Diane Villax - Interview
Chairman of the Board
2007

History

1. How did you get the idea to create Hovione? Do you remember how it all started?
At the beginning of 1959 two Hungarian friends came to see Ivan with a proposal. There was a plant in Milan producing antibiotics which belonged to a group of Hungarians. In order to expand their business they needed technical “know-how” and patent protection which my husband could give them thanks to his experience in this field. Thus, Hovione was established – HOrthy, Villax, ONody. – with the objective to cooperate with the Italian firm and, after Ivan’s departure from the Instituto Pasteur de Lisboa, he was to develop his research in the field of pharmaceuticals.

2. Tell me about the first years of research in the basement of your house in Lisbon?
Before starting his research in our basement, there was the production of Pantofenicol®, a product invented by Ivan Villax, which he was free to sell outside Portugal. It was a complex of chloramphenicol with sodium pantotenate free of side effects. Several supply contracts were signed with Spanish, Italian and Greek firms, all of them owned or managed by Hungarian. The production was carried out in an outhouse in the back yard of Lab. Asclepius to whom we paid a small rent.
The research, development and eventually sales of certain steroids started in 1962 in our house at Travessa do Ferreiro Nos. 1 and 3.   It was a large house with basement, three floors and a garden, amply big enough for a laboratory equipped with all safety requirements in the basement, offices and analytical facilities on the ground floor, in addition to being a family house with four children and a dog. Hovione did have a separate entrance! Eventually, due to the increase in production we had to build a warehouse in the garden and in the gardener’s shed we installed a reactor where, amongst others, Grignard reactions were regularly carried out.

3. Hovione builds its first factory in Sete Casas. Why there?
My father-in-law died in 1964 and my mother-in-law returned to Portugal with her two bachelor sons and a sister. Ivan saw an advertisement for a small property in Sete Casas, Loures – we decided it would be ideal for them and he bought it. In 1969, in one corner of the 1.7 ha property, we started building the factory.  

4. At that time, how many employees did you start with? 
I don’t remember exactly but about 20.

5. Internationalization – when did it begin and why?
We founded Hovione with the world as our market so that, from the very beginning, we had to compete internationally and comply with all the requirements of the different markets as we entered them one by one.

6. In 1987 the first factory outside Portugal is inaugurated in Macau. Why was this considered necessary? Why did you choose the Far East and which were the main difficulties found?
Various factors made us realize the necessity of a second manufacturing site. The Far East, specifically Japan, had been our first important export market, during the second half of the ’60’s, so that we had some experience with that distant region. Macau was considered Chinese territory under Portuguese Administration, enjoying Portuguese Law and a favourable rate of taxation, identical to that of Hong Kong. Furthermore, we were aware, thanks to regular trips to the PRC since 1978 that there were already factories producing chemicals that we required as raw materials and intermediates and selling at very competitive prices. The fine chemical industry in China was well developed due to the fact that many young students were sent abroad during the ‘70’s for higher studies and returned with much knowledge.

7. In 1991, Hovione invested US$5million in a recycling unit in Loures. Why this preoccupation with the environment?
Ivan had always shown great preoccupation with the environment, safety and well being. We had joined the European Community in 1986 and there was strict legislation on the matter. Italian factories had been closed down for not complying. Furthermore, there was an element of economics in it – why throw away a dirty overcoat if you can send it to the cleaners and reuse it? We started by recycling acetone, 85% of which could be recuperated to a quality reusable in our production. In fact, this reasoning cost us financial assistance from the Portuguese State. At the time there were grants and subsidies for investment in environmental equipment but our case was not taken into consideration precisely because of the favourable economic factor.  Only those who recycled in order to discard “clean” residues were considered. During 5 years we also recuperated a precious metal – rhodium – from the mother liqueurs of our production which, in fact, contributed towards our winning a European Community Award in 1992.

8. Later, in 2002, another new plant was built, this time in the U.S.A., New Jersey. What was the reason for this decision?
Nearly 50% of our production is sold in the U.S.A. Logically; the supplier should be close to his clients. We are based in the State of New Jersey where many of the large pharmaceutical firms are installed. At the turn of the century, with 40 years experience behind us, we decided it was the opportune moment to divulge our own brand as well as our technical capacities instead of continuing to sell through agents.

