‘Cyprus companies must look abroad, become extrovert’ — Remedica CEO

“Cypriot companies must look abroad, and become ‘extrovert.’ Engagement in international markets is the only path to financial strength and sustainability but also to derisking. Our government sees attracting foreign direct investment as a critical goal, so Cypriot companies must fulfil it,” says Remedica CEO Dr. Michael Neoptolemou, a pharmaceuticals manufacturer that is present in 163 countries and which has more than 350 products.

If Cypriot companies make the effort to look abroad, the economic crisis can be the springboard for a new era for the Cypriot economy on the basis of healthy growth, through the production of high quality products able to keep pace with and prevail over international competition.

Remedica CEO Dr. Michael Neoptolemou

“Looking abroad is not to seek temporary benefits but an important perspective for the future development of the industry and its survival in the context of international competition. To this end, a change in the country’s manufacturing/productive fabric and an expansion of existing activities is needed to better align it with global demand for goods and services. It is certainly not an easy choice and requires considerable effort, but it is a good opportunity for Cypriot companies to manage the recession and enter a long-term growth trajectory. Every crisis has its own opportunities.”

For Dr. Neoptolemou, creating competitive products in a sustainable manner should be the focus of Cypriot industry.

 

“Any product that has a competitive advantage which is not easily copied, could become profitable abroad, if it has sufficient consumer demand, and as such could have a positive impact on the Cypriot Economy.

“But our key differentiator is our unique and profitable business model based on three pillars. Our internationalisation strategy is based on partnerships with local long-standing entrepreneurs. We have decided not to have a physical local presence but to entrust motivated entrepreneurs to make the best out of our offering and be responsible for the success of Remedica’s products in their markets. We ensure that they make their living through the sale of our products and seek for growth and profitability.

The entire activity is supported by Remedica, which provides marketing, registration and distribution support. Our main task then is to ensure we are partnering with the appropriate agent by analysing competition in the country. This strategic vision has been working successfully thanks to our careful selection of the agents present in each country, whether in matters of pharmaceutical innovation or in terms of business activities.”

Innovation is, of course, critical to the pharmaceuticals industry, and Remedica clearly shares the values of the Fourth Industrial Revolution.

“One area in which we have created innovation is that of the supply chain – this can be a nightmare for pharma companies,” Neoptolemou explains. “We have integrated blockchain into supply chain management.

With the blockchain, you can avoid many problems as you can have real-time access to data and visibility across the entire pharmaceutical supply chain, from the initial ingredient supplier’s to the pharmacy and prescriptions to patients.

 Similarly, the blockchain can be applied to inventory management. A blockchain-based system would enable manufacturers to efficiently manage inventory levels in real time to prepare for spikes in demand. Material resource planning becomes a real challenge in the new era, Neoptolemou says.

Further, the blockchain can fill in the gaps in pharmaceutical supply chains globally, mitigating their direct impact on the overall population. Blockchain integrates these values by generating informative, real-time responses to events potentially impacting patient health, such as life-saving prescription medication debuts and product recalls.

Recall management is in fact, another issue that blockchain can solve by better managing the process of informing the public of these types of important announcements. Business ethics and responsibility is an area all companies are looking at.”

Dr Neoptolemou supports innovation by establishing a healthy business culture.

“I maintain an open-door policy Everyone has access to the CEO for suggestions and I encourage appropriate proposals from committees. Committees are often posed challenges out of the sectors they customarily work in.

These 10 Internal Committees form proposals and interaction occurs among them from different departments. Of course, there are training activities and workshops as well. Collaboration among departments for the exchange of ideas is very important. Best fit and best practise can be shared and therefore a common culture and understanding is built up.”

Dr Neoptolemou finds that Cyprus culture does not encourage innovation to the appropriate levels, however.

“Our culture is highly risk-averse. In the Desi index report in 2020 we rank 25^th out of the total 28 countries in digital transformation.  And we rank 40th out of the total 139 countries.

Few steps have been made apparently for the digital transformation of businesses due to the cost and humble financials of the recent years. But there is hope, because there are some promising initiatives in the recent years such as the activities of the deputy ministry of research, innovation and digital policies and at InvestCyprus and at the National Board for Research and Innovation.

Leaders should play an active role in helping to mould business culture in Cyprus, Dr. Neoptolemou continues.

“They have to identify the needs of the company and push for reform, they will have to promote innovation, digitalization, data driven culture within the organization and develop CSR. All these require tough decisions apparently.

For Neoptolemou, the brand name Cyprus must be established with clear identification.

“It needs a vision and leaders should make bold and transformative decisions, supporting initiatives and to tie with the international business culture.

It should be associated with quality products and services at competitive pricing and digitalisation in businesses should direct business to focus on the customer. All this is part of adopting international business models, with values that build the company culture.

We need to figure out where do we stand and where we want to go. This journey requires tough decisions.”