“When you have a strategic partnership, both parties must benefit. Only then you can achieve the agility you need. If we have a sudden demand increase, then I need the CDMO to react with flexibility.”
Stefan Amberg, Global Head of ESO and Network Strategy at Galderma, brings over 20 years of pharmaceutical experience across multiple functions at Novartis before joining the growing dermatological company three years ago. He now manages 55-60 external partners whilst balancing cost optimisation with supply chain resilience across Galderma’s diverse portfolio.
In the latest PharmaSource podcast episode, Stefan explains his strategic approach to building genuine win-win partnerships and transforming external supply relationships from transactional arrangements into strategic collaborations that drive mutual success across cosmetics, topical pharma, biologics and injectable aesthetics.
Cross-Functional Leadership: Building the Right Foundation
Stefan’s progression through diverse pharmaceutical functions demonstrates how varied experience creates more effective partnership leaders. His deliberate movement through technical operations, quality, site leadership and external supply has equipped him with comprehensive industry knowledge essential for complex partner management decisions.
“I think we always need to differentiate between two types of leaders: One goes deep into functional expertise, the other is a generalist who can drive different areas”
This generalist approach proves particularly valuable when managing diverse technologies and formulations across global partner networks. Stefan emphasises that his varied background enables him to ask the right questions and bring functional leaders together for informed decision-making.
“What I can see now, particularly in external supply where we manage a broad variety of formulations and tasks with partners, it’s extremely helpful to have this different rucksack with different experience.”
Strategic Outsourcing: The Novartis Transformation Model
Stefan’s experience leading Novartis’s transition from seven internal API sites to near-zero external sourcing provides valuable lessons in strategic partnership development. The business case centred on addressing underutilised capacity and improving cost structures through comprehensive partner evaluation.
“The business case was driven by our sites being underutilised, and with this, the cost structure was not ideal. We did an intense search on finding partners we wanted to work with,” Stefan recalls.
The strategic approach emphasised geographic diversification rather than purely cost-driven sourcing decisions. This established both business continuity and negotiating leverage whilst addressing supply chain resilience concerns that remain critical today.
“We decided to not just focus on Asia. We had partners in China and India, but also focused on several partners in Europe to have business continuity set up and leverage in cost negotiation.”
End-to-End Partnership Management Structure
Stefan’s supplier relationship management centres on integrated teams spanning the entire product lifecycle. These cross-functional teams include procurement, quality, supply chain and manufacturing science and technology functions, creating clear communication pathways for external partners.
“For me, it’s always the end-to-end principle. We create teams with four core functions included – procurement, quality, supply chain and manufacturing science and technology, which drives the partner relationship end-to-end from launch to pruning,” Stefan outlines.
The approach emphasises clarity in communication and escalation pathways, with established KPIs driving performance measurement. Partner feedback has validated the effectiveness of this structured approach across Galderma’s network.
“We have clear contact persons and escalation persons with partners, and clear KPIs behind it. The feedback from our partners is very good – it’s clear to whom to go, and then the follow-up is within either the supplier or with us.”
Building Genuine Win-Win Strategic Partnerships
Stefan’s philosophy extends beyond operational efficiency to building genuine mutual benefit relationships. This approach recognises that successful partnerships require both parties to benefit meaningfully from the collaboration, enabling flexibility when market conditions change.
The partnership-building process emphasises predictability and relationship management alongside formal agreements. Stefan advocates for regular face-to-face interactions despite increased virtual capabilities following COVID-19.
“I think predictability and keeping your promises is essential, then the escalation and setup on how to interact. You can do a lot of things virtual, but at least once a year, a joint business review and regular business meetings are essential because then you get to know each other.”
Stefan emphasises that successful partnerships enable flexibility during product launches or demand fluctuations, whilst poor relationships create additional costs and complications.
“If you have a good collaboration, the partner will be flexible to react. If you have a bad collaboration, maybe they’re doing it, but then it has other consequences in price or other things.”
Holistic Decision-Making: The All-or-Nothing Approach
For leaders reshaping partner portfolios, Stefan advocates complete commitment to partnership relationships rather than partial arrangements that create operational inefficiencies. His approach emphasises making full business cases for partner engagement decisions.
“Always do a business case. If you want to grow business, give a whole package there. If you want to reduce business, think about getting everything away,” Stefan advises.
This philosophy extends to transparency in partner relationships, ensuring clear communication about strategic intentions and business objectives to maintain trust and effective collaboration.
“Do all or nothing – for example, if you take a big product away from a partner and just leave a few leftovers, then you create problems you’ll never get rid of. It’s not good for yourself, but also not good for the partner.”
