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NEW!<br />

DIRECTORY INSIDE<br />

Mexico<br />

<strong>Pharma</strong> <strong>report</strong><br />

August 2012<br />

FOCUS REPORTS January 2012 1


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

2 August 2012<br />

FOCUS REPORTS


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

FOCUS REPORTS August 2012 3


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

Acknowledgements<br />

Focus Reports would like to thank all<br />

individuals, institutions and companies<br />

involved in producing this <strong>report</strong>. Special<br />

thanks go to Rafael Gual (CANIFARMA),<br />

Hector Valle (IMS), Mikel Arriola<br />

(COFEPRIS) who showed us their strong<br />

support and interest throughout our<br />

project.<br />

4 August 2012<br />

FOCUS REPORTS


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

This <strong>report</strong> was<br />

prepared by<br />

Focus Reports<br />

Project Director:<br />

Julie Avena<br />

Chief Editor<br />

Fred Gebhart<br />

Research and<br />

Editorial: Kirsty Walker<br />

Project Publisher:<br />

Béatrice Collet<br />

Graphic Assistance:<br />

Cristine Guiang<br />

Copyright ©<br />

All rights reserved. No part of this<br />

publication maybe reproduced in<br />

any form or by any means, whether<br />

electronic, mechanical or otherwise<br />

including photocopying, recording or<br />

any information storage or retrieval<br />

system without prior written consent<br />

of Focus Reports.<br />

While every attempt is made to<br />

ensure the accuracy of the information<br />

contained in this <strong>report</strong>, neither<br />

Focus Reports, neither the authors<br />

accept any liabilities for errors and<br />

omissions. Opinions expressed in this<br />

<strong>report</strong> are not necessarily those of<br />

the authors.<br />

Contents<br />

Acknowledgements ............................................................................... 4<br />

Mexico: Shaking Up The System ...........................................................7<br />

An Outstanding Example........................................................................8<br />

Rising To The Challenge .......................................................................10<br />

Shifting Landscapes Shift Strategies....................................................14<br />

Home Turf................................................................................................18<br />

Too Much Tortilla...................................................................................22<br />

Unreached Potential...............................................................................24<br />

Interview with Mikel Arriola,<br />

Federal Commissioner, COFEPRIS.......................................................30<br />

Interview with Peter Erlbacher,<br />

COO Spanish Latin America, Aspen Labs............................................32<br />

Interview with Miguel A. Salazar,<br />

Director General, Boehringer Ingelheim Mexico.................................34<br />

Carlos Lopez Patan, Director General, Medix......................................36<br />

Markus Krenzlin, Country Manager, Shire...........................................38<br />

Alfredo Rimoch, Director General, Liomont.........................................40<br />

Guy Jean Savoir, General Director,<br />

Carnot Laboratories...............................................................................42<br />

Directory..................................................................................................47<br />

Index .......................................................................................................54<br />

FOCUS REPORTS August 2012 5


<strong>Pharma</strong>.FocusReports.net<br />

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6 August 2012<br />

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<strong>Pharma</strong>.FocusReports.net<br />

SPECIAL SPONSORED SECTION SPECIAL SPONSORED SECTION<br />

Mexico Report<br />

Mexico Report Mexico<br />

MEXICO: MEXICO:<br />

Shaking Shaking Up the Up System the System<br />

Over ten years Over ago, the ten economic years ago, concept the economic of the ‘BRIC’ concept countries—Brazil,<br />

Russia, tries—Brazil, India and Russia, China—was India and formed, China—was and it’s formed, was produced and by it’s Focus Reports. was produced by Focus Reports.<br />

of the ‘BRIC’ coun-<br />

This sponsored supplement This sponsored supplement<br />

pretty much all we’ve pretty heard much about all we’ve ever heard since. about Yet earlier ever since. this Yet earlier this<br />

Project Director: Julie Avena Project Director: Julie Avena<br />

year, the very same year, man the who very coined same man the term—Jim who coined O’Neill, the term—Jim<br />

Research<br />

O’Neill,<br />

and Editorial: Kirsty Research Avril Jane and Walker Editorial: Kirsty Avril J<br />

chief economist at chief Goldman economist Sachs—declared at Goldman Sachs—declared that by 2020 Mexico that by 2020 Project Publisher: Mexico Béatrice Project Collet Publisher: Béatrice Collet<br />

would be the seventh would largest be the economy seventh in largest the world, economy surpassing the world, both surpassing Graphic Assistance: both Christine Graphic Guiang Assistance: Christine Guia<br />

India and Russia. India Mexico and belongs Russia. Mexico to one of belongs four recently to one defined of four recently defined<br />

For exclusive interviews and For more exclusive info, please interviews and more<br />

‘growth markets’ ‘growth alongside markets’ Indonesia, alongside South Korea Indonesia, and Turkey. South Korea That and Turkey. That<br />

log onto<br />

log onto<br />

certainly shakes things certainly up shakes a little for things both up outside a little observers for both outside and ac-observertive local stakeholders tive local in the stakeholders economy. in the economy.<br />

or write and to contact@focus<strong>report</strong>s.net<br />

ac-<br />

or write to contact@focus<strong>report</strong>s<br />

But what does this recent But what categorization does this recent to pull categorization Mexico up from to the pull bottom Mexico of up the from erage the bottom from 17 of million the erage Mexicans from 17 to more million Mexica<br />

as a ‘growth market’ suggest as a ‘growth for Mexico’s market’ suggest pile; according for Mexico’s to the latest pile; according OECD Health to the latest than OECD 50 million Health who were than 50 previously million not who were pre<br />

pharma industry, recently pharma left industry, red-faced recently Data, left Mexico red-faced fared 33rd Data, out Mexico of 34 OECD fared 33rd under out of any 34 kind OECD of health under scheme. any kind Now of almost<br />

every on single public Mexican most every in the single country Mexican in t<br />

health schem<br />

in regional second place in after regional Brazil’s second bullish<br />

and apparently unstoppable ish and apparently growth unstoppable health as growth a percentage health of GDP. as a The percentage gov-<br />

is of covered GDP. The under gov-<br />

a public is covered health under system. a public healt<br />

place countries after Brazil’s for total bull-<br />

expenditure countries for on public total expenditure<br />

With an estimated value With between an estimated 12 ernment value between is also fighting 12 ernment against is rapidly also fighting increasing<br />

Mexican levels pharma-<br />

of chronic creasing long-term levels of ill-<br />

chronic tion long-term against Sanitary ill-<br />

tion Risk against (COFEPRIS) Sanitary Risk (C<br />

against The Federal rapidly Commission in-<br />

The for Federal the Protec-<br />

Commission for<br />

and 14 billion USD, the and Mexican 14 billion pharmaceutical<br />

industry has seen ceutical some industry significant has seen nesses some rife significant in the population, nesses rife such in the as population, oversaw several such recent as oversaw regulatory several changes. recent regulato<br />

USD, the<br />

changes over the last four changes years. over The the government<br />

has significantly ernment increased has significantly public increased Most notably, public the Popular Most notably, Insurance the Popular in 2008 Insurance enables foreign in 2008 pharmaceutical enables foreign phar<br />

last four diabetes. years. The gov-<br />

diabetes.<br />

Suppression of the manufacturing Suppression plant of the law manufacturin<br />

health spending and coverage health spending an effort and coverage Scheme in ‘Seguro an effort Popular’ Scheme increased ‘Seguro its cov-<br />

Popular’ companies increased to its distribute cov-<br />

companies and sell their to distribute prod- and sell<br />

Photo credit: Kirsty Avril Jane Walker<br />

FOCUS REPORTS AUGUST 2012 August FOCUS REPORTS 2012 AUGUST S22012 7 FOCUS R


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

NADINE ABRAHAMS AND TAMSYN LA VITA<br />

In good company, South Africa<br />

Nadine has type 1 diabetes<br />

For Nadine, achieving good<br />

self-management with support from<br />

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important as treatment for living well<br />

with diabetes. This is why we<br />

produce education and support<br />

materials specifically developed for<br />

people with diabetes and those<br />

living close to them.<br />

Our support programmes are based<br />

on DAWN (Diabetes Attitudes,<br />

Wishes and Needs), a groundbreaking<br />

study of the psychosocial barriers<br />

to good diabetes management<br />

conducted in collaboration with the<br />

International Diabetes Federation.<br />

Our ongoing research into diabetes<br />

needs will continue to produce<br />

targeted tools and programmes that<br />

ensure diabetes is never to be lived<br />

in isolation.<br />

Discover more about changing<br />

diabetes at novonordisk.com<br />

Changing Diabetes® and the Apis bull logo are<br />

registered trademarks of Novo Nordisk A/S<br />

ucts in Mexico without the presence of a<br />

manufacturing plant on Mexican territory.<br />

The deadline for new generic drug registrations<br />

passed in February 2010 which, after<br />

being subjected to stringent bio-equivalency<br />

testing, cleaned up an estimated 7000<br />

products from the market. Additionally, the<br />

antibiotics law was enacted in August 2011,<br />

requiring a prescription to be presented before<br />

any antibiotic can be dispensed.<br />

For Rafael Gual, general director of<br />

CANIFARMA, the National Chamber of<br />

the pharmaceutical industry, there is one<br />

goal that COFEPRIS must still achieve,<br />

“Full recognition [from PAHO, the Pan<br />

American Health Organization], which will<br />

provide a strong opportunity for national<br />

companies to reach the Latin American<br />

market; a win-win situation for both industry<br />

and government.”<br />

These wide-reaching changes have affected<br />

industry dynamics, and coupled with<br />

the patent cliff and the worldwide innovation<br />

drought, have opened up a bigger space<br />

for generics penetration and created the perfect<br />

storm that has pushed present multinational<br />

companies to either diversify, or to<br />

focus on niche markets. Mexico’s solid macroeconomic<br />

policies and encouragement of<br />

foreign investment have also increased competition<br />

in the market, pushing local companies<br />

to take a side step on their strategies<br />

and in some cases to be more resourceful<br />

and aggressive in retaining and increasing<br />

their share of the pharmaceutical pie.<br />

MACRO DATA OF THE MEXICAN<br />

PHARMACEUTICAL INDUSTRY<br />

(last available data, INEGI 2009, OECD 2010)<br />

Share in GDP<br />

Share in Manufacturing GDP<br />

Health expenditures as a share of GDP<br />

Health expenditures per capita (dlls.)<br />

Value of the <strong>Pharma</strong>ceutical Market (billion dlls.)<br />

Direct Employment<br />

Indirect Employment<br />

Last but not least,<br />

there has been an undeniable<br />

shift of<br />

power towards the<br />

point of sale: pharmacies<br />

and supermarkets.<br />

<strong>Pharma</strong>cy<br />

giants are taking<br />

warehousing and<br />

distribution into<br />

their own hands and<br />

Source: COFEPRIS - with data from INEGI and CANIFARMA<br />

*Note: value estimated for 2011 using 12.42 pesos per dollar, average exchange rate for 2011.<br />

Rafael Gual,<br />

General Director,<br />

CANIFARMA<br />

private label (store brand) drugs are becoming<br />

increasingly popular. Some say positioning<br />

a general medical service with doctors<br />

at the point of sale has created an even<br />

bigger demand for private label medicines<br />

at the expense of other brands. For many<br />

players in the market, it is a bitter pill to<br />

swallow.<br />

Mexico certainly offers a lot of growth<br />

potential. One can debate whether Mexico<br />

is still truly an emerging market, but as Ricardo<br />

Alvarez Tostado, president and general<br />

director of AstraZeneca Mexico points<br />

out, “It is not how fast you grow, but how<br />

consistent your growth is over time, and I<br />

genuinely believe that Mexico is very well<br />

positioned through a rigorous monetary<br />

policy and an improving fiscal policy. It is<br />

a democratic, free enterprise emerging market.<br />

Mexico is, and will remain, a strategic<br />

market for any industrial interest.”<br />

But to grow, or in some cases survive,<br />

pharmaceutical companies must adapt to<br />

dynamic market conditions. Those who<br />

m a n a g e t o<br />

1.2%<br />

6.9%<br />

6.1$<br />

934<br />

13*<br />

78,500<br />

330,000<br />

achieve this flexibility<br />

in Mexico<br />

will be the ones<br />

with smiles on<br />

their faces in<br />

2020 as successful<br />

players in one<br />

of the world’s<br />

largest economies.<br />

AN OUTSTAND-<br />

ING EXAMPLE<br />

Healthcare has<br />

been a top priority<br />

in Mexico for<br />

8 August 2012<br />

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Mexico Report<br />

the last ten years, with the government working hard to keep its<br />

promise of universal coverage and increased hospital and medical<br />

infrastructure throughout the country.<br />

As a testimony to this, Margaret Chan, the director general of<br />

the World Health Organization, openly praised the Mexican government<br />

at the International Forum on Universal Health Coverage<br />

in Mexico City on April 2nd, 2012 by stating: “I am pleased<br />

to hear that Mexico is achieving its goal [of universal coverage],<br />

with health care available to everyone in the country. This gives<br />

the world an outstanding example of what can be achieved through<br />

high-level political commitment.”<br />

Under the current system, there are three major institutions.<br />

The Mexican Institute of Social Security (IMSS) is the largest social<br />

security institution in Latin America. IMSS covers all formal<br />

workers in the private sector, which according to the latest IMS<br />

Health data represents 44.3% of the total population.<br />

The Institute of Health and Social Services (ISSSTE), covers<br />

all government workers and represents around 9.8% of the total<br />

population. Recent financial restructuring<br />

and cost saving initiatives within both IMSS<br />

and ISSSTE have contributed to a strongly<br />

pro-generics attitude within the two health<br />

systems.<br />

Thirdly, Seguro Popular was created in<br />

2003 as a type of public insurance scheme<br />

to provide health service coverage for Mexicans<br />

not affiliated with any social security<br />

Ricardo Alvarez institution. Seguro Popular has been the<br />

Tostado, President main driver of increased public health coverage,<br />

and the government recently pledged<br />

and General Director,<br />

AstraZeneca<br />

Mexico<br />

that 80% of state-purchased medicines<br />

should be comprised solely of generic drugs.<br />

The Mexican pharma market has always had an historically<br />

low generics penetration, and these three initiatives are pushing<br />

it firmly towards a more generics-focused environment.<br />

Although the pharmaceutical industry has expressed its delight<br />

at such a noble scheme, the government healthcare systems have<br />

not been without their problems. Many people in the industry feel<br />

that when price is the only basis on which to win a government<br />

tender, quality falls into second place.<br />

Hector Carillo, general director of Apotex Mexico, points<br />

out that “The government continues to be a good business for<br />

us because supplying on time is becoming increasingly important.<br />

When it comes to timely and high quality product delivery,<br />

they know we can do it. But we cannot supply at their requested<br />

benchmark prices. They demand the lowest possible<br />

pricing from the market, and while we understand Seguro Popular<br />

has a limited budget and is required to look for the lowest<br />

possible prices, Apotex cannot compromise on quality just to<br />

get the extra sale.”<br />

Alongside these pricing concerns are questions over the administrative<br />

complexities of Seguro Popular and the fact that<br />

SHARE OF MARKET BY COMPANY TYPE<br />

18%<br />

17%<br />

66%<br />

22%<br />

25%<br />

53%<br />

14%<br />

28%<br />

58%<br />

21%<br />

46%<br />

34%<br />

US Germany France Russia<br />

60%<br />

19%<br />

22%<br />

it is run locally across each State in the country. This is causing<br />

headaches for pain specialists Grünenthal.<br />

Tomas Bordonaba, general manager of Grünenthal de Mexico<br />

notes that, “The institutional market represents a big opportunity<br />

for Grünenthal, but it has additional complexity<br />

because every state manages its own budget and has its own<br />

priorities. You have to create an individual strategy for every<br />

www.lundbeck.com.mx<br />

61%<br />

11%<br />

29%<br />

9%<br />

77%<br />

15%<br />

India Korea China<br />

35%<br />

25%<br />

40%<br />

LOCAL OTHER FOREIGN LARGE GLOBAL (15)<br />

Source: IMS Health, MIDAS 2010. Argentina, Venezuela, Brazil, Mexico & Korea Retail only; China hospital only<br />

20%<br />

26%<br />

55%<br />

Brazil Mexico Arg.<br />

Lundbeck<br />

<strong>Pharma</strong>ceutical company<br />

with a global presence<br />

Lundbeck is a Danish company dedicated to<br />

Research and Development of medication<br />

specifically for the treatment of Central<br />

Nervous System diseases. Our products<br />

benefit millions of patients in over 100<br />

countries. Lundbeck invests a significant<br />

proportion of its resources in the search for<br />

new therapeutic solutions which are<br />

focused on our mission: to improve the<br />

quality of life for those suffering from<br />

psychiatric and neurological disorders.<br />

Lundbeck in Mexico<br />

Lundbeck started operations in Mexico<br />

in the year 2000 and since then has<br />

provided the medical community with safe<br />

and effective alternatives for managing<br />

Depression, Anxiety, Alzheimer's Disease<br />

and Schizophrenia, among others.<br />

The company's affiliates on a national level<br />

recognize the role they play in this field, and<br />

Lundbeck has proudly been recognized as<br />

one of the best places to work in Mexico.<br />

Specialists in Psychiatry<br />

Pioneers in Neurology<br />

54%<br />

13%<br />

33%<br />

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Mexico Report<br />

Mexico Report<br />

SPECIAL SPONSORED SECTION<br />

state.” He also goes on to say that, “In<br />

general, the awareness of the importance<br />

of correct pain management strategies is<br />

growing across the different institutions,<br />

and Grünenthal is<br />

playing a key role.”<br />

Awareness within<br />

government institutions<br />

and the need<br />

to treat certain conditions<br />

has become<br />

a priority within the<br />

Héctor Carrillo,<br />

General Director,<br />

Apotex Mexico<br />

pharmaceutical industry.<br />

Since public<br />

health institutions<br />

have increased their<br />

coverage of the population, the sales ratio<br />

between the government and the private<br />

market for the pharmaceutical industry<br />

as a whole has shifted in favor of<br />

the government. Awareness is the key that<br />

unlocks the door to new business opportunities,<br />

otherwise known as market access.<br />

This has been surprisingly rosy in<br />

recent times as Aurelio Martinez, general<br />

manager for Cegedim Mexico, CA<br />

& Caribbean can qualify when it comes<br />

to orphan drugs.<br />

“When the government started getting<br />

involved because of the high<br />

cost of treatments and the<br />

growth of social services, they<br />

also started listening more<br />

closely to the industry,” he says.<br />

“That is the reason why market<br />

access has gained such importance<br />

for pharmaceutical companies<br />

in Mexico.”<br />

On February 29th 2012,<br />

the government published a<br />

change in the general health<br />

law to recognize the presence of both orphan<br />

diseases and the drugs available to<br />

treat them. In essence, the Ministry of<br />

Health is now required to support the diagnosis<br />

and treatment of orphan diseases.<br />

For Markus Krenzlin, country manager<br />

of Shire Mexico, the change has been<br />

fantastic news.<br />

“Mexico has a great attitude towards<br />

Tomas Bordonaba,<br />

General Manager,<br />

Grünenthal Mexico<br />

orphan drugs,” he said. “The Mexican authorities<br />

are very conscious of the various<br />

niche problems that exist for patients across<br />

the country and have been very open in<br />

making orphan drugs available<br />

to them. This Mexican public<br />

sector consciousness is the reason<br />

why we have been able to<br />

provide patients with new treatments.”<br />

Despite a universal health<br />

coverage coming forward in<br />

leaps and bounds, figures show<br />

that coverage is still limited in<br />

some areas. Current out-ofpocket<br />

spending accounts for<br />

more than 50% of total healthcare costs,<br />

and 85% of pharmaceutical expenditure.<br />

This is more than substantial enough to<br />

fuel a large retail sector. But Mexico’s age<br />

pyramid is becoming more similar to that<br />

of a mature market each day, and for the<br />

most part this means rising healthcare costs<br />

for the government as more Mexicans turn<br />

to the state for support. Medical education<br />

is contributing towards a more effective<br />

culture of diagnosis, and chronic disease<br />

demographic is on the increase. All of which<br />

will require the Mexican government to be<br />

very well equipped with the right skills,<br />

decision makers and foresight to cope with<br />

these mammoth changes.<br />

RISING TO THE CHALLENGE<br />

Communication is the name of the game<br />

Life has not been easy for Mikel Arriola<br />

since he stepped in as head of COFEPRIS<br />

in March 2011. The organization regulates<br />

10% of the Mexican GDP and 12%<br />

of the country’s international trade, and<br />

the regulatory authority’s agenda is, and<br />

has been, fit to bursting since Arriola’s<br />

entrance. But aside from the immense<br />

responsibility and the current administrative<br />

blockages in the system, there was<br />

a different kind of challenge that presented<br />

itself first of all. For Arriola it was<br />

a completely new area, which represented<br />

a tough barrier in terms of communicating<br />

with the industry.<br />

“The most important challenge I faced<br />

when entering COFEPRIS was the hu-<br />

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man challenge. There was a<br />

