Foreign Experience for the Mexican MarketWed, 09/05/2018 - 11:24
Q: How is Apotex positioned in Mexico’s generics market?
A: Since I took this position over four years ago, we have grown our sales in Mexico 70 percent and Apotex ranks fourth in units in the subsegment of generic drugs. In the overall market, we are 15th for units sold. The company’s performance is good and we are seeing growth in the double digits in the recent years.
Q: Last year, you opened Apopharma, a new division. How is this new project progressing?
A: Apotex has already launched medications for conditions related to the central nervous system and this year we will continue with new drugs for analgesia and cardiology. Mexico is an atypical market for Apotex, because its pharmaceutical market and medical profile have very particular characteristics. The country has acute diseases that are present in developing countries and it is beginning to present the chronic-degenerative diseases that are seen in more developed countries. Our strategy with this new division was to first consolidate its presence in the market and then start growing to become a leader in chronicdegenerative drugs. The growth rate of Mexico’s population pyramid is trending older, which has created an opportunity for Apotex to bring its expertise from other countries into the Mexican market. Apotex is prepared to embrace both sides of the market by diversifying its products, building stronger relationships with the government and consolidating its brand.
Q: How does Apotex use its position in North America to its advantage?
A: Apotex is present in 115 countries, of which Mexico is a strategic key for medicine manufacturing. We have two raw material plants here and the active pharmaceutical ingredients (APIs) in Mexico have proven to be highly reliable for Apotex’s drug manufacturing process. Our company enjoys the benefits of having invested solidly in the North American region and this allows the three countries to complement each other in achieving Apotex’s goals.
Q: What actions is Apotex taking to maintain its competitiveness and growth, given the change in presidential administrations?
A: In times of electoral change, strategies should be more clearly and transversally developed. The health industry has been waiting for a reform, but this has not happened. While Mexico not only must expand its coverage to improve access to health, it must also address the conditions in the industry, because there is a gap and a fragmentation across different components of the health system. Apotex has approached the government to prioritize the health industry and health system.
Q: How is Apotex preparing to face the possible outcomes of the NAFTA renegotiation?
A: Apotex is of Canadian origin, it has a strong position in North America and its first market is the US. For this reason, what happens with NAFTA is of vital importance for the development of our business strategies and models. Under a positive scenario, Apotex would benefit from having a good commercial agreement with the US and Canada. We think the commercial relations in the region will be maintained and pushed forward, more in the case of the US, where there is a shortage of medicines and where the health sector is highly relevant. In the worst case, if NAFTA goes down, Apotex has the geographic and commercial tools to find a positive path to continue positioning itself.
Q: How has Apotex’s Latin America expansion strategy evolved over the last year?
A: Apotex’s main internationalization strategy is to expand to all Latin America. In the last year, we have expanded to El Salvador, Guatemala and Dominican Republic and we have consolidated our presence in Chile and Argentina. Our expansion continues in the Andean area mainly in Colombia, but it has been delayed because of climatic type IV zone requirements that created obstacles for the availability of some products in the region.