Italy: the European hub of pharmaceutical production
Interview with Massimo Scaccabarozzi
The international papers continue to report with alacrity on the rise in foreign investment flows into Italy. However, alongside the country’s more internationally acclaimed sectors (namely, fashion, food, and design), the role played by other top-performing Made in Italy industries should not be forgotten. Among these is unquestionably the pharmaceutical industry, a sector experiencing strong growth thanks to exports and the presence of multinationals that have settled on Italy as their base of operations. In the interview below, Massimo Scaccabarozzi, President of Farmindustria, explains the reasons for this success, which could see significant developments not just in the area of production, but also in the field of research.
What has drawn major multinationals to invest in the Italian pharmaceutical industry?
Drug companies are the country’s export leaders, thanks to investments that have increased their production capacity. Today, of 30 billion euro in production, more than 70% is for export. The pull factors are the standard of the country’s highly-skilled human resources, as well as the existence of well-developed allied industries with a great deal of know-how. Nor should the valuable contribution of clinical facilities, universities, and various linked professionals (doctors, researchers, and academics) be overlooked, by virtue of which a research network has been built up. Added to this are Italy’s quality of life and environment.
What aspects need to be improved to ensure further foreign investment?
In order to kick-start growth, there has to be a step-change in governance, which needs to be increasingly more innovation-focused. Only this can make Italy more attractive, especially now that many new drugs are coming onto the market. Over the past two years, Italy has managed to increase production, exports, and employment in the pharmaceutical sector thanks to the stability ensured by the government. It has thus proven itself as the European hub of pharma production and has everything it takes to also become the focal point of research. Aside from anything else, the country’s pharma landscape is constantly changing, and for several years it has been the leader in terms of value of mergers and acquisitions (M&As). Purchase deals of this kind change the face of a company – something which is true generally but particularly so for companies in our sector, which is heavily internationalized. That’s why it’s essential to operate in a country that knows how to attract investment.
What sort of synergies are required?
With governance more focused towards innovation and sustainable development, acquisitions and investments could undoubtedly represent an opportunity, including from the point of view of employment. Let’s not forget that Italy is better-placed than in the past as regards research, achieving concrete results in terms of increased investment and a rise in the number of clinical trials, factors which are backed by accomplishments in biotech, advanced therapies, vaccines, and blood products. Hence, in Italy, the synergies between the different players, from start-ups to research centers and universities, show that pooling efforts towards a common goal – which is always the patient – can create virtuous circles.
Is Italy’s pharmaceutical industry an attractive sector for young people?
Over the past year, thanks also to the Jobs Act, there were 5,000 people hired, half of whom were under-30s. We place great emphasis on attracting young people through initiatives in schools aimed at increasing exposure to scientific culture and introducing students to the world of research. The dynamism of our industry is demonstrated by the fact that job opportunities exist at all company levels. Indeed, there are many areas which you can specialize in, beyond research, including drug repping, pharmacovigilance, legal affairs, human resources, marketing, and information technology. The industrial value generated by pharmaceutical companies is, without doubt, an incentive for young people. And now that Industry 4.0 is already a reality in the pharma sector, openings may arise for new job descriptions and professional roles to meet the challenges of international competition.
