Stefan Linn: L1 Health has committed more than €60 million into upgrading Remedica’s factories and equipment

"L1 Health is committed long-term to growing the company, particularly through investments in the development of new innovative products and manufacturing capabilities," Stefan Linn, the Executive Chair of Remedica says, noting the Luxembourg-based international investment holding "has committed more than €60 million into upgrading Remedica’s factories and equipment, building a new R&D Centre in Limassol, investing in developing people, and hiring talent," and looking at potential mergers and acquisition opportunities.

Speaking to CBN about the company's long history in Cyprus and exciting plans for the future, Linn pointed out that Remedica, with an annual revenue exceeding €130 million, has belonged to L1 Health since 2023, going on to outline the company's consistent expansion of its operations and product lines.

Among other things, he also talks about the company's share structure, the impact of its new Logistics Centre, and Remedica's approach to its staff.

Linn also discusses global trends in the pharmaceutical sector and how Remedica is embracing them.

Remedica has a long history in Cyprus while also distributing products to over 160 countries. Can you tell us about the company’s current share structure?

Being headquartered in Cyprus, Remedica is a privately owned pharmaceutical company and one of the leading pharmaceutical producers in the European Union. Founded in 1980 as a family enterprise, Remedica has evolved into a prominent privately owned enterprise over the years.

Since 2023, Remedica has belonged to L1 Health, an international investment holding, focused on developing healthcare assets globally. L1 Health is committed long-term to growing the company, particularly through investments in development of new innovative products and manufacturing capabilities. It has committed more than €60 million into upgrading Remedica’s factories and equipment, building a new R&D Centre in Limassol, investing in developing people, and hiring talent.

Remedica recently opened a new Logistics Centre in Limassol. Can you tell us more about the facility and its impact on the company and its dealings?

Today Remedica occupies more than 55,000 square metres in the Limassol Industrial Area and has a network of 12 buildings. One of them is our new state-of-the-art Logistics Centre equipped with the latest technology and built in line with Remedica’s sustainability strategy.

In addition to enhanced product quality, the in-house distribution also provides Remedica with remarkable operational flexibility. The company will be able to manage a larger inventory and rapidly adapt to fluctuations in demand, regulatory changes, or other market dynamics, ensuring that it can always meet the evolving needs of the customers.

For Remedica this new Logistics Centre represents its unwavering commitment to being a leader in the pharmaceutical industry, and it’s a testament to the company’s dedication to innovation, quality, and first-class customer service.

The new Logistics Centre in Limassol

Looking ahead, what is next for Remedica? Also, are there plans for the appointment of a new CEO or are these duties being managed in other ways?

Remedica has been consistently expanding its operations and product lines, offering a diverse range of more than 300 branded generic and over-the-counter products that meet the highest safety and efficacy standards.

Our deep partnerships with some of the leading pharmaceutical organisations, such as Sandoz, Dr. Reddy’s, Biogaran, and STADA, ensure that Remedica’s products are distributed around the world. In Cyprus, Remedica is well known for its broad product portfolio including leading cardio, oncological, and anaesthetic products, and the recently launched Remathlon, Edolfen and Ear Pro.

Remedica stands at the core of the pharmaceutical strategy of the EU to encourage development and production of essential and innovative medicines in Europe. The annual revenue of the company exceeds €130 million and contributes greatly to the growth of Cyprus's economy.

With regards to the company’s leadership, Remedica is run by a strong cadre of industry professionals with deep expertise in biopharmaceutical development, production and commercialisation. As representative of the owners, my role as Executive Chair has given me the opportunity to work closely with the team and get to know more deeply the organisation.

I am impressed by the strength of the company, its quality record and position with customers in international markets. Remedica can expand significantly and further cement its position as a leader for generic development and production in the world. In time, the Board of Remedica will bring on a new Chief Executive Officer with the expertise and commitment to develop Remedica further as a leader in its field.

Remedica was established in 1960 and has belonged to L1 Health since 2023

The company currently employs over 700 people, many highly skilled with PhDs and Doctorates in the sciences. Can you tell me more about Remedica’s approach to selecting its employees?

Remedica takes a strategic and thoughtful approach to selecting its employees, aiming to recruit individuals who not only have the necessary experience, but also align with Remedica’s values and long-term goals.

We take pride in our team of People made up of individuals from various backgrounds, experience levels, abilities, as well as educational levels. This diversity is our strength, fostering creativity and innovation in everything we do.

This approach ensures that the right candidates are chosen based mainly on their ability to contribute effectively, perform, and align with the company’s vision, rather than solely on their academic background and qualifications.

Our focus is on nurturing talent and promoting our People’s growth. We embrace talent from different backgrounds and from all corners of the globe, and together we create a dynamic and inclusive workplace where everyone can thrive and contribute their best. We look for unique qualities that make us stronger together!

The company has state of the art equipment

Further to the above, Remedica is known for its professional development programmes. Can you tell me more about the company’s philosophy when it comes to the ongoing development of its people?

Remedica believes in investing in its people and places a strong emphasis on their growth and continuous development, so that they can reach their full potential. At the end of the day, our people’s success is our success.

We provide our employees with ongoing training and professional growth opportunities, ensuring that they excel in their current roles and continue to grow and advance throughout their careers with us.

