Highly Differentiated Products for Market Competitiveness

Data sciences company IQVIA estimates there are approximately 50 generics companies competing in the Mexican market, all of them actively working to attract consumers looking for lower prices. “Under these circumstances, product differentiation becomes imperative to remain ahead,” says José Díaz, Executive Director of Micro Pharmaceuticals México.
Micro Pharmaceuticals started in 1973 as a generics company based in India and today, its products are present in 60 countries, including Mexico through a subsidiary known as Micro Pharmaceuticals México (Micromex) that focuses on anti-infectives, cardiovascular products, antihistamines and nervous system therapies. The company is recognized by different regulatory authorities across the world, including ANVISA in Brazil, TGA in Australia, MHRA in the UK, FDA in the US and COFEPRIS in Mexico. Accreditation by several regulatory agencies has given added value to the company’s products. “Our headquarters exports to heavily-regulated countries. We prioritize good manufacturing practices to not lose our certifications,” says Díaz. The same generic products that are sold in Mexico, are sold in all countries where Micro Pharmaceuticals has a presence. “This forces us to have a single production process for all customers.”
A single manufacturing chain also has its challenges as market opportunities and regulations differ from one country to another. Since the 1990s, the Mexican government has chosen to incentivize the generics market in the country because the purchase of these medicines represents up to 80 percent savings in medicines, according to COFEPRIS. However, Micro Pharmaceuticals México believes the private sector also is presenting increasing opportunities for the generics market. “The constant price war and the sector’s sustained and relevant market growth have increased the attractiveness of participating in the private sector,” says Díaz. However, growing market participation should not be the goal. “The objective should be a quality competition, where companies work to manufacture products that ensure the fastest recovery, with the least side effects at an affordable price.”
Díaz believes the emerging business opportunities in the private sector are partly a result of public policy changes and partly thanks to the country’s economic environment. “Given the current purchasing policies, growth opportunities in the public sector remain uncertain,” he says. The country, nonetheless, represents an important market for international companies. “Mexico is an important country and we are here to stay,” Díaz says. “We will maintain our price and high-quality policies to compete with reasonable results.”
Although the generics industry will remain a strong ally for the government, Díaz says public policies need to promote quality in medicines. “Health authorities should put more weight on the quality of medicines and see price as a second priority. Savings in purchasing cannot supersede quality because people’s health is at stake,” says Díaz.
Public policies need to reflect that health comes first, Díaz adds. Increasing the quality requirements for generic products would result in greater benefits for patients. Moreover, Díaz foresees opportunities for high-quality differentiated generics. “Our branded generics are well-positioned in the market and the final consumer is increasingly choosing them over other options,” he says. However, patient education could have a stronger role in helping people to be aware of their purchase decisions. “If COFEPRIS would send information to the final consumer on the importance of quality in generics, then patients would be better informed when making their purchasing decision.”