obvious result of such demand.

Changes in Executive Search now and over the next few months

The imposition of “work from home” on many formerly office-based employees could reset the way we work in the future. As the lockdown is eased, we anticipate that videoconferencing will become more widely accepted. In the short term, we are already seeing creativity in arranging personal meetings and job interviews: a walk in the park, or the resourceful use of a long boardroom table. We expect this to continue in the anticipated socially-distanced economy.

Layoffs, reductions in the number of available positions, attrition and hiring freezes are resulting into more open applications, with increasing demand for qualified assessment processes. Employers are seeing the unusual circumstances as an opportunity to modernise their recruitment processes (digitalisation, video interviews, online assessments, AI).

In general, there is more caution about bringing new hires on board, and most of our clients have slowed down recruitment in the short term. Even if companies can overcome the obstacle of arranging international travel for senior candidates to attend interviews, there is uncertainty about work permits in places such as the US, China and Dubai. Companies are also concerned about on-boarding and the integration of new hires.  However, key hires cannot be postponed too long; there is increasing demand for skilful leaders who can power through the crises and handle change with visionary ideas and strategic planning for the next steps.

Candidate behaviour

As we swing from a period of economic boom into unprecedented and uncertain times, we see candidates becoming more risk-averse. Many are open to discussing opportunities from their home office; however, while there is more talk, there is less real action. Most professionals want to be assured that there is a tangible opportunity to be discussed. And the professionals in high-demand areas (such as vaccines and medical supplies) have no time for conversations or interviews.

Candidates are looking for reassurance that companies are serious about hiring. And once we advance into the hiring process, some have second thoughts about abandoning their teams; others get concerned about “last in, first out” or become less willing to leave their families or the security of their home country. In an increasingly uncertain and more virtual world, trust and existing personal relationships become significantly more important, and only the most active and qualified engagement will convince candidates and build trust. During the hiring process, it will be critical to actively signal any obstacles arising, and make sure that these can be overcome.

Best practices for companies: providing reassurance

Over the short term, with lockdown and social distancing imposed, we have the following recommendations:

• Offer more virtual interviews; provide more opportunity for both parties to interact and get a sense of personality and cultural fit
• Shorten the probation period to overcome risk aversion and create a basis of trust
• Perhaps companies could even offer job guarantees to get the right leaders on board
• Give more perspectives for future career opportunities
• Engage new employees with pre-onboarding processes (gather the materials that you would normally offer the employee during their first workday, and make them digital)
• Make use of external partners who have access to a larger talent pool.

Executive Search firms with experienced consultants add value, and this is especially true now. First of all, such firms have the ability to actively promote companies and job opportunities, i.e. to catch attention and be credible. Secondly, companies can benefit from the wide circle of trusted contacts that experienced consultants bring. Last but not least, they can actively steer the hiring process, adapting to dynamic environmental changes and bringing the process to an appropriate closure with a preferred finalist candidate.

Lydia van der Meulen is a Client Partner and the Global Head of Life Sciences & Healthcare Practice Group at Pedersen & Partners, based in Amsterdam, the Netherlands. Mrs. van der Meulen has two decades of global end-to-end Life Sciences Executive Search expertise. She draws on an extensive track record gained in senior-level international assignments across a broad range of leadership roles in the Pharmaceutical, Medical Technology, and Biotechnology sectors, as well as in Animal Health and AgriTech. During her career, Mrs. van der Meulen has worked for start-ups, mid-sized organisations and multinationals; publicly listed, privately held, and PE-backed firms. Prior to joining the Executive Search sector, Mrs. van der Meulen worked in Management Consulting in London and in Private Banking in the Netherlands. Between 1989-1990 Ms. Van der Meulen lived and worked in Kuwait.

Sandra Roels is a Client Partner at Pedersen & Partners, based in Germany. Ms. Roels brings a track record of over two decades in the Executive Search and consultancy field having worked on cross-border searches in the Life Sciences and Consumer practice of two of the major international search firms. Throughout her career, Ms. Roels conducted senior level search mandates in General Management, Marketing & Sales as well as specialized assignments in Medical, Research & Development and Operations. Prior to joining Pedersen & Partners, Ms. Roels was Partner and Head of Continental Europe for an international Life Science search boutique working with international and European key accounts in Pharma and Medical Devices.

Pedersen & Partners is a leading international Executive Search firm. We operate 54 wholly owned offices in 50 countries across Europe, the Middle East, Africa, Asia & the Americas. Our values Trust, Relationship and Professionalism apply to our interaction with clients as well as executives. More information about Pedersen & Partners is available at www.pedersenandpartners.com

If you would like to conduct an interview with a representative of Pedersen & Partners, or have other media-related requests, please contact: Diana Danu, Marketing and Communications Manager at: diana.danu@pedersenandpartners.com

January 8, 2020 – Amsterdam,  Netherlands – Pedersen & Partners, a leading international Executive Search firm with 54 wholly owned offices in 50 countries, is pleased to announce that Client Partner Lydia van der Meulen has been promoted to Head of the Life Sciences & Healthcare Practice Group.

Mrs. van der Meulen has two decades of global end-to-end Life Sciences Executive Search expertise. She draws on an extensive track record gained in senior-level international assignments across a broad range of leadership roles in the Pharmaceutical, Medical Technology, and Biotechnology sectors, as well as in Animal Health and AgriTech. During her career, Mrs. van der Meulen has worked for start-ups, mid-sized organisations and multinationals; publicly listed, privately held, and PE-backed firms. Prior to joining the Executive Search sector, Mrs. van der Meulen worked in Management Consulting in London and in Private Banking in the Netherlands.

“Lydia’s appointment reinforces our move towards providing deep industry expertise to drive value to our Life Sciences & Healthcare clients globally. Lydia’s proven track record of leading multi-cultural, diverse, and agile teams to deliver exceptional value for our clients will enhance the Life Sciences & Healthcare Practice Group in line with our global strategic direction and growth plans. Lydia’s dedication to our firm’s core values combined with her deep industry knowledge and outstanding track record in Executive Search make her the perfect fit to lead our Life Sciences & Healthcare Practice into 2020 and beyond,” stated Gary Williams, Chief Executive Officer at Pedersen & Partners.

“The Life Sciences & Healthcare industry is at the technical and scientific forefront of innovation with breakthroughs in every aspect: smart technologies improving research, digitalised assessment and diagnosis, and personalised medicine through advancements in genetics, to name a few. Pedersen & Partners’ Life Sciences & Healthcare Practice is committed to supporting our clients’ organisational transformations by bringing the best-suited emerging leadership talents forward. I am honoured and thrilled to be appointed as the new Practice Group Head, and I look forward to leading our global team to further develop our client-centric vision for the most impactful outcomes,” added Lydia van der Meulen, Client Partner and Head of the Life Sciences & Healthcare Practice Group at Pedersen & Partners. 

Pedersen & Partners is a leading international Executive Search firm. We operate 54 wholly owned offices in 50 countries across Europe, the Middle East, Africa, Asia & the Americas. Our values Trust, Relationship and Professionalism apply to our interaction with clients as well as executives. More information about Pedersen & Partners is available at www.pedersenandpartners.com.

If you would like to conduct an interview with a representative of Pedersen & Partners, or have other media-related requests, please contact: Diana Danu, Marketing and Communications Manager at: diana.danu@pedersenandpartners.com