Added Value Products Key For GrowthTue, 06/25/2019 - 13:27
Q: What was Mexico’s contribution to Indukern’s 8 percent global growth in 2018?
A: Indukern will turn 20 years old in Mexico in 2020. Our profits in Mexico amount to about US$100 million per year, which represents between 10 and 12 percent of Indukern’s global profits. Over the past few years, Indukern’s operations in Mexico have grown at a double-digit rate, which is much faster than the average of the industry. Our two largest offices in Latin America are Brazil and Mexico, which are also the two largest markets in the region. While Brazil’s offices are older than Mexico’s, both countries make almost the same profit.
The pharmaceutical sector represents 18 percent of our global profit. In Mexico, our pharmaceutical division sells active pharmaceutical ingredients (API), excipients and will start with intermediates for both generic and patented medication manufacturers. We are exclusive distributors and representatives of Tapi, Teva’s active pharmaceutical ingredients division, which is the largest manufacturer and distributor of generic APIs worldwide. Our main clients are generics manufacturers, such as Bausch Health, Laboratorios Silanes and Laboratorios Sophia, but we have approximately 50 active clients in this division.
Q: What are the main changes affecting Mexican pharmaceutical manufacturing?
A: Our strength resides in our local inventory, which gives us speed and flexibility to adapt to market changes. We follow our client’s sales forecasts while managing the risks related to changes in the market. This year, our products remained longer in stock as clients delayed their acquisitions and lowered their sales forecasts. Pharmaceutical manufacturers have slowed production during the past year due to the change in federal administration, which introduced uncertainty into the market.
While the private healthcare sector has maintained a steady pace, the public sector represents much larger sales of medications and medical supplies. Public tenders were partially paused in 2018 and were reactivated in 2019. Thanks to the tenders in mid-2019, we expect the latter half of the year will be much more active. However, the impact from last year’s delays will probably lead to marginal net growth for the industry in 2019.
Q: What added value does Indukern offer its clients in the pharmaceutical industry?
A: As the world’s largest pharmaceutical manufacturer, Tapi gives us a significant amount of information regarding the future of the market, such as patents that will expire in the coming years and new products that will become increasingly available to the industry. As a result, we can guide clients on which products they can start manufacturing today to launch in the market in three to five years. Indukern has evolved from a distributor to a guide for our client’s growth and portfolio development. Moreover, our large inventory, which can only be maintained through a strong financial arm, also gives us significant flexibility to help our clients.
When suggesting action plans to our clients, we analyze both patents that will expire and the potential market. For that reason, I always recommend that clients share as much information as possible with us. The more information we have regarding their future plans, the better we can interact with them.
Q: Which new product lines will Indukern launch to the market in the short term?
A: The product line that will grow the most in the coming years is specialized products, mainly oncological, antibiotics, some herbal extracts and finished products such as supplements. Other products that will grow in Mexico are those that treat the country’s most prevalent diseases, including diabetes and cardiovascular illnesses. During 2019, we will focus on incorporating added-value products and lines that complement our current portfolio. Finally, we will explore the sale of final generic products through Kern Pharma, Indukern’s manufacturing arm for final products.