Lab Acquisitions Bolster Brand Value

Q: Lab acquisitions have helped spur GDA’s growth. What is the strategy to integrate these labs?

A: Over the past two years GDA has acquired Olab Diagnósticos Médicos, Laboratorios Azteca and Laboratorio Clínico Jenner, which were the third, fourth and fifth most important players in Mexico City and its surrounding urban area and have made GDA the secondlargest player in the industry. GDA is now integrating the operations of these companies, retaining the best qualities and practices of each.

We are a multibrand group that will leverage operational and administrative synergies to enhance the value of each of our brands. Olab is recognized by many doctors and public and private-sector institutions for its expertise in imaging tests such as MRIs, tomographies, mammographies, x-rays and ultrasounds. Azteca is well-known for its leadership in clinical analysis, especially in forensic science and toxicology analysis, while Jenner and Swisslab are focused on disease prevention through clinical analysis. Although our brands have specializations, each has medical-imaging equipment.

We will concentrate our laboratory tests and analysis in a central location and our imaging diagnosis in a blue room, a model that will improve the quality and reduce time during the diagnosis process. The new 5,000m2 central laboratory will be robotized and will provide service to our brands, clients and other potential clients, both nationally and internationally.

We will continue to look for small to medium-size companies that complement the group’s portfolio and we will also resume inorganic growth during the second half of 2017 through the expansion of our brands in Mexico City.

Q: How are these alliances impacting your operations?

A: In 2017, GDA collaborated with Grupo Diagnóstico PROA and Laboratorio Médico Polanco to establish the Mexican Council of Medical Diagnosis Companies (COMED), which aims to unite all the diagnostic labs in Mexico to help lawmakers improve current regulations. We also want to put regulation in place to ensure healthy competition while also organizing congresses and symposiums to spread knowledge and best practices in the industry. These efforts will translate into better diagnostic services in the country.

Q: How is GDA responding to Mexico’s need for quick and precise diagnostics?

A: The group is joining forces with international suppliers to implement the highest available technology that will improve diagnoses. Our blue room has the technology to conduct live sessions between the treating doctor and our radiologists. The platform also allows us to share images with experts around the globe to improve the diagnosis in difficult cases.

Q: What is your strategy to put Big Data to use?

A: In this industry, Big Data applications should translate into timely disease prevention. In this area, we would like to cooperate with local governments and companies by sharing all the information we gather to increase prevention. The Ministry of Health is the appropriate entity to use this information for the benefit of Mexican citizens. We believe COMED will accelerate the creation of such synergies and regulations to help

the Mexican population without threatening the privacy of our clients. Q: What are your growth expectations for the following five years?

A: The president of Empresas Aries drafted an aggressive growth plan comprising organic and inorganic growth. This is why we are building strong foundations such as our new central lab, which will be 10 times larger than the current lab and capable of meeting our growth needs. Our goal is to increase our market penetration in Mexico and expand our coverage in Latin America. To achieve this, we will open several branches across our brands, mostly in the same markets in which we are already present. We also have a few companies in sight that will increase our national and regional coverage.