9. The Hovione Group is now installed in the three main business continents of the world. How do you reconcile your strong internal culture with those of both East and West?
We have always worked on the principle that the people who work with us are the fundamental reason for our success. Therefore, it is essential that they should feel that the Company will assume responsibility towards them in all matters. Thus, we try and instil a team spirit so that they all pull in the same direction and are proud to belong.

10. Do you recall any amusing situation due to cultural differences?
In 1986, the local workers in Macau were accustomed to work 7 days a week. We closed on Sundays. It was not easy to convince the workers, who were paid monthly, that we were not cheating them out of a day’s pay but not allowing them to work on Sundays.  

11. Although an international group, Hovione is a family business. How is it managed?
The second generation has understood that today’s World requires a very professional, well structured and qualified management in order to succeed.

12. If you could point out a moment of pride during these Hovione years, what would it be?
The demand for excellence required by Ivan in all he did or had done. He never abdicated from his principles.

Activity

1. What is Hovione’s line of business?
The production of active ingredients for the pharmaceutical industry.

2. Who are its principal clients and which countries do you export to?
Our clients are among the small and medium biotechs as well as amongst large pharma and laboratories selling generics.

3. How does one build a high tech industry, based in Portugal, that succeeds in the most sophisticated markets?
With innovative technology, much effort, good markets surveys and success in anticipating the market requirements as well as a very dedicated team. Timing and location are essential factors. In 2007 it would not have been possible to start up Hovione along the same lines as in 1959 when Portugal was the right place at the right moment. By then most of the other countries in Western Europe were more developed so that it would have been impossible to start up such a fragile enterprise. If we had been successful we would have been eaten up for breakfast by a larger and richer competitor or, alternatively, we would have packed up without leaving a trace after a few years.

4. Hovione believes strongly in Innovation. Could you give us one or two examples of success?
Dexamethasone diproprionate. A molecule discovered by us, sold in Japan. Viracept. The client arrived, stressing urgency, and within 3 months we had our manufacturing unit, previously planned for another product, ready to produce 75 tons/annum.

5. Today the Hovione Group employs about 600 people. In order to be part of the team, which characteristics are required?
To be prepared for challenge. Have the capacity to fight for excellence. Never accept the easy solution. Have ambition and find satisfaction in overcoming difficulties.

6. You always gave great importance to Human Resources in general, namely the well-being, motivation and training of your staff. Why?
We are all human beings and aspire to a better way of life for which it is necessary to fight. It is essential to maintain every better qualifications for all, without which there can be no success.

7. Social responsibility is now the leit-motif of the day but you have always had this preoccupation. How have your done it?
By promoting a friendly neighbourhood with Open Days when anyone can come and visit the plant. We help schools at a local and national scale, giving prizes to those best in chemistry. The local entities such as the Fire Brigade also get support. Our canteen is free, we give all employees life and health insurance. We maintain very high standards of control in the department of Medicine at Work.

Anniversary in 2009
50 years of effort and success.

1. The first idea for these celebrations was to compile the collective memory of all those who have lived with us through these 50 years. What is the idea?
So that future generations will know the challenges, the lessons, the thrills and misfortunes that we went through during all these years. We will have a first hand description of the step by step progress that has led us to where we are today.

2. Summarize these 50 years.
50 years of an intense and full life and the hope that our work has been beneficial to Society.

3. How would you describe Hovione in a sentence?
A Company that has overcome the challenges encountered during these 50 years.

4. During recent years, Hovione has become recognized Worldwide. Without a doubt this is the result of Mr. Ivan Villax’s life work. How do you imagine Hovione in 50 years’ time?
The Company is in good hands, it is now up to us to educate the third generation with a view to continuing Ivan Villax’s dream.

Engº Ivan Villax – Determined, a fighter and a genius.

1. All those who met Mr. Villax found him a very strong personality. How would you describe him as a person? From both a family and professional point of view.
Outstanding, strict with himself and with others, having a large heart and being a friend who could be counted on. Despite of being a scientist, he was a social animal, loved parties and had a good sense of humour. Ivan was knowledgeable in all areas, - science, the arts, literature and agriculture. I never asked him anything for which he did not have the answer. He was a fighter, with definite ideas from which it was difficult to dissuade him.

2. Which were his greatest loves?
His family, his chemistry and his garden.