Adapting to Market Uncertainties Through Holistic StrategiesWed, 09/05/2018 - 11:17
Economic, political and social changes directly influence the development of a country’s economy. In 2016, presidential elections in the US led several industries to reconsider their commercial strategies. Mexico is facing similar changes that will shape its business landscape. In times of uncertainty, companies need to be prepared for all outcomes, says Vincenzo D’Elia, General Manager of Laboratorios Alfasigma. “After Trump’s victory, we saw some volatility in the market and the value of the currency was affected, but Alfasigma is prepared to face pessimism. In the best case, we will maintain our business model and strategies and in the worst case we will buy products and restructure our sales porfolio,” D’Elia says
Among the pressing issues for Mexico, D’Elia highlights price freedom, making health a national priority and providing equal opportunities for all players in the industry. These are the minimum measures needed to maintain quality, price and real access to medicines in Mexico. “Patients are the most affected by the increase in the cost of medicines, since each year the price of raw material in Mexico destined for pharmaceutical products increases significantly,” he says. “The government must prioritize the creation of a good environment for pharmaceutical companies if it wants to nurture universal access to healthcare.”
ProMéxico data shows that the global production of Mexico’s pharmaceutical industry in 2015 totaled MX$1.23 billion (US$65.8 million), a figure that is expected to rise to MX$1.83 billion (US$98.1 million) by 2020. D’Elia says the retail segment in Mexico is complicated but Alfasigma’s business model adapts to the needs and demands of the market. “We have a very specific strategy for patented and branded generics, so our products are always in a range of prices that patients can access,” he says. Following WHO’s recommendations, Alfasigma also stands out for the introduction of unique drugs in the Mexican market and for differentiating itself from the competition through technological innovation.
Whatever happens in the near future, Alfasigma is prepared to continue growing in the Mexican market. “We do not believe there will be such a negative scenario that affects our, mainly because 95 percent of our sales are made to the private sector,” D’Elia says.