myth that this agency had to<br />

be administered by doctors or<br />

by people related to the medical<br />

or pharmaceutical business,<br />

and I came from the Ministry<br />

of Finance, so<br />

conceptually, that was the biggest<br />

challenge,” he recalls.<br />

It also seemed that there<br />

was a strong sense of good copbad<br />

cop where historically the<br />

authorities seemed to systematically challenge<br />

the opinion of the industry. This required<br />

Arriola to apply a complete communication<br />

‘reset’. Regular meetings with<br />

CANIFARMA and other industry associations,<br />

together with an ‘open door’<br />

policy for meeting directly with pharmaceutical<br />

companies helped the relationship<br />

enormously.<br />

As Rafael Gual of CANIFARMA points<br />

out “The way they have been communicating<br />

and working with the [industry] has<br />

Mikel Arriola, Federal<br />

Commissioner,<br />

COFEPRIS<br />

been tremendously supportive.”<br />

Indeed, the new COFEPRIS<br />

leadership team appeared, by<br />

almost complete industry consensus,<br />

to bring about one of the<br />

most positive changes the industry<br />

has seen.<br />

Both leading up to and<br />

while Arriola and his team have<br />

been heading up the organization,<br />

there have been three<br />

main items on the COFEPRIS<br />

agenda. Firstly, the essential ‘clean up’ of<br />

the market. Secondly, the continuous improvement<br />

of regulatory framework and<br />

reduction of barriers to enter the market.<br />

Finally, the agency has been working hard<br />

to get recognition from PAHO as a regulatory<br />

body.<br />

Getting rid of bad eggs<br />

In terms of ‘cleaning up’ the market, in<br />

February 2005 COFEPRIS amended Article<br />

376 of the country’s General Health<br />

Law that mandated the renewal of every<br />

drug registration in the market. All generic<br />

pharmaceutical products were expected<br />

to have proven bioequivalence and therapeutic<br />

efficacy by February 2010. It was a<br />

much anticipated move for the industry,<br />

opening up the way for innovative and generics<br />

companies alike. It also ensured there<br />

were only two types of medicine available:<br />

generic and innovative.<br />

The reform was crucial, but it was also<br />

the main cause of the administrative backlog<br />

when the government enforced the reform<br />

in February 2010. Normally, COFE-<br />

PRIS would receive 400 renewals or<br />

registration applications per month, but<br />

in February 2010 they received more than<br />

4000. In the last twelve months, COFE-<br />

PRIS met the backlog challenge and issued<br />

an impressive 9000 renewed drug registrations,<br />

representing, Arriola said, about<br />

1.2 billion USD.<br />

To help them through this backlog, last<br />

year COFEPRIS published three separate<br />

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calls for individuals or entities interested in working alongside<br />

them. The idea was to assist COFEPRIS with the control and assessment<br />

of pharmaceutical products under the new registration<br />

scheme. Cristina Viruega, co-founder of TAPVS, one of the new<br />

authorized third parties, explains one of the many benefits of the<br />

system.<br />

“We can communicate more closely with the industry. It is just<br />

like having an official from COFEPRIS working with you in the<br />

company, helping to integrate and create the correct dossiers in<br />

anticipation of your product registration applications,” she says.<br />

This new registration setup was an important milestone in<br />

the organization’s history, and more so because it helped to phase<br />

out the so called similares from the market. Similares were legally<br />

questionable medicines without proof of bioequivalence,<br />

and incredibly popular amongst lower income population groups.<br />

Similares caused regulatory and safety concerns for the government<br />

and some say that due to adverse side effects, theyh adfi re d<br />

up suspicion in the general public about generic medicine as a<br />

whole. The elimination of similares, together with the increase<br />

in public healthcare using predominantly generic medicines, have<br />

essentially made generics more accessible to the Mexican public;<br />

both financially and psychologically.<br />

Hector Valle, general manager for IMS Health in North Lat-<br />

Strengthening Guidelines for Biosimilars<br />

Jaime Uribe, CEO,<br />

Probiomed<br />

Despite being in the Mexican market for over twenty years,<br />

biosimilars have never been regulated as a separate entity.<br />

They have always been regulated as simply another category<br />

of generic medicines.<br />

“This enabled almost unmonitored<br />

competition from China, India, South<br />

Korea and other fast-growing countries,<br />

which sometimes caused more<br />

damage than good to the patient,”<br />

explains Jaime Uribe, CEO of Mexican<br />

biosimilar company Probiomed.<br />

“This is the reason why biosimilars<br />

started to be regulated much<br />

more closely… and after five years<br />

of negotiations the law was finalized,”<br />

he continues. The Mexican guidelines for the approval<br />

of biotech and biosimilar drugs became effective<br />

in April 2012.<br />

Dr. Ana Cristina Mirassou, director of biotechnology in<br />

Jalisco-based company, Grupo IFACO, tells us how this lack<br />

of tight regulation affected the launch<br />

of their first biotechnology product.<br />

“There has been some turmoil<br />

around biotech regulation in Mexico,<br />

and for a long time, the authorities<br />

were uncertain as to which requirements<br />

to ask for in a new biotech<br />

product. Companies who were able<br />

Ana Cristina Mirassou,<br />

Biotechnology<br />

Manager, Grupo<br />

IFACO<br />

to register their products before this<br />

turmoil were granted the registration<br />

in about six months, whereas<br />

we had to wait three years.”<br />

According to BMI figures, Mexico’s<br />

biopharmaceutical sector currently employs almost<br />

25,000 Mexicans in more than 32 biotechnology companies.<br />

Biotechnology is also becoming more of a priority<br />

for many States in Mexico when compared to traditional<br />

pharmaceuticals.<br />

“The governor of Jalisco declared biotechnology as one<br />

of the key strategic industries for the state. He sees biotechnology<br />

as the future,” Mirassou says.<br />

Uribe adds, “Half of new innovative drug registrations<br />

given here in Mexico are for biotechnology products: the<br />

world is looking to biotechnology and companies are investing<br />

more and more every day.”<br />

Indeed, Mirassou sees Grupo Ifaco’s biotechnology center<br />

as the main growth driver for the group, and concludes:<br />

“Mexico is emerging as an important hub for the<br />

production of biotechnology products. Once we have our<br />

legislation in order, we will be extremely competitive, not<br />

only inside Mexico, but internationally.”<br />

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in America, says that as a company they<br />

run 10,000 interviews on a monthly basis<br />

with customers leaving the point of pharmaceutical<br />

sale. This is to understand what<br />

is happening to the end consumer.<br />

As a testimony to the increasing levels<br />

of public understanding on generics, Valle<br />

explains “80% of the people we interviewed<br />

said they understand generics, but<br />

when we ask more questions to qualify<br />

their understanding, it is actually 50%.<br />

Around 41% said that if there was a generic<br />

version of products they buy normally,<br />

they would buy the generic. That’s a<br />

huge change, and part of it has to do with<br />

the government putting a lot of information<br />

out, and also giving quick registrations<br />

for generic drugs to speed up access.”<br />

This flurry of activity to make generics<br />

more understandable and better trusted<br />

also generated a need for companies to provide<br />

bioequivalence and clinical analysis<br />

services, approved by the authorities.<br />

There were some drugs on the market<br />

that had never been submitted for clinical<br />

analysis at all. “This created an explosion<br />

of necessity that had never existed in Mexico<br />

before. There were a few clinics around,<br />

but none integrating all the services that<br />

were required.” remarks Hector<br />

Avila, general manager of CE-<br />

CyC <strong>Pharma</strong>, an authorized<br />

third party bioequivalence clinical<br />

trials center. “I decided to<br />

create a Mexican company that<br />

could cater for all those needs<br />

in one place. Our main areas are<br />

clinical research and analysis,<br />

and the whole regulatory section—because<br />

new regulations<br />

are tough to understand, and<br />

we wanted to offer this regulatory<br />

service as part of our value chain.”<br />

Reducing barriers to entry<br />

Step two on the COFEPRIS agenda was to<br />

eliminate barriers to entry in the market.<br />

This was partly done by suppressing the<br />

Héctor Valle, General<br />

Manager North<br />

Latin America, IMS<br />

Health<br />

manufacturing plant requirement enabling<br />

foreign companies to distribute and sell<br />

their products in the market hence adding<br />

to pricing competition. COFEPRIS also<br />

built a consensus around biotechnology<br />

regulation. Thirdly they issued<br />

109 new generic drug registrations<br />

in the last twelve months.<br />

The registrations granted covered<br />

almost 60% of diseases related<br />

to mortality in Mexico.<br />

According to COFEPRIS it saved<br />

around 100 million USD in just<br />

six months, and the agency will<br />

save a further 1 billion USD in<br />

private and public money over<br />

the next four years.<br />

Dr. Dagoberto Cortés, general<br />

director of Hormona Laboratories,<br />

points out that in the government’s continued<br />

push to open access and reduce barriers<br />

for cheaper generic products, they have<br />

also significantly reduced time to market.<br />

“A couple of years ago, the average time<br />

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between patent loss and generic arrival on<br />

the market was two years… today COFE-<br />

PRIS is making a great effort to reduce the<br />

time needed to issue a generic<br />

registration. In some cases the<br />

time to market has reduced to a<br />

couple of months. This is very<br />

important for the authorities because<br />

it represents a lot of savings.”<br />

International Recognition<br />

The third step for COFEPRIS<br />

is to build international recognition.<br />

In 2005, the organization<br />

launched a project with<br />

PAHO to harmonize regulators in Latin<br />

America. Since then, other countries in<br />

the region have been much faster on the<br />

uptake in recognizing the importance of<br />

being audited and approved by the international<br />

health authority. Brazil and Colombia<br />

were the first to be given recognition,<br />

followed by a string of other<br />

Dr. Dagoberto<br />

Cortés, General<br />

Director, Hormona<br />

Laboratorios<br />

countries, and only in June 2011 did<br />

COFEPRIS reinitiate the process with<br />

PAHO. At the moment they are already<br />

on their final audit: a positive<br />

sign for a country, where recognition<br />

has been long overdue.<br />

An approval from PAHO<br />

would indicate the strength and<br />

rigidity of Mexico’s sanitary<br />

regulations, and the bar that<br />

has been raised in terms of the<br />

quality of drugs produced in<br />

Mexico.<br />

As Mikel Arriola puts it, to<br />

receive PAHO certification<br />

means that “we will have closed<br />

the circle in terms of modernization of the<br />

agency and implementing the best practices<br />

required. More importantly, COFEPRIS<br />

will be able to guarantee predictability, efficiency,<br />

safety and now recognition by an<br />

external authority which is the fourth pillar<br />

in our work agenda. It will be the added<br />

value of President Calderon’s presidency<br />

– to build a strong, comprehensive and<br />

recognized sanitary institution.” he says.<br />

COFEPRIS has come a long way since<br />

it opened in 2003. It is still a very young<br />

organization that has to deal with constantly<br />

increasing responsibilities, but<br />

PAHO recognition will be the first step in<br />

sending a plain and categorical message<br />

to other regulatory agencies about Mexico.<br />

COFEPRIS would not only fulfill its<br />

role as a sanitary regulator, but also as an<br />

economic regulator.<br />

SHIFTING LANDSCAPES<br />

SHIFT STRATEGIES<br />

The patent cliff is not a ground-breaking<br />

story. It is affecting Mexico as well as other<br />

pharmaceutical markets across the globe.<br />

Sources say that in Mexico, the market will<br />

lose 600 million USD in exclusivity by 2015.<br />

Marked socio-economic differences are also<br />

playing an important role in pushing the<br />

uptake of generics, and these issues are<br />

starting to affect multinational corporations<br />

(MNCs). MNCs are being forced to<br />

open up and diversify, quite simply to have<br />

their fingers in as many pies where they can<br />

compete successfully. Alternatively they are<br />

applying a more focused sales strategy to<br />

concentrate on niche markets.<br />

Alvarez Tostado of AstraZeneca believes<br />

that MNCs need to adjust their activities<br />

to become competitive in both the private<br />

and public sector.<br />

“Mexico provides a uniquely generous<br />

market structure where you have the institutional<br />

sector, the private out-of-pocket<br />

segment of the market, and then you have<br />

the new up-and-coming popular insurance<br />

systems that will cater to those who have<br />

very little access to medical care, if they<br />

have access at all. So in that regard, I think<br />

the industry has to realign itself to make<br />

sure that it is able to provide adequate services<br />

to the institutional sector; provide<br />

broadened access to the out-of-pocket consumer,<br />

and obviously realign to be competitive<br />

in the Seguro Popular concept.”<br />

Mexico is no exception to the global<br />

trend of companies moving towards branded<br />

generics either, a successfully growing<br />

sector in a very much brand-driven Mexi-<br />

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can society. Bertrand Baron, general director of Sanofi Mexico,<br />

is confident that Sanofi’s global strategy of diversification fits well<br />

with the current climate in Mexico.<br />

“I believe that Sanofi in Mexico is a perfect<br />

example of what we are as a diversified<br />

healthcare player because here we are playing<br />

in all the markets: human vaccines, consumer<br />

healthcare, biotech, rare diseases,<br />

innovative products, generics, and soon we<br />

will be in eye care.” says Baron.<br />

Bertrand Baron,<br />

General Director,<br />

Sanofi Mexico<br />

Peter Erlbacher,<br />

COO Spanish Latin<br />

America, Aspen Labs<br />

Timothy Daveler, VP<br />

and General Director,<br />

MSD Mexico<br />

Sanofi acquired Mexican laboratory Kendrick<br />

in 2009, and last year bought Medley,<br />

the Brazilian branded generics company<br />

that currently sits at #1 in Brazil and #3 in<br />

Latin America for its category. The acquisitions<br />

are perfect examples of decisions that will allow the company<br />

to compete in all market segments.<br />

“We believe there is a huge market, and generics were a piece<br />

of the market we were not tackling. Now we are doing it with<br />

good quality brands, guaranteeing quality to both the physician<br />

and the patient.” he continues.<br />

The first products under the Medley brand were launched in<br />

the Mexican market just a few months ago with high expectations.<br />

Medley is already rising fast up the<br />

industry ranks.<br />

Aspen Labs, the South African pharmaceutical<br />

giant and relative newcomer to<br />

the Mexican market, started operations in<br />

Latin America through a 50% acquisition<br />

of Strides in 2007. Aspen found the key to<br />

success in Mexico was through turning an<br />

originally hospital-focused and opportunistic<br />

market business into a business driven<br />

primarily by promotion and branding.<br />

“In 2009, Aspen started to implement<br />

a structure that would enable us to enter<br />

into the private ethical market, or the prescription-based<br />

business. That is where we<br />

started to build up our sales and marketing<br />

team. At the same time, we were launching<br />

a small portfolio of locally developed<br />

and manufactured branded generics. The<br />

combination of the two provides a strong<br />

platform with greater brand recognition<br />

for future Aspen branded generics.” says<br />

Peter Erlbacher, COO of Aspen Labs, Span-<br />

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ish Latin America.<br />

This turnaround strategy to harness the Mexican market<br />

trends was proven successful as Erlbacher<br />

goes on to explain. “Since then, Aspen<br />

Labs has performed incredibly well: we<br />

have delivered significant growth, more<br />

than trebling our turnover in the last three<br />

years.”<br />

Other MNCs did not turn around to<br />

join the generic playground, but fought<br />

back by taking it a step further from a localization<br />

point of view. They are either<br />

Karel Fucikovsky,<br />

General Director<br />

making tailor-made solutions from their<br />

Mexico & Central<br />

America, Pierre current portfolio, or using their innovative<br />

pipelines to target niche biotechnol-<br />

Fabre Médicament<br />

ogy sectors.<br />

Tim Daveler, vice president and general director of MSD in<br />

Mexico explains, “We have a unique development laboratory<br />

here in Mexico [the Mexican Product Development Laboratory]<br />

that is not commonly seen in other companies, especially<br />

not multinational companies. We use this development laboratory<br />

to expand the lifecycle management for our products in<br />

order to meet the needs of Mexicans. Many of our products<br />

that are on the shelves in Mexico have come from our development<br />

laboratory… in order to meet the<br />

market needs here in Mexico.”<br />

Karel Fucikovsky, general director in<br />

Mexico & Central America for the French<br />

company Pierre Fabre Médicament, believes<br />

a specialty focus will bring reward.<br />

“The rules of the market will keep changing…<br />

International companies will start to<br />

Sergio Duplan, Country<br />

President and<br />

General Manager,<br />

Novartis Mexico<br />

focus on higher specialty drugs, and a company<br />

like Pierre Fabre Medicament that is<br />

very focused on products and medical specialties,<br />

will be able to deliver growth.”<br />

TOTAL PHARMACEUTICAL MARKET BY PRODUCT TYPE<br />

(MAT JANUARY 2012)<br />

Institutional<br />

Retail<br />

Generics<br />

Original<br />

brands<br />

Generics<br />

Branded<br />

Generics<br />

Original<br />

brands<br />

Value<br />

(US$ M)<br />

14.040<br />

5%<br />

19%<br />

13%<br />

21%<br />

42%<br />

Growth<br />

vs. PY<br />

2%<br />

2%<br />

7%<br />

11%<br />

1%<br />

Units<br />

(M packs)<br />

3.032<br />

35%<br />

10% 1%<br />

26% 3%<br />

12% 7%<br />

17% –3%<br />

Source: IMS Health analysis and estimates; CER:13.45 USD<br />

Growth<br />

vs. PY<br />

5%<br />

On the same tack, multinational Novartis decided to change<br />

their business model in Mexico and shift their resources away<br />

from mature brands. They are focusing their efforts on new brands<br />

in niche markets and promoting awareness and partnerships<br />

within the government.<br />

“Now our pipelines are focused on specialty products for rarer<br />

diseases treated by high-priced biotechnology products that<br />

very few people can buy for themselves. For<br />

this strategy we need to partner with the<br />

Government and Social Security system in<br />

order to get reimbursement, and so that patients<br />

can receive the products. Only now<br />

are [the authorities] beginning to open up<br />

and put resources into new products again.”<br />

says Sergio Duplan, country president and<br />

general manager of Novartis Mexico.<br />

Medical education and awareness has<br />

traditionally been quite challenging in<br />

Mexico, leading some companies to put<br />

resources into education in order for the market to open up.<br />

Angel Sosa, general director in Mexico of human protein specialists<br />

Octapharma, explains that “It is not easy to show the<br />

government authorities the savings to be made in giving patients<br />

LET’S MAKE THINGS HAPPEN.<br />

Pierre Fabre Médicament is the 2nd largest independent French pharmaceutical<br />

laboratory, and orients its development on specifically targeted therapeutic lines.<br />

