RegentAtlantic Capital, LLC
Michael Steiner is a Wealth Manager and Principal with RegentAtlantic Capital, LLC, and
head of the fi rm’s Pharmaceutical Executive Services Group (PESG). David H. Bugen is a
Wealth Manager and Principal, and Brian Kazanchy is a Wealth Manager. William T. Knox IV
is a Wealth Manager and Principal. Margaret V. Prentice is the Chief Marketing Offi cer and
Principal, and Lauren S. Goldfarb is the Business Development Coordinator.
Fiduciary Network, LLC
Mark P. Hurley is President and CEO of Fiduciary Network, LLC. Steven E. Cortez is Executive
Vice President. Christine L. Boudreaux is Director of Adviser Communications, and Benjamin
J. Robins is General Counsel. Yvonne N. Kanner is Executive Vice President and COO, and
Shehzad Sippy is a Research Analyst. Adam L. Bartkoski is Director of Adviser Operations
and Development, and Ana M. Avila is an Intern.
© CopyrightFiduciary Network, LLC, 2007
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Acknowledgements
We had three goals in writing this study. First, we wanted to provide people
who work for pharmaceutical companies with a “30,000 foot” perspective on
how and why their industry is changing. We also tried to identify those parts
of the industry that we believe will do particularly well over the next decade
and thus, will provide exceptionally good job opportunities. Finally, and most
importantly, our study is intended to provide individual participants with a
framework they can use to better plan their careers and lives.
It took 11 months of work by a team of 14 people to prepare this report. As
part of our research process we reviewed numerous studies and reports on
different aspects of the biopharmaceutical industry.
In many ways more integral to our work, however, was the help of more than
100 individuals who either work in the industry or have studied it closely.
These people were extremely generous with their time and ideas and
included current and former pharmaceutical company CEOs as well as senior
managers, marketers and researchers who currently work at companies
throughout the industry. We were also aided by several distinguished
members of the academic world, senior managers of executive recruitment
fi rms, outplacement specialists and attorneys.
While each one of these individuals contributed to this study, we owe a
particular debt of gratitude to several individuals including:
Edward J.J. Grabowski, Ph.D., former Vice President of Chemistry
(Process Research) at Merck Research Laboratories, was a catalyst to
writing this white paper. He was extremely generous in sharing both his time
and expertise. He also helped create a framework for understanding the
industry and its challenge of trying to balance the need to spur innovation
while remaining commercially focused.
One of the most infl uential contributors to this study was William D. Ju,
M.D., COO of PTC Therapeutics. His incredible experience and success in
different roles across the industry – from big pharma to biotech – provided us
with a unique perspective on how the industry is evolving and the forces that
are shaping it. He also helped us better understand the cultural differences
between small and large companies in the industry.
Paul H. Sartori, Ph.D., Vice President of Organization Development
& Human Resources at BioTrove, Inc. and a partner at CHM Partners,
International LLC, has also enjoyed a very successful and varied career in
the pharmaceutical industry. He generously allowed us to take advantage
of his experience and perspective on how pharmaceutical companies are
changing and what this will mean to the career planning for individuals who
work in this industry. He also very graciously introduced us to many of the
other experts who helped complete this study.
We are also very grateful to Thomas D. Carey and D. Kevin Kwok,
partners at Russell Reynolds Associates, for sharing an immense amount
of their time and insights on how the pharmaceutical industry is evolving
and where the best job opportunities will be in the future. Prior to becoming
executive recruiters, both worked in the industry for many years. Their
ii
experience allows them to understand the challenges faced by both
pharmaceutical and biotech companies and to identify executives who have
the right combination of expertise, experience and personality to help these
organizations succeed.
We were also quite fortunate for the help that Cheryl Buxton, Global
Managing Director of the Life Sciences Market for Korn/Ferry International,
provided us. An internationally-known executive search professional, Ms.
Buxton reviewed and critiqued many of our preliminary fi ndings. Drawing
from her many years of working both within the pharmaceutical industry and
as an executive recruiter, she helped us understand how executives can best
position themselves to take advantage of the many coming changes.
