Intentional Moves and Disciplined Execution in Pharma Transformation

Episode Transcript

VALERIO DI FILIPPO: I’m Valerio di Filippo. We recently published a report that explores how a select group of European mid-sized pharma companies reshaped their portfolio and rewrote the rules of growth of this industry. This series is a conversation aimed to go beyond data, beyond analysis, and hear directly from the leaders that are behind this transformation to understand the decisions they made, the lessons they learned, and the challenges they faced.

For our first episode, I’m delighted to be joined by Sergio Marullo di Condojanni, CEO of Angelini Industries and Angelini Pharma. Welcome, Sergio, and thank you for hosting us at your headquarters in Europe. It’s a real pleasure to launch this series with you.

SERGIO MARULLO DI CONDOJANNI: Thank you very much for having me as the first CEO that you interview.

VALERIO DI FILIPPO: You recently announced the acquisition of Catalyst Pharmaceuticals, a real transformational move that positioned Angelini as a global leader in the rare disease space. So first of all, congratulations again. I know this wasn’t an opportunistic move. I know it was very deliberate and intentional and, out of curiosity, why did you decide to pursue this path? And what gave you confidence that this was the right move in that moment for Angelini to go in that direction?

SERGIO MARULLO DI CONDOJANNI: So first of all, the assessment of our current portfolio—I would say, traditional portfolio—was clear in saying that, yes, on the one hand, [it was a] resilient portfolio, a stable portfolio. But at the same time, with limited possibilities of growth, meaning that we needed a move in order to fuel and nurture the future growth of the company. Options were many.

Obviously, when you start and decide to go for a different path, you have to consider, with a greenfield approach, everything. And so we run a very, I would say, thoughtful and comprehensive exercise in order to be sure that the next move, the transformational one, would have been as close as possible to what we believe would have been a way to success.

And so also, with your help, if I may say, we started digging and digging and understanding where we could have had the real possibility to win and succeed. And the Catalyst choice was the result, as I was mentioning before, of a very long, thoughtful, and comprehensive process of scouting the market.

VALERIO DI FILIPPO: You said the long reality, the way, and the speed you applied in the execution was very remarkable. And so you went through this comprehensive process, as you mentioned, and evaluate different choices. What surprised you the most during this process or after the move—say, either about what proved to be harder than you thought or easier than initially planned? Is there anything that surprised you and that you want to maybe share?

SERGIO MARULLO DI CONDOJANNI: I would say maybe surprised is not exactly the right word. I would say we needed to understand. So before making a move, it’s very important that you assess properly. And so that was a part that took a long, long time but was needed. And then once you have clarity on the target you are going after and also the strategy in mind, I think you need a very rigorous and structured approach. So I would say it’s very important that you also, internally, you pick the right people and select them before, [so you have] the right team in order to gain speed once you decide to execute. And also to make the most of the interaction you may have with very, you know, important, relevant, and strategic, I would say, advisers, it’s also important to be very structured internally. So I would say I really haven’t been surprised by something, but I would confirm that, you know, a very structured process, a very good internal team, and a very clear strategy are three ingredients to make the recipe a success.

VALERIO DI FILIPPO: So you really didn’t have any big surprise, to your point, but is there anything … that one thing that you know today that you wish you had known on day one?

SERGIO MARULLO DI CONDOJANNI: So the lesson learned that we reapplied in this case is never stick to one single option unless you have clarity that it’s a very viable option. So I would say it’s important to have alternatives, even if you have a clear strategy. Those two things are not contradictory, one with the other, but it means that, you know, the market always offers opportunity. And so it’s important to be clear but flexible at the same time.

VALERIO DI FILIPPO: And talking about opportunity and choices, I know these are still early days in this transformation, but also, I’m pretty sure you’re already looking at the next chapter and looking ahead. As you think about the next priority for Angelini Pharma, what are the immediate priorities and why you are thinking about it?

SERGIO MARULLO DI CONDOJANNI: Well, I would say two things. On the one end, as you were mentioning before, those are the first steps for moving towards integration. And I must say also, in integrating the company, in this case we have very limited synergies, but nevertheless it’s an integration. We have to be very disciplined and structured, and we are happy that so far things are going in the right direction.

But looking at it from a strategic standpoint, we believe this is a stepping stone for us—a very meaningful and big one, but nevertheless a stepping stone. We believe that patients come first always. And we believe that patients that are affected by rare diseases, particularly in the CNS [central nervous system] space, more or less 50% of the rare diseases are related to the CNS space. They, these patients, deserve more, deserve a global company position, the very strong scientific expertise that can become a benchmark in treating as many rare diseases as possible. So next steps will go soon, hopefully in the right direction.

VALERIO DI FILIPPO: So, Sergio, thanks a lot for your time. Thanks for sharing your perspective so openly. It has been really inspiring to hear from you. And I think having also had the opportunity to observe the whole process has been a very strong confirmation on the need for bold moves when you want to launch a transformation, but also a very focused and disciplined execution.

SERGIO MARULLO DI CONDOJANNI: Thank you again for hosting me again. Thank you.