The discovery of new molecules has enabled the firm to reinforce and emphasize<br />

its world-wide development.<br />

Pierre Fabre Mexico started operations 9 years ago, and is rapidly becoming a<br />

leading company in Oncology and Woman's Health.<br />

Pierre Fabre Farma de Mexico S.A. de C.V.<br />

Boulevard Manuel Avila Camacho N.191<br />

Col. Los Morales Polanco, C.P. 11150 Mexico DF.<br />

www.pierre-fabre.com<br />

Angel Sosa, General<br />

Director, Octapharma<br />

Mexico<br />

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the treatments that they require, but it is<br />

possible, and it is also the key to further<br />

developing immune deficiency treatment<br />

in Mexico.”<br />

Octapharma takes an active role in<br />

promoting this, he says.<br />

“We participate in both government<br />

and scientific meetings in which authorities,<br />

physicians and patients discuss awareness<br />

issues openly… and in the field of<br />

immune deficiencies, we have been working<br />

very closely with a patient organization<br />

by sponsoring a road trip across the<br />

country that transmits the key focal signs<br />

of the diseases to local physicians.”<br />

Here to Stay<br />

“We are clearly flying on the radar; Mexico<br />

is a priority market… and Pierre Fabre<br />

Medicament is here in Mexico to stay”, remarks<br />

Karel Fucikovsky. Despite the range<br />

of necessary strategy shifts deployed by<br />

many multinationals to stay present on the<br />

undulating Mexican landscape, it seems<br />

there is so much potential to be realized<br />

that it is duly worth the effort. In some<br />

cases, it has catapulted Mexico onto the<br />

priority list for investment and resource assignment—in<br />

some cases placing Mexico<br />

as their Latin American headquarters.<br />

Norbert Oppitz, senior vice president<br />

for Nycomed, a Takeda Company, in Latin<br />

America points out, “Today, Brazil is the<br />

most important economy, but in a regional<br />

context Mexico will be the most important<br />

player for decades to come… Mexico today<br />

is much more consolidated than many of<br />

the other so called truly emerging markets,<br />

it is a more industrialized and modern society<br />

than many people realize. Things are<br />

moving here, and one of the most dangerous<br />

things we can do as a multinational<br />

company is not to understand it.”<br />

HOME TURF<br />

On the inside, looking out<br />

If multinational companies are looking in,<br />

then you could say that Mexican companies<br />

have been looking out to send their<br />

products elsewhere. IMS Health figures<br />

show that local companies in Mexico have<br />

introduced more products to the market<br />

than multinationals in the last 10 years.<br />

In 2011 for example, national companies<br />

launched a total of 657 SKUs (stock-keeping<br />

units, or unique products) in Mexico,<br />

compared to 492 SKUs from multinational<br />

companies. In the last two years national<br />

companies have either maintained or<br />

increased promotional investment in order<br />

to gain market share. They are also<br />

finding it more tempting to look across the<br />

border and export their products—both<br />

North and South of Mexico—to increase<br />

revenue, despite the challenges faced along<br />

the way.<br />

This could possibly be explained by turning<br />

back the clock for a second. Guy Jean<br />

Savoir, general director of national company<br />

Carnot Laboratories recalls: “In 2008<br />

you could find a market that was extremely<br />

healthy and a feeling that both price and unit<br />

GLOBALIZATION<br />

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increases would continue to be prevalent;<br />

everything was easy.”<br />

In 2008, things started to change. Savoir<br />

points out that Mexico has three main<br />

sources of capital: oil, tourism, and remittance<br />

(this is the income from Mexicans<br />

working in the United States). When the<br />

global economic crisis hit the world that<br />

year, all three income sources dropped significantly.<br />

Remittance dropped, the oil price<br />

dropped after being high for so long, and<br />

tourism was sent packing after both swine<br />

flu and the spiraling war on drugs. Acquisition<br />

power reduced dramatically, at the<br />

same time COFEPRIS implemented bioequivalence<br />

regulations that suddenly enabled<br />

the public to access cheap, trusted<br />

generics. Generics didn’t stop growing, foreign<br />

competition also joined the crowd,<br />

and prices dropped even more. For the majority<br />

of companies, faces dropped too.<br />

Some companies had foreseen these market<br />

changes and preferred to look outwards<br />

and export sooner, rather than later.<br />

Guillermo Funes Rodriguez, CEO of<br />

innovative Mexican company Silanes comments,<br />

“Due to the fact that our major<br />

market was Mexico, we had to make a<br />

change ourselves. The only way was to<br />

diversify our products and go<br />

into Latin America, the United<br />

States and Europe to build up<br />

strategic alliances. We are now<br />

growing in those markets and<br />

we are currently developing new<br />

products in our European research<br />

and development facilities.”<br />

Silanes as a company puts<br />

10% of sales back into research<br />

and development. Although<br />

Mexico is still their principal<br />

market, they have also been<br />

Guy Jean Savoir,<br />

General Director,<br />

Carnot<br />

manufacturing their own products in Brazil<br />

after forming a strategic alliance with<br />

Ache Labs, the Brazilian pharmaceutical<br />

company.<br />

Silanes is the first and only Mexican<br />

company to have an innovative drug developed<br />

on home turf and approved by the<br />

FDA. The company is exporting their<br />

snake, scorpion and spider bite anti-venom<br />

to the United States and soon to parts<br />

of Africa. He notes, “if we had decided to<br />

go into the North American<br />

market with just generics, as<br />

other companies have done, we<br />

would have failed because Asian<br />

countries are selling their generics<br />

to the Americans much<br />

more cheaply than Mexicans<br />

ever could. So we had to conquer<br />

the North American market<br />

with quality and innovation<br />

in the field of biotechnology.”<br />

For most Mexican pharmaceutical<br />

companies, an FDA approval<br />

means open doors, but for Silanes<br />

the process took eleven years.<br />

Socorro España Lomeli, executive director<br />

of ANAFAM the association of<br />

pharmaceutical manufacturers, believes,<br />

“When a company wants to export, they<br />

Headquarters:<br />

Amores 1304, Col. Del Valle<br />

México D. F., C. P. 03100<br />

Tel. (52-55) 5488 3700<br />

Manufacturing plant :<br />

Prolongación 6 Norte No. 200<br />

Parque Industrial Toluca 2000<br />

Toluca, Edo. de México.<br />

Tel. (722) 548 0770<br />

www.silanes.com.mx<br />

Providing the world with health solutions<br />

AND INNOVATION<br />

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are often blocked by bureaucratic red tape<br />

and regulations which makes it impossible.<br />

It is mainly the<br />

administrative processes<br />

that pose a<br />

problem, not the<br />

quality. This has<br />

been a big hurdle for<br />

Mexico in both entering<br />

the United<br />

States market, and<br />

Arístides Torres,<br />

some Latin American<br />

markets.”<br />

CEO, Vanquish<br />

Silanes has completed its learning curve,<br />

which leads Funes to conclude: “By the<br />

end of 2013 we hope to have two more<br />

products approved by the FDA, and we<br />

will then submit a further three. Now we<br />

know the mechanisms and the processes<br />

behind approvals, we can be more efficient<br />

and faster in complying with them. The<br />

long term outlook of Silanes is fantastic:<br />

we have patented products in biotechnology,<br />

with a plant that is FDA and soon to<br />

be EMA approved. We are ready to compete<br />

globally”<br />

Many other national companies are<br />

also exporting home-grown innovation.<br />

Guy Jean Savoir of Carnot Laboratories<br />

realized that their differentiated<br />

and innovative pipeline was<br />

essential to export success.<br />

“Today Mexico is a tougher<br />

market; you have to be aware<br />

of the added benefits of a differentiated<br />

product… When you<br />

export generics the only driving<br />

factor is price, which means you<br />

have to be very price conscious<br />

if you want to succeed and be<br />

competitive. This is not our business<br />

model—we have 130 people<br />

in Research and Development and we<br />

have decided that this is the side of the fence<br />

for us to be on. In fact, our differentiated<br />

pipeline was exactly what enabled us to<br />

successfully export and launch in different<br />

markets in the first place.” says Savoir.<br />

Luis Calderón,<br />

Managing Director,<br />

Stendhal<br />

His advice: “Don’t overlook Mexican<br />

innovation. Mexico is a place where multinational<br />

companies might want to come<br />

and find out what we are doing, and to<br />

take our products into markets where we<br />

are not capable of going by ourselves.”<br />

Vanquish is another local<br />

company not fazed in the least<br />

by this “bureaucratic red tape”.<br />

The company started manufacturing<br />

in Brazil through<br />

commercial partners in Latin<br />

America, and has already started<br />

exporting their nutritional<br />

supplements to the United<br />

States.<br />

“I think it is important to<br />

be in the main markets in America…if<br />

you want to be global, you need to think<br />

big. If we can be successful in the two<br />

biggest markets in Latin America, we will<br />

be on the radar for other companies who<br />

want to have a commercial partner with<br />

the muscle to make their products and<br />

brands successful.” says Arístides Torres,<br />

Vanquish CEO.<br />

Building Trust<br />

Other companies<br />

decided to stick to<br />

their strategy during<br />

these tough<br />

times and came out<br />

on top, due to the<br />

strength of their<br />

brands and the trust<br />

built up with the<br />

medical community.<br />

Liomont Laboratories,<br />

whose<br />

portfolio is 75%<br />

Alfredo Rimoch,<br />

General Director,<br />

Liomont<br />

prescription medicine, will celebrate 75<br />

years in the industry next year and is in<br />

the top ten rankings for prescription drugs<br />

in the country. Alfredo Rimoch, general<br />

director of the company, explains how<br />

they won through on trust and reputation.<br />

“Over recent years we have put particular<br />

focus on branded generics which we<br />

promote to doctors through a very strong<br />

S15 FOCUS REPORTS AUGUST 2012<br />

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Family Business, Still Hot<br />

Figures show that 95% of Mexican<br />

businesses are still wholly<br />

family-owned and run. In fact,<br />

the family business could be<br />

seen as a ’base unit’ for Mexico’s<br />

economy. But with such a<br />

rapidly changing business environment,<br />

for how long will<br />

this hold true<br />

It seems there are many<br />

challenges to family-run companies,<br />

but perhaps they have<br />

more intrinsic benefits that may<br />

never have crossed the minds<br />

of those working for publicly<br />

traded firms. A recent article<br />

in the Economist suggested<br />

that family businesses may<br />

have longer-term vision and<br />

more solid growth because they<br />

don’t have to deliver ever-improving<br />

quarterly results to HQ.<br />

Family companies also have<br />

intimate local knowledge that<br />

no international company could<br />

match.<br />

This solidity and long-term<br />

vision is what Nicolás Rubió,<br />

attributes to his company’s survival.<br />

Industria Farmaceútica<br />

Andrómaco has been through<br />

some of the worst economic<br />

crises the country has seen.<br />

“The company was founded<br />

in Spain by my grandfather, and<br />

this year marks the 80th anniversary<br />

of Andrómaco in Mexico.<br />

In the 1980s, we went<br />

through an economic crisis and<br />

in order to survive, Andromaco’s<br />

operations downsized and my<br />

father focused on the company’s<br />

main product, Hipoglos,<br />

which enabled him to survive<br />

the downtrodden decade,”<br />

Rúbio says. The company came<br />

out of the crisis gasping for air,<br />

but ready to keep growing. It<br />

now holds 94% of market share<br />

with its strongest product, and<br />

is already exporting to the United<br />

States.<br />

Rodrigo Iturralde, corporate director<br />

of Randall Laboratories, notes that<br />

was essential for him to get a grasp<br />

of the business from an early age in<br />

order to make the best decisions for<br />

the business today.<br />

“We have been almost 60 years in<br />

the business, with the winning combination<br />

of experience and youth. I am<br />

31 years old and have been working<br />

in the company for eight years, which<br />

for me has been a great learning experience<br />

from the very beginning. I’ve<br />

learnt how to package medicine, how<br />

to sell it, how to talk with doctors, providers<br />

and distributors, and my whole<br />

family has always dedicated itself to<br />

the pharmaceutical industry.”<br />

Knowing the business so well, he<br />

concludes, is how they are able to stay<br />

flexible and form successful commercial<br />

partnerships. Randall Laboratories<br />

are “always looking for something<br />

better in the markets that correspond<br />

to our strengths as an organization.”<br />

Both companies, as all successful<br />

family enterprises, have had to make<br />

sacrifices in order to continue growing<br />

and keep up with the competitive<br />

environment. But one thing is for sure:<br />

they are part of Mexico’s social fabric,<br />

and here to stick around.<br />

Giving PATIENT NEEDS<br />

our highest priority.<br />

We provide NEW SOLUTIONS to unmet medical<br />

needs, in pain and beyond; by focusing on our<br />

core strenghts and being MARKET-ORIENTED.<br />

We are a partner of choice in Latin America<br />

with full regional coverage. Mexico is a<br />

growth driver with investment focus.<br />

We are preparing for aggressive growth<br />

– Our plan is to double sales by 2015<br />

– A significant portion relying on in-lincensing<br />

and other forms of inorganic growth<br />

– Strong track record as partner<br />

46% of sales come from in-licenced products<br />

We are interested in:<br />

– In-licensing existing or new products<br />

– Acquisitions<br />

– Open to other forms of strategic alliances<br />

Contact information for Partnerships:<br />

Business.DevelopmentMx@grunenthal.com<br />

AUGUST 2012 FOCUS REPORTS S16<br />

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sales force. We prepared well for the boom in pure generics, which<br />

took a lot of work, but we succeeded. Branded generics have existed<br />

for a long time in Mexico and we have worked for many years<br />

in promoting our vision of the company which is based on quality<br />

and trust through our services and our products.”<br />

Stendhal has based a large part of its business on in-licensing<br />

innovation from multinationals and building itself up to be the<br />

government’s partner of choice. That is not an easy task, especially<br />

when focused on the anti-retroviral market involving tricky<br />

negotiations with government healthcare institutions. The company<br />

has managed to maintain 25-30% yearly growth over the<br />

last two years and its products are now offered to 70% of HIV<br />

patients in Mexico. Luis Calderón, managing director of Stendhal,<br />

attributes this to their long-term attitude and quality.<br />

“Stendhal is not a company that looks for opportunistic business,<br />

by participating in a tender one year and disappearing the<br />

following year: we want to increase our market share sustainably<br />

and be in a place where we can adapt alongside the changing<br />

interests of the healthcare environment in order to increase<br />

patient share.” he explains.<br />

Maquila country<br />

Other companies have turned to contract manufacturing, an<br />

easier revenue generator as long as you have quality standards<br />

and long-term vision. In fact, many companies use contract<br />

manufacturing to provide the revenue needed to develop their<br />

own brand.<br />

This is the case with Biofarma Natural CMD, whose general<br />

director Ignacio Luna explains, “Creating a brand in Mexico involves<br />

many years of hard work and a lot of investment, and for<br />

us it has been much easier to simply generate revenue through our<br />

manufacturing strengths. We are proud of the fact that we are one<br />

of the only manufacturing plants in Mexico granted licenses for<br />

both medical products and herbal products. We have all the certificates<br />

and Good Manufacturing Processes (GMPs) that go with<br />

it. This attracts companies in the industry who are searching for<br />

high quality.”<br />

TOO MUCH TORTILLA<br />

According to the BMI’s Burden of Disease Database (BoDD), a few<br />

years ago diabetes represented 6% of all disability-adjusted life<br />

years (DALYs) in Mexico. This figure will continue to rise until<br />

more than 1.5 million DALYs are lost to the disease less than fifteen<br />

years from now. Local data indicates that more than a third<br />

of Mexicans who have diabetes are unaware that they are suffering<br />

from the disease. As it stands, diabetes represents about 35%<br />

of all Mexico’s public health spending, and data published suggests<br />

that there will be more than 13.5 million sufferers by the year<br />

2025.<br />

Diabetes is clearly Mexico’s biggest current health problem,<br />

which may be explained by the fact that Mexico is currently top<br />

in the world for child obesity, and number two for adult obesity.<br />

Although looking at increasingly popular eating habits in Mexico,<br />

the problem most likely isn’t too much tortilla. It is the highly<br />

westernized diet that has crept into Mexican society in the form<br />

of too many processed foods and far too many sugar-filled sodas.<br />

Joel Durán, director of marketing at diabetes specialist Novo<br />

Nordisk in Mexico, suggests that due to the sheer size of the<br />

problem, a solution backed by all stakeholders in the market<br />

needs to be found.<br />

“Given the speed at which diabetes is rising we need stronger<br />

collaborations and partnerships in order to change the mentality<br />

of the Mexican people. If we do not do this, we will not<br />

achieve the common goal of changing the face of diabetes and<br />

tackle the problem in the most effective way. We should beat diabetes<br />

before it beats us. That is our main concern—how can<br />

we make a change and how can we participate and provide knowledge,<br />

expertise, education, and be a factor of change in terms of<br />

finding a solution, to ultimately beat diabetes.”<br />

Not many people can disagree with that stance, but it may<br />

be easier said than done.<br />

The three largest social security institutions in Mexico; IMSS,<br />

ISSTE and Seguro Popular, run specific diabetes programs that<br />

include nutritional education and psychological support. They<br />

are also trying to include a wider selection of pharmaceutical<br />

treatments in an attempt to provide more comprehensive care.<br />

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But are these enough<br />

If combating diabetes requires a complete<br />

change in mentality for Mexicans,<br />

then it certainly is a tall order. It is far<br />

more achievable if the pieces of the current<br />

mentality puzzle can be put together<br />

and understood. Many people say that<br />

there is a social stigma surrounding diabetes<br />

and a dislike of anybody knowing<br />

that you have the disease. This would<br />

probably explain the high percentage of<br />

undiagnosed sufferers. Durán<br />

believes there is a strong emotional<br />

connection with food in<br />

Mexico because of the high proportion<br />

of family events that<br />

involve eating, and the thought<br />

of treatment might drag patients<br />

away from being able to<br />

participate.<br />

“This emotional connection<br />

is preventing a lot of patients<br />

from making small but crucial<br />

changes in diet and lifestyle<br />

habits that would enable better<br />

treatment compliance,” he explains.<br />

If mentality is the underlying cause of<br />

both under-diagnosis and non-compliance<br />

with treatment, it becomes even more important<br />

to break down barriers and to<br />

start to tackle this elephant of a problem.<br />

Carlos Baños, president and general director<br />

of Eli Lilly in<br />

Mexico believes,<br />

along with the majority<br />

of the industry,<br />

that education<br />

is essential for treatment<br />

compliance.<br />

This not only involves<br />

telling people<br />

Joel Durán, Marketing<br />

Director, Novo<br />

Nordisk Mexico<br />

about the disease<br />

and what they need<br />

to do, but tailormaking<br />

real educational<br />

solutions for society.<br />

“In Mexico the average person reads<br />

fewer than two books a year. This is a big<br />

challenge because we can produce the most<br />

beautiful material about how to manage<br />

diabetes, but achieve nothing because the<br />

materials have not been read.” One of Eli<br />

Carlos Baños,<br />

President and General<br />

Director, Lilly<br />

Mexico<br />

Lilly’s solutions to the problem is an educational<br />

tool called Diabetes Conversations<br />

Maps.<br />

“This tool was developed<br />

globally and adapted locally to<br />

adjust to the culture of Mexico.<br />

It is a game, similar to Monopoly,<br />

which helps teach people living<br />

with diabetes and their family<br />

all they need to know on the<br />

disease and how to care for themselves.”<br />

he continues.<br />

When it comes to<br />

diabetes treatments,<br />

the sharp increase of competition<br />

in the field has made brand<br />

loyalty more important than<br />

ever. Increasing compliance and<br />

making the physician’s life easier<br />

is essential. Education to ensure<br />

brand loyalty can often be<br />

seen in Mexico in the form of<br />

a trained nurse who spends<br />

more time with the patient than<br />

Carlos López Patán,<br />

General Director,<br />

Medix<br />

the doctor in the patients’ own homes, to<br />

show them how to use the treatment equipment,<br />

how to clean it and<br />

store it properly. A big investment<br />

on the part of the pharmaceutical<br />

companies, but<br />

brand loyalty for chronic illnesses<br />

seems to be worth it.<br />

Carlos López Patán, general<br />

director of Medix, the<br />

Mexican specialists on obesity,<br />

explains that for him,<br />

the key to success in providing<br />

obesity treatment lies in<br />

the provision of an entire catalogue of<br />

individualized services and products.<br />

“It is important to recognize the three<br />

phases in obesity treatment, the first step<br />

being diagnosis. The second step is to treat<br />

and manage the disease, and the last step<br />

is to maintain the healthy weight achieved<br />

by the completion of the first two steps.<br />

By creating products for each step in the<br />

process—the diagnosis, treatment and<br />

AUGUST 2012<br />

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maintenance—we are not just offering a<br />

