Spanish pharmaceutical company Faes Farma operates in 16 countries and holds a joint venture in China, along with agreements involving over 40 licensees. Iker Etxezarreta Fraile assumed the role of CFO in July after holding key positions in equity capital and financial planning at telecommunications giant Telefónica, and serving as vice president for corporate treasury at medical device manufacturer Werfen.
Global Finance: What have been your main priorities at Faes Farma thus far?
Iker Etxezarreta: A primary focus has been on enhancing internal governance and fostering communication across various financial sectors. Effective finance operations thrive on transparency and coordination within the organization.
Additionally, positioning the Financial Planning and Analysis (FP&A) function as a strategic ally for the business has been crucial. We aim to bridge historical performance with future planning, utilizing financial insights to inform strategic decisions.
We are also directing attention toward capital allocation and bolstering the company’s liquidity in alignment with our strategic goals and debt management. Upholding financial discipline while retaining flexibility is vital for supporting the company’s long-term growth trajectory.
GF: What do you spend most of your time on now?
Etxezarreta: A considerable portion of my time is devoted to understanding my teams and colleagues. Recognizing talent and fostering development within the organization is essential for building robust teams.
Another significant area of focus is the ongoing optimization of processes. The finance department must continuously evolve to enhance efficiency and better align with business needs.
Furthermore, I invest time in comprehending both the current and future needs of the company to adjust our financial strategies accordingly. This involves developing a flexible capital management plan and ensuring that we both nurture internal talent and attract necessary external expertise.
GF: How important is it for you to have a good team?
Etxezarreta: Having a competent team is, in my view, paramount. A well-rounded team uniquely blends technical expertise with a genuine curiosity. Individuals who question the status quo, seek continuous learning, and challenge assumptions tend to deliver greater value to the organization.
Moreover, effective teams cultivate and disseminate knowledge. Investing in the collective expertise of the company and promoting collaboration enables the organization to enhance its capabilities over time.
Commitment is equally essential. Team members should feel engaged and perceive a clear career path ahead. When employees are supported in their professional growth, the team emerges stronger and more resilient.
GF: Can European governments do more to boost innovation?
Etxezarreta: Europe has faced several significant challenges in recent years, including the Covid-19 pandemic, the Ukraine conflict, and various geopolitical tensions. These events have unveiled structural vulnerabilities within the European economy.
In several industries, Europe is at risk of losing competitiveness, sometimes in ways that may be hard to reverse, with notable examples seen in automotive, energy, and telecommunications sectors.
For the pharmaceutical industry, Europe must cultivate a stable innovation environment with appropriate incentives to remain competitive against regions like the US and China. Strengthening frameworks for public-private collaborations will be vital for sustaining healthcare innovation in Europe.
GF: How do you see AI affecting your work?
Etxezarreta: The influence of AI will significantly alter the corporate landscape in the years to come, leading to considerable, and in many respects, unavoidable disruption.
In my capacity, which includes oversight of the technology sector, I perceive more opportunities than risks. Organizations that adapt promptly will have distinct advantages, while those that do not may struggle to keep pace.
However, it is crucial to navigate beyond the hype and focus on understanding how AI can genuinely add value in each specific context. At Faes Farma, advancing digital transformation effectively often relies on engaging digital-native talent, and we are making considerable strides in this area.