The Evolution of Regeneron Procurement

Regeneron was founded by two physician-scientists in New York just over 35 years ago.  The mission of the company then, just as it is today, was to use the power of science to bring new medicines to patients over and over again.

Since its founding, the company has demonstrated its ability to deliver on this mission with numerous treatments authorised by regulatory agencies around the world with many more in development, almost all of which were discovered in the company’s laboratories.

It has long been the company’s commitment to push the boundaries of scientific discovery, to accelerate drug development and to shape the next frontiers of medicine. When Matt Everett decided to join Regeneron in 2023, he was motivated to be a part of a team that he knew would continue to innovate for patients. 

However, he also knew that the Procurement organisation he would have the privilege to lead would need to be developed differently than traditional Procurement teams. Procurement at Regeneron had to be as committed to delivering treatments to patients as it was to accelerating the process, tapping into external innovation and optimising the company’s return on investment.

After joining Regeneron, it was clear to Matt that the company’s scientific success had compelled it to grow rapidly for more than a decade. It was also clear that his colleagues were some of the hardest-working he had ever had the opportunity to work alongside.  And, most importantly, it was crucial for this organisation to evolve in a way that enabled it to support the company’s continued growth more efficiently and effectively.

This focus on the evolution of Regeneron’s Procurement organisation was critical to its significant change over the course of the last 24 months. Regeneron is a company that is used to change and the need to rapidly respond to patient needs is embedded in the company’s DNA. 

Therefore, as the leaders within Regeneron Procurement looked to develop and grow its capabilities to support the company’s future, it had to create an organisation built to evolve with the company. The leaders of the team were adamant that this was not going to be another “procurement transformation" but the building of a foundational procurement capability designed to evolve with the company.

Consistent with Regeneron’s culture, the people within Regeneron’s Procurement team needed to play an integral role in this evolution. The Procurement Leadership team was committed to engaging the organisation’s extended leaders as well as the broader organisation in defining the team’s evolution. 

Decision rights and timelines were clear; however, the leaders knew that to get to the best possible outcome, they needed to harness the collective input of the team when defining the best path forward. It was for this reason that the leaders broadly and proudly communicated that the top priority for the organisation was to ensure that Regeneron Procurement was a great place to learn, grow and develop. 

This was more than a slogan or a talking point. This was a commitment that the leadership made to themselves and to their teams. The team had specific metrics related to internal development, training, promotion, retention and performance management. If the whole organisation was committed to making this change a success, it had to understand that each member was a respected and valued part of it.

Leaders across Regeneron Procurement came together in 2023 to define what success would look like in the future, to listen to and understand stakeholder feedback and to rethink the possibilities of what the organisation and its supply base could enable for Regeneron. The team understood that the potential was significant and that the organisation needed to play an important role in enabling Regeneron’s competitive advantage. To achieve this vision, the team needed to re-examine how it structured the organisation, invested its resources, developed and recruited talent, determined its location strategy and how it defined its ways of working.

As the Regeneron Procurement team set its path to evolve in each of these areas, clear measures were developed to ensure that the company could realise immediate and sustained value. Importantly, the team prioritised achieving value related to quality, speed, removing perceived bureaucracy and innovation above financial success. The team was confident that committing to delivering these improvements would deliver a more sustainable financial benefit than could have been achieved by prioritising cost improvements. 

As the team continues to implement these improvements, their hypothesis is on track. The quality of the organisation’s work is increasing, processes are becoming more efficient and predictable, individuals are being empowered to execute within their areas of accountability and innovative ideas – both from within and outside of the organisation –are being implemented. By prioritising these improvements, the team is achieving its financial objectives more than a year ahead of schedule.

If the Regeneron Procurement team were committed to a procurement transformation alone, these results alone would have demonstrated a clear success. However, this was not the team’s objective. They were committed to building a foundational procurement capability designed to evolve with the company. Therefore, they knew that their work was not complete.

As the Regeneron Procurement team continues to evolve, it is playing a more active role in enabling competitive advantage for the company. The team is investing in process efficiencies to simplify, accelerate and clarify their ways of working. They are investing in enabling technologies to create greater visibility, automate repeatable tasks and enable better decision-making. And, maybe most importantly, the team is investing in its people by creating an early-talent rotational program, identifying opportunities for its team members to gain greater subject matter expertise and prioritising learning in real-world settings to accelerate the team’s development.

In addition, the team is committed to creating a legacy far beyond the function itself.  Aligned with Regeneron’s commitment to a Better Workplace, Better Science and Better World, members of the Regeneron Procurement team are proactively taking leadership roles in the company’s employee resource groups, collaborating with scientists to develop innovative solutions to scientific challenges and driving measurable improvements in how the company engages new suppliers of all sizes. Collectively, these efforts have enabled improvements to our science, our support of patients, our communities and our planet.

Matt, reflecting on his second full year with the company, says: “I am more inspired by science and committed to the company’s mission now than I was when I joined the company in 2023. The ability to walk through the halls and see scientific discovery happening beyond the glass gives me confidence that many more patient lives will be improved by Regeneron science. 

“When touring our manufacturing facilities, the commitment of our Regeneron Industrial Operations and Product Supply colleagues to deliver quality medicines is demonstrated every day. When traveling to our sites around the world, I can feel the energy that our colleagues have to enable more options for patients around the world.  And, when I get the chance to work with colleagues so committed to doing what is right for our patients, our company and our shareholders, I know that I am privileged to work with this team, for Regeneron and within a culture that is unlike any I’ve ever had the opportunity to work in.”

Managing an ongoing organisational and capability evolution is much like the commitment of Regeneron within the biopharmaceutical industry. There will always be greater benefits to achieve, more people to support and more breakthroughs to discover. It is clear that the Regeneron Procurement team, under Matt’s leadership, is committed to doing this over and over again; the work is never done and Regeneron Procurement continues to be an inspiring place to learn and develop in your career. 

There is real anticipation to see what the next phase of its evolution will deliver.