product, but a holistic solution that addresses<br />

many factors in the equation,”<br />

says Lopez Patan.<br />

“Since we started reinforcing and developing<br />

this central model, we<br />

have been growing very rapidly:<br />

the annual average increase<br />

rate is 20%... we are number<br />

one in the private prescription<br />

market supplying almost 40%<br />

of the total units,” he continues,<br />

attributing the success to<br />

their integrated approach.<br />

Oscar Parra,<br />

General Manager,<br />

Lundbeck<br />

It is not only diabetes and<br />

obesity that are increasing as<br />

Mexican lifestyles become<br />

more developed. The prevalence<br />

of CNS illnesses is also on the up.<br />

The more developed a society becomes,<br />

the more prone people are to illnesses<br />

such as depression. The WHO <strong>report</strong>s<br />

that the highest levels of growth in depression<br />

are coming from emerging markets<br />

like Mexico. Oscar Parra left Mexico<br />

eleven years ago and came back last<br />

year as general manager for Lundbeck<br />

Mexico, the CNS specialists.<br />

“I believe Mexican attitudes have<br />

changed a lot. When I left the<br />

country people were talking<br />

about depression as a weakness,<br />

and now people refer to it as a<br />

disease. Patients are much more<br />

likely to see a general doctor or<br />

a psychiatrist to talk about it<br />

now than they were ten years<br />

ago.” For pharmaceutical companies,<br />

CNS seems to be an area<br />

of true opportunity.<br />

“The CNS market in Mexico<br />

is growing much faster than<br />

the rest of the market: depression at 9%,<br />

Alzheimer’s at 16%,” continues Parra.<br />

Diabetes, obesity and CNS diseases are<br />

growing at a fast pace in Mexico, and the<br />

burden of indirect costs for these diseases<br />

is often higher than the treatment for the<br />

diseases themselves. Surely this means that<br />

with the right amount of education in the<br />

right place, governments should be waking<br />

up to the benefits of making access to<br />

treatment more available. As the stigma is<br />

slowly shaken off, more patients should<br />

also be willing to get diagnosed and comply<br />

with treatment. This combination<br />

makes a market ripe for picking.<br />

UNREACHED POTENTIAL<br />

According to industry data, the pharmaceutical<br />

sector represented 7.2% of Mexico’s<br />

manufacturing GDP last year. When<br />

compared to other manufacturing industries<br />

in Mexico, this is significant, but by<br />

no means in star place.<br />

The presence of foreign and local clinical<br />

research organizations (CROs) has<br />

also increased substantially over the last<br />

few years. This is both as a result of a recent<br />

tightening of regulations, and a sign<br />

that Mexico is becoming more strategic<br />

for foreign investors.<br />

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But can we call Mexico a real ‘hub’ for<br />

the pharmaceutical industry<br />

This June, the 21st Convention of CAN-<br />

IFARMA was held in Merida in the State<br />

of Yucatan. The event culminated in defining<br />

the sector’s development plan concerning<br />

the coming period 2012-2018. The<br />

first phase defined 54 courses of action representing<br />

the strategic points that can empower<br />

the industry. The second phase was<br />

the integration of the industry’s first census<br />

in Mexico, delivered in Merida.<br />

The census concluded that of course it<br />

was necessary for the 186 companies that<br />

make up CANIFARMA to come together<br />

to turn the industry into an authentic generator<br />

of jobs, attractive for new investments,<br />

but with a special focus on manufacturing.<br />

Rafael Gual of<br />

CANIFARMA<br />

clearly states, “Our<br />

goal is to make the<br />

Mexican pharmaceutical<br />

industry the<br />

biggest manufacturing<br />

sector in Mexico<br />

Miguel A. Salazar,<br />

General Director,<br />

Boehringer Ingelheim<br />

Mexico<br />

over the next 5 to 6<br />

years. Currently<br />

pharmaceutical<br />

manufacturing represents<br />

7% of manufacturing<br />

GDP in Mexico, and we want<br />

to push it into first place.”<br />

In 2008 COFEPRIS abolished articles<br />

168 and 170 of pharmaceutical legislation,<br />

which meant that companies no longer<br />

needed a plant in Mexico in order to distribute<br />

their products in the country. Since<br />

then, five companies have entered the market<br />

without a Mexican manufacturing<br />

plant. This includes Spanish company Menarini,<br />

Daiichi Sankyo from Japan, and<br />

Swedish Meda <strong>Pharma</strong>. But it also resulted<br />

in several multinationals re-assessing<br />

their Mexican manufacturing strategies<br />

as plants were no longer required to be<br />

part of the market.<br />

Miguel A. Salazar, general director of<br />

Boehringer Ingelheim Mexico points out,<br />

“The pharmaceutical real estate market is<br />

getting crowded because everyone is selling<br />

their plants.”<br />

Facilities of Boehringer Ingelheim<br />

There are some obvious benefits in setting<br />

up a manufacturing hub for Latin<br />

America in Mexico, as compared to Brazil.<br />

Labor costs are significantly lower, it is<br />

geographically very strategic bordering the<br />

United States, and Mexico also shares a<br />

common language with most of the region.<br />

“In 1995, Boehringer Ingelheim wrote<br />

their manufacturing strategy and decided<br />

that Mexico was to be a center of excellence<br />

in terms of manufacturing, and the<br />

company invested more than 70 million<br />

USD in a new plant which would be one<br />

Taking care of your<br />

health, naturally.<br />

Your partner of choice for<br />

herbal medicines.<br />

of the manufacturing hubs for the rest of<br />

the world.” says Salazar, confident of the<br />

company’s award-winning plant located<br />

in the south of Mexico City.<br />

“Around 60% of our products are exported<br />

globally and 40% is local. We are<br />

focused on high quality and high delivery.”<br />

He continues.<br />

Along the same lines, Bertrand Baron<br />

of Sanofi comments, “Today we have three<br />

manufacturing sites in total and we strongly<br />

believe in increasing our business in<br />

Mexico… 80% of what we sell in terms<br />

of volume is coming from our local plant.<br />

I would be shooting myself in the foot if I<br />

withdrew our Mexican plant.”<br />

Despite these multinationals here to<br />

stay, how can the industry live up to Gual’s<br />

tough target of becoming the number one<br />

manufacturing sector for the country Socorro<br />

España Lomeli of ANAFAM strongly<br />

believes that the government should play<br />

a bigger role, especially when it comes to<br />

local companies.<br />

If you are interested in forming strategic alliances, please contact us!<br />

Circuito de la productividad No. 105, Parque Industrial Guadalajara<br />

El Salto, Jalisco, Mexico, C.P. 45690<br />

Teléfono: 0052 33 3836 4570 | Fax: 0052 33 3836 4593<br />

www.biofarmalab.com.mx<br />

AUGUST 2012 FOCUS REPORTS S20<br />

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“I believe fiscal incentives are very important<br />

because they encourage industries<br />

to grow,” she concludes.<br />

These fiscal incentives have not only<br />

been suggested for manufacturing in Mexico,<br />

but also for research and development,<br />

specifically clinical trials. Mexico has traditionally<br />

been a strong choice for performing<br />

clinical trials due to the wideranging<br />

demographic and different<br />

climates. The combination gives rise to a<br />

sufficiently diverse patient pool. Moreover,<br />

due to the rapidly growing Hispanic population<br />

in the United States it will become<br />

more and more important to have a Mexican<br />

clinical subset in every trial.<br />

Salazar agrees: “There is not one single<br />

clinical trial in the company in which<br />

Mexico is not participating. It has allowed<br />

us to gain rapid approvals for products due<br />

to the preference given to clinical trials<br />

performed in Mexico with Mexican researchers<br />

and Mexican patients. COFE-<br />

PRIS is willing to give fast-track approval<br />

when they see Mexico getting involved.”<br />

Bertrand Baron concurs:<br />

“Last year we did 102 clinical trials in<br />

Mexico with almost 1,000 researchers participating<br />

in them. Mexico has been a significant<br />

participant in one of our most important<br />

R&D projects which is the dengue<br />

vaccine development. All of Sanofi’s research<br />

in [Latin America] is managed from here”<br />

However, Mexico has not seen as large<br />

an investment in clinical trials as it could<br />

have. Arturo Rodriguez, director of Mexican<br />

CRO, Infinite Clinical Research, believes<br />

it has to do with administrative inefficiency.<br />

“It now takes almost triple the time to<br />

get approvals, which sometimes means we<br />

lose out on clinical trials because customers<br />

move them to other countries, predominantly<br />

in Asia.” However, he admits that,<br />

“Today, the regulation process length can<br />

be attributed to the audit from the Pan<br />

American Health Organization, which<br />

spurred the harmonization with international<br />

guidelines, in turn making Mexico<br />

competitive on an international level.”<br />

Mexico will be holding the annual Latin<br />

American CRO Congress later this year:<br />

a key indication that they are taking a more<br />

active role in promoting clinical trials in<br />

the country.<br />

Can Mexico reach its so far unreached<br />

potential as a pharmaceutical production<br />

and clinical trial hub for Latin America<br />

Perhaps if we take the tightening regulatory<br />

environment, the imminent PAHO<br />

approval of COFEPRIS, and the stable<br />

economic situation, combined with relatively<br />

low labor costs and the geographically<br />

strategic position, things get more<br />

interesting. Put these factors together with<br />

the 186 CANIFARMA member companies<br />

joined in a common and determined<br />

goal… watch this space!<br />

PHARMA’S AFFAIR WITH PRIVATE LABELS<br />

When asked to define the three most impactful<br />

changes on the Mexican pharmaceutical<br />

industry over the last few years,<br />

executives put Seguro Popular and COFE-<br />

PRIS regulation in the lead. The third<br />

change is muttered perhaps a little more<br />

reluctantly. “The Point of Sale”.<br />

The truth is that the rise of large pharmacy<br />

chains is starting to hit the industry<br />

in big way. This is a fast-moving shift of<br />

control away from the pharmaceutical<br />

wholesalers, who have been the traditional<br />

torch bearers. It does not just change the<br />

dynamics of the industry today; it transforms<br />

the future dynamics of the pharmaceutical<br />

landscape.<br />

<strong>Pharma</strong>cy chains are gradually moving<br />

their purchasing ratio in favor of buying<br />

directly from pharmaceutical manufacturers<br />

as opposed to wholesalers. The manufacturers<br />

involved face opposition from<br />

wholesalers, but they can still see the potential<br />

benefits, and act on them.<br />

Farmacias del Ahorro, one of Mexico’s<br />

largest pharmacy chains, is starting<br />

to take warehousing and distribution into<br />

its own hands. It recently opened a large<br />

warehouse just outside of Mexico City<br />

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Mexico<br />

Mexico<br />

Report<br />

Report<br />

Roll Up your Sleeves!<br />

Recruiting and retaining fresh, entrepreneurial<br />

talent is a challenge that all<br />

Mexican pharmaceutical companies<br />

have to face. Given the rapidly evolving<br />

business environment, companies<br />

need rapidly evolving employees that<br />

are not daunted by a challenge. There<br />

is a strong talent pool in Mexico, but<br />

smaller companies face a bigger challenge<br />

without an internationally renowned<br />

company name and brand with<br />

which to attract good people in the first<br />

place.<br />

Young local company More <strong>Pharma</strong><br />

is aiming to establish itself as the partner<br />

of choice for in-licensed innovative<br />

products coming from the United States<br />

and Europe. CEO Guillermo Ibarra explains<br />

what he offers potential recruits,<br />

the kind of person he looks for, and<br />

the challenges involved:<br />

How do you recruit the right talent when<br />

up against other young companies looking<br />

for the same people<br />

“The way I sell the company to any candidate<br />

is that when they are tired of<br />

big pharma; come to us. It is not a politically<br />

correct statement… but the<br />

Guillermo Ibarra, CEO (left), and his management<br />

team, More <strong>Pharma</strong><br />

umbrella message is that when you<br />

are tired of lengthy and bureaucratic<br />

decision making processes and you<br />

feel better in an entrepreneurial environment;<br />

come to us. I don’t think there<br />

are good or bad companies, just different<br />

environments that fit different<br />

personalities.”<br />

“Any position within the company is<br />

a very entrepreneurial one, we don’t<br />

hire agencies or third parties, we do<br />

everything ourselves, it’s a hands-on<br />

business model.”<br />

What kind of recruit would most fi t<br />

More <strong>Pharma</strong>’s corporate philosophy<br />

“Every time we look for a new employee,<br />

we need someone who can react fast,<br />

take decisions, act swiftly and execute<br />

in an even faster changing environment.<br />

We look for people who will roll up their<br />

sleeves, and you can usually see this<br />

during the interview process.”<br />

If you have such well-trained and entrepreneurial<br />

staff, how do you stop<br />

them from walking away from More<br />

<strong>Pharma</strong> and joining another company<br />

“When you work in a large company,<br />

you need a ‘glue’ to make everybody<br />

stick to the same set of values, and that<br />

is a best practice we have adopted at<br />

More <strong>Pharma</strong> as well. Two years ago<br />

we defined and launched our set of core<br />

values, and launching these values<br />

meant a commitment from top management<br />

to each company associate.<br />

We believe in our culture and we want<br />

every More <strong>Pharma</strong> team member to<br />

live according to our values. This culture<br />

has helped us create passion for our<br />

company, increasing ownership of our<br />

growth plans. We have been able to increase<br />

employee’s satisfaction while<br />

improving overall company results.”<br />

and is planning to open two more in the<br />

coming years.<br />

“The most recently opened warehouse<br />

will account for 70% of the units that we<br />

buy directly; today we have a ratio of<br />

roughly 60/40 favoring direct purchasing<br />

from the pharmaceutical companies,” says<br />

Gabriel Zavala, the company’s commercial<br />

director.<br />

“The distributors will always be necessary<br />

in the future. But at the same time,<br />

we will be prepared for ongoing changes<br />

in the market with the infrastructure to<br />

support more laboratories if they wish to<br />

sell directly.”<br />

With more pharmaceutical companies<br />

selling directly to pharmacy chains and<br />

chain supermarkets, the niche of 3rd party<br />

pharmaceutical logistics has opened a little<br />

more. For companies that specialize in this<br />

area, the need to offer differentiated ser-<br />

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vices is a key factor in the ever more competitive<br />

environment.<br />

Mario Sicilia, CEO of 3 rd party logistics<br />

company BOMI Mexico tells us, “Our<br />

main competitive advantages are specialization<br />

and personalized relationships.<br />

The flexibility in the<br />

procedures that we offer is another<br />

relevant competitive advantage.<br />

We can adjust our<br />

accounts receivable, warehousing<br />

and shipping accordingly.”<br />

On the other side of the<br />

coin, opportunities are not just<br />

opening up in the private market,<br />

but in the public sector<br />

too. The number of Mexicans<br />

who benefit from public healthcare<br />

has doubled in the last decade causing<br />

a number of infrastructural problems<br />

within the system.<br />

Jorge Escalona, general director of<br />

Gabriel Zavala,<br />

Commercial General<br />

Director, Farmacias<br />

del Ahorro<br />

MAYPO, a pharmaceutical wholesaler that<br />

works exclusively with large government<br />

institutions explains, “In the past, all [government]<br />

institutions had their own infrastructure<br />

and were operating their own<br />

warehouses. Distributors merely<br />

had to deliver the products to<br />

the government warehouse and<br />

then the health institution would<br />

be in charge of delivering the<br />

products to the hospitals.”<br />

But since the growth of Seguro<br />

Popular, which has no<br />

physical infrastructure, the situation<br />

has changed. Government<br />

distributors have to provide<br />

a much more comprehensive<br />

service.<br />

“The suppliers and distributors now<br />

have to deliver to the hospitals directly –<br />

which means that when we used to have<br />

just one point of delivery, we now have hundreds.<br />

The second major shift is that in the<br />

past, the government was responsible for<br />

dispensing, whereas today it is the distributor’s<br />

responsibility. The government pays<br />

the distributors upon dispensing, and no<br />

longer upon delivery.” he continues.<br />

Not only are pharmacy chains buying<br />

directly from pharmaceutical companies,<br />

but a more visual change is taking place.<br />

Private label drugs have had a growth explosion<br />

in Mexico and are affecting the<br />

way both national and international companies<br />

operate.<br />

Hector Valle of IMS explains, “The<br />

national companies who used to sell to<br />

the government are now coming to the<br />

private market because of the price drop<br />

in the institutional sector. Now private<br />

labels give them a very good opportunity<br />

to do just that. This enables national companies<br />

to grow but also affects the brands<br />

from multinational companies as well.”<br />

Companies promoting their own brands<br />

to sell in retail stores, at the same time find<br />

themselves increasingly attracted to manufacturing<br />

private label goods for that very<br />

same point of sale. <strong>Pharma</strong>ceutical companies<br />

are ‘having an affair’ with private<br />

labels, but can they have their cake and<br />

eat it, too<br />

Local company Gelpharma is doing<br />

just that. Luis Verduzco, managing director<br />

of the company, realizes just how important<br />

private labels are to his business<br />

after producing primarily for the public<br />

sector.<br />

“The private market didn’t have the<br />

same level of uncertainty as the government<br />

market, so we changed direction. At the<br />

moment, we are giving higher priority to<br />

third party manufacturing for private labels<br />

because the relationships we are forming<br />

with pharmacy chains and supermarkets<br />

are extremely important. If we don’t<br />

make those relationships robust now, maybe<br />

in a couple of years there will be another<br />

company offering the same service and<br />

we will lose market share.”<br />

The core Mexican business of U.S. company<br />

Perrigo is to manufacture private label<br />

medicines. When compared to the United<br />

States or Europe, up until now Mexico<br />

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has been fairly slow on the uptake of private<br />

