There may be a lot of uncertainty in how politics and economics in the region will play out over time, especially amid a tussle between China and the United States, but one of Asia’s largest integrated healthcare solutions providers Zuellig Pharma is undeterred in building resilient operations.

It will also push ahead with plans to make innovative and modern healthcare within Asia’s reach, says its chief executive officer John Graham.

Ensuring equitable distribution and access to medicines is essential to a resilient healthcare system.

With accessibility being one of Zuellig Pharma’s guiding principles, it is only logical that in the last five years or so, the group has been focused on bringing in and commercialising innovative products from companies that are based in the US or in Europe into Asia.

These Western firms may not have the required footprint or capability to bring their products to Asia, says Mr Graham.

“There are many significant medical innovations that are being developed in the biopharmaceutical and medical devices spaces, and we want to bring these next-generation solutions to Singapore and to the rest of Asia. This involves expanding our reach in the region and shoring up our ability to innovate to provide these products to the right customers. And through this, we can improve access to modern healthcare for patients in the region,” he says.
 

Zuellig Pharma, founded over a century ago by Swiss businessman Dr Frederik E. Zuellig, has traditionally been known as a pharmaceutical and cold chain distributor.

Before it actively delved into the commercialisation of healthcare products, the group was focused more on managing the physical distribution of drugs and clinical trial materials through warehousing, logistics, and supply chain management.

Today, the group provides world-class distribution, digital, and commercial services to support the world’s growing healthcare needs and has a presence in 17 markets in the world. It also works with over 200,000 medical facilities, employing more than 12,000 staff.

Tracing through its history, it is not difficult to see that the group is no stranger to uncertainty.

World War II impacted Zuellig Pharma’s budding growth significantly, with the political turmoil creating increasingly difficult business conditions, especially as international trading came to a standstill and its offices and warehouses were destroyed in the Battle of Manila in 1945.

However, Dr Frederik’s two sons Stephen and Gilbert Zuellig eventually rebuilt the business, and the company expanded rapidly with the launch of antibiotics and other new drugs.

Today, the challenge comes from fast changes in government policies, and uncertainty in the global economic landscape.

For instance, any US tariffs imposed on pharmaceutical companies could spell significant consequences for the global healthcare supply chain.

But Mr Graham is sanguine about the impact changes in policy might have on Asia, saying that even if there are tariffs imposed on a multinational pharmaceutical company in Asia, the effects may not be as severe as what some may think.

“As far as drug supply is concerned in Asia, I don’t necessarily see a severe impact,” he notes, but adds that this might have short-term, direct effects on cost and to some extent, on how supply chains need to change.

“You have to learn to navigate that uncertainty, and political uncertainty goes hand in hand with economics. Asia is very often at the nub of geopolitical dynamics, due to its position between two major superpowers, China and the US.”

The CEO added: “It’s really a matter of building a resilient business. We are in an essential sector that has proven itself to be quick to bounce back, and it’s about being able to manage the risks as well as the opportunities.”
 

He adds that the group believes in investing for the long term and continues to invest in the future of the region.

Besides, the Asian economy has remained resilient despite the ups and downs, from World War II to the 1997 Asian financial crisis and the Covid-19 pandemic, he says, adding that Asia has many unmet healthcare needs that Zuellig Pharma will continue to support.
 

Zuellig Pharma’s ties with Singapore stretch all the way back to 1939, when the group set up its first subsidiary office in the Republic.

Over the years, the group has continued to build its business in Singapore.

In 2009, despite the economic downturn, it opened its new S$40 million warehouse and distribution centre in Changi.
 

Six years later, it relocated its regional head office to Singapore from Hong Kong.

Singapore is a very important linchpin in global supply chain logistics, and it offers world class facilities, says Mr Graham.

Today, the firm has nearly 800 employees in Singapore.

The company’s growth can also be seen in other areas.

In 2020, the group launched its blockchain-based system called eZTracker to tackle traceability and counterfeiting issues that remain challenging to the industry.

eZTracker, Asia’s first blockchain-powered supply chain solution, allows users to verify the authenticity of pharmaceuticals, and offers a potential solution against the use of expired, poorly stored, or counterfeit drugs.

“It has morphed into a specialised track-and-trace technology that companies use to keep track of how their product moves through the supply chain, so consumers can also verify its provenance. It is definitely a testament to the potential of innovation and technology in building a more resilient and secure healthcare supply chain for patients,” says Mr Graham.

And because transformation is an ongoing process, the company has made continuous upgrades to its operations.

As part of its digitalisation efforts, the company launched a S$15 million Zuellig Health Solutions Innovation Centre in Singapore in 2017 to develop new services addressing healthcare challenges.

In 2022, Singtel and Accenture came together to create a “5G warehouse” proof-of-concept for Zuellig Pharma.

The pilot successfully demonstrated improvements in productivity, efficiency, accuracy, and overall safety.
 

Now, the group is looking at artificial intelligence (AI), which has the potential to revolutionise different parts of the healthcare value chain.

Already, AI is being used in research and development to speed up the identification of new molecules, and to accelerate the diagnosis and treatment of various diseases, says Mr Graham. Zuellig Pharma has also further explored ways to streamline its operations with the use of AI.

“We are starting to use AI to simplify critical processes, whether that is invoicing or credit control or release. We sell to over 250,000 customers across the region, each of which has multiple transactions with us on a monthly basis, there is a lot of work that is still manual, and still needs human intervention, and we see that AI will simplify those processes going forward,” the chief says.

He adds that another area where AI can be applied is the marketing and promotion of the commercialisation of products.

Even as the group looks at AI’s uses, it is also championing sustainability, a core facet of its overall business strategy.

And the next frontier for the company is to collaborate more closely with its partners and stakeholders across the value chain to drive collective action, says Mr Graham. “It is not just working on our own footprint but working across the value chain to see if we can deliver a more significant impact from our efforts, and out of the supply chain. We recently launched the Sustainable Healthcare Network in Singapore to bring together like-minded stakeholders across healthcare to collaborate on shared initiatives.”

If there are key qualities that can help the leader navigate today’s choppy waters, it will be the ability to understand the complexity of the world we are living in, and to continually adapt to remain at the forefront of an industry.

He says the ability to help people understand the need for change and help them work through it is vital.

This skill may have come in handy when he needed to chart the waters during the Covid-19 pandemic.

“We had the lockdowns, and we had to continue to supply medicine to healthcare providers, whether it’s hospitals, clinics or pharmacies even amid the gridlock.”

Says Mr Graham: “Our team did a fantastic job of continuing to manage during the pre-vaccine period, and when the vaccines were available, we played a key role across the region in distributing various vaccines and facilitating access to patients of essential life-saving medication across Asia as well, even amid stringent regulation and hindered cross-border access.”

During the pandemic, the firm teamed up with Temasek Foundation to procure more than 50 tonnes of essential medical supplies to support healthcare facilities in Singapore.

It also worked with the Ministry of Health to activate local teams on weekends to provide personal protective equipment (PPE) to clinics, specialists, and hospitals islandwide.

For its outstanding contributions to Singapore’s fight against the pandemic, Zuellig Pharma Singapore was honoured at the 2022 National Awards (COVID-19).The organisation received the President’s Certificate of Commendation (COVID-19) for their exceptional contributions. Three members of its Singapore team also received the Public Service Medal (COVID-19) for their courage and dedication in working hand-in-hand with the government to safeguard the health of Singaporeans.

In 2023, Zuellig Pharma helped GSK set up its first vaccine distribution hub in the region. Headquartered in Singapore, this hub serves 13 markets in Asia-Pacific.
 

Zuellig Pharma’s achievements and display of resilience may also have something to do with a mantra Mr Graham holds dear – not giving up.

“I have been a runner for most of my life, and regardless of the role or industry, it’s never a sprint. You are not trying to run a short distance to win a medal. It is often a long, complicated journey with different phases, and you have to manage each of those phases to make sure that you get to the finish line. And it is not always about winning, sometimes it is just about finishing.”

Indeed, just like how Zuellig Pharma worked closely with the government to overcome challenges faced during the pandemic, it will continue to help Singapore rise above possible impending challenges ahead.
 

Source: The Business Times © SPH Media Limited. Permission required for reproduction.