William I. Greenbaum, a partner with WolfBlock Brach Eichler, is one of
the leading experts on the intricacies of employment law, non-compete
agreements and severance packages, and in particular, how they apply to
the pharmaceutical industry. He is a former pharmaceutical executive who
has worked with hundreds of industry participants caught up in one of the
industry’s many waves of layoffs, helping them to make the best of a diffi cult
situation. Mr. Greenbaum helped guide our thinking on many aspects of
career planning within this fi eld.
We were also aided in the preparation of this study by William R. Healey,
Senior Vice President of the HealthCare Institute of New Jersey. As a senior
executive at one of the industry’s largest and most infl uential trade groups,
he has a unique perspective on the forces that are reshaping the industry.
His viewpoints have been integrated into many parts of this paper.
The guidance that we received from two individuals – Maria Gagnier, Senior
Consultant at CorpTalk, LLC, and Barbara Caines White of Transformation
Coaching & Consulting, LLC – was invaluable in developing the career
planning strategies included in Chapter IV of this study. Ms. Gagnier had
been a senior executive in the pharmaceutical industry for many years and
now helps companies develop the HR processes necessary to implement
signifi cant changes in corporate strategy and vision. Ms. White has likewise
worked as a senior executive in the pharmaceutical industry for many
years. She now has her own company that provides leadership coaching
to executives in the industry and helps pharmaceutical companies to better
manage change.
Few individuals have more experience or expertise on the human resources
challenges facing pharmaceutical companies than Randy McAlister,
Ph.D., Managing Director of RDM Global Consulting and former Head of
Global Talent for Novartis. He was kind enough to help us understand how
pharmaceutical companies are going to have to reengineer not just their
business models, but also their HR processes in order to be competitive in
the future. He also was extremely helpful in identifying those skill sets that
will be in the greatest demand in the future.
Noah J. Kroloff, a Principal with NGN Capital, enabled us to develop a solid
grasp of the role and lifecycle of venture capital-backed biotech companies.
He was also extremely helpful in explaining the perspective of venture
capitalists when it comes to this industry.
iii
Philip C. Scibilia, a Principal with Strategic Healthcom, helped us better
understand how the marketing of drugs is changing and how pharmaceutical
companies will interact with physicians in the future. His company is the
industry leader in providing pharmaceutical companies with outsourcing
solutions for physician education programs.
Michael W. Hodin, Ph.D., Vice President of Corporate and International
Affairs at Pfi zer, helped us develop a framework from which to understand
how and why the industry’s economics are changing. We have tried to
capture in this study at least a small part of his invaluable perspective on the
many challenges facing pharmaceutical executives and the choices they can
consider.
We also very much appreciate the time that James R. Sulat, President
and CEO of Memory Pharmaceuticals, spent working with us to understand
where the best opportunities will be in the future in this industry. He also was
extremely helpful in guiding us through all of the hype and excitement about
personalized medicine and to develop a more realistic viewpoint on how this
aspect of health care will likely evolve over time.
Douglas G. Watson, retired President and CEO of Novartis, shared his
unique experience from running one of the world’s largest pharmaceutical
companies during a time in which it was going through a major merger. He
was extremely helpful in clarifying for us the macro trends in the industry and
the effect they will have on the future structure of the industry.
David J. Mazzo, Ph.D., President and CEO of Æterna Zentaris, Inc., played
a pivotal role in our research process by challenging several of our initial
fi ndings. He forced us to rethink and more thoroughly research many of our
ideas, a process that was invaluable in shaping this study.
Jeffrey Berkowitz, Group Vice President of Managed Markets at Schering-
Plough, was instrumental in our understanding of the power that payers have
over the industry and their impact on the blockbuster model in particular. He
also provided us with many insights on how the underlying economics of
pharmaceutical companies are changing, ideas that we have tried to capture
in this paper.
As an intellectual property attorney and registered pharmacist, Robert J.
Paradiso, Esq., partner and Life Sciences Practice Leader of Lowenstein
Sandler, PC, helped us to better understand the maze of intellectual property
rights and claims that have arisen as a result of the human genome project.
His insights on patent law and its application to the pharmaceutical industry
were particularly helpful.