WEBVTT
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Thank you so much and good
afternoon, ladies and gentlemen.
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And good afternoon,
Prime Minister Golob,
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Minister Han, and others.
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It is a really great honor
to be here today.
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Today marks an important
day for Sandoz.
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We are at Ljubljana for the signing
of the memorandum
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of understanding to build
a world-scale biologics
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production plant at Lendava.
And as Prime Minister Golob
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will mention, it's also
an important day for Slovenia,
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as this commitment represents
one of the largest-ever
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private sector investments
into Slovenia.
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It's not coincidence that we chose
to invest here.
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We have a long history
as a company,
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and we see a very bright future
in our operations in Slovenia.
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Here in Slovenia,
Lek, a Sandoz company,
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embarked on developing
biopharmaceuticals
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in the very early days
of biotechnology.
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The foundation of Lek
Biopharmaceuticals,
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which launched in the early 1990s,
and ever since, Slovenia has been
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one of the top-notch
bio locations at Sandoz.
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Slovenia clearly has what it takes
to succeed in this highly qualified
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technical area: the right scientific
environment and a stable
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and supportive political
framework
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that encourages innovation
and investment.
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For Sandoz, as the European market
leader in biosimilars
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and generic medicines,
proximity to our European-based
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production and commercial
operations, as well as
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the competitive costs, are also
key locational factors
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for investment decisions.
And that is why, right here
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in Slovenia, that Sandoz is planning
to make its next significant
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investment to ensure the future
of its global biosimilars business.
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As a company, we have unparalleled
heritage in this field.
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We are the global pioneers
of biosimilars and are determined
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to continue this leading way
in driving access
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to these critical medicines
for patients worldwide.
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We have a range of eight
marketed biosimilars
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in the areas of immunology,
oncology, endocrinology,
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and a very exciting pipeline
with 15 more molecules
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in various stages of development.
To bolster our manufacturing
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capacity for biosimilars,
we're now planning to build
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a new biopharmaceutical
production plant in Lendava.
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We anticipate the investment
to be at least $400 million
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for this project, and this
will support our ambition
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to drive the future growth
of our global biosimilars portfolio.
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Lendava is a U.S. FDA-approved site,
which has been producing for Lek
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for the last 38 years, and
and we foresee that our investment
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will create some 300 jobs,
including highly qualified
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professionals, as well as having
a positive overall impact
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in the economic region. We're eager
to get started on this project,
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as global demand for biosimilars
is growing rapidly and is set
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to further accelerate over the next
decade. We must be ready to meet
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future patient needs, not just those
today. This is why this agreement
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is crucial for the growth of Sandoz
as a standalone company.
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Our commitment to Lendava
and Slovenia as a whole
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comes on top of recent investments
in Europe. We've committed to invest
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over $250 million to expand
our antibiotics network
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across Europe with Kundl in Austria
and Palafolls in Spain
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being the main beneficiaries.
Indeed, it's no coincidence
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that the antibiotics backbone
of modern medicine and biosimilars,
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in many ways the future, are our two
largest global businesses.
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They both have roots in
our company's unique 75-year-plus
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history of developing
fermentation-based technologies.
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We're at an important point of our
history and making key decisions
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as we prepare to make Sandoz
a separately listed entity.
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I'm so proud to be with you
here today to reaffirm
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our commitment to carry on winning
and strengthening our leadership
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in biosimilars in Slovenia, Europe,
and the world. Thank you so much.
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Thank you very much, Mr. Saynor.
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I now invite Prime Minister
Robert Golob to take the stage.
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Dear Sandoz CEO,
dear guests, and the press.
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This is an important day
for Slovenia,
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perhaps even more so than it
may appear at first sight.
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Today, the Sandoz Group
has once again proved
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what we Slovenians sometimes
overlook.
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That we not only live
in a beautiful country,
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but also in a country where
the economy is thriving,
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where the political environment
is stable, and where
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the environment for foreign
investments is attractive.
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I think this message, which we're
sending to Europe and the world,
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is particularly important because
it will be followed
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by new, similar stories
in the months ahead.
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At a time when we're recovering
from the pandemic
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and the energy crisis,
it's important that we realize
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that the only way forward
in terms of development
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is through investments.
Since day one, our government
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has emphasized this as one
of the key economic goals.
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It's not about saving money
during a crisis,
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but about increasing investment
and attracting private capital.
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Today's 400-million-euro
investment by Sandoz
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is the biggest single indirect
investment in Slovenia's history,
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in terms of a new investment,
not the purchase of an existing
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company or the expansion
of capacity, but a new investment.
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This is another signal,
as has been stated,
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that the most demanding sector
is recognizing Slovenia
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as an environment which combines
excellence in research potential
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and educational institutions,
attractive infrastructure
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and living conditions, and political
stability, which is the key
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for such large sums to be invested
in a country.
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We're glad that this decision
has been made.
