«We seek an active dialogue with society»

Published on 06/04/2022

When Joerg Reinhardt joined Sandoz in Basel in 1982, he had never considered the possibility that some 30 years later he would lead one of the world’s largest healthcare companies as Chairman of the Board of Directors. Having completed his doctorate, he was happy to have found a job in the industry that would allow him to stand on his own two feet and start a family.

Due to the regulations in force at the time, he was unable to move to Switzerland and therefore acquired a house in nearby Freiburg im Breisgau. And even though his wife was not particularly pleased with this decision at first, as she considered the purchase too risky, Reinhardt, who was then barely 26 years old, was not overly concerned. Early on in his life, he had to learn to take responsibility and make his own decisions.

“The courage to try something new is certainly partly due to my character, but also due to the fact that I had to stand on my own two feet at a young age,” Reinhardt explains. “That’s when you develop certain qualities that not only help you keep a cool head in difficult times, but also be courageous and take a step into the unknown with a healthy dose of confidence.”

His professional skills and, above all, his well-structured way of thinking and acting caught the attention of colleagues and superiors early on in his career. It wasn’t long before Marc Moret, the austere Sandoz patron who ran the company almost like a general, invited him to a lunch to find out more about the Saarland native.

An invitation from Moret was not just an informal business meeting. It was an inescapable screening of sorts. Moret must have seen great leadership talent in the young pharmacist right from the start. And his instincts weren’t wrong. Over the years, Reinhardt’s area of responsibility grew continuously until he took over the management of pharmaceutical development at Sandoz at the age of 38.

Two years later, Sandoz and Ciba-Geigy merged, which to Reinhardt, like many associates, came as a big surprise. “Actually, nobody had this on the radar. The merger of two companies, each with around 70000 employees, exceeded the imagination of the time. Nobody thought it was possible, especially in Switzerland.”

It was anything but obvious that the world’s then biggest industrial merger would prove to be another stepping-stone for Reinhardt and allow him to be involved in major medical breakthroughs. After all, the cards had been reshuffled, and Reinhardt needed to assert himself against fierce competition.

Reinhardt was initially responsible for preclinical development before he was put in charge of the whole of pharmaceutical development at Novartis. In retrospect, this was a stroke of luck for the company. In just a few years, the development unit headed by Reinhardt succeeded in launching two important therapies – the heart drug Diovan and cancer therapy Glivec – which helped Novartis make a quantum leap in medical and business terms.

As a team player and scientist with first-hand knowledge of the tenacious drug research and development process, this success did not lead to any sense of hubris. Anyway, soon he was tasked with the challenging job of developing the vaccines business at Novartis. Although his team made every effort to transform this division into a thriving operation, the pace of progress was sluggish, and there was no sign of success in sight.

The fact that in 2013, Reinhardt spun off the Vaccines Division, alongside the Animal Health and Over-the-Counter Business units, is undoubtedly related to this experience. But, much more importantly, the divestments were triggered by the strategic conviction that Novartis had to establish itself as a leader in high-growth markets if the company were to succeed and prosper.

“When Novartis was founded in 1996, conglomerates operating in a variety of industrial sectors were seen as a model for success because they were able to minimize business risks,” Reinhardt explains. “But this model was increasingly called into question, especially as the speed of innovation was accelerating rapidly. In view of technological advances, you can’t afford to be everywhere. You have to focus.”

In addition to centering Novartis on its core business, Joerg Reinhardt also initiated a cultural change at the company with the goal to intensify cooperation and increase the transparency of the company in relation to society.

“When I joined the company over three decades ago, everything was very hier­archical. There was little flexibility, and collaboration between the divisions was marginal. Transparency in relation to society was also rarely discussed. Companies were usually self-enclosed entities that paid little attention to what was happen­­ing outside the boundaries they had set themselves.”

New technological advances, combined with ever-increasing social pres­sure, led to a rethink. “Early on, I was disturbed by the fact that people rarely work together beyond functional and divisional boundaries. In addition, I always thought that dialogue with the outside world could be expanded. Sure, you can’t please everyone. But you have to listen to people’s arguments. This was not done enough in the past.”

With the Pavillon, this cultural shift is now set to accelerate even further. In fact, Novartis not only intends to use the Pavillon to raise awareness and attract visitors keen on learning more about the pharmaceutical industry. Rather, it should also be a place where people can exchange ideas and debate, no matter what these issues are.

“I think the world has changed so much today that we as a company have a sort of obligation to make our position clear,” Rein­hardt says. “We can’t assume that people will engage with us on their own. We have to send out clear signals that we want to sincerely engage in dialogue. This is in line with social trends and reflects our vision of an open work culture.”