label products. But not only for pharmaceuticals.<br />

Ricardo Ganem, vice president<br />

and general manager of Perrigo<br />

Mexico, explains why it took<br />

so long.<br />

“For many years, store<br />

brands in general were all about<br />

putting a “cheaper” product<br />

next to the leader with focus<br />

on low prices, but often at the<br />

expense of quality. The stigma<br />

that private labels are low quality<br />

stayed in the mind of the<br />

Mexican consumer, but this<br />

has changed dramatically over<br />

the last several years.”<br />

Ricardo Ganem,<br />

VP and General<br />

Manager, Perrigo<br />

Mexico<br />

Ganem also notes that Mexico is the<br />

country with the highest brand loyalty<br />

index. He observes that this can be explained<br />

by studies on the monopolistic<br />

advertising structure favoring high-priced<br />

media such as television, for the last 60<br />

years. Ironically, this historical attrition<br />

to well-known brands is exactly what is<br />

helping to make private label generic medicines<br />

successful now. Mexicans feel confident<br />

buying own-brands from<br />

pharmacy and supermarket<br />

chains that they know and love.<br />

In August 2010, regulations<br />

prohibiting the sale of antibiotics<br />

in retail pharmacies were<br />

implemented by the health authorities,<br />

with the intention of<br />

reducing risk related to inappropriate<br />

usage of antibiotics<br />

and increased bacterial resistance.<br />

Retailers came up with<br />

a solution in the form of having<br />

a qualified doctor on site to avoid any<br />

problems, which also fuelled the intense<br />

rise of private label medicines.<br />

A recent study by IMS Health showed<br />

that the majority of Mexicans who use a<br />

doctor at the point of sale had used the<br />

service up to ten times previously. This is<br />

clear evidence of its popularity. The most<br />

common reasons for using a doctor present<br />

in a pharmacy were found to be convenience<br />

and low price; the perfect combination<br />

for a busy, working Mexican on<br />

a budget.<br />

So what next for the private label business<br />

at the points of sale Ganem is already<br />

thinking to the future and working<br />

on innovative ways to develop his customers’<br />

products.<br />

“I’ll give it another three or four years<br />

before most retailers will have upgraded<br />

strategies in place with differentiated<br />

brands to satisfy specific consumer<br />

needs.”<br />

Zavala adds, “Many years ago power<br />

in the industry was in the hands of the<br />

pharmaceutical companies, a few years<br />

after that it was in the hands of the distributors,<br />

and today we have it in the points<br />

of sale.”<br />

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INTERVIEW WITH:<br />

MIKEL ARRIOLA, FEDERAL COMMISSIONER, COFEPRIS<br />

It’s been one year since you<br />

were appointed as Federal<br />

Commissioner of COFEPRIS<br />

in March 2011. What have<br />

been the biggest challenges<br />

you’ve faced within this<br />

time<br />

The biggest challenge was to familiarize<br />

myself with the new agency.<br />

COFEPRIS regulates every sanitary<br />

risk relative to any industry- we regulate 10% of Mexican GDP,<br />

and 12% of Mexican international trade, and the most important<br />

challenge I faced when entering COFEPRIS was getting<br />

to know with whom I was dealing. There was a myth that this<br />

agency had to be administered by doctors or by people related<br />

to the medical or pharmaceutical business, and I came from<br />

the Ministry of Finance, so conceptually, that was the biggest<br />

challenge.<br />

However, the first physical challenge was facing the huge<br />

backlog of sanitary registrations. We had a great legal reform<br />

in 2005 that mandated the renewal of every drug registration<br />

in the market to ensure that we had only 2 types of medicines:<br />

generics and innovative medicines. This reform was crucial,<br />

but the government didn’t regulate this reform in administrative<br />

terms until 5 years later. Therefore in February 2010, when<br />

we had to face the deadline for renewals, we were not prepared.<br />

Under normal conditions, COFEPRIS receives 400 applications<br />

a month in terms of renewals and new registrations,<br />

and in February 2010, we received in a single month, more<br />

than 4000. This agency went into an administrative crisis, and<br />

when I arrived from the Ministry of Finance, had to deal immediately<br />

with the backlog. COFEPRIS issued 150 registrations in<br />

2010. Between March 2011 and March 2012, we issued 9000<br />

registrations, so I think we have met this challenge. We still<br />

have a lot to do but if you measure it in terms of value, those<br />

9000 registrations represent 1200 million USD.<br />

The other challenge was also to be very clear as to what we<br />

want in terms of pharmaceutical policy. Our pharmaceutical<br />

policy is to provide the patient – our main object of protection<br />

– with the best alternatives in the market. Therefore, we have<br />

to take out all the barriers to entry into the market to provide<br />

the best quality and the best prices. The COFEPRIS universe<br />

was unreadable and lacking priorities; we needed to set them<br />

and to reset communication with the whole industry.<br />

Another strategy was to establish access to medicines for all<br />

Mexican families – so we started to issue sanitary registrations<br />

for generic drugs. Before that, we didn’t have a strategy as a<br />

government regarding generics: we are the OECD country that<br />

spends the most on private health expenses, and the second<br />

worst in public spending. So since October, we have issued<br />

109 generic registrations, covering almost 60% of the diseases<br />

related to mortality of Mexican population, and saving since<br />

October 2011 until March 2012 around 100 million USD. We<br />

are expecting savings of 1000 million USD in private and public<br />

money during the following 4 years.<br />

What steps have you taken to actively change<br />

the reputation of COFEPRIS in the minds of the<br />

Mexican public, and in the pharmaceutical industry<br />

The COFEPRIS universe<br />

was unreadable and lacking<br />

priorities; we needed<br />

to set them and to reset<br />

communication with the<br />

whole industry.<br />

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We have to assume our<br />

position as a sanitary<br />

regulator, but also as an<br />

economic regulator, and<br />

build strong relations with<br />

the sectors we manage<br />

We have to generate predictability for the market, and send<br />

the right messages to our regulated industries, and by doing<br />

so, we are going to have a better set of alternatives for the<br />

consumer, hence protecting public health. We have to assume<br />

our position as a sanitary regulator, but also as an economic<br />

regulator, and build strong relations with the sectors we manage.<br />

For example, we are now holding monthly meetings with<br />

CANIFARMA to discuss a growth agenda for the market which<br />

has generated a lot of solutions. I invest a lot of my time receiving<br />

companies of all sizes and, I suppose, this is how the image<br />

of the institution has changed. We need to be the best for the<br />

health of the consumer and the industry can’t survive without<br />

a market; we can’t meet our objective to protect the consumer<br />

if we don’t regulate firmly but with a commitment to both<br />

industry and consumers.<br />

Latin American countries, including Brazil. We have the second<br />

best public deficit in the OECD region and Mexico is the<br />

third country in terms of inflation in Latin America, we have<br />

balanced trade, a strong framework of free trade agreements,<br />

and we have been open since the 1980s to capital markets. If<br />

you translate this to the pharmaceutical market, it means we<br />

have lost our first place in terms of market size, but we want<br />

to win it again!<br />

COFEPRIS should gain recognition from the<br />

Pan American Health Organization (PAHO) before<br />

the end of the year, opening up the door for<br />

Mexican exports to Latin America. Which steps<br />

has COFEPRIS had to go through and which<br />

steps remain to gain this recognition<br />

In 2005 Mexico launched a project with PAHO to harmonize<br />

regulators in Latin America, however since June 2011, we<br />

started rebuilding our relationship with them, and decided<br />

to initiate the process of PAHO recognition. We had the first<br />

informal audit in August, and the second informal audit in<br />

December was much better with an 8.4 out of 10 result. I’m<br />

pretty confident we will receive certification this year, and if<br />

we do, we will have closed the circle in terms of modernizing<br />

of the agency and implementing the best practices required by<br />

PAHO. As a direct effect of PAHO recognition, our documents<br />

are going to be recognized by Brazil, Colombia, and other<br />

Latin American countries which will greatly empower our exporters<br />

and take a lot of transaction costs out of their balance<br />

sheets. It’s a very attainable goal. More importantly, COFEPRIS<br />

will be able to guarantee predictability, efficiency, safety and<br />

recognition by an external authority which is the fourth pillar<br />

in our work agenda.<br />

We have heard many times that the Government<br />

should start to see COFEPRIS not just as<br />

a quality controller, but as a promoter for Mexican<br />

exports. How do you achieve this<br />

This year I learnt that the Mexican pharmaceutical industry is<br />

an industry with great quality, and is a huge asset for the Mexican<br />

economy. If we can work with the industry to expand their<br />

opportunities to invest internally and externally, we are making<br />

a change for our country. We have to be creative, and build<br />

the best profile for the Mexican industry to be able to attract<br />

more investment and provide better opportunities. We have<br />

to create a more flexible market, and the best tool to create<br />

this is regulation. I want to be very aggressive in terms of gaining<br />

market share internationally. The Mexican government has<br />

built the best economic situation in terms of macroeconomic<br />

policies and our economic structure holds better than other<br />

What do you feel have been the most significant<br />

achievements of COFEPRIS since you have<br />

been in place managing the organization<br />

We designed a very specific strategy when we first arrived in<br />

COFEPRIS, and I think we have been quite successful in complying<br />

and enforcing it. Firstly, we had to reduce the backlog,<br />

and we have since then issued 9000 registrations. Secondly,<br />

we had to improve our regulatory framework and eliminate<br />

barriers to entry into the market, which was done by issuing<br />

109 generic registrations, suppressing the manufacturing<br />

plant requirement and building consensus around our regulations<br />

on biological products and bio-similars. Thirdly, we had to<br />

build international recognition, and we are in the process with<br />

the pending PAHO recognition. My conclusion is that we have<br />

a strategy to reinforce the Mexican market for the well-being<br />

of our patients and we are on the right path.<br />

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INTERVIEW WITH:<br />

PETER ERLBACHER, COO SPANISH LATIN AMERICA, ASPEN LABS<br />

What was Aspen’s original<br />

strategy behind the acquisition<br />

of their Latin American<br />

business through India-based<br />

Strides Arcolab<br />

Limited (Strides) How has<br />

it lived up to expectations<br />

since Aspen entered the<br />

market in 2007<br />

Initially Aspen’s 2007 transaction<br />

with Strides took the form of a 50/50 joint venture. We were<br />

looking for an opportunity to acquire an existing business that<br />

could provide a platform which we could really build on and<br />

that we could make the necessary changes to in terms of the<br />

business strategy.<br />

When Aspen moved into Latin America, we had already<br />

negotiated on a global basis with multinational companies<br />

like GlaxoSmithKline, and were therefore able to source global<br />

products that offered existing brand equity. This approach enabled<br />

Aspen to enter the Latin American market immediately<br />

and to gain credibility from the start of our private market<br />

operations.<br />

In 2009, Aspen started to implement a structure that would<br />

enable us to enter into the private ethical market, or the prescription-based<br />

business. That is where we started to build up<br />

our sales and marketing team. At the same time, we were<br />

launching a small portfolio of locally developed and manufactured<br />

branded generics. The combination of the two would<br />

provide a strong platform with greater brand recognition for<br />

future Aspen branded generics.<br />

Since then, Aspen Labs has performed incredibly well: we<br />

have delivered significant growth, more than trebling our turnover<br />

in the last three years. Organic growth is gaining momentum,<br />

and we are now securing new product registrations that<br />

were submitted through Aspen’s South African pipeline.<br />

Do you expect future growth in Mexico to come<br />

from Aspen’s own branded products<br />

Yes, so far most of this has come from our branded generic<br />

pipeline in South Africa while we identify appropriate local<br />

products to license.<br />

In each of the Latin American markets where Aspen has established<br />

a business, we have achieved success by transitioning<br />

from a hospital-focused and opportunistic market business, to<br />

a branded and promotion driven business; all of which provides<br />

for the prospect of future sustainable growth.<br />

Moving forward, will Aspen be focusing on<br />

their inclusive business model, or will it attribute<br />

more importance to manufacturing or finding<br />

new partners<br />

We want to keep the mix as it is in our inclusive business model,<br />

rather than run an exclusive model. We also have a local<br />

manufacturing facility which gives us a competitive edge in<br />

terms of local developments, tendered products and annual<br />

bidding with social security - IMSS and ISSSTE, whilst still considering<br />

business opportunities with ‘Seguro Popular’, where<br />

we have already worked with certain state level distributors.<br />

Many multinational companies are seeking opportunities<br />

in branded generics, and there have<br />

been several acquisitions by multinationals in<br />

recent years following this strategy. What is<br />

Aspen’s strategic plan to compete against such<br />

strong companies in the Mexican market<br />

Aspen’s pipeline from South Africa is based on generic products<br />

suitable for rapidly expanding therapeutic categories. Chronic<br />

degenerative diseases are becoming increasingly important in<br />

the Mexican market including diabetes and cardiovascular disease,<br />

which is primarily driven by obesity.<br />

Mature brands also offer significant opportunities which<br />

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validate Aspen’s activities in identifying tail end brands in different<br />