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I'd like to add that
because Sandoz and Novartis
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are in the process of being
separated,
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it's important that this phase
is being concluded through
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an investment rather than cuts.
It's significant that this happened
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in Slovenia at the most
sensitive moment
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for Sandoz as it's being
reborn as an independent entity.
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Sandoz is facing this challenge
through increased investments.
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The message that you need to invest
when you're facing crucial decisions
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is something that fits in with
my life and business philosophy,
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so I'm glad that Sandoz's approach
is evident in the field,
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and not in Ljubljana,
as some may expect,
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but in Slovenia's
least-developed region.
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I'd like to emphasize
this part because it shows
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that the government and business
haven't forgotten about Prekmurje,
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but that we're prepared
to use direct state aid
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provided to the investor
to ensure that Prekmurje
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begins to close
its development gap
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relative to the rest of Slovenia.
This is also an important message,
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so I'm grateful that Sandoz
has decided to develop
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a location away from central
Slovenia and invest
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these significant resources there.
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Once again, thank you
very much.
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I wish you the best of luck
in your business endeavor,
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which I'm sure will be
a success, not least because
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Sandoz and Novartis have a rich
history in Slovenia,
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along with a strong present-day
financial presence
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and many satisfied employees.
Thank you.
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Thank you, Prime Minister.
We'll now open the floor
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to four questions from you,
dear journalists,
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on the topic of today's meeting.
Please introduce yourselves first
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and tell us for whom
the question is intended.
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The microphone. -Kristina
Robežnik from Finance.
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I'd like to know if the state will
also invest here and in what amount.
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The question is for
the Prime Minister. Go ahead.
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If the state will invest here?
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Yes, the memorandum
we signed today
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calls for direct state aid.
The amount is estimated
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to be somewhere between
€50 million and €55 million.
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That's for the entire investment,
and I believe both sides
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are very satisfied with
the agreement.
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We're happy because we feel that
these 50-million-euros-plus
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will be invested wisely
in Slovenia's economic development.
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Thank you. Any other questions?
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Denis Malačič, Planet TV.
I'm interested in how
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you will prevent an outcome similar
to the one in Prevalje,
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where we had a new plant built
next to an existing facility,
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but the production ended up moving
to Austria after some time.
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Could this happen
with the Lendava investment?
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I'll let the CEO provide
most of the answer,
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but I'd like to state the following:
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In the business world, we do see
cases where some investment
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is no longer sufficient
for the situation on the market.
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This happens, but what we need
to take care of as the state
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is to ensure that all
the investments in a project
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are repaid, as was the case
with Prevalje and, I trust,
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will be the case with Magna.
Our goal is to protect the location
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and the state's investment,
so if the investor decides
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to withdraw for any reason,
neither the state
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nor the local environment
suffers any negative consequences.
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Why am I optimistic in this case?
Because this investment
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is coming, in my layman's
opinion, at the right time.
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The CEO will be have
a more informed opinion
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about why these two investments
are substantially different.
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First of all, thank you
for the question.
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I'd look at it in a few parts.
We clearly have a long history
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in Slovenia as Lek
and now as Sandoz.
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Sandoz goes back 150 years
and Lek nearly 75,
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so a very long history.
The investment in the biologics
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business is not a small thing.
We considered it long and hard.
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We're the world's largest biosimilar
company, and as we separate
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from Novartis, we have
15-plus assets and eight assets
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already marketed that we need
to supply. That's a huge,
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growing global demand, so this
investment is the first significant
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investment for Sandoz to fulfill
that demand.
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It will take us probably four
or five years to build this facility
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and get it regulated and approved
for all the markets.
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It's not something we undertake
lightly, but it's core to how we
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intend to grow our business.
I understand your question
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about Prevalje. In many ways,
antibiotics are the foundation
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of Sandoz and modern healthcare.
We've agreed that we need to look
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at all our antibiotic networks
all around the world,
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because clearly what has come
out of the pandemic
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is how do we think about sustainable
supplies of antibiotics.
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Sandoz is pretty much the only
antibiotic manufacturer left
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in the Western world, so we have
a duty of care to patients,
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governments, and ourselves to think
how we build that.
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That's got to be a partnership.
For a long time, antibiotics were
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treated like commodities. A pack
of antibiotics is frequently sold
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more cheaply than a packet of M&Ms.
That's just not sustainable,
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so we have to work with government,
payers, patients, physicians,
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and ourselves to make sure that's
sustainable. We need to look at
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all our network, including Prevalje.
Once we are a separate company,
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that's something my management
team and I need to review.
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Thank you for the detailed responses.
Any other questions? From Delo.
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Nejc Gole, Delo. I'd like to know
if you can tell us more
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about the investment in Lendava.
What is the timeline
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and how do you intend to get
so many new employees?
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What permissions do you
need to obtain?
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Please proceed.
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Sorry, I've not heard
the translation.
00:14:20.792 --> 00:14:23.365
We have a problem
with the translation.
