The announcement was made by Juan D. Morales, managing director of the Miami office for this worldwide retained executive search firm. Stanton Chase (www.stantonchase.com) currently has 71 offices in 45 countries.

“It is a distinct pleasure to announce that Don will be joining forces with Stanton Chase,” said Morales. “His experience as a senior-level executive with highly branded corporations and his high-level consulting experience give him a unique perspective on the search process and what major corporations are seeking in today’s leaders.”

McKenna was the senior human resources officer for The Home Depot. In this capacity, he lead talent acquisition, organizational design, and training initiatives that directly led to this company’s rise as one of the premier retailers in the United States. During his time with The Home Depot, the company grew by more than 40 percent annually from $500 million with 1,000 employees to $10 billion with more than 75,000 employees.

Prior to The Home Depot, McKenna served as the senior human resources officer for two divisions of ITT’s automotive group of companies involved in manufacturing and consumer products distribution. ITT is a Fortune 50 conglomerate generating over $425 billion in sales.

Most recently, he was president of McKenna Management Consulting, Inc., which specialized in recruiting, organizational design, and corporate development in the health care, construction, and consumer products industries. He has been instrumental in facilitating management transitions during mergers and acquisitions.

McKenna is a graduate of Georgia Institute of Technology, where he studied civil engineering on a merit scholarship. He holds a bachelor of science degree in mathematics from Point Park University in Pittsburgh.

11th edition of Newswire

In its pages, we aim to share valuable information from the region and insight/points of Top Executives about the industry in general, the latest trends in the pharmaceutical market, the threats and the issues that are high on their agenda regarding the pressing challenges within the Greek economy.

Furthermore, we will also share the Sector’s current findings from a survey –completed only by C-level Managers with a number of questions.

The contents of the 11^th issue are:

• Life Sciences & Healthcare Industry, new challenges for a new era, editorial: Virginia Argyratou, Principal Consultant Life Sciences & Healthcare Practice Group (read more on page 1)
• Investing in Talent: Konstantinos Kamariotis, Consultant Life Sciences & Healthcare Practice Group, Stanton Chase Athens  (read more on page 2)
• New Pharma Reality: Ηeimo Hecht, EMEA Regional Practice Leader – Life Sciences & Healthcare Practice, Managing Partner, Stanton Chase Vienna (read more on page 3)
• Change of focus for professionals in the Life Sciences & Health Care sector– the Inevitable Upgrade: Darina Peneva, Managing Director, Stanton Chase Sofia (read more on page 4)
• Romanian market starts think competencies – In charge with leadership: Lara Maria – Consultant Life Sciences & Healthcare and Consumer Products & Services Practice Group, Stanton Chase Bucharest (read more on page 4)
• An overview of the UAE Health Care Sector: Athena Tavoulari-Senior Consultant Life Sciences & Healthcare, Stanton Chase Dubai(read more on page 5)
• Be Realistic, Accept the new framework. What worked in the past is no longer valid today: Eleni G.Tentou, Managing Director Actelion Pharmaceuticals Hellas S.A. (read more on page 6)
• Corporate Values Actions & Guidelines in a Demanding Era: Stavros G. Theodorakis, Deputy General Manager at Chiesi Hellas (read more on page 7)
• Stathis N. Kalyvas (Ph.D. University of Chicago, 1993), Professor of Political Science and Director of the Program on Order, Conflict, and Violence at Yale University,  on Leadership: Interview to Nancy Mathioudaki, Partner Athens office EMEA Consumer Practice Leader (read more on pages 8, 9)
• Health Care Industry and its new Challenges within the Greek Economy. The values of Johnson & Johnson Medical within this transformation period; Theodore Liakopoulos, Managing Director, J&J Hellas Medical (read more on page 10)
• An entrepreneur’s view of the Pharmaceutical Industry in a demanding and uncertain business environment : Vassilios Katsos, President of Pharmathen (see more on page 11)
• Stanton Chase News: (see more on pages 12,13)
• National Survey within the Life Sciences & Healthcare Industry: results of an online survey in which the participants were Top/Senior Executives within these Industries (see more on pages 14, 15)
• Face to Face with Roberto Greco, President, Astra Zeneca Greece(read more on page 16)

Please click the link to read the full e-newswire:

As the government increasingly focuses its efforts on attracting more prestigious private healthcare providers, Deloitte Middle East’s newly released 2011 Survey of the UAE healthcare sector looks at the opportunities and challenges for private providers.

“The UAE’s ambition and long-term strategy are to have the country become a preferred destination for domestic patients and a hub for global medical tourists seeking high quality and cost-effective procedures and treatments,” said Firas Eid, Consulting partner at Deloitte in the Middle East.