fast-growing segments. We are expanding our strategy<br />

for these products to ensure effective promotion to the doctor<br />

and at point of sale, which has become increasingly relevant.<br />

Aspen Labs has also plans to increase its activity in the overthe-counter<br />

(“OTC”) sector through a pharmacy team that will<br />

ensure increased Aspen presence in pharmacies. In April 2012,<br />

we acquired a portfolio of well-established OTC products from<br />

GSK, important not only for Mexico, but even more so for Central<br />

America.<br />

Promoting mature brands has been one of Aspen’s success<br />

stories as a Group - many territories across the Aspen business<br />

network have proven that they have the expertise and commercial<br />

capacity to extend the lifecycle of these mature brands<br />

and grow them.<br />

When Aspen entered Mexico, what was the image<br />

of the company The image we have is a<br />

South African company that was very strong in<br />

HIV. Was that concept brought to Mexico when<br />

you started<br />

We elected to introduce reputable brands acquired from GSK<br />

and MSD to the market, which we combined with Aspen’s local<br />

products. This approach has been beneficial to the Group.<br />

Establishing brand equity takes significant financial investment<br />

and time, and it’s fair to say that Aspen is not a household<br />

brand in Latin America as yet. Of significance though is that<br />

Aspen is acknowledged as the pre-eminent pharmaceutical<br />

manufacturer in the southern hemisphere and is being globally<br />

recognized for manufacturing and distributing high quality<br />

medicine at affordable prices - not only from a generic perspective,<br />

but also from an innovative product perspective.<br />

Something that represents<br />

a major challenge to all<br />

players in the branded<br />

market is the rapid growth<br />

of pharmacy chains and<br />

the rising level of generic<br />

substitution at the point of<br />

sale<br />

You said it was the people that make the difference<br />

in Aspen. What is your opinion of the talent<br />

pool in Mexico, and how well it fits with the<br />

company’s values, challenges and philosophy<br />

Mexico has a wealth of well-educated and hard-working people,<br />

and I think that level of commitment and talent is reflected<br />

across the different functional areas of our organization. We<br />

have a much more entrepreneurial approach and we expect<br />

our people to hold the same values and standards. We have a<br />

strong creative team with astute marketing expertise but also<br />

with a thorough understanding of the financials behind the<br />

product.<br />

The level of responsibility and empowerment that our local<br />

people receive is probably fairly difficult to find in a multinational<br />

company. We are fast at taking decisions, and they are<br />

well thought out with due consideration given to financial and<br />

risk exposure.<br />

Where do you see the challenging competition<br />

pushing the Mexican market in the next few<br />

years<br />

Something that represents a major challenge to all players in<br />

the branded market is the rapid growth of pharmacy chains<br />

and the rising level of generic substitution at the point of sale.<br />

Today, an increasing number of patients go to doctors operating<br />

inside the pharmacies, and no longer to traditional doctors<br />

if they know they just need a script for a product with which<br />

they are already familiar: and this trend will continue to grow.<br />

As a result, traditional independent pharmacies will get<br />

weaker due to the increased presence of the larger chains and<br />

their store brands. For the first time we see the traditional private<br />

ethical market decreasing in both values and volumes.<br />

This does not mean that the Mexican pharmaceutical market is<br />

shrinking as a whole; but it is nowadays primarily the ‘alternative<br />

market’ that is gaining importance and market share.<br />

You have been with Aspen for three and a half years. What<br />

can we expect from Aspen in Mexico three years from now<br />

Our focused growth strategy is to build up the Latin American<br />

business to be the third pillar in the Group alongside South<br />

Africa and Australia.<br />

Our objective is clear: we want to be among the top 20<br />

pharmaceutical companies in the near future, not only in Mexico,<br />

but also across Latin America. We are confident that this<br />

can be achieved - both as a result of our organic growth and<br />

also through acquisitions. To do it, we need to drive the organizational<br />

growth of our operations in Brazil, Mexico and Venezuela;<br />

establish and embed the Aspen culture; and retain the<br />

passion that the employees have for working at Aspen by ensuring<br />

due recognition for personal and professional growth.<br />

FOCUS REPORTS August 2012<br />

33


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

INTERVIEW WITH:<br />

MIGUEL A. SALAZAR, DIRECTOR GENERAL<br />

BOEHRINGER INGELHEIM MEXICO<br />

You arrived to the position<br />

of General Director inMexico<br />

in 2010. What have been<br />

some of the most exciting<br />

milestones and achievements<br />

you have presided<br />

over during this time<br />

The first challenge was recognizing<br />

that the organization needed<br />

to be realigned with a totally different<br />

mind-set. Boehringer Ingelheim as a company started to<br />

change in 2008 with the realization that we had a pipeline of<br />

products offering huge opportunities in the market, and that<br />

would be ready for release at the same period of time: which is<br />

a luxury that doesn’t happen very often. I needed to align the<br />

Mexican organization accordingly.<br />

From the point of view of a research-driven organization,<br />

we truly believe that the level of leadership and entrepreneurship<br />

from the pharmaceutical industry has improved considerably<br />

over the last few years. My competitors are also my<br />

counterparts, and although we have products that are direct<br />

competition with each other, the reality is that we behave like<br />

colleagues and we are not afraid of speaking to each other.<br />

This creates momentum and strength when it comes to building<br />

the pharmaceutical industry into a very strong asset for<br />

the country.<br />

and Development is extremely competitive. This tells you that<br />

even though we are a privately owned company, we have the<br />

mind-set of an entrepreneurial public company. Worldwide we<br />

have a market share of 1.6%, and here in Mexico we have<br />

close to 4%, so this gives you an idea about how important<br />

operations are here.<br />

What strategies does Boehringer Ingelheim<br />

have to work with the government<br />

We do sell a lot to the government, and Seguro Popular is one<br />

of our fastest growing segments. The government has granted<br />

a faster access process for innovative drugs and although the<br />

pricing is very low, we get it back in volume so it’s a win-win<br />

situation for everyone involved. Seguro Popular is a great initiative:<br />

Mexico deserves a stronger and high quality public health<br />

system and the need for a new model has been met.<br />

We heard that one of the biggest changes in<br />

the industry over the last few years has been<br />

that the industry is being listened to more by<br />

the government. Do you agree with this<br />

Mikel Arriola has done more for the industry in one year than<br />

in the last ten. He has the endorsement of the pharmaceutical<br />

Could this change in the way of working within<br />

the Mexican pharmaceutical industry be<br />

the reason behind Boehringer Ingelheim being<br />

ranked 7th in Mexico, yet 15th globally<br />

I would attribute it to something that is even more powerful.<br />

This is a privately owned company, a company that has a<br />

long-term view; we are not pushed by the forces of the market<br />

which gives us tremendous stability and strength in our pipeline.<br />

On a global level, the amount we invest in our Research<br />

This creates momentum and<br />

strength when it comes to<br />

building the pharmaceutical<br />

industry into a very strong<br />

asset for the country<br />

34 August 2012<br />

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Mexico Report<br />

Seguro Popular is a great<br />

initiative: Mexico deserves<br />

a stronger and high quality<br />

public health system and<br />

the need for a new model<br />

has been met.<br />

industry, we feel listened to, and we feel we can trust him.<br />

Mexico lacks international marketing, and we usually only get<br />

bad foreign press- you don’t hear about the fantastic things<br />

that are happening here, but people are actually starting to<br />

consider the benefit of the patients on both the government<br />

and industry side. The innovation we plan today will be the<br />

opener for the generics in ten or fifteen years’ time. If there is<br />

no innovation there will not be any generics or broader access<br />

or better patient treatments.<br />

What new areas and strategies are planned for<br />

Boehringer Ingelheim Mexico in order to increase<br />

Mexican market share, both privately<br />

and institutionally<br />

We have always been strong in respiratory and anti-inflammatory<br />

treatments, and we have just entered cardiology, diabetes,<br />

anti-coagulation, virology, and cancer. For diabetes, anti-coagulation<br />

and cardiology we already have best in class products,<br />

and we have also just decided to explore immune diseases for<br />

conditions that could be vaccinated against such as malaria,<br />

but this is a long way down the pipeline.<br />

Mexico is still a country with a young population and an average<br />

age of 24-25 years, so treatments for young people remain<br />

extremely important. A tremendous problem with obesity<br />

arose which also drives the cardiovascular and diabetes market<br />

and we have just created a long-term alliance with Eli Lilly for<br />

at least four or five diabetes products; one of which is the 2nd<br />

most prescribed product for the condition in Mexico.<br />

Boehringer Ingelheim globally has invested a<br />

substantial amount in research and clinical trials.<br />

What do you think are Mexico’s qualities as<br />

a clinical trial hub over other Latin American<br />

countries<br />

It’s a greenfield; there is not one single clinical trial in the company<br />

in which Mexico is not participating. Right now we have<br />

more than 37 trials running for both current and future products,<br />

and it has allowed us to gain rapid approvals for products<br />

due to the preference given to clinical trials performed in<br />

Mexico with Mexican researchers and Mexican patients. COFE-<br />

PRIS is willing to give fast-track approval when they see Mexico<br />

getting involved.<br />

In Mexico we have a group of Mexicans leading teams in<br />

South America, which means we have centers of expertise<br />

here in Mexico leading research in, for example cardiovascular,<br />

for the rest of Latin America.<br />

There is a lot of contract manufacturing coming out of Brazil<br />

for Boehringer Ingelheim. What is the situation in Mexico<br />

In 1995, Boehringer Ingelheim wrote their manufacturing<br />

strategy and decided that Mexico was to be a center of excellence<br />

in terms of manufacturing, and the company invested<br />

more than $70 million USD in a new plant which would be<br />

one of the manufacturing hubs for the rest of the world. Since<br />

1995 we have been the only company approved by the FDA to<br />

export prescription medicines for human health to the United<br />

States, and we have manufactured and exported from here to<br />

the United States since then. Around 60% of our products are<br />

exported globally and 40% is local, and even part of the local<br />

production goes to third party manufacturing. We are focused<br />

on high quality and high delivery, and the executives who have<br />

worked in Boehringer Ingelheim for the last 20 years have created<br />

such a great reputation for Mexico in this sense, which<br />

actually allowed is to invest more.<br />

Having an FDA plant puts us in a very advantageous position;<br />

we have great cost benefit which enables us to compete<br />

against India, China, the United States and Europe.<br />

We asked Rafael Gual, general director of CANI-<br />

FARMA which companies, in his opinion, represented<br />

great corporate culture- and he told us<br />

Boehringer Ingelheim. What makes you stand<br />

out from other companies in this respect<br />

Boehringer Ingelheim has a clear family tradition, we are a<br />

privately owned company and we intend to remain like that;<br />

we give value through innovation, and that is our motto. We<br />

believe that leadership is about groups of people working together,<br />

and we try our hardest to empower them. The character<br />

of the company is made up of four different elements:<br />

trust; empathy; respect; and passion. When you speak to people<br />

working here, you will see that they have these four elements<br />

in common. We have 1,800 employees in Mexico, and<br />

every day we try to remind them who they are and why they<br />

are here: we are here to save the lives of millions of patients.<br />

Boehringer Ingelheim employees are extraordinary people,<br />

and by changing our individual square meter of space, we can<br />

change the world itself.<br />

FOCUS REPORTS August 2012<br />

35


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

INTERVIEW WITH:<br />

CARLOS LOPEZ PATAN, DIRECTOR GENERAL, MEDIX<br />

Medix is a company focused<br />

on the treatment of obesity.<br />

With regards to performance,<br />

last year the company<br />

grew an impressive<br />

35%. How was this growth<br />

achieved<br />

We have always had a branch of<br />

products to fight against overweight<br />

and obesity but five or six years ago<br />

we turned it into our main business unit where we also integrated<br />

and consolidated the whole work of the company.<br />

Everything that we have been working on since 2007 was built<br />

and constructed around this concept- the integral management<br />

and treatment of obesity and being overweight.<br />

Since then we have been growing very rapidly: the annual<br />

average increase rate is 20% and the highest growth was<br />

close to 35%. We are #1 in the private prescription market<br />

supplying almost 40% of the total units, and almost 60% of<br />

the total number of prescriptions. Basically, we are the number<br />

one option for physicians in order to treat obesity.<br />

By creating products for each step in the obesity chain- the<br />

diagnosis, treatment and maintenance- we are not just offering<br />

a product, but a holistic solution that addresses many factors<br />

in the equation.<br />

Mikel Arriola told us that he doesn’t just see<br />

the COFEPRIS as a regulatory body, but an economic<br />

promotor. What are your thoughts<br />

I completely agree. When you talk to Mikel, the main idea<br />

he transmits is not only medical, but economical, and specifically<br />

how COFEPRIS can support the exportation of products<br />

and services. He says we need to regulate the pharmaceutical<br />

industry but at the same time to promote it. They are not opposite<br />

objectives; they are complimentary goals that can be<br />

achieved in conjunction with each other.<br />

Medix exports products to Argentina and the<br />

manufacturing plant has been certified by AN-<br />

MAT. What makes exporting so attractive for<br />

Medix<br />

We have been exporting products to Central America since the<br />

1990s and through a distributor. Now we are exporting more<br />

than products, we are exporting the model that I mentioned<br />

earlier which is the integral treatment and management of<br />

obesity. In general, governments are anxious to have viable options<br />

to combat obesity, and exporting the model has seemed<br />

to work opening the doors in South America. Although we are<br />

able to export this concept of a complete model, it is very important<br />

to consider the uniqueness and characteristics of every<br />

country. If you try to export the Mexican model to Argentina<br />

you might not succeed because every country is different.<br />

In order to achieve this ‘tailor-made’ approach, Produmedix<br />

Internacional Argentina needs to establish relationships with<br />

the authorities in that country in order to understand how<br />

things operate, and especially regarding health cost investment<br />

and social services. The aim is to integrate their interests<br />

with ours to achieve a complete and flexible model for each<br />

country.<br />

Everything that we have<br />

been working on since 2007<br />

was built and constructed<br />

around this concept- the<br />

integral management and<br />

treatment of obesity and<br />

being overweight.<br />

36 August 2012<br />

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Mexico Report<br />

Diet, nutrition and exercise are extremely important but<br />

there are also several psychological, social and environmental<br />

factors to consider when looking at treatment in a certain<br />

country. These can range from working conditions, food type<br />

availability in your area, home conditions, and education. It<br />

would be impossible to recommend a treatment without taking<br />

those factors into consideration.<br />

How have you perceived the change in public<br />

and Government opinion towards obesity and<br />

its treatment in the last few years<br />

In Mexico we have tried to create awareness surrounding overweight<br />

and obesity. The problem is the lack of general access<br />

to the tools required to fight against it effectively and as a<br />

result, Mexico is #1 globally for childhood obesity and #2 for<br />

adults, and growing!<br />

We need to find out why people do not have a minimum<br />

level of activity in their life. Diet and exercise are part of the<br />

treatment but not the whole solution.<br />

At the end of the day, responsibility needs to come from<br />

the patient to adhere to treatment, but while the cost in terms<br />

of finance is enormous, they usually require external help and<br />

analysis from an expert. Globally, governments have been getting<br />

increasingly involved in creating awareness amongst the<br />

population but not necessarily offering the very best solutions.<br />

It’s a work in progress.<br />

Does Medix have any awareness projects running<br />

in conjunction with the government,<br />

or with doctors, in order to increase obesity<br />

awareness<br />

Firstly, we have to educate. Secondly, the nutritional options<br />

available in schools need to be improved. Much of your personality,<br />

habits and beliefs are developed during school years,<br />

and good nutrition is key. On top of that if we create a welleducated<br />

society, people will start to demand a higher quality<br />

of food and in turn industry will have to supply it and provide<br />

a wider range of nutritional options.<br />

We also train and teach about obesity in higher-education<br />

institutions. We have a specialized 120 hour course for institutions<br />

and companies across the country that discusses purely<br />

overweight and obesity. We also finance medical training in<br />

universities and teach professionals to take a holistic approach<br />

when it comes to overweight and obesity, instead of simply<br />

isolating specific physical problems to do with comorbidities.<br />

We are also working with partners in the area of meals, which<br />

helps but it is not the final solution: education and habits are<br />

the solution but it is not a short process.<br />

Companies also need to support the treatment of overweight<br />

and obesity by starting with their own employees, and<br />

we have a Medix team dedicated to this. If you reduce obesity<br />

levels by 5% within a company you will get happier and more<br />

productive employees, all for a very low investment.<br />

What particular awareness programs do you<br />

have in Medix<br />

We have a program called Medix Light. Two years ago we received<br />

an award from the government for having the best program<br />

of this kind, not in the pharmaceutical industry, but in all<br />

industries. We are going to receive another award this year for<br />

the same program.<br />

Medix Light was an in-house initiative that we now use as<br />

the model for implementing in other companies. As part of our<br />

culture, the idea is to combat overweight and obesity using an<br />

integral approach within the company.<br />

Medix has received a series of awards for being a socially responsible<br />

company; can you tell us a little bit more about this<br />

Yes, we have achieved recognition for being a Socially Responsible<br />

Company for the last seven years. We also received<br />

the National Technological Award which was granted by the<br />

President for having high quality integrated technological<br />

practices for a medium-sized company.<br />

Social responsibility within a company is very important in<br />

the sense that is not only a declaration but the core of the organization.<br />

It is an essential part of each and every successful<br />

business in today’s world, and the way to integrate correctly<br />

and effectively with society.<br />

You mentioned in a previous interview that<br />

2012 would be a decisive year. What exactly do<br />

you mean by decisive<br />

In the next five years the market itself will also grow and we<br />

will be integrating new products, not only medications, but<br />

partnering with other companies in order to have meals and<br />

diagnosis equipment. We cannot make every product, but we<br />

can form strategic partnerships to provide the pieces of the<br />

puzzle that are missing. This will help us to become the number<br />

one option for overweight and obesity treatment in both<br />

Mexico and Latin America.<br />

If you could define your overriding philosophy<br />

on one sentence, what would it be<br />

Fighting against obesity means that you are also contributing<br />

to society, and I believe you need to create value for society in<br />

order to make a business.<br />

FOCUS REPORTS August 2012<br />

37


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

INTERVIEW WITH:<br />

MARKUS KRENZLIN, COUNTRY MANAGER, SHIRE<br />

Please can you give us a<br />

rundown of Shires activities<br />

in Mexico in the last<br />

four years, and the key<br />

achievements and milestones<br />

along the way<br />

Shire started operations in Mexico in<br />

2008 and we have had a compound<br />

growth rate of almost 100 percent<br />

per year. We are doing this by focusing<br />

on a segment of the market that has always been there,<br />

but only now are people actually receiving the treatment.<br />

I think that Mexico has a great attitude towards orphan<br />

drugs. The Mexican authorities are very conscious of the various<br />

niche problems that exist for patients across the country<br />

and have been very open in making orphan drugs available to<br />

them. This is why Shire has been able to establish itself here<br />

and make treatments available to patients. Over the past two<br />

years we have been able to get four products onto the market,<br />

three of which are available in the public health system: one<br />

for Hunter’s Disease, another for Fabry Disease, and the third<br />

that was approved last year is for Gaucher´s Disease.<br />

There was a change to general health law in Mexico published<br />

on February 29th. Article 224 has been amended so that<br />

it both recognizes that there are orphan diseases, and that<br />

there are orphan drugs to treat them. In essence it means that<br />

the Ministry of Health has to support the development of the<br />

diagnosis and treatment of these diseases. I think this opens up<br />

considerable possibilities, and if you look at the social issues in<br />

Mexico then you can see this is a huge step forward. We have<br />

now cases with people living in very poor and remote areas<br />

that are getting treated with a biotechnology product.<br />

But doesn’t Seguro Popular just cover the basic<br />

needs of the population. How did you manage<br />

to get orphan drugs under the umbrella<br />

The Seguro Popular covers basic needs but it has also very<br />

important programs for catastrophic diseases such as certain<br />

type of cancers. It’s true that our products are not cheap, but<br />

they are providing great value to patients and their family and<br />

the society overall by really enabling people with life threatening<br />

diseases to lead better lives. In addition to the authorities’<br />

The situation in Mexico seems different from<br />

Brazil where some patients have had to fight<br />

in court in order to receive their treatment. Has<br />

this ever happened in Mexico<br />

We know there are patients in Mexico that have legally fought<br />

for access to their drugs, but now there is no need to take legal<br />

action. Together we made access possible for orphan drugs<br />

simply through dialogue with the authorities.<br />

A great example is Seguro Popular, which provides one<br />

of our treatments – for Hunter Disease – to patients under<br />

10 years of age. These are very poor patients whose families<br />

would never be able to afford a biotechnology drug in order<br />

to be treated privately.<br />

The Mexican authorities<br />

are very conscious of the<br />

various niche problems that<br />

exist for patients across<br />

the country and have been<br />

very open in making orphan<br />

drugs available to them.<br />

38 August 2012<br />

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Only 10-15 percent of<br />

the theoretical disease<br />

population have been<br />

diagnosed<br />

awareness on the problem, there are also a number of very<br />

active and well organized patient organizations who, through<br />

dialogue, have been able to open up the doors to get these<br />

approvals.<br />

Do you think there is enough awareness for the<br />

diseases you are treating in Mexico, amongst<br />

both the public and the physicians<br />

Awareness is definitely a problem: if you look at prevalence<br />

or incidence data and how many patients have been either<br />

identified or are on treatments, you will find figures indicating<br />

that only 10-15 percent of the theoretical disease population<br />

have been diagnosed. This means there are a large number of<br />

patients in need of our treatment but not receiving it.<br />

Even though there is not a high level of awareness, it is difficult<br />

to do any big campaigns because these diseases are so<br />

rare. There are maybe 250 cases in the whole of Mexico, so we<br />

need to deal with awareness differently. We usually manage<br />

awareness through supporting medical education programs<br />

or through supporting the patient associations because they<br />

know the families and the patients, which helps them to handle<br />

the problem more effectively. We are also doing continuous<br />

support to physicians for diagnosis, but even though we are<br />

trying to play our part it is very difficult as many of the patients<br />

live in extremely rural areas, and Mexico is a huge country.<br />

Will the growth of healthcare from the government<br />

aid this awareness issue<br />

Yes I believe so. We are already in discussions with the authorities<br />

on how we can support them and provide training and information<br />

to the parties involved. At the end of the day Shire is<br />

a company that enables patients with difficult and life-threatening<br />

diseases and their families to live much better lives.<br />

Angus Russell, the CEO of Shire worldwide said<br />

Shire is different because its employees care<br />

about what they do and what they are working<br />

for. How has that corporate philosophy shaped<br />

Shire Mexico<br />

It is all about people, and it starts with hiring the right people<br />

who come to us for the right reasons. Shire is a company attractive<br />

to a certain breed of employees who are really looking<br />

to make a difference in patients’ lives. People come and work<br />

with us with the expectation of truly helping people, and here<br />

they will have the opportunity to do so from the very beginning.<br />

This might sound slightly strange, but sometimes it is not really<br />

about business, it is about getting people onto treatments.<br />

The impact for the patient is so huge, not just physically, but<br />

for their entire social environment which exactly is what drives<br />

us to overcome any difficulties along the way.<br />

How difficult is it to attract the right talent and<br />

successfully recruit in Mexico<br />

Finding the right talent is very difficult in any market, and Mexico<br />

is especially a complicated market in terms of talent. On<br />

top of that we need to find the right talent with the mindset I<br />

just described, which makes it even harder. You need to put in<br />

a great deal of effort and resources to identify the right people,<br />

and after being 10 years in the market here I’ve seen that<br />

there is a huge pool of young, very well prepared, and very<br />

well-oriented professionals who are the right people for Shire.<br />

Where can we expect to see Shire in five years’<br />

time<br />

At the moment we just do Human Genetic Therapies (HGT)<br />

here in Mexico, but there are two more business units one of<br />

which specializes in Attention Deficit and Hyperactivity Disorder<br />

(ADHD) and Gastrointestinal (GI) which are about to be<br />

launched here rather soon, and the third business unit is regenerative<br />

medicine. So we expect establishing full Shire operations<br />

in the country in the mid-term.<br />

In your opinion, what makes Shire stand out<br />

from the rest of the pharmaceutical crowd<br />

We at Shire are committed to delivering value to all our stakeholders<br />

and that is not just a corporate phrase. Shire in Mexico<br />

is dedicated in becoming a partner to the authorities, to the<br />

patient associations, and to all stakeholders in the market segment.<br />

Shire globally has a BRAVE culture, and we strive to do<br />

better every day. We are patient-orientated and that is the<br />

reason I am working here. You cannot imagine the impact of<br />

knowing that a patient gets treatment and a transformed life<br />

because of you.<br />

FOCUS REPORTS August 2012<br />

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<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