00:14:23.499 --> 00:14:26.838
Can we hear it again?
-I'll do it in English then.
00:14:27.025 --> 00:14:30.718
Nejc Gole, Delo. I'd like
to ask you if you can tell us
00:14:30.845 --> 00:14:33.751
a bit more about your investment
in Lendava,
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maybe about the timeline,
the permits you need to get,
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and where you'll try to get
so many employees?
00:14:47.372 --> 00:14:51.198
That's quite a few questions.
The Lendava site already is
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and FDA-approved location,
so we've already been manufacturing
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Sandoz products there for 38 years.
That's one of the reasons
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we chose the location. The talent
and the capability there
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is already very good in what
is a technically complicated area.
00:15:08.906 --> 00:15:13.359
Building a biologics facility is not
an easy thing. It takes a lot
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of money, talent, and time, so we
estimate three to five years
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to build the site, get it approved,
and get it regulated
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to a global standard,
including the U.S.
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The key to that is a few things:
the partnership with government,
00:15:29.319 --> 00:15:32.878
both locally and regionally,
to support the permits
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and everything else, and all those
things are in place.
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The other most important one
is talent and working closely
00:15:41.025 --> 00:15:46.431
with universities to attract talent,
because the role in these sites
00:15:46.559 --> 00:15:51.191
are complex, particularly around
the biomedical science space.
00:15:51.285 --> 00:15:55.278
Attracting and working
with universities and institutions
00:15:55.405 --> 00:15:59.218
to develop that talent pool,
but then that also benefits
00:15:59.339 --> 00:16:03.219
the community because other
companies find that talent pool
00:16:03.340 --> 00:16:07.858
as well, and it becomes synergistic.
A lot of the work is not just
00:16:07.985 --> 00:16:12.645
the facility, but also attracting
young graduated talent that can then
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work within the organization
and grow with us.
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Thank you very much.
The Prime Minister perhaps?
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I'd like to add something
to demonstrate an intriguing fact.
00:16:28.165 --> 00:16:31.872
Over the past decades,
the pharmaceutical industry
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has managed to create an ecosystem
of sorts in Slovenia,
00:16:35.912 --> 00:16:39.011
where those who announce
an investment already
00:16:39.132 --> 00:16:44.351
have a property, virtually
all the permissions,
00:16:44.685 --> 00:16:51.118
and agreements with educational
and research institutions
00:16:51.299 --> 00:16:57.398
on how these companies
and production capacities
00:16:57.559 --> 00:17:02.345
will be filled and begin to operate.
That's unlike some other industries
00:17:02.519 --> 00:17:06.871
and investments, where we needed
to pass special laws and define
00:17:06.992 --> 00:17:11.585
a special role for the state.
When I explicitly asked them
00:17:11.785 --> 00:17:17.132
whether they needed any
special assistance from the state
00:17:17.325 --> 00:17:20.038
in any area, the answer was no.
00:17:20.219 --> 00:17:24.398
I believe this is the ultimate
proof that they're approaching
00:17:24.565 --> 00:17:28.705
this as a strategic investor,
of the kind we can only
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wish for in this country.
They know the environment
00:17:32.379 --> 00:17:35.958
they're entering and they're not
doing it on the basis
00:17:36.112 --> 00:17:42.011
of one-time benefits, but on
the basis of long-term decisions
00:17:42.232 --> 00:17:46.251
and calculations.
And a quick comment.
00:17:47.218 --> 00:17:53.671
I believe that the Lendava
investment is that much safer
00:17:53.814 --> 00:17:56.214
because it's so important
for Sandoz.
00:17:56.458 --> 00:18:01.017
It's the company's first investment
since separating from Novartis.
00:18:01.245 --> 00:18:05.345
It's a flagship investment because
it will enable the company
00:18:05.512 --> 00:18:07.965
to stand on its own two feet.
00:18:08.185 --> 00:18:12.925
The commitment of Sandoz
to this investment
00:18:13.065 --> 00:18:17.658
makes it clear that it's unlike
any other investment.
00:18:17.819 --> 00:18:22.678
Their independent path will either
stand or fall on this foundation.
00:18:22.799 --> 00:18:25.891
I'm exaggerating, but not much.
00:18:26.012 --> 00:18:28.278
The fact that they chose Slovenia
00:18:28.399 --> 00:18:31.432
is the best proof of
for what we talked about.
00:18:31.553 --> 00:18:34.532
Sandoz is at a turning point,
not Slovenia.
00:18:34.653 --> 00:18:38.738
We shouldn't ignore this simple
but important fact.
00:18:40.119 --> 00:18:43.918
Thank you. This reply
concludes today's event.
00:18:44.120 --> 00:18:47.126
Dear presidents, guests,
and journalists,
00:18:47.300 --> 00:18:51.679
thank you for joining us.
We wish you a nice day.
00:18:51.913 --> 00:18:54.046
Thank you.