“To achieve this, the government is improving the country’s regulatory environment and capacity planning in addition to empowering and encouraging the development of Public Private Partnerships (PPP). At the same time, increased participation of branded private players is seen as a means to create competition and raise care standards throughout the country.”

Please click the link to read the full article:

An overview of the UAE Healthcare Sector

By Athena Tavoulari – Senior Consultant, Stanton Chase Dubai

The UAE healthcare sector is among the most dynamic areas of the economy and is set to grow rapidly over the next five years, a study predicts by the Dubai Chamber of Commerce and Industry. The healthcare sector currently accounts for almost 6% of Dubai’s non-oil gross domestic product. The market’s value is expected to have risen from $3.2 billion in 2005 to $11.9 billion in 2015, the report says.

The sector is governed by three main regulatory authorities: The Ministry of Health (MoH); Department of Health and Medical Services (DOHMS) and Dubai Healthcare City (DHCC). It currently includes approximately 700 companies working in fields from pharmaceuticals manufacturing and trading to hospitals and clinics.

The market continues to lure manufacturers and traders to the region and Dubai has experienced a strong growth in pharmaceutical trade. Since 2003, imports of pharmaceutical products have risen from 800 million AED to 3 billion AED in 2010 while exports too have risen from 100 million AED to 400 million AED over the same period.

The study goes on to highlight several attractive features that lure multinationals to focus their investment activities on the UAE pharmaceutical sector which include a relatively strong patented drug market, the country’s traditional wealth and its preference for latest medicines as well as the rise of the local manufacturing industry over the past few years with its strong emphasis on regional and global exports.

Industry experts say that there is potential for further growth in the pharmaceutical products sector in the light of the changing lifestyle dynamics in the region which is based on an increasingly Westernized disease profile with non-communicable diseases such as obesity.

The study further states that an array of solutions has emerged in recent years aimed solely at this segment. Other diseases associated with a relatively sedentary lifestyle such as increased heart disease and diabetes will likely remain the mainstay of growth for patented drug manufacturers. New areas for pharmaceutical product growth could also include tapping the rising demand for medical tourism connected to these changes in lifestyle.

It is also hoped that the further deepening of GCC market integration and the introduction of integrated healthcare insurance systems will boost pharmaceutical trade in the long run. A lot remains to be harmonized between GCC member states before the benefits avail themselves to consumers. Substantial investment in the healthcare sector such as the Dubai Healthcare City and DuBiotech projects will also encourage foreign direct investment in healthcare in the long-run.

Challenges

The UAE pharmaceutical sector confronts several challenges as the local manufacturing sector is relatively small and focuses on basic medicines. The market relies on imports for hi-tech prescriptions. For example, in 2010 nearly 64% of pharmaceutical imports came from Europe, around 8% from North America and another 8% from the MENA region. India is the biggest supplier from Asia and accounts for 5% of total imports.

Drivers of growth

The pharmaceutical industry, broadly understood as generic drugs, OTC medicine and patented drugs, is proving attractive for manufacturers for several reasons. Perhaps the most important factor is that the health industry typically bucks the trend of the economic cycle. Healthcare and therefore pharmaceutical products are often considered a daily necessity and therefore exhibit stable sales in relation to the economy. In the UAE, and the wider GCC, growth prospects for the sector are amplified partly because of the population dynamic of an emerging yet sizeable growing middle income class. According to Economist Intelligence Unit forecasts, the GCC population will reach 53 million by 2020. As incomes rise, spending on healthcare typically rises as consumers tend to become more health-focused.

“We’re all fighting for the same kind of nurses,” she said. “We have a bit of a disadvantage because the pay scale for nurses is less” in Dubai “than in Abu Dhabi and in all the other Gulf countries like Qatar.”

The Gulf region is in the middle of a $14 billion spending spree to build hospitals, clinics and other health care facilities as Gulf residents seek more care at home, while in the past they would often travel abroad for such services. But health officials worry they may not have the staff — especially frontline workers like nurses — to treat the patients coming in.

