The world needs ‘precision globalization’. Pharma is showing the way

During my career as a medical doctor, pharmaceutical leader and now CEO, I’ve participated in one of the most significant revolutions in medical history.

Thirty years ago, the world of medicine was based on a one-size-fits-all model: chemical medicines produced at scale and designed to work for the “average” patient. This approach was a triumph. It democratized health, improved treatment for millions, and transformed many fatal conditions into manageable ones. Yet this traditional model had its limits, as the uniformity of these modalities often fell short for patients with specific biological needs.

The subsequent introduction of biologics, such as monoclonal antibodies, gradually improved the overall standard of care in many areas. And more recently, a new wave of novel modalities, such as antibody-drug conjugates (ADCs), has accelerated the transition to a new era of precise care.

To enable this shift, the pharma industry had to reshape its entire operating model. We deepened our knowledge of patient biology, leveraged data and AI for greater efficiency in how drugs are created, increased clinical trial diversity, and built trust with regulators and patient groups worldwide. The share of novel modalities in the global clinical pipeline has since risen from 15% in 2005 to about 60% in 2025.

Today, the adoption of a multimodality strategy by most top 20 pharma companies has enabled our industry to begin doing something once considered impossible: treat the patient, and not just the disease.

It’s hugely important that everyone across every industry understands how this shift to precision care happened and why – because the exact same transformation is now reshaping global trade itself.

Globalization was also designed for products to be made and supplied under a one-size-fits-all approach for maximum scale and efficiency. It too delivered historic benefits for our global society. Yet globalization also found its limits, as a constant series of shocks – from COVID to trade conflicts and actual wars – pushed key nations to demand more.

Just like modern patients, key trading blocs are no longer satisfied with “average” treatment. The US focuses on bringing manufacturing back home and enhancing national security. China prioritizes self-reliance and speed. Europe strives for greater strategic autonomy. These demands are legitimate, reflecting growing requirements for security of supply, the protection of citizens’ health, and competitiveness in critical growth fields such as medicines and semiconductors.

The era of the “average nation” is over. Yet the fact remains that 70% of international trade relies on complex, highly interconnected global supply chains. Full replication at the local level is impractical. It would cost trillions – with little benefit. Yet there is also no going back to the traditional globalization model.

The right path to balance geopolitical ambitions with global market realities is to adopt the same multimodality approach and principles that transformed patient care. In this new era of “precision globalization”, multinational companies must be able to tune the best available global solutions to local needs. Just like in medicine, success requires a multimodality toolbox for global trade including:

1. A broad, synergistic portfolio that can be customized to local market needs.

2. A global footprint that can balance complexity with regional capacity, including multiple qualified suppliers and modular manufacturing.

3. Data and digital platforms that are interoperable globally yet trusted locally.

4. Governance models that flex across jurisdictions while holding one standard for integrity, ethics, and compliance.

The more operating modalities a global enterprise has at its disposal, the stronger its position to address regional needs while benefiting from scientific knowledge, standards and talent worldwide.

Since 2020, Merck has invested boldly to transform our global operations to thrive in this new era. We’ve deployed more than €11 billion to reconfigure our global footprint of sites across Asia, the US and Europe for a region-for-region approach. In parallel, we’ve strengthened our toolbox with AI-enabled ecosystems and robust data foundations, and empowered local teams to act with speed and foresight. We’ve also deepened collaborations across regions to support interoperability, skills and access.

None of these choices were random. They shared one future-proofing goal: to navigate geopolitical realities and meet new market expectations as a trusted and reliable partner at global and local levels.

Medicine taught us to match the right modality to the right need – and to combine modalities when complexity demands it. The same principle now applies to global trade to deliver greater security in a multipolar world.

The real question for leaders now is this: will we design regionally tuned multimodal global systems that build trust and resilience – or wait for the next shock to hit?