Thomas Schinecker - CEO of Roche | Podcast | In Good Company | Norges Bank Investment Management

Welcome to another exciting episode of "In Good Company" hosted by Nicolai Tangen, the CEO of Norges Bank Investment Management. Today, we have a special guest, Thomas Schinecker, the CEO of Roche, one of the healthcare giants that has been revolutionizing the field since its establishment in 1896. Roche has a rich history of innovation, saving millions of lives and making significant strides, particularly in cancer treatment.

As a proud investor, we own 2.3% of Roche, valued at over $6 billion. Thank you, Thomas, for joining us today!

Cancer Treatment: Milestones and Innovations

As we dive into the discussion, Nicolai highlights the pivotal moments in cancer treatment over the last 50 years. Thomas takes us through key breakthroughs:

1. Understanding the Genome: In 2003, sequencing a genome cost billions and took over a decade. Today, it can be done in days for hundreds.
2. Antibody Development: Using antibodies naturally found in the body to target diseases, including cancer. This led to the rise of cancer immunotherapies.
3. Personalized Cancer Vaccines: Ongoing research to enhance the immune system’s ability to combat cancer directly.

These innovations position Roche as a frontrunner in oncology, with about 50% of its global R&D budget focused on cancer treatments.

Roche’s Market Leadership

Roche's dominance in healthcare is undeniable, being the second-largest healthcare company in the world and a market leader in both diagnostics and pharmaceuticals. The company is particularly strong in:

• Neuroscience
• Hemophilia
• Ophthalmology
• Oncology

Thomas shares insights into Roche’s impressive pipeline, with 20 new products in development, of which 9 have already been launched.

Addressing Obesity-Related Challenges

With obesity on the rise, Thomas discusses Roche’s historical presence in the cardiovascular and metabolic disease sectors. He emphasizes the broader implications of obesity on various diseases, including cancer, and how addressing obesity can lead to significant advancements in overall healthcare.

The Future of Drug Development

Looking ahead, Thomas highlights the transformative brain shuttle technology, allowing larger molecules to penetrate the blood-brain barrier, offering potential breakthroughs in treating neurological diseases like Alzheimer’s and Parkinson’s.

Moreover, Roche continuously invests in partnerships with biotech companies, acknowledging that innovation thrives both in-house and externally. Around 50% of their new medicines originate from outside collaborations.

AI in Pharmaceutical Innovation

As we transition into the role of AI in drug development, Thomas paints a picture of how Roche aims to harness AI to enhance the efficiency of R&D. By utilizing AI:

• They can streamline molecule synthesis and selection.
• Reduce overall R&D costs by 20% and development time by 40%.
• Launch a greater number of medicines annually.

The potential evolution in cancer treatment through these innovations could lead to improved survival rates, unlocking new avenues for combining medicines to combat cancer more effectively.

Europe’s Position in Global Healthcare Innovation

Shifting focus to global trends, Thomas expresses concerns over Europe’s diminishing share in clinical drug trials relative to the rapid advancements seen in China and the US. Multiple factors contribute to this trend:

• Access to better venture capital in the US enhances innovation.
• Bureaucratic hurdles in Europe slow down clinical trials.

Highlighting China’s meteoric rise, he notes its influx of talent and rapid patent applications, positioning it as a burgeoning hub for pharmaceutical advancement.

Understanding Drug Pricing Models

On the topic of drug pricing, Thomas articulates the complexities involved. He stresses that the pharmaceutical industry needs financial incentives to promote ongoing innovation. Differential pricing models allow Roche to adapt its pricing strategies in alignment with local market conditions, ensuring wider access to essential medications.

Leadership Insights

As a long-serving leader of Roche, Thomas conveys his passion for fostering a collaborative culture and empowering innovation. His unique leadership approach melds data-driven decision-making with intuitive insights gained from years of experience in the industry.

With a commitment to promoting health across the globe, he asserts the importance of engaging with the community and nurturing the next generation of leaders in the pharmaceutical space.

Personal Reflections

As we wrap up, Thomas shares his thoughts on balancing a demanding career with family life, emphasizing the importance of spending time with loved ones and engaging in activities that promote well-being. His journey, rooted in a love for science and public health, continues to inspire as Roche leads the charge in developing innovative therapies that can change lives.

Thank you for tuning in to this enlightening conversation on the future of cancer treatment, the role of AI in medicine, and the challenges of maintaining Europe’s competitive edge in innovation. Until next time!