Please click the link to read full article:

The basis of this is hardly surprising. Although the long established major markets like the US and Canada, Britain and Western Europe and Japan are expected to account for 70% of global sales, the industry’s revenue growth in these markets in 2009 is only 16%. In 2001 those mature markets accounted for 79% of the industry’s growth and the “pharmerging” ( Brazil, India, Turkey, Mexico, Russia, South Korea and China)  markets accounted for only 7%. These new engines are forecast to generate an unparalleled 51% of 2009’s global growth even if adding only 11% to the global sales. Notwithstanding the differences in culture or politics, the seven pharmerging markets have much more in common than just their growth in the pharma sector. Their disease profiles differ decisively from those recorded in larger pharma markets. In the mean time, a notable expansion is evident in their public health programmes, as well as an increasing public access to medicine. The main focus of each market is on primary care and generics. Together with the tier2, 21 “early emerging” markets (Venezuela, Argentina, Puerto Rico, Colombia, Chile, Peru, Ecuador, Saudi Arabia, South Africa, Egypt, Algeria, Pakistan, Thailand, Indonesia, Philippines, Vietnam, Romania, Hungary, Czech Republic, Bulgaria, Lithuania) the pharmerging sector accounts for more than 3 billion people which represents 45% of the planet. Despite the developing middle class population and its buying power, still less than one tenth of these 3 billion can afford Western medicine. Nevertheless 3 billion adds up to 300 million a population close to that of the US.

Come 2013, the global pharmaceutical market value is expected to be a far cry than that of 2008 at USD 773 billion, reaching a level between USD 910 to USD 940 billion. It will also be a time when the pharmerging markets will be worth between USD 155 to USD 185 billion. With an estimated Global growth trotting between 3 to 6 per cent, the impetus of the growth in the pharmerging markets is a sure bet. The current indications show that this is already happening and at a quick pace.

David Campbell, IMS’s senior principal for emerging markets, has commented that the first appearance of  activity in the pharma emerging markets dates back to 1981 when a small company planned to distribute European products in China however the significant increase in the press regarding the importance of the emerging markets wasn’t until the mid to late 90’s.

So what does all of this mean for the industry? The fact that the industry has been slow to prioritize the pharmerging markets has meant that many have been taken by surprise, thus resulting on the sense of urgency that has prevailed where emerging markets are concerned. Many leading pharmaceutical companies are increasing their emerging markets profiles while others are reconsidering their focus to think about non-core markets.

Acting urgently is a must, however is not enough according to Campbell who stresses the importance of diversity in each market. For example China has a long history of traditional medicines thus presenting a challenge in providing its rural populations with access to healthcare while Turkey on the other hand will be a fully reimbursed market as it approaches EU accession and Brazil, a highly generic market with an abundance of local players aiming for lower income patients. All of this is calling for a new order of doing things differently from the past where a tested and tried business model was applied to emerging markets. Flexibility and adaptableness is of the utmost importance. While adaptation of the pharmaceutical portfolios in line with needs has become a key element, choosing the correct “people model” has become imperative. Companies will need strong local leadership to success in these markets. The older model of sending an executive from the corporate office for a 2-3 year assignment no longer allows adopting conventional sales and marketing practices.  A faster reaction in line with the changing dynamics is essential. Pharmaceutical companies are going to need very good people on the ground, people who understand the local market and are able to react promptly to the changing environment. Moreover, “we have to understand that many of these markets are going to be the source of innovation going forward.”

In their bid to secure strategic assets many firms fall into the trap of overlooking the importance of talent in the M&A process. In other words, they fail to assess which leadership skills are critical to success under the changed circumstances and do not make appointments accordingly. In many cases companies also fail to forge or articulate new career paths for high-potentials in the wake of an M&A. Such poor people decisions can not only destroy value by putting people in the wrong roles, but may also encourage top talent to look for the exit.

Firms seeking to avoid the various talent traps related to M&As and boost the likelihood of their success need to follow a rigorous Management Appraisal process when appointing leaders to key roles and building the new team. This process is based on a set of core principals:

• Factor in the complexity of the new organization: the complexity of roles with the same title may increase significantly in the post M&A organization
• Ideally design roles that are best for the business, not for the people – an effective appraisal process starts with a blueprint for the new organization and careful thought about the criteria for success in key roles.
• Assess leaders for competencies that fit the new organization, not for nominal experience: leaders that excelled at a function in a small environment may struggle to come to terms with the complexity of a M&A, which calls for sophisticated team leadership and talent development capacities.
• Distinguish transitional leaders from long-term leaders: discuss the future openly with transitional leaders and highlight the development gaps that make them unsuitable for the long-term position.
• Move with deliberate speed, not haste: pressure to find fast solutions to people decisions should be resisted. Uncertainty can also be addressed with a well-publicized deadline for personnel decisions.

The vast majority of companies continue to undervalue the talent component of integration. Talent deserves as rigorous a treatment as product integration, customer retention and systems optimization. Those companies that focus on aligning their talent to the new organization and objectives dramatically increase speed of integration and the likelihood of an acquisition creating value for shareholders.