More specifically, we offer comprehensive onboarding and on-the-job training to ensure that from day one our new employees are set up for success. We also provide ongoing learning opportunities through workshops, seminars and training sessions that cover a broad spectrum of topics relevant to the individual’s personal and professional growth.

What is more, each employee has the opportunity to work with their manager to create a personalised development plan and include steps for acquiring new skills, experiences and responsibilities. Finally, we encourage continuous education by offering financial support for relevant courses and certifications that align with the employee’s career aspirations.

By providing the right resources, we make sure that our people remain highly skilled, confident in their abilities and motivated to take on new challenges, while feeling valued and appreciated.

More broadly, what is your view of the global pharmaceutical scene at this time? For example, what are some of the main challenges and how is Remedica working to overcome them?

The global pharmaceutical market was $1,500Bn in 2023 and is expected to grow to $1,900Bn by 2027 (according to IQVIA Market Prognosis). However, it is currently coming across multiple significant challenges.

One of the key challenges is the fact that healthcare costs are rising at an alarming rate, with global health expenditure rising from 7.6Tn in 2014 to 11Tn in 2023 (according to the World Health Organisation). To control the rising cost of healthcare, governments across the world are implementing policies to lower drug prices and manage their healthcare budgets. At Remedica, with our extensive generic portfolio of more than 300 products across multiple therapy areas, we are enabling access to quality medication at affordable prices for patients in 160 markets around the world.

From the interior of the new Logistics Centre in Limassol

Also, since the COVID19 pandemic, governments across the world are focusing on self-sustainability for their local healthcare needs and looking to encourage local production of. Innovative and essential medicines. This is true for the EU, as well as governments in the Middle East and Africa. For example, Saudi Arabia provides pricing benefits to local manufacturers. Similarly, in Morocco and Algeria, importation of drugs is not permitted if a local manufacturer is already producing the drug in the country. This significantly impacts the foreign companies that want to operate in these markets, but also provides an opportunity to partner with local producers.

Remedica is actively investing in developing its local presence in key markets. We have recently opened a scientific office in Saudi Arabia and very soon we will have a scientific office also in South-East Asia.

Stricter regulatory processes and extended timelines also pose a challenge for pharmaceutical companies by increasing the complexity and duration of drug approvals. For example, in the European Union recent changes to regulatory requirements, such as more rigorous data scrutiny and longer review periods, have extended the approval timeline for new drugs. This slows down market entry and increases development costs, impacting the overall efficiency and profitability of pharmaceutical companies.

In conclusion, what are some of the most interesting global trends in the sector and how does Remedica plan to embrace them?

The pharmaceutical industry is currently witnessing several transformative trends that are reshaping its future.

One of the most significant trends is the digital transformation that is currently taking place with the integration of artificial intelligence and machine learning. At Remedica we invest in automation and digitisation software with AI support across Production, Quality, R&D, Regulation and Safety as part of our mission to complete the company’s digital transformation and foster continuous improvement.

Also, with the 65+ age group constituting 10% (according to UN, World Population Prospects 2024, ourworldindata.org) of the global population, there is an increasing prevalence of age-related chronic conditions, such as diabetes, cardiovascular diseases, and Alzheimer’s disease. In addition, the shift from communicable to non-communicable or chronic diseases (with NCDs currently accounting for 70% of the global disease burden according to a 2023 study) is fuelling pharmaceutical growth. For instance, the rising prevalence of cancer, a non-communicable disease, has led to increased demand for advanced cancer treatments. Remedica’s Therapeutic Area (TA) choices are focused on Oncology, Cardiology and CNS in order to address the above challenges associated with aging and NCD focus changes. This shift leaves a lot of room for innovation, even for generics, where new dosage and delivery forms and combination products offer opportunity for serving patients better and improving patient outcomes. Remedica is investing in a new state-of-the-art R&D facility to bring innovative products at a faster pace to the patients.

From the launch of new Logistics Centre

Of increasing importance is the need for the pharmaceutical industry to reduce its environmental footprint, minimise the local impact of manufacturing, reduce waste, and ensure that products are disposed of safely. Remedica is proud to be a Supplier Partner of the Pharmaceutical Supply Chain Initiative (PSCI), meaning that we are committed to the PSCI Principles on Environment, Ethics, Human Rights, Health and Safety, and Governance and Management Systems.

We are also committed to the decarbonisation of our processes by heavily utilising renewable energy sources, drastically reducing the use of fossil fuels, and using energy-efficient equipment. Remedica also applies the best waste and wastewater management practices including waste minimisation at source, recycling, energy recovery, and safe destruction of hazardous materials.

Lastly, the rapid growth of emerging markets presents a particular opportunity for pharmaceutical companies. At Remedica we are committed to expanding our global presence and target emerging markets with robust end-to-end supply chains. Our strategy is built on the belief that everyone should have access to high-quality, affordable healthcare.

From the launch of new Logistics Centre

As the environment becomes more complex and requires more resources and expertise to remain successful, Remedica is investigating potential mergers and acquisition opportunities to bolster its pipeline and expand into new therapeutic areas and pharmaceutical forms. We are focusing on strategic partnerships with pharmaceutical companies, biotech firms, and academic institutions, to expedite the development of more complex new molecules.

Also read: Remedica opens Logistics Centre in Limassol