INTERVIEW WITH:<br />

ALFREDO RIMOCH, DIRECTOR GENERAL, LIOMONT<br />

Please can you tell us more<br />

about Liomont as a company<br />

Liomont will be 75 years old next<br />

year and over recent years we have<br />

put particular focus on branded generics.<br />

Branded generics have existed<br />

for a long time in Mexico and<br />

we have worked for many years in<br />

promoting our vision of the company<br />

which is based on quality and trust through our services and<br />

our products. Doctors that rely on the quality of our products<br />

always choose us, and because there has been so much confusion<br />

surrounding the concept of generics, many doctors still<br />

cannot rely on the quality of pure generics.<br />

In 2008, only 5% of Liomont business came<br />

from the institutional market. Have you seen<br />

more growth opportunities over the last few<br />

years now that the Government has prioritized<br />

health coverage<br />

The situation with government sales varies from year to year<br />

and relies purely on price opportunities because that’s the only<br />

element that is valued by the government in Mexico. Personally<br />

I don’t think it is the best strategy for them because it<br />

has created a lot of problems in terms of product availability.<br />

When you rely solely on price, a company can win a tender<br />

but might not be prepared to manufacture and deliver the<br />

products in a timely manner, which then creates a big problem<br />

for the Government in terms of product availability. Then that<br />

forces the Government to purchase products at a much higher<br />

price, outside of the tender organization.<br />

How much does Liomont export, and do you<br />

see this as a future growth strategy<br />

In terms of value, our export is worth about 5% of our business,<br />

but 8% in terms of volume. We export some of our OTC<br />

products mainly to the Hispanic market in the United States,<br />

mainly California and Texas. We are also in the process of<br />

entering the United States generics market through a local<br />

partner and have several Abbreviated New Drug Applications<br />

(ANDAs) pending. One month ago we were inspected by the<br />

European authorities and obtained the GMP certificate for the<br />

Europe, since then we have already filed our first ANDAs in<br />

Spain, Italy, France, Sweden and Germany. We have a strong<br />

partnership with a Spanish company Pensa <strong>Pharma</strong>, which is<br />

the generic brand of Esteve.<br />

What kind challenges has Liomont faced entering<br />

the Unites States, and do you expect to find<br />

the same challenges entering the European<br />

market<br />

The real challenge lies in documentation and bio-equivalency<br />

compliance. We had to carry out bio-equivalence tests outside<br />

of Mexico because the requirements are slightly different to<br />

here. There has been a policy of automatic recognition by the<br />

We are in the process of<br />

building a new research<br />

and development facility<br />

which will be one of the<br />

largest research centers<br />

in the country to be<br />

inaugurated in 2012.<br />

40 August 2012<br />

FOCUS REPORTS


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

I see Liomont more and<br />

more as a global companythe<br />

world is getting too<br />

small to rely solely on the<br />

local market.<br />

Mexican authorities to products which are registered by the<br />

FDA which I personally believe does not make for loyal competition.<br />

When it comes to recognizing drug registrations from<br />

other countries, I would agree with automatic registration, but<br />

only if there is mutual recognition which I think is a process<br />

that the authorities should seek and aim for.<br />

All the countries in South and Central America are very different,<br />

but which are the most important markets for Liomont.<br />

At present we have expanded specifically in Guatemala, El<br />

Salvador, Bolivia, Costa Rica, Panama, Peru, the Dominican Republic<br />

from where we distribute to the Caribbean, Venezuela is<br />

also one of our strongest markets, and finally Chile.<br />

Where do you see the future for Liomont in Research<br />

and Development, where will you be positioned<br />

in the coming years<br />

For many years at Liomont it has been very clear for us that<br />

it is the way to go. We know we are not going to discover<br />

new molecules in the short-term, but we do carry out a lot of<br />

clinical research in terms of developing new formulations and<br />

combinations, dosage forms, uses of medicines and delivery<br />

systems. We are in the process of building a new research and<br />

development facility which will be one of the largest research<br />

centers in the country to be inaugurated in 2012.<br />

Do you think there is a sufficiently large talent<br />

pool in Mexico on the side of scientists Do you<br />

ever have problems recruiting the right people<br />

I think there are very good scientists in Mexico, but for the<br />

industry it has been very difficult to find the right people that<br />

have the right philosophy in terms of science combined with<br />

business. There is a lot of talent in some of the academic research<br />

centers, but do not have the mind set to work in industry.<br />

In an academic environment you get incentives through<br />

the number of publications, whereas in industry it is important<br />

to be able to patent the research or product, and when you<br />

publish something, it instantly loses the opportunity of being<br />

patented.<br />

Liomont has a very strong corporate culture<br />

and has been awarded for its Corporate Social<br />

Responsibility many years in a row. How has<br />

that helped to shape Liomont’s culture and<br />

growth<br />

Liomont has a very strong culture of social responsibility at its<br />

core, which originated from the founders of the company. Our<br />

founder was very concerned about “easing human pain”- the<br />

company took it quite literally and it has been incorporated<br />

into the company’s mission statement ever since.<br />

We are Distintivo H and ISO 9001 certified, we received the<br />

CONCAMIN award for outstanding implementation of ethical<br />

values every year from 2005 until today. We have received<br />

two Best Corporate Practice awards from CEMEFI, and the ESR<br />

award for being a socially responsible company seven years in<br />

a row.<br />

In terms of social projects, we have been awarding children<br />

from secondary schools for carrying out environmental projects<br />

in their area for the last 12 years. We have also joined<br />

up with UNICEF since 1999 in order to carry out projects such<br />

as Friendly School, where we bring basic educational aid to<br />

small schools in very poor rural areas of Mexico. We are also<br />

carrying out a campaign in health centers across the country<br />

for parents on how to stimulate their children’s learning from<br />

a very early age, and working on a project where we provide<br />

inserts in our paediatric products that give tips to parents on<br />

the same subject. We also have a campaign that helps with the<br />

treatment of infectious and parasitic diseases in very remote<br />

areas of the country where we provide the treatment for free.<br />

When we come back in 2016, where will Liomont<br />

be positioned in Mexican, and global<br />

pharmaceutical market<br />

I see Liomont more and more as a global company- the world<br />

is getting too small to rely solely on the local market. Overall<br />

the main growth of the company is in our export sales which<br />

are growing at a rate of 16%. We have truly international<br />

standards in the company and we base our growth on quality<br />

and trust.<br />

We have received […]<br />

the ESR award for being<br />

a socially responsible<br />

company seven years in a<br />

row<br />

FOCUS REPORTS August 2012<br />

41


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

INTERVIEW WITH:<br />

GUY JEAN SAVOIR, GENERAL DIRECTOR, CARNOT LABORATORIOS<br />

Techsphere is celebrating<br />

70 years as a company.<br />

Please can you describe to<br />

us in your own words the<br />

evolution of the Mexican<br />

pharmaceutical industry,<br />

and the most impactful<br />

changes for the company<br />

In 2008 you could find a market that<br />

was extremely healthy, from 2008<br />

until now there have been a lot of changes that significantly<br />

impacted the industry, both regulatory, financially and internally.<br />

Between 2002 and 2008 the Mexican industry committed<br />

price abuse and year after year there were price increases<br />

of around 25%, which was a huge mistake. It was possible at<br />

the time because Mexico didn’t really have a generics law: you<br />

had non-generics and you had ‘similares’ that were targeting<br />

a different segment of the population. As a result of these<br />

prices increases, the public started having problems with outof-pocket<br />

expenditure which became a significant incentive to<br />

change things.<br />

In 2008 we had a really big problem with the global crisis<br />

pushing Mexico into a very difficult economic situation, which<br />

had a strong impact on the population’s power of acquisitionhence<br />

the draw towards generics.<br />

The last thing that happened was the change in regulation;<br />

Mikel Arriola in COFEPRIS has been very hard at trying<br />

to make it work by understanding the needs of the people,<br />

the needs of the industry and matching them into something<br />

that actually gives results, and the generics law was passed<br />

allowing the public to find quality interchangeable generics at<br />

reasonable prices.<br />

The compounding of those three events generated aggressive<br />

growth in the generics market: probably more aggressive<br />

than in Brazil and the United States, and as a result the private<br />

prescription market ended up losing a lot of business, generating<br />

difficult times.<br />

Today you have to be extremely price conscious when you<br />

launch a product on the market, you have to be aware of the<br />

added benefits of a differentiated product.<br />

Was the massive boom in generics what<br />

prompted Carnot to look more closely into foreign<br />

markets<br />

In short, yes. I had started the export side of the business in<br />

2002 and proposed that we needed to diversify the company’s<br />

risk and seek markets outside of Mexico, because our current<br />

operations were unsustainable in the long run.<br />

We also have 130 people working on Research and Development<br />

in the company which gives us the potential to have<br />

differentiated products, giving significant protection against<br />

generics because we have patent protection allowing the<br />

higher revenues to continue growth and investment in further<br />

Research and Development.<br />

So those are our two strategies: to seek export markets and<br />

continue releasing innovative products that meet currently unmet<br />

needs in the local market.<br />

Today you have to be<br />

extremely price conscious<br />

when you launch a product<br />

on the market, you have<br />

to be aware of the added<br />

benefits of a differentiated<br />

product.<br />

42 August 2012<br />

FOCUS REPORTS


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

If exporting to foreign markets is one of your<br />

major strategies, four years ago you were entering<br />

Argentina and Colombia, but what is the<br />

situation now regarding export activity in Carnot<br />

So far we are in Colombia, Peru, Uruguay, we have a joint<br />

venture in Brazil and Argentina, and a new subsidiary in Venezuela.<br />

Plans that used to be just good ideas in the past are now<br />

operating and functioning today, and in those markets there<br />

is good, healthy growth with an increasing middle class and<br />

growing purchasing power. Brazil is the next big one for us,<br />

and Venezuela is the next medium-sized market to tackle, both<br />

of which we are more confident about after having successfully<br />

entered and operated in other Latin American countries.<br />

We are also going to transfer our export model outside<br />

of Latin America and we are currently looking for partners in<br />

North Africa, non-EU Eastern Europe, Middle East, South East<br />

Asia and West Africa.<br />

Talking about differentiation, four years ago<br />

you were in the process of getting the licenses<br />

to sell one of your unique fertility products in<br />

the United States and Canada. How has that<br />

progressed<br />

We closed that license with Ferring <strong>Pharma</strong>ceuticals and they<br />

