Medicine on Demand

Q: What are the market conditions and opportunities that led to the creation of Farmalisto?

A: Farmalisto started operations in Colombia more than two years ago. We are an online company that operates in Mexico as much as it does in Colombia, making its way to the local market in 2015. E-commerce is the newest trend in business and Farmalisto is taking advantage of new technology and available distribution channels for prescription and pharmaceutical products. Farmalisto saw an upsurge in e-commerce opportunities especially in large cities where mobility is an issue. Traditional pharmacy stores also have limited storage space, which could mean product scarceness. Farmalisto’s goal is to provide ongoing support and comfort to the clients that need it the most. Some of our clients suffer from chronic diseases, forcing them to purchase their medications on a monthly basis. As such, Farmalisto follows up on the status of its clients, making sure the right dose was purchased at the right time. By knowing our clients have properly followed their treatment, side effects are kept to the lowest point.

Q: How does Farmalisto comply with its three-hour delivery promise in an environment such as Mexico City?

A: Farmalisto has specialized in logistics operations since birth. Creating demand, having efficient purchasing schemes and becoming experts in logistic operations are three main elements to the company’s business model success. If Farmalisto does not have sufficient logistics power, creating high service demand is pointless. We have a fleet of 15 motorcycles that service inner-city customers, coupled with key partnerships with FedEx and DHL that cover the rest of the country. On average 30 innercity orders are delivered daily in our around-the-clock schedule while keeping flexibility at the top of our agenda. Although Farmalisto does not operate day-and-night outside of Mexico City, we are evaluating the possibility of doing so in the near future. If demand grows our fleet will grow too.

Our SugarCRM database enables Farmalisto to keep close track of its client’s treatment, as doses and intakes are recorded allowing it to assess the number of packages they will eventually need. Farmalisto contacts its clients a few days before they run out of medicine as to prevent them from enduring any complications. We have recently focused on patients with hypertension, diabetes and high cholesterol, all of which need close follow-up. Offering the lowest market price is one of Farmalisto’s business promises. If clients find better listings