Susanne Garay is president of Remel Inc., a subsidiary of Apogent Technologies, with which she has held various executive positions since 1991. Prior to that, Garay was the managing director of Menzel-Glser GmbH, a microscope products provider, located in Germany. She holds a bachelors degree in management science from MIT and an MBA from Harvard Business School.
Dottie Dunham: Remel manufactures and distributes to diagnostic-testing markets worldwide. What global trends in that field will influence the direction of the company in the next five years?Susanne Garay: The diagnostic market has undergone significant changes in the past five years, especially with the advent of nucleic acid testing and the continued emphasis on automation to reduce the labor content in testing. These types of technology advances will continue to influence the direction of many companies in the diagnostic-testing market. The focus on improved and cost-effective patient care is another factor. Ease of use and automation are key for many of our customers who are facing cost pressures from their administration, shortages of skilled personnel, running tests on second and third shifts with less skilled staff, and the high costs of training. Dunham: In its 30 years of operation, Remel has changed its complexion several times. What changes have been or will be made to the companys product line since its most recent acquisition of the PathoDx Line from Diagnostic Products Corp. last July?Garay: Remel started its operation as a microbiology media company, first serving the local customer base and then expanding across the United States as its reputation for service and product quality grew. Thirty years later, our product range is considerably broader, and our reach is international. Our new state-of-the-art diagnostic manufacturing and distribution facility near London started operation last year. Remel Europe Ltd. serves as our European and Middle-Eastern headquarters. We are eager to take advantage of its skill set and expertise to expand in these regions.We have recently introduced the new Xpect product line. The Xpect Flu A & B test offers excellent product performance, and we are very pleased with its early acceptance by our customers. The Xpect
Giardia and Crypto rapid tests offer improved ease of use and, again, excellent performance. Other Remel products, such as ProSpecT diagnostic kits, M4 transport media, RapID and CultiLoop QC organisms, are well-recognized brands and market leaders. Remels strategy continues to focus on providing its customers with new and innovative tools for the detection and identification of viral, contagious, and enteric diseases.
Garay: One of Remels greatest competitive strengths is our customer focus. In an era of incredible market changes and new business dynamics, Remel still believes that the customer comes first. We therefore focus on providing value to our customers beyond the products we provide. For example, when a customer places an order today, the product will be delivered tomorrow. Our order entry, customer support, and technical service departments are focused on personalized customer service. If a product is not available to ship, the customer is called and offered a substitute product. an in-stock guarantee is offered for some new products. We also monitor response times in our customer support departments to ensure that service objectives are routinely met. Remel develops custom products for its customers with unique testing needs. So, in a time of automatic and computerized answering systems, nonpersonalized customer support, and digital selections from a menu of options, Remel sets the standard for providing value by increasing specialized services. Dunham: What do you see as the most significant challenges that Remel currently faces with regard to diagnostic testing?
Garay: As we expand our customer base internationally, the challenges of various demographics, health systems, and reimbursements outside of the United States add to the complexity of Remels decisions. It becomes harder to evaluate return on investment on potential acquisitions and research and development investments, as well as assure that we can provide the same high level of service to our international customers as we do to our domestic customers. At the same time, new advances in technology present both a challenge, as well as an opportunity, for us. Dunham: Can you describe some of the cutting-edge products Remel is contemplating for the near future that would be of value to the clinical laboratorian?
Garay: Remel has a long history of developing and introducing clinically relevant products to the microbiology community, both in the clinical and industrial markets. Our newest Xpect product line, featuring Flu A & B, RSV,Giardia, and Cryptococcus, is a good example. These products provide distinct advantages to laboratories, since they are differentiated from other products currently available on the market. Remel will continue to use its proprietary technologies and expertise to develop and introduce diagnostic products that provide value to our customers. Dunham: In what ways does Remels online operation enhance the customers access to its products and support systems? Does Remel plan to expand its online customer outreach in other ways?
Garay: We have recently redesigned and significantly enhanced our website, and continue to make improvements that are valuable to our customers. The Remel website provides an electronic online catalog, quality control documents, material safety data sheets, technical product documentation, trade show and seminar schedules, industry links, frequently asked questions, and a variety of other useful tools. Our goal is to provide yet another resource where our customers can find the answers they need, in addition to our highly trained and knowledgeable technical services staff. Remel will continue to expand its online activities to include electronic ordering, automated shipment tracking, increased service and support to our international customers, and other new value-added services. Dunham: Do educational programs for clinical laboratories play a pivotal role in Remels strategy and, if so, how is the company providing that type of support?
Garay: One of Remels competitive strengths, and a value that its customers recognize and count on is our technical services staff and the companys resident technical expertise. We have experienced microbiologists and scientists on staff to support customers in their day-to-day activities, and to develop new products, as well as assist with troubleshooting technical issues. We work with industry thought-leaders and national training organizations to sponsor seminars designed to improve the skill levels in clinical laboratories and provide CEU credits. Finally, many university teaching hospitals rely on Remel products and technical support for their training programs. Dunham: What solutions has Remel found for the challenges faced by laboratories confronting the current personnel shortages?
Garay: We focus on providing value to our customers, depending on their specific needs. Many of our products have become market leaders because they offer productivity improvements and labor release. Our new ERIC RapID system and the Xpect products are prime examples. Our technical sales representatives are technically proficient and can assist customers by providing solutions that solve their problems, rather than just selling products. Our technical services department receives high acclaim from many of our customers. With one phone call, Remel customers have access to our knowledgeable staff that advises them on a variety of issues, including NCCLS laboratory procedures, product use, and interpretation of results. Remel has easily accessible online technical information. We support our customers by providing useful tools designed to assist them with new product evaluations, including design of their testing protocols. In short, Remel is fortunate to have a dedicated and talented staff that focuses on customers needs and helps them improve their situation. Dunham: Can you speak to Remels engagement in any activity that addresses the threat of bioterrorism, or military operations globally? Have those two areas of concern changed the companys strategic planning in any fashion?
Garay: Bioterrorism and military actions are unfortunately becoming a fixture in our lives, so it is impossible to say that Remel has not been impacted by those events. As an example, we have assisted regulatory agencies with the determination of the optimum media products for isolation of Bacillus anthracis (anthrax), and in defining the correct protocols for organism identification. Remel experts assist many of its customers with implementation of this protocol and provide reference sources. In addition, we implemented an emergency-response procedure to assure that we will process orders and deliver product during off-hours, should any governmental, military, or other customer require emergency shipments due to such an event. We have responded tactically, but our strategy has not really changed. Dunham: What influence does the emergence of diseases like SARS which can spread rapidly worldwide via global travel have on your companys current policy and development planning?
Garay: The product development cycle, emergence of new technologies, and emergence of new diseases have all accelerated over the past decade. Global travel has caused the spread of many previously isolated diseases. Customers are more demanding than they were a decade ago as their needs have increased. Medical costs are rising at the same time as hospitals and doctors face reimbursement challenges and difficult economic conditions in many countries. All of these elements have forced Remel to develop a much more rigorous and focused planning process. Since resources are limited in our industry, it is very critical that we direct our efforts to areas where we can reach our goals of providing increased value to our customers while at the same time meeting the expectations of our company shareholders. February 2004: Vol. 36, No. 2
