Collaboration Essential for Ethical Healthcare Environment

Q: Reflecting on the past four years since the establishment of CEDIS, how has this investment impacted B. Braun's ability to meet the evolving needs of the healthcare sector in Mexico?

A: B. Braun’s significant 2019 investment in a distribution center (CEDIS) for our operations in Mexico has had a favorable impact, enabling us to continue growing over the years. We have consistently achieved double-digit growth, sometimes exceeding 20%. This level of growth would have been impossible without the infrastructure provided by the warehouse, which allows us to receive and dispatch products quickly.

This investment also helped us immensely in restructuring and expanding our facilities. As a result, we have been able to significantly expand our service center, where we handle technical services. We have nearly doubled the number of employees at this location, as well as nationally, to support our equipment. Our goal is to ensure that any equipment we facilitate, sell, or rent performs to its optimal ability, without experiencing downtime.

Q: What progress has B. Braun made in introducing its products, especially injectable solutions, into the Mexican market?

A: Unfortunately, the regulatory processes in Mexico are not as swift as we would like, due to their inherent length, although this is understandable given that ensuring product safety is a priority. Regardless, our growth has been particularly significant in injectable products for pain management.  Last year in Mexico, for example, we introduced the first and only direct injection ibuprofen, a unique offering in the market.

This product features a specially designed plastic container with secure ports for rapid administration, representing a significant advancement. While we are not a major player in the pharmaceutical sector, this unique product introduction is expected to generate considerable demand in Mexico. Traditionally available only in pill form, ibuprofen is inaccessible to patients who cannot swallow pills. Previously, patients would resort to manually crushing pills into powders, which posed infection risks and other complications during administration. Our product now comes ready-to-use in a compact container of 50 to 100 milliliters, greatly simplifying administration and enhancing patient safety.

Q: What initiatives or strategies has B. Braun implemented in collaboration with associations like CANIFARMA and AMID to ensure the smooth delivery of products to patients?

A: Partnerships are crucial for us to effectively leverage B. Braun’s relevance and importance within the industry. We consider collaboration with associations like AMID and CANIFARMA essential for fostering an ethical market environment. Our goal is to ensure compliance and transparency, eliminating unethical practices that still persist in our industry. We advocate for a transparent market that adheres to our standards, promotes fair competition, and facilitates market access for innovative products.

Our close collaboration with AMID and our committed partnership with CANIFARMA underscore our dedication. Ethical compliance, fair market access, and transparent competition are pivotal aspects of our collaboration with associations. We invest time and effort by our team members to participate in association committees, ensuring these principles are upheld.

Q: What are the primary challenges confronting the medical device and pharmaceutical industries?

A: We are facing challenging global times, particularly with an increasing demographic of individuals requiring healthcare due to the aging global population. Budget constraints further complicate matters. An additional challenge arises from the aging workforce of healthcare professionals, resulting in impending retirements and a shortage of skilled personnel.

The medical device industry, in particular, is encountering limitations that hinder its growth potential. Despite robust revenue growth across the sector, profitability has been affected by heightened budget pressures, restricted pricing capabilities, and increased operational costs.

Q: How is the recent introduction of the OMNI® machine expected to impact the efficiency and quality of renal care in the Mexican healthcare system?

A: OMNI® focuses on patients in critical condition, particularly those experiencing multiple organ failure. The OMNI® machine, referred to as acute therapy, is primarily utilized in intensive care settings. These patients are in extremely challenging conditions, requiring continuous blood cleansing to prevent further organ damage.

OMNI® offers significantly enhanced digital control through advanced software, providing more functionalities to effectively manage the patient's critical condition and ensure thorough blood cleansing. Another key advantage is its portability: it can be easily moved between areas, simplifying logistics within healthcare settings. This is crucial considering the numerous pieces of equipment and technologies nurses in Intensive Care Units must handle.

Q: What role is robotics playing in healthcare and how is B. Braun participating in this regard?

A: In the realm of digital microscopy, we have introduced a new system designed for microsurgery, Aesculap Aeos®, particularly in cranial and spinal surgeries. This system provides enhanced visibility in constrained surgical fields, contributing to precise surgical interventions. This digital microscope signifies our initial steps into robotics. The head unit housing this advanced technology requires precise micro-movements, a pivotal aspect as we move toward automated surgeries in the future. Currently, these systems are operational in educational institutions and are used daily in patient care.

Looking ahead, we envision robotics playing a larger role, potentially automating surgical procedures with precision tools for cutting and coagulation. This represents our long-term vision for the next few decades.

Q: How do you support healthcare professionals in adapting to the new technologies you offer?

A: We provide accompanying support. One well-known aspect is education and training. We recently had the privilege of being selected again to support an IMSS hospital that performs numerous hip surgeries. We were fortunate to win this year's tender and have eight full-time personnel stationed at the hospital to ensure logistics, surgical support, washing, and recovery are consistently and thoroughly managed.

We do not just sell products for the sake of selling; we offer solutions tailored to specific needs. Proper technique is critical to avoid complications. In cases where continuous presence is required, such as in orthopedic systems or hospitals utilizing our automated infusion systems, we provide dedicated support.

Q: What are your expectations regarding the new federal administration to ensure that products and overall healthcare sector innovation reach all patients swiftly and effectively?

A: In the future, it will be crucial to ensure a unified voice representing various companies. We should collaborate closely with government procurement departments, especially given that today's supply chain is no longer as robust as it was before the COVID-19 pandemic. Previously, it was common for the government to issue tenders with deliveries arranged shortly after the award, covering up to 40% of the annual volumes for the entire Mexican government.

The industry has ample capacity but requires more structured planning. The Mexican government is one of the largest buyers worldwide, presenting a unique situation. As an industry, we have a responsibility to work in harmony with the government to establish well-timed procurement schedules.

We have an opportunity to explore alternative planning systems, considering the annual budget constraints the government faces. The current practice of urgent responses upon budget release is not sustainable. Therefore, negotiating these issues will be critical. Currently, our competitiveness is hindered by lower-priced – and potentially lower quality – alternatives flooding the market.

We also need to move away from the current structure where the same entity both judges and executes, separating the healthcare provider from budgetary decisions. This would shift the focus from budget management alone to also include patient outcomes and accountability.

Moving forward, I advocate for creating distinct roles and responsibilities within healthcare financing and service delivery, ensuring accountability and demanding high standards of care. With the potential of a universal healthcare system on the horizon, now is an opportune moment to address these issues.

Q: What specific objectives and targets does B. Braun expect to achieve by the end of the year in the Mexican market?

A: This year, we are concentrating on technology applications that enhance our products and services for our customers, accelerating our digital transformation efforts to automate processes, and fostering employee engagement. While this is not a project with a finite end this year, we have set clear objectives to achieve measurable outcomes. Our primary goal is to achieve approximately 20% growth in market sales, reflecting our commitment to increasing our market share year over year. This metric is crucial for us as it indicates our real growth and success in the market.

B. Braun is a German manufacturer of innovative solutions for the healthcare sector. It operates in over 60 countries.