will launch the product for us in North America- right now<br />

we are going through the regulatory process. The product was<br />

launched in Mexico and we are selling it right now; it’s a success.<br />

Also in our line of delayed-release injectable medicines, like<br />

our fertility product, is the lowest dose of hormonal replacement<br />

therapy that is available on the market. It contains a mix<br />

of P4 Progesterone and B17 Estronil, which is exactly what<br />

doctors are asking for. Hormone Replacement Therapy (HRT)<br />

is needed in order to prevent Osteoporosis and for women’s<br />

general health, but it needs to be given at the lowest dose<br />

possible. Our HRT is a twenty times lower dosage than the<br />

current oral HRTs which is a significant safety benefit, and we<br />

are looking for partners for this next big licensing agreement.<br />

What do you think are Carnot’s most attractive<br />

qualities are in order for it to have been proven<br />

a good partner in business<br />

We have got good differentiated products with a world-class<br />

quality system, and we have the flexibility to price our products<br />

in a way that allows us to access developing markets.<br />

Why do you think that other Mexican companies<br />

have not chosen to go abroad and export<br />

more outside of Central America<br />

They are starting to take that leap forward and if you look at<br />

the industry right now, there are many companies doing so.<br />

We were all late to do it, it’s just that we were ‘less late’ that<br />

the others!<br />

Do you feel there is enough work being done in<br />

the academic institutions in Mexico to homegrow<br />

talent across the board<br />

I’ll break it into two parts- for the Research and Development<br />

we are doing a lot more work with the institutions now than<br />

we were a few years ago which is great. We are happy that we<br />

can have agreements with them on various product developments.<br />

On the export and logistics side, the problem is that<br />

universities don’t have anything specific and it is something<br />

that has developed as an industry need. The idea is to start<br />

generating our own seeds of talent from within and create<br />

Export managers, Logistics managers and Area managers that<br />

have the capacity to do a great job.<br />

Where do you see Carnot positioned in five<br />

years from now, both in Research and Development<br />

and also going international<br />

We currently have an intensive Research and Development<br />

program planned for the next few years with some new additional<br />

new technologies being developed. I also see the ability<br />

to license our technology platforms to other countries. This<br />

includes delayed-release injectable microsphere technology;<br />

orally dissolving delayed-release capsules; and an innovative<br />

platform for inhalable products.<br />

On the international side, I expect to see us as a very wellplaced<br />

company in all of the important Latin American markets,<br />

and a company that has a significant distribution network<br />

outside of Latin America.<br />

What would be your defining message about<br />

the Mexican pharmaceutical industry and the<br />

potential it holds<br />

Don’t overlook Mexican innovation because there are some<br />

important technological developments being managed here by<br />

local laboratories. Quite a few companies here are working on<br />

innovation in a big way, and Mexico is a place where multinational<br />

companies might want to come and find out what we<br />

are doing, and to take our products into markets where we are<br />

not capable of going by ourselves.<br />

FOCUS REPORTS August 2012<br />

43


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

Exclusive interviews<br />

More interviews available on www.pharma.focus<strong>report</strong>s.net:<br />

Ana Cristina Mirassou,<br />

Biotechnology Manager,<br />

Grupo IFACO<br />

Angel Sosa Hurtado,<br />

Director General , Octapharma<br />

Mexico<br />

Aristides Torres, CEO,<br />

Vanquish<br />

Aurelio Martinez, General<br />

Manager Mexico, CA &<br />

Caribbean, Cegedim<br />

Bertrand Baron, Director<br />

General, Sanofi Mexico<br />

Carlos Banos, President and<br />

Director General, Lilly Mexico<br />

Dagoberto Cortes, General<br />

Director, Hormona<br />

Dr Juan Francisco Millan<br />

Soberanes, Director General,<br />

CETIFARMA<br />

Gabriel Zavala, Commercial<br />

General Director, Farmacias<br />

del Ahorro<br />

Guillermo Funes<br />

Rodriguez, Director General,<br />

Silanes<br />

Guillermo Ibarra, CEO and<br />

his management team, More<br />

<strong>Pharma</strong><br />

Hector Avila, General<br />

Manager, CECyC <strong>Pharma</strong><br />

Héctor Carrillo, General<br />

Director, Apotex Mexico<br />

Héctor Valle, General<br />

Manager North Latin America,<br />

IMS Health<br />

Israel Garcia Crespo,<br />

General Manager, Almirall<br />

Mexico<br />

Jaime Uribe, Probiomed<br />

44 August 2012<br />

FOCUS REPORTS


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

Joel Duran, Marketing<br />

Director, Novo Nordisk Mexico<br />

Jorge Escalona Theurel,<br />

Director General, MAYPO<br />

Karel Fucikovsky, General<br />

Director Mexico & Central<br />

America, Pierre Fabre<br />

Médicament<br />

Luis Calderon, Managing<br />

Director, Stendhal<br />

Luis Verduzco, General<br />

Director, Gelpharma<br />

Nicolás Rúbio, Vice<br />

President, Industria<br />

Farmacéutica Andrómaco<br />

Norbert Oppitz - Senior<br />

Vice President Latin America,<br />

Nycomed, A Takeda Company<br />

Oscar Parra, General<br />

Manager, Lundbeck Mexico<br />

Rafael Gual Cosio, Director<br />

General, CANIFARMA<br />

Ricardo Alvarez-Tostado,<br />

President and Director<br />

General, AstraZeneca Mexico<br />

Ricardo Ganem, VP and<br />

General Manager, Perrigo<br />

Mexico<br />

Rodrigo Iturralde,<br />

Corporate Director, Randall<br />

Sergio Duplan, Country<br />

President and General<br />

Manager, Novartis Mexico<br />

Timothy Daveler, VP and<br />

Director General, MSD Mexico<br />

Tomas Bordonaba, General<br />

Manager, Grünenthal de<br />

Mexico<br />

FOCUS REPORTS August 2012<br />

45


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

For more interviews with<br />

leaders of the global<br />

pharmaceutical industry,<br />

go to<br />

pharma.focus<strong>report</strong>s.net<br />

46 August 2012<br />

FOCUS REPORTS


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

Company directory<br />

Government<br />

COFEPRIS<br />

Monterrrey 33<br />

Col. Roma Norte<br />

México<br />

06700<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5080 5200<br />

CONACYT<br />

Avenida Insurgentes Sur 1582<br />

Col. Crédito Constructor<br />

México<br />

03940<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5322 7700<br />

Consejo de Salubridad<br />

General<br />

Lieja 7, Piso 2<br />

Col. Juárez<br />

México<br />

06600<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5062 1648<br />

IMSS<br />

Paseo de la Reforma 476<br />

Col. Juárez<br />

México<br />

06698<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5211 2874<br />

ISSSTE<br />

Avenida de la República 154<br />

Col. Tabacalera<br />

México<br />

06030<br />

Distrito Federal<br />

MEXICO<br />

+1800 001 2007<br />

ProMexico<br />

Camino a Santa Teresa 1679<br />

Col. Jardines del Pedregal<br />

México<br />

01900<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5447 7070<br />

Secretaría de Economía<br />

Alfonso Reyes 30<br />

Col. Hipódromo Condesa<br />

México<br />

06140<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5729 9100<br />

Secretaría de Salud<br />

Lieja 7<br />

Col. Juárez<br />

México<br />

06600<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5062 1600<br />

Seguro Popular<br />

Gustavo E. Campa 54<br />

Col. Guadalupe Inn<br />

México<br />

01020<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5090 3600<br />

SEPROE Jalisco<br />

López Cotilla 1505, Edificio<br />

SEPROE, Piso 9<br />

Col. Americana<br />

Guadalajara<br />

44140<br />

Jalisco<br />

MEXICO<br />

+52 (33) 3678 2000<br />

United States FDA<br />

Sierrra Nevada 115<br />

Col. Lomas de Chapultepec<br />

México<br />

11000<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5028 5400<br />

Associations<br />

and<br />

Foundations<br />

AFMAC<br />

Nicolás San Juan 1511<br />

Col. Del Valle<br />

México<br />

03100<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 9183 2060<br />

AMELAF<br />

Alfonso Esparza Oteo 144<br />

Col. Guadalupe Inn<br />

México<br />

01020<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5662 2014<br />

AMIIF<br />

Avenida Cuauhtémoc 1481,<br />

Piso 1<br />

Col. Santa Cruz Atoyac<br />

México<br />

03310<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5688 9477<br />

ANAFAM<br />

Avenida Cuauhtemoc 1481<br />

Col. Santa Cruz Atoyac<br />

México<br />

03310<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5601 3082<br />

CANIFARMA<br />

Avenida Cuauhtemoc 1481<br />

Col. Santa Cruz Atoyac<br />

México<br />

03310<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5688 9477<br />

CETIFARMA<br />

Avenida Cuauhtémoc 1481,<br />

Piso 3<br />

Col. Santa Cruz Atoyac<br />

México<br />

03310<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5688 9477<br />

Funsalud<br />

Periférico Sur 4809<br />

Col. El Arenal Tepepan<br />

México<br />

14610<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5655 9000<br />

INMEGEN (Institute for<br />

Genomic Medicine)<br />

Periférico Sur 4809<br />

Col. Arenal Tepepan<br />

México<br />

14610<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5350 1900<br />

FOCUS REPORTS August 2012<br />

47


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

<strong>Pharma</strong>ceutical<br />

Companies<br />

Abbott Laboratories<br />

Calzada de Tlalpan 3092<br />

Col. Coyoacán<br />

México<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5809 7500<br />

Allen Laboratorios<br />

Avenida Instituto Politecnico<br />

Nacional 4728<br />

Col. Tlacamaca<br />

México<br />

07380<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5587 0955<br />

Allergan<br />

Avenida Santa Fé 505, Piso 11<br />

Col. Cruz Manca Santa Fé<br />

México<br />

05349<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5999 8502<br />

Almirall<br />

Periférico Sur 3325, Piso 1<br />

Col. San Jeronimo<br />

México<br />

10200<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5999 8600Amgen<br />

Avenida Vasco de Quiroga<br />

3000, Piso 4<br />

Col. Sante Fe<br />

México<br />

01210<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 4424 4600<br />

AMSA Laboratorios<br />

Las Flores 56<br />

Col. La Candelaria<br />

México<br />

04380<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5421 6550<br />

Apotex<br />

Damas 120<br />

Col. San José Insurgentes<br />

México<br />

03900<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5482 9000<br />

Armstrong Laboratorios de<br />

México<br />

División del Norte 3311<br />

Col. Candelaria<br />

México<br />

04380<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 3000 1531<br />

Asofarma<br />

Avenida Periférico Sur 5358<br />

Col. Olímpica<br />

México<br />

04710<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5424 8500<br />

Aspen<br />

Monte Elbruz 124, Piso 4,<br />

Oficina 401<br />

Col. Palmitas<br />

México<br />

11560<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 9126 0860<br />

Aspid <strong>Pharma</strong><br />

Bélgica 518<br />

Col. Portales<br />

México<br />

03300<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 2595 0970<br />

AstraZeneca<br />

Periférico Sur 4305, 5th Floor<br />

Col. Jardines en la Montaña<br />

México<br />

14210<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5374 9600<br />

Baxter<br />

Presidente Masaryk 111,<br />

Piso 4<br />

Col. Polanco<br />

México<br />

11570<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 9126 5000<br />

Bayer<br />

Boulevard Miguel Cervantes<br />

Saavedra 259<br />

Col. Granada<br />

México<br />

11520<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5728 3000<br />

Beaufour Ipsen<br />

Calle Lafayette 94, Colonia<br />

Anzues, Mexico DF 11590<br />

México<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 3640 2100<br />

Biofarma Natural CMD<br />

Circuito de la Productividad<br />

105<br />

Parque Industrial Guadalajara<br />

El Salto<br />

45690<br />

Jalisco<br />

MEXICO<br />

+52 (33) 3836 4570<br />

Boehringer Ingelheim<br />

Maiz 49<br />

Xochimilco<br />

México<br />

16090<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5629 8300<br />

Bristol Myers Squibb<br />

Avenida Revolución 1267<br />

Col. Tlacopac<br />

México<br />

01049<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5337 2800<br />

Carnot Laboratorios<br />

Heriberto Frias 1035<br />

Col. Del Valle<br />

México<br />

03100<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5488 7000<br />

Daiichi Sankyo<br />

Avenida Manuel Ávila<br />

Camacho 76, Piso 9<br />

Col. Lomas de Chapultepec<br />

México<br />

11000<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 9178 7647<br />

Dermaceutical México<br />

La Quemada 240<br />

Col. Piedad Navarte<br />

México<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5579 2869<br />

Eli Lilly<br />

Barranca del Muerto 329<br />

Col. San José Insurgentes<br />

México<br />

03900<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 1719 4500<br />

Farmasa Schwabe<br />

Búfalo 27<br />

Col. Del Valle<br />

México<br />

03100<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5200 2680<br />

48 August 2012<br />

FOCUS REPORTS


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

Ferring<br />

Avenida Nemesio Diez Riega<br />

Mza. 2, Lote 15, No. 15<br />

Col. Parque Industrial Cerrillo 2<br />

Lerma<br />

05200<br />

Estado de México<br />

MEXICO<br />

+52 (728) 284 7140<br />

Fresenius Kabi<br />

Paseo del Norte 5300<br />

Guadalajara Technology Park<br />

Zapopan<br />

45010<br />

Jalisco<br />

MEXICO<br />

+52 (33) 3540 7855<br />

Galderma<br />

José María Ibarrarán 20<br />

Col. San José Insurgentes<br />

México<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5593 4353<br />

Gelpharma<br />

Avenida Paseo del Pacifico 410<br />

Technology Park<br />

Zapopan<br />

45010<br />

Jalisco<br />

MEXICO<br />

+52 (33) 3777 4770<br />

Genomma Lab<br />

Avenida Santa Fe 495<br />

Col. Cruz Manca Santa Fé<br />

México<br />

05344<br />

Distrito Federal<br />

MEXICO<br />

01800 717 1305<br />

GlaxoSmithKline<br />

Calzada México Xochimilco<br />

4900<br />

Col. San Lorenzo Huipulco<br />

México<br />

14370<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5483 8300<br />

Grunenthal<br />

Periférico Sur 5991<br />

Col. Arenal Tepepan<br />

México<br />

14610<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5641 4488<br />

Grupo IFACO<br />

KM 22.5 Carretera<br />

Guadalajara-Morelia<br />

Tlajomulco de Zuniga<br />

45640<br />

Jalisco<br />

MEXICO<br />

+52 (33) 3283 0000<br />

Grupo Roche Syntex<br />

Cerrada de Bezares 9<br />

Col. Lomas de Bezares<br />

México<br />

11910<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5258 5000<br />

Hormona<br />

Boulevard Adolfo Lopez<br />

Mateos 314 - 2<br />

Col. Tlacopac<br />

México<br />

01049<br />

Distrito Federal<br />

MEXICO<br />

+52 (5)5 5481 5600<br />

Hospira<br />

Prolongación Paseo de la<br />

Reforma 1015, Torre A, Piso 20<br />

Col. Desarollo Santa Fe<br />

México<br />

01376<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 3067 4300<br />

IFA Celtics<br />

Periférico Sur 3325, Torre<br />

Corum Piso 6<br />

Col. San Jerónimo Aculco<br />

Magdalena Contreras<br />

México<br />

10400<br />

Distrito Federal<br />

MEXICO<br />

+52 (777) 329 9800<br />

Industria Farmacéutica<br />

Andrómaco<br />

Boulevard Manuel Ávila<br />

Camacho 88, Piso 9<br />

Col. Lomas de Chapultepec<br />

México<br />

11000<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 9178 7558<br />

Industrias Suanca<br />

Nogal 64<br />

Col. San José de los Cedros<br />

México<br />

05200<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5813 2000<br />

Janssen Cilag<br />

Miguel Angel de Quévedo 247<br />

Col. Romero de Terreros<br />

México<br />

04310<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5484 2300<br />

Keton<br />

Lago Xochimilco 65<br />

Col. Anahuac<br />

México<br />

11540<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5341 9751<br />

Laboratorios Kener<br />

Paseo de los Tamarindos 400,<br />

Torre Poniente Oficina 7A<br />

Col. Bosques de las Lomas<br />

México 05120<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5095 4940<br />

Laboratorios Sanfer<br />

Boulevard Adolfo López<br />

Mateos 314, Piso 1 A<br />

Col. Tlacopac<br />

México<br />

01049<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5481 5400<br />

Laboratorios Senosiain<br />

Andrés Bello 45, Piso 21<br />

Col. Polanco Chapultepec<br />

México 11560<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5280 4999<br />

Laboratorios Servier<br />

Paseo de las Palmas 830 PH<br />

Col. Lomas de Chapultepec<br />

México<br />

11000<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5520 3119<br />

Laboratorios Sophia<br />

Paseo del Norte 5255<br />

Guadalajara Technology Park<br />

Zapopan<br />

45010<br />

Jalisco<br />

MEXICO<br />

+52 (33) 3001 4200<br />

Laboratorios Valdecasas<br />

Avenida Insurgentes Sur 4058<br />

Col. Tlalpan<br />

México<br />

14000<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5573 5256<br />

Landsteiner Scientific<br />

Boulevard Adolfo Ruíz Cortinez<br />

4124, Torre 2A, Piso 8<br />

Col. Jardines del Pedregal<br />

México 01900<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5449 3690<br />

FOCUS REPORTS August 2012<br />

49


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

Liomont<br />

Adolfo Lopez Mateos 68<br />

Col. Cuajimalpa de Morelos<br />

México<br />

05000<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5814 1200<br />

Lundbeck<br />

Avenida Insurgentes Sur 1605,<br />

Torre Mural, Piso 28<br />

Col. San José Insurgentes<br />

México<br />

03900<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5062 6900<br />

Manuell<br />

Jarcieria 237<br />

Col. Morales<br />

México 15270<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5795 2212<br />

Mavi Farmacéutica<br />

Puente de Xoco 35<br />

Col. Xoco<br />

México<br />

03330<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 1084 2502<br />

Meda <strong>Pharma</strong><br />

Pico de Verapaz 435 - 302<br />

Col. Jardines en la Montaña<br />

México<br />

14210<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 3089 2720<br />

Medix<br />

Calzada de Hueso 39<br />

Col. Ex-Ejido de Santa Ursula<br />

Coapa<br />

México<br />

04650<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5096 2200<br />

Medley<br />

Avenida Universidad 1738<br />

Col. Coyoacán<br />

México 04000<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5484 4400<br />

Menarini<br />

Periférico Sur 4118 - 102,<br />

Edificio Zafiro Torre 1<br />

Col. Jardines del Pedregal<br />

México<br />

01900<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5020 7000<br />

Merck<br />

Calle 5 No.7<br />

Naucalpan de Juárez<br />

México<br />

53370<br />

Estado de México<br />

MEXICO<br />

+52 (55) 2122 1600<br />

Merz<br />

Avenida Insurgentes Sur 1196,<br />

Torre de los Parques, Piso 15<br />

Col. Del Valle<br />

México<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 9140 0650<br />

Moksha8<br />

Paseo de los Tamarindos 90,<br />

Arcos Bosques 1, Torre 1, Piso<br />

14<br />

Col. Bosques de las Lomas<br />

México<br />

05120<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 3601 3676<br />

More <strong>Pharma</strong><br />

Ejercito Nacional 926, Int. 203<br />

Col. Los Morales Sección<br />

Palmas<br />

México<br />

11540<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5557 3388<br />

MSD<br />

Avenida San Jerónimo 369<br />

Col. La Otra Banda<br />

México<br />

01090<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5481 9708<br />

Nafar Laboratorios<br />

Periférico Sur 8565 B, Int 2<br />

Col. El Mante<br />

Tlaquepaque<br />

45609<br />

Jalisco<br />

MEXICO<br />

+52 (33) 3188 9009<br />

Nordin<br />

Paseo Lomas Altas 292<br />

Fracc. Lomas del Valle<br />

Zapopan<br />

45129<br />

Jalisco<br />

MEXICO<br />

+52 (33) 3642 3030<br />

Novartis<br />

Calzada de Tlalpan 1779<br />

Col. San Diego Churubusco<br />

México<br />

04120<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5628 6700<br />

Novo Nordisk<br />

Montes Urales 715<br />

Col. Lomas de Chapultepec<br />

México<br />

11000<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5002 6686<br />

Nucitec<br />

Comerciantes 15, Nave 3<br />

Col. Peñuelas<br />

Querétaro<br />

76148<br />

Querétaro<br />

MEXICO<br />

+52 (442) 220 6424<br />

Nycomed, a Takeda<br />

Company<br />

Avenida Primero de Mayo 130<br />

Col. Industrial Atoto<br />

México<br />

53519<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5387 9330<br />

Octapharma<br />

Calzada Mexico Tacuba 1419<br />

Col. Argentina Poniente<br />

México<br />

11230<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5399 5644<br />

Opko<br />

Avenida del Niño Obrero 651<br />

Col. Chapalita Oriente<br />

Zapopan<br />

45040<br />

Jalisco<br />

MEXICO<br />

+52 (33) 3121 2761<br />

Perrigo<br />

Mariano Escobedo 476,<br />

Torre Polanco<br />

Col. Nueva Anzures<br />

México 11590<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5340 2235<br />

Pfizer<br />

Paseo de los Tamarindos 40<br />

Col. Bosques de las Lomas<br />

México<br />

05120<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5081 5800<br />

<strong>Pharma</strong>Service<br />

Calle 3 #28<br />

Zona Industrial Benito Juárez<br />

Querétaro<br />

76120<br />

Querétaro<br />

MEXICO<br />

+52 (442) 312 2712<br />

50 August 2012<br />

FOCUS REPORTS


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

Pierre Fabre<br />

Boulevard Manuel Ávila<br />

Camacho 191<br />

Col. Los Morales Polanco<br />

México<br />

11510<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 2122 3703<br />

Pisa Farmaceutica<br />

Avenida España 1840<br />

Col. Moderna<br />

Guadalajara<br />

44190<br />

Jalisco<br />

MEXICO<br />

+52 (33) 3678 1600<br />

Pro Ventas<br />

General Leon 40<br />

Fracc. Lomas del Valle<br />

México 11850<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5515 2821<br />

Probiomed<br />

San Esteban 88<br />

Col. Santo Tomas<br />

México<br />

02020<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5352 3122<br />

Psicofarma<br />

Calzada de Tlalpan 4369<br />

Col. Toriello Guerra<br />

México<br />

14050<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 8503 8900<br />

Randall<br />

Lago Rodolfo 58<br />

Col. Granada<br />

México<br />

11520<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5545 0088<br />

Rayere<br />

Emiliano Zapata 72<br />

Col. Portales<br />

México 03300<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5532 6020<br />

Rimsa<br />

Camino a Santa Teresa 1040,<br />

Piso 5<br />

Col. Fraccionamiento Jardines<br />

en la Montaña<br />

México<br />

14210<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5449 9900<br />

Sanofi<br />

Avenida Universidad 1738<br />

Col. Coyoacán<br />

México<br />

04000<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5484 4100<br />

Shire<br />

Paseo de los Tamarindos 90,<br />

Torre 1, Piso 7<br />

Col. Bosques de las Lomas<br />

México 05120<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5081 0120<br />

Siegfried Rhein<br />

Bosque de Alisos 47 - B<br />

Col. Bosques de las Lomas<br />

México<br />

05120<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 1055 2600<br />

Silanes<br />

Miguel Laurent 427<br />

México<br />

03100<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5488 3700<br />

Solfran Laboratorios<br />

Altos Hornos 2721<br />

Col. Industrial el Álamo<br />

Tlaquepaque<br />

44490<br />

Jalisco<br />

MEXICO<br />

+52 (33) 3666 1423<br />

Stendhal<br />

Avenida Camino a Santa<br />

Teresa 1040<br />

Col. Jardines de la Montaña<br />

México<br />

14210<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 2000 6630<br />

Stern <strong>Pharma</strong><br />

José María de Teresa 65<br />

Col. San Ángel<br />

México<br />

01000<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5616 4651<br />

Streger<br />

KM 8 Antigua Carretera<br />

Xalapa-Coatepec<br />

Consolapa<br />

Coatepec<br />

91500<br />

Veracruz<br />

MEXICO<br />

+52 (228) 8160 330<br />

Teva <strong>Pharma</strong>ceuticals<br />

Pasaje Interlomas 16, Pisos 2<br />

y 5<br />

Col. San Fernando La<br />

Herradura<br />

México<br />

52784<br />

Estado de México<br />

MEXICO<br />

+52 (55) 5950 0262<br />

UCB<br />

Homero 440, Piso 7<br />

Col. Chapultepec Morales<br />

México<br />

11570<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 9159 6868<br />

Unipharm<br />

Calle de la Amistad, Lote 3<br />

Col. Los Reyes Industrial<br />

México<br />

54073<br />

Estado de México<br />

MEXICO<br />

+52 (55) 1500 9080<br />

Valeant<br />

Calzada de Tlalpan 2021<br />

Col. Parque San Andrés<br />

México<br />

04040<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5062 4800<br />

Vanquish<br />

Calle 9 Este 235, Planta Baja<br />

Col. Civac<br />

Jiutepec<br />

62578<br />

Morelos<br />

MEXICO<br />

+52 (777) 3261042<br />

CRO<br />

Infinite Clinical Research<br />

Calle Florencia 65, Piso 6<br />

Col. Cuauhtémoc<br />

México<br />

06600<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5514 9439<br />

FOCUS REPORTS August 2012<br />

51


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

Third<br />

Authorized<br />

Parties<br />

CECyC<br />

Amores 320<br />

Col. Del Valle<br />

México<br />

03100<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5682 2752<br />

TAPVS<br />

San Francisco 1384, Torre C ,<br />

Planta Baja<br />

Col. Del Valle<br />

México<br />

03200<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5575 2301<br />

Service<br />

Providers<br />

Baker & MacKenzie<br />

Boulevard Manuel Ávila<br />

Camacho 1, Piso 12<br />

Col. Lomas de Chapultepec<br />

México<br />

11000<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5279 2900<br />

Olivares & Cia<br />

Pedro Luis Ogazon 17<br />

Col. San Angel<br />

México<br />

01000<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5322 3000<br />

Cegedim<br />

Avenida Insurgentes Sur 1787<br />

Col. Guadalupe Inn<br />

México<br />

01020<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 9172 1201<br />

IMS Health<br />

Avenida Insurgentes Sur 2375,<br />

Piso 5<br />

Col. Tizapán<br />

México<br />

01090<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5062 5200<br />

Knobloch Information<br />

Group<br />

Rio de la Plata 53, Bis-101<br />

Col. Cuauhtémoc<br />

México<br />

06500<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5286 0600<br />

Warehousing,<br />

Distribution<br />

and Retail<br />

Bomi de México<br />

Avenida Industria Automotriz<br />

128<br />

Parque Industrial Coecillo<br />

Toluca<br />

50246<br />

Estado de México<br />

MEXICO<br />

+52 (722) 249 2002<br />

Corporativo Fragua<br />

Avenida Enrique Díaz de León<br />

261 Norte<br />

Col. Villaseñor<br />

Guadalajara<br />

44600<br />

Jalisco<br />

MEXICO<br />

+52 (33) 3669 3333<br />

DHL Express México<br />

Avenida Fuerza Area Mexicana<br />

540<br />

Federal<br />

México<br />

15700<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5345 2000<br />

Farmacia San Pablo<br />

Avenida Insurgentes Sur 800,<br />

Piso 19<br />

Col. Del Valle<br />

México<br />

03100<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5354 9001<br />

Farmacias Benavides<br />

Avenida Fundadores 935, Int.<br />

301<br />

Col. Valle del Mirador<br />

Monterrey<br />

64750<br />

Nuevo Leon<br />

MEXICO<br />

+52 (81) 8150 7700<br />

Farmacias del Ahorro<br />

Avenida Insurgentes Sur 1605,<br />

Piso 23<br />

Col. San José Insurgentes<br />

México<br />

03900<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5322 4320<br />

Farmacias Similares<br />

Alemania 10<br />

Col. Independencia<br />

México<br />

03630<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5422 4500<br />

Fármacos Nacionales<br />

Doctor Pasteur 93<br />

Col. Doctores<br />

México<br />

06720<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5134 2100<br />

Federal Express Holdings<br />

México y Compañía<br />

Avenida Vasco de Quiroga<br />

2999, Piso 1<br />

Col. Peña Blanca Santa Fe<br />

México<br />

01207<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5228 8100<br />

Grupo Casa Saba<br />

Paseo de la Reforma 215<br />

Col. Lomas de Chapultepec<br />

México<br />

11000<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5284 6600<br />

Grupo Fármacos<br />

Especializados<br />

Querétaro 137<br />

Col. Roma<br />

México<br />

06700<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5265 2300<br />

MAYPO<br />

Periférico Sur 4118, Edificio<br />

Zafiro Torre 1, Piso 8<br />

Col. Jardines del Pedregal<br />

México<br />

01900<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5000 0150<br />

52 August 2012<br />

FOCUS REPORTS


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

NADRO<br />

Avenida Vasco de Quiroga<br />

3100<br />

Col. Centro de Ciudad Santa Fe<br />

México<br />

01210<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5292 4343<br />

United Parcel Service (UPS)<br />

Almacén Fiscalizado 21<br />

Aduana del Aeropuerto<br />

International Benito Juárez<br />

México<br />

15520<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5228 7981<br />

Press<br />

Diálogo Ejecutivo<br />

Patricio Sanz 1582<br />

Col. Del Valle<br />

México<br />

03100<br />

Distrito Federal<br />

MEXICO<br />

+52 (55) 5061 3500<br />

FOCUS REPORTS August 2012<br />

53


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

COMPANY INDEX<br />

Ache Labs................................................... 19<br />

ANAFAM.............................................. 20, 26<br />

Apotex......................................................... 9<br />

Aspen Labs.......................................... 16, 17<br />

AstraZeneca........................................... 8, 14<br />

Biofarma Natural CMD............................. 22<br />

BMI....................................................... 12, 22<br />

Boehringer Ingelheim Mexico.................. 25<br />

BOMI.......................................................... 28<br />

CANIFARMA............................... 8, 11, 25, 26<br />

Carnot Laboratories............................ 19, 20<br />

CECyC <strong>Pharma</strong>........................................... 13<br />

Cegedim Mexico, CA & Caribbean........... 10<br />

COFEPRIS.....................7, 8, 10-14, 19, 25, 26<br />

Daiichi Sankyo........................................... 25<br />

Eli Lilly........................................................ 23<br />

Farmacias del Ahorro................................ 27<br />

Gelpharma................................................. 28<br />

Grünenthal de....................................... 9, 10<br />

Grupo IFACO.............................................. 12<br />

Hormona Laboratories.............................. 13<br />

IMS Health............................... 13, 18, 28, 29<br />

Industria Farmaceútica Andrómaco......... 21<br />

Infinite Clinical Research.......................... 26<br />

Liomont Laboratories......................... 20, 22<br />

Lundbeck................................................... 24<br />

MAYPO....................................................... 28<br />

Meda <strong>Pharma</strong>............................................ 25<br />

Medix................................................... 23, 24<br />

Medley....................................................... 16<br />

Menarini.................................................... 25<br />

More <strong>Pharma</strong>............................................. 27<br />

MSD............................................................ 17<br />

Novartis..................................................... 17<br />

Novo Nordisk....................................... 22, 23<br />

Nycomed.................................................... 18<br />

Octapharma......................................... 17, 18<br />

Perrigo....................................................... 29<br />

Pierre Fabre Medicament................... 17, 18<br />

Probiomed................................................. 12<br />

Randall Laboratories................................. 21<br />

Sanofi............................................. 16, 25, 26<br />

Seguro Popular.......................... 7, 23, 26, 28<br />

Shire Mexico.............................................. 10<br />

Silanes.................................................. 19, 20<br />

Stendhal..................................................... 22<br />

TAPVS......................................................... 12<br />

Vanquish.................................................... 20<br />

54 August 2012<br />

FOCUS REPORTS


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

PAST REPORTS<br />

FOCUS REPORTS August 2012<br />

55


<strong>Pharma</strong>.FocusReports.net<br />

Mexico Report<br />

email: info@focus<strong>report</strong>s.net<br />

56 August 2012<br />

FOCUS REPORTS

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