Mr. Reinhardt, how did Novartis come up with the idea to build a Pavillon to familiarize the public with the pharmaceutical industry?

The idea behind the Novartis Pavillon dates back several years. It initially revolved around the concept of learning and how we deal with it in a scientific compa­ny, especially as far as education of our own people is concerned, both in terms of technical training and leadership skills. As the discussion progressed, however, it became increasingly clear that there was also lack of possibilities to bring the general population in closer contact with the pharmaceutical industry. Against this background, the idea of realizing the Pavillon – as it stands now –was born.

Does the pharmaceutical industry have some catching up to do?

Not only this industry. Many industries today are being challenged to explain themselves and create more transparency. Just think of the big technology companies whose activities influence our daily lives. There is a great need among the population to learn more and exchange ideas. But the pharmaceutical industry, with its high complexity, also needs to make a greater effort so that people can get a better picture of what it takes to develop a drug.

What do you expect from the Pavillon?

First of all, the Pavillon is a visible sign that we seek an active dialogue with society. It is a statement that we are not only interested in an exchange but are actively pursuing it. We invite people to see for themselves. The second step is to show the public what the pharmaceutical industry is all about and what it takes to get a new therapy from early discovery to the patient. The exhibition Wonders of Medicine, in which we showcase the various facets of the healthcare sector, aims to do precisely this.

Which topics does Novartis want to address?

Our fundamental attitude is that the Pavillon should not revolve around Novartis itself. This is not an office building, but rather a meeting place. Today, it is difficult to predict how people will react to the Pavillon and what conversations will unfold here. Many things have been intentionally left open. We have established an interdisciplinary committee of internal and external experts who will be responsible for debates and events. At the same time, we are prepared to cover a wide range of social issues. And we will not try to suppress controversial topics.

Will drug prices also be discussed here?

This is certainly an issue that concerns the public. And it is our aim in such debates to show how prices are set in general and what the pharmaceutical industry’s considerations are. But there are, of course, many other topics that affect society and which can be discussed here. The exciting thing about the pharmaceutical industry is that it affects almost all areas of life and work, be it ethics, technology and, of course, health. We’re certainly not going to run out of material easily.

Do you hope that this will improve the reputation of Novartis?

The Pavillon is not a marketing instrument. It will not advertise Novartis or its products. But of course, we expect that the Pavillon will further increase our visibility and that people will understand us better as they engage with our industry. This may help the reputation of Novartis, but only if we do it right and respond to the needs of the public. Basel can also benefit from this, as the strategic and cultural focus of the Novartis Pavillon is certainly unique in the international exhibition landscape.

A new part of the school laboratory will also be housed in the Pavillon.

This new addition also holds great prom­ise for us. At the new location, by offering visitors the opportunity to visit the interactive exhibition in the Pavillon, we hope to arouse students’ enthusiasm for science and curiosity about medicine. This is an important way to familiarize students with the so-called STEM subjects – science, technology, engineering and mathematics – in a playful way and contribute to the further mainstreaming of these subjects.

Originally, the plan was to build the exhibition center on the Campus. Why didn’t this materialize?

Projects of this scale, which above all have a cultural message, aren’t implemented overnight. Many ideas were discussed. In an earlier draft, it was planned to locate the center in a laboratory building on the Campus. However, it proved impractical for various reasons. And as a new location was being sought, the idea to construct a building in front of the Campus came up. Since we are opening the Campus to third-party companies and the general public anyway, the decision also had a symbolic effect.

Many observers have interpreted the Campus opening as a sort of withdrawal of Novartis from Basel and Switzerland. Is the Pavillon a sign that Novartis will remain in Switzerland?

Unfortunately, we keep hearing these arguments. Some people claim that the opening of the Campus is equivalent to a withdrawal from Basel and Switzerland because we are allowing third-party companies to rent our premises. This is not the case. For example, we recently moved our Klybeck-based chemical research to the Campus. The Friedrich Miescher Institute, which used to be located on the Rosental site, will also take up residence here, enriching our research activities. These are all clear signs that Basel will remain central to our global research network. And, of course, the Pavillon also demonstrates our commitment to the city of Basel and Switzerland.

Will you also visit the Pavillon and answer questions?

I’m sure I’ll visit the Pavillon often, and I’m already looking forward to talking to the public. But I’m not the only one. Many colleagues from Novartis will use the opportunity to engage in dialogue and pass on their knowledge. It’s not just about things we are familiar with, but also about major issues that concern humanity and society – all of which are still waiting for an answer and need to be discussed. What is the value of human life? How much can a drug cost? Why is the industry finding it so difficult to develop drugs for people with rare diseases? There may never be conclusive answers to some of these questions. But with the Pavillon, we can create a platform for intellectual exchange that offers a good framework for serious discussions.