Market Analysis Spurs Successful Portfolio OfferingBy Miriam Bello | Tue, 01/05/2021 - 08:43
Q: How has DVA Mexicana addressed COVID-19 challenges as a provider of APIs, excipients and coating solutions?
A: With the pandemic, global supply faced significant disruptions in March and April as China and India, the main API producers, closed their borders to contain the spread of COVID-19. Supply times escalated from 75 days to 90-180 days. Moreover, there was high demand for recommended analgesic products for COVID-19 cases, which led to shortages at some levels. To avoid disruptions, DVA Mexicana has strategically planned long-term inventory orders. In the past, we would begin planning three to four months prior, whereas now we plan five to six months ahead because delivery times are uncertain.
In Latin America, this logistics challenge had a positive impact on our API demand. DVA Mexicana received large orders to supply APIs that we would usually sell in limited amounts for analgesic products. We have been vigilant regarding market behavior to respond to our clients’ needs and requests.
Q: How has the government’s purchasing scheme impacted DVA Mexicana and its clients?
A: We see this directly reflected in two areas. The first was the considerable reduction in excipients going to special government orders. Since 2018, many medicines in the government’s basic scheme have faced cuts. We started to resent these changes when our clients began asking for lower prices on APIs after the tender of that same year was paused when the new government entered office. Pausing the tender resulted in medicine shortages. In 2019, the government released another tender but many key drugs were not covered and others were asked to be covered at 80-120 percent. Another impact for the industry was the elimination of distributors from the purchasing process, which led to a reconfiguration of suppliers.
Q: How has your patent plan for DVA Mexicana’s production plant in Mexico developed?
A: This project in Hidalgo has been developing favorably. Patent processes are long but we are already halfway through a development called Easycoat SP that helps protect products in an oily medium or co-processes active in an oily medium, such as capsules that contain oily mediums.
To successfully position this new Easycoat line in a highly technical market, we have to run pilot tests regarding the efficiency of the product in a company’s R&D operation. We organized webinars to explain the benefits of this development. Moreover, many clients in Latin America have been able to test it and experience the benefits themselves. The current focus for DVA is to introduce and successfully position Easycoat SP in the Mexican market. By 2022, we hope to be exporting it to the US.
Q: What is the differentiator for DVA Mexicana’s excipients line?
A: The strategic partners we work with help us stand out. We have been able to create strong partnerships with the manufacturers we work with, which even allowed us to communicate their innovations to our clients. We have chosen high-level partners from Asia that work to high standards.
Q: How active is Mexico in the development of new molecules for treatments?
A: In Mexico, we have not seen the development of new molecules, only their production once the patent expires. To successfully participate in this process, DVA Mexicana studies trends in larger markets and looks at the patents soon to expire in the US or Europe. As a result, we know which products will successfully enter Mexico using our excipients. We have one of the largest specialized excipient portfolios in the Mexican market and that helps us to reach more clients and offer a complete service.
DVA Mexicana is a German raw materials supplier for the pharmaceutical, food, industrial chemicals and crop protection industries. The company has around 750 employees in Mexico.