Fighting Medical Bias With Effective Generics

Q: What are the most relevant market needs in Mexico and Latin America that will drive Aspen Labs’ growth in the region?

A: In the past, Big Pharma companies had capacity to generate patents that became the blockbusters we all are familiar with. The need to explore new markets is changing industry rules and Mexico is no exception since more than 70 percent of products are generics. Yet the level of enforcement or use of generics in the private sector is not elevated. This is due to the lack of legal enforcement in following prescriptions as pharmacy chains use doctor consultancies to prescribe their own products. Doctors at hospitals are losing the power to define the correct treatment for patients and this has to change. At Aspen Labs we are working in specific therapeutic areas and focusing on products that can be sold without a prescription. Pediatric products are a good example of this as mothers prefer to have a prescription and not only recommendations from clerks. This requires us to create product awareness among physicians instead of fighting against pharmacy chains, and doctors at the sales point. Focusing on these kinds of products has turned out to be an effective strategy to ensure return of investment in promotion.

Q: Your strategy is pretty much focused on acquiring existing products from other companies. How do you manage to change their life cycle and capitalize on the opportunity they still have in the market?

A: We tend to believe companies divest product lines because they are not interested in them anymore. However, this has more to do with strategic areas companies are focusing on including research and innovation. Although products are still doing well in the market, sometimes there is no budget to promote them. Our business is still interested in buying products and companies but we are more focused on specific areas where prescription is necessary or OTCs for therapeutic areas on which few companies are focusing. Last but not least, and this is relatively new for us, is the hospital business. Cancer and thrombosis are very important for generics today but they need to be produced by a formal company. Oncology generics are not an easy thing to handle. We sell generics to the government only for the first two years it needs a product and when the competitors’ volume increases we retire from that segment and try to sell another product they are starting to demand. No one can supply the full volume required by consolidated purchases leading manufacturers to sell products through distributors at the same price.

Q: How do you manage to position your OTC brands, especially when there are several OTC products that do not necessarily have the therapeutic benefits they claim?

A: Branding is fundamental to the success of OTC products. In the branded generics business we are constantly looking to acquire well-known OTC brands. In Mexico we are developing a product line for gastrointestinal diseases, targeting a launch in the second half of 2017. In other countries we have a stronger position in the OTC market but we are developing it here. OTCs have many opportunities especially given the economic situation of the country where the cost of a medical consultation plus the medicine can be expensive. OTC drugs for acute diseases will become an important part of the equation and we see promising growth in this area.

Q: What are the main hurdles of the infant formula industry and how do you deal with its detractors?

A: The industry has to work together not to push for the use of infant formula but to avoid political positions that are detrimental. Some people believe that women should only give babies breast milk. Instead of saying infant formulas are detrimental they should recognize there are still many regions where the nutrition level of mothers is so bad they are not able to provide quality milk for their babies. Additionally, employed mothers often find it very difficult to breastfeed their children. A huge percentage of babies are delivered by C-section and if the baby does not receive breastmilk in the first three days it is more difficult for mothers to keep producing milk on a constant basis. In Aspen Labs we support breastmilk and we give mothers an additional month after they have a baby. However, we are against those who claim breastmilk has to be given by law when it should only be a health recommendation. We are innovating to be as close as we can to breastmilk.