Investment banker to pharma mover
KIREN Naidoo worked in a corporate environment before exploring his entrepreneurial skills.
But his decision to delve into the pharmaceutical industry has been the most rewarding.
Naidoo, 36, formerly of Reservoir Hills, runs Frontier Pharma which he co-founded in London in 2015.
The company recently acquired Zdravlje, one of the largest generic pharmaceutical companies in Eastern Europe.
Frontier Pharma is a UK-based specialist pharmaceutical investment and advisory firm.
It is focused on high-growth markets across Europe, the Middle East and Africa.
Naidoo, who obtained a Bachelor of Business Science degree in finance at UCT, started his career as an investment banker at Merrill Lynch, a US multinational bank, in Joburg in 2007.
Following a merger, Merrill Lynch later became Bank of America Merrill Lynch.
In 2009, Naidoo moved to London to join the company’s health-care investment banking team.
His responsibilities included advising and executing mergers and acquisitions involving health-care companies across Europe, the Middle East and Africa.
“The job was fast-paced and dynamic but very competitive so we all had to perform at the highest level,” said Naidoo.
“This meant long hours that frequently went into the early hours of the morning and a lot of international travel to Europe, the US, India and the Middle East.
“It was a difficult transition at first, as I moved during the UK winter, but I eventually got used to it.
“Having my sister and friends in London made a huge difference.
“It was important to make a good impression so I worked hard during my time in London.
“I barely had time to notice any major differences between South Africa and the UK.
“Thanks to the Commonwealth, there are some similarities in culture, which helped ease the transition.”
Naidoo said that after a few years, he was given the responsibility to lead the company’s emerging markets pharmaceutical business.
“During my last four years at Merrill Lynch, I was top-ranked in my year
across Europe, the Middle East and Africa.
“Also, during my last year, I advised on two mergers that would have a big impact on the pharmaceutical industry.”
He said he advised the Israeli multinational company, Teva Pharmaceuticals, on its R560 billion acquisition of Actavis, and the German multinational, Boehringer Ingelheim, on its R380bn sale of its consumer health business to Sanofi.
Naidoo said he decided to leave Merrill Lynch in 2015 to explore his entrepreneurial ambitions.
Then together with a former client from Turkey, they started Frontier Pharma.
“Investment banking was never a permanent career for me. It was an opportunity to build a network, learn valuable skills, generate savings and have a brand on my CV that could open doors long after I left.
“By the end of my time at the company, I felt that I took everything I could from investment banking and it was time to find new challenges. As uncomfortable as it is, I try to keep my learning curve as steep as possible.”
Naidoo said he also had a strong support structure.
“I don’t think the move out of banking would have been possible without endless support from my business partner, Levent Selamoglu, my patient and supportive wife, Sanja, and my family.”
He said, his father, Dr Jaybalan Naidoo, an orthopaedic surgeon, and mother, Renuka, a former radiographer, were his inspiration.
“I always had an entrepreneurial spirit, thanks to my mom, who supported my first small business in primary school, and I felt I could make a greater impact on society through building a company versus remaining at a corporation.
“I’m passionate about the healthcare industry, which comes from my dad, who has touched countless lives over the years through his medical practice. I felt that through starting Frontier Pharma, there was a real opportunity to bring much-needed treatments to underserved markets around the world.”
Naidoo, who currently lives in Serbia, said his company invested in and operated pharmaceutical companies in emerging or growth markets.
“We focus on generic pharmaceuticals, which allows us to deliver high quality medicines at affordable prices.
“We have been involved in several different projects since 2016, the most significant being our recent acquisition of 70-year-old Zdravlje, a leading pharmaceutical manufacturer in Eastern Europe with 250 employees.
“From Serbia, we supply high quality pharmaceuticals to about 40 markets around the world, including the UK, Europe, Mexico, Australia and South Africa, and have the capacity to produce about two billion units a year.”
He said the company’s strategy was to expand its manufacturing capabilities and portfolio.
“This is so we can supply muchneeded, and often life-saving treatments to patients around the world.
“Covid-19 is obviously highly topical at the moment and we are currently evaluating opportunities in the vaccine, treatment and prevention space.”
His advice to struggling entrepreneurs: “Find balance and pace yourself.
“It’s easy to be consumed by the journey. Sometimes the best solutions come after a good night’s sleep, exercise or meditation. Also be prepared for failure and rejection.
“It’s going to happen at some point but it’s important to remain optimistic. “Lastly, read as much as possible. “There are so many helpful biographies and business books that we can learn valuable lessons from.”
Naidoo was last in South Africa in December 2019.
“I hope to visit at some point, perhaps at the end of this year, depending on the Covid-19 situation.
“There are many things I miss about South Africa, including my family and friends, the vibrant South African culture and natural beauty.”