Il Giornale, 5th July 2007

Founded in 1927, today the company is the leading player in contrast agents and produces OTC drugs that are household names. A continuous commitment to innovation and research.

Chairman Diana Bracco has just one thing in mind as the historic Milan-based company celebrates its anniversary: "Growth everywhere". Paolo Stefanato, from Milan

"Eighty years: what a strange feeling! I look back at the past and see the future flashing by. How much has happened! It all goes so quickly …" Diana Bracco is busy thinking about things to be done as she celebrates the birthday of the company she heads, which bears the name of her family. Today, the Bracco group has revenues of 890 million (57% abroad), 2,300 employees and every year invests 80 million in R&D (the group does not publish earnings figures).

We ask: what were the key events that determined the company’s history?
"The most important event was in 1950, when father decided to follow his dream of an industrial company with its own research labs, synthesis production and marketing operations. He had a very modern vision."

And then?
"During the 1980s I had the good fortune to lead the growth generated by a major discovery: a Bracco "non-ionic" contrast agent, which could be used without causing burning sensations. That was a great step forward, and spearheaded our international growth. These products were the basis for the development of computerized axial tomography or CAT technology. The world giants from the USA, Japan and Germany came knocking on our door. We decided on a joint venture licensing policy, a successful move that gave us a joint presence in the countries in question, enabled us to learn about each country and then, when the licensing contracts expired, to make a direct entry."

And more recently?
"In 1994 we bought the Bristol Myer Squibb diagnostics arm. That was the start of "our America". You also had an American partner, Merck. "No, that was the German Merck."

The partnership lasted a long time.
"Yes: with ups and downs and changes in the shareholding, it lasted from 1927, when my grandfather began his business as a Merck distributor, until 2000, when we bought out the 50% share Merck held at the time."

What are your plans for the future?
"We have to grow everywhere. And that’s what we are doing. We are growing fast in China, where we are already present, we have to strengthen our position in Europe, we have to improve our organization in the USA and get into closer touch with the market. In the USA in particular, we have a company in Minneapolis—Acist, we bought it a few years ago—which specializes in injection systems and radiology equipment."

Growth is essential.
"We have to grow because research is expensive, and we have to be a large global player to support innovation and development. Taking into account that prices are always under pressure everywhere in the world, and that the strong euro is a disadvantage for us because most of our revenues, around 60%, are in US dollars."

Your portfolio also includes over-the-counter products that are household names, like Xamamina, Cebion, or Alfa eye-drops. How do you combine contrast media with OTC pharmaceuticals?
"We have been leaders on the Italian contrast agent market since that day, and in pharmaceuticals we are strongly positioned in ethical and OTC products. Prices are low, but it is an interesting sector and a great way to make our name familiar to consumers, who are not aware of the contrast agents we market to hospitals."

Where is your production based?
"Our production and technology platform is located almost entirely in Italy, in two large factories in Cesano and Torviscosa. Our main research centers are in Milan and Ivrea, the latter opened just a couple of weeks ago."

So you believe in Italy.
"I believe very strongly in Italy."

And in associations, seeing that you are president of Assolombarda.
"I’ve always been committed to building awareness of the corporate system, I’m not interested in politics."

In Lombardy, labor relations tend to be amicable. How far could this be exported to Confidustria?
"It needs to be understood, at national level too, that on certain concepts like welfare we have to start again from scratch."

Your company also has a tradition for sponsorship of the arts.
"That’s right. Father began, years ago. And gradually we have concentrated on music: we have close ties with the activities of La Scala, Milan’s most refined showcase on the world stage. I have also developed a new area, the application of our technologies to look inside the works of the great painters. Last year the National Gallery of Washington hosted one of our exhibitions which was an astonishing success."

What was it about?
"Together with the works of the great Venetian Renaissance painters, from Titian to Giorgione, we displayed X-rays and reflectographs of the canvases—techniques used for diagnostic examinations—to enable visitors to follow the entire creative process: preparation, the artist’s pentimenti, the alterations made during the actual painting. The exhibition was an original way to be consistent with our industrial mission. And the initiative won the 2007 Enterprise and Culture Award. It is a success I am proud of."