Med Ad News Q&A with Franz Humer, CEO of Roche	September 2007

by Steven Niles

Roche is separating its chairman and chief executive positions. What will be your primary focus once the shift in leadership takes place?

As chairman, I will continue to work with the board and the executive committee to further build Roche into a leading global health-care corporation. In particular, I will focus on the further development of the strategy, which comprises organic development complemented by targeted acquisitions and collaborations, as well as the relationship with the majority owner family.

What challenges will Severin Schwan face when he takes over as chief executive in 2008?

Today, Roche is in great shape! To keep that momentum for the company is probably the biggest challenge. The environment changes rapidly, and we need to constantly anticipate and adapt to those changes. The construction of the house of Roche is never finished and continues generation after generation. This is also the reason why Roche remains a flourishing and successful business after 110 years.

Are any other changes in senior leadership anticipated in the near future?

We have a great mix in our leadership team and on the next level of experienced and young leaders. I do not therefore see the need for any changes.

Roche has made a number of acquisitions in the past year, including 454 Life Sciences, BioVeris, and Therapeutic Human Polyclonals. How is integration of those businesses progressing? What impact are these acquisitions expected to have on results in the years ahead?

All these projects are well on track. As targeted acquisitions, these deals help further build our technology, patent, or product platform and therefore are strengthening our leadership as an innovative company both in pharmaceuticals and diagnostics.

If the acquisitions of NimbleGen Systems and Ventana Medical Systems are successful, how will those businesses be integrated into Roche?

The NimbleGen acquisition is already closed — and we are confident that we will agree on talks with the Ventana management in order to bring our two companies together.

A number of major players in the industry have geenrated sluggish growth or been forced to make major cuts. In this challenging environment, how has Roche succeeded so well in terms of revenue growth and creating new jobs?

At Roche our prime strategic focus has been for the last 10 years on innovation. We strive to develop clinically differentiated solutions for medical needs that have not yet been adequately addressed. This creates value for all stakeholders, from patients to providers to health-care systems as a whole.

In 2006, Roche was named one of the Top 20 Employers by Science magazine and was ranked the No. 1 Company to Sell For by Selling Power. How do these honors reflect the culture at the company?

At Roche, our success is based on scientific innovation. Talented people working together are the major factor in that success. The exciting scientific environment and culture we have created, the unique way in which we share knowledge within the company and with our partners in our innovation network, as well as how we develop people helps us to attract and retain talented people.

How have Genentech and Chugai contributed to Roche’s success?

Roche is the majority shareholder in Genentech in the United States and Chugai in Japan. Both companies operate at arm’s length because we believe this encourages a greater diversity of approaches, increasing the chances of success. It is a win-win: we would not be where we are today without our two partners, nor would they be where they are.

How important has Roche’s commitment to the oncology area been to the company’s success?

The Roche Group is the world’s leading provider of cancer medicines. With MabThera/Rituxan, Herceptin, Avastin, Xeloda, and Tarceva, the Group currently markets five innovative cancer treatments that have been shown to significantly extend patient survival. These medicines are very important to the success of our company, but more importantly they saved the lives of thousands of people world wide.

How is Roche’s new research and development model in the Pharmaceuticals Division taking shape?

Very well. This new model is designed to ensure that Roche’s steadily expanding R&D operation is suitably equipped to meet increasingly complex requirements. By simplifying and accelerating the multiple decision-making processes involved, the model will be more efficient and effective in translating research activity in each disease biology area into clinically differentiated medicines.

What do you view as the most promising products in Roche’s pipeline?

We have a very promising R&D pipelines — with interesting new molecular entities as well as line extensions of existing products into other therapeutic areas. For instance, the cancer medicine Avastin is tested in many more types of solid tumors, and new drugs such as Mircera (anemia) or Actemra (rheumatoid arthritis) are coming closer to the market.

Given the strength of your diagnostics division, how close is Roche to making the personalized medicine concept a reality?

Personalized medicine is already a reality. Without the stratification of the patient population, some of our key products such as the breast cancer drug Herceptin would have never become that much of a success — both for the patients and the company. We are working hard to continue this success in other therapy areas and have a wide-ranging program of biomarker discovery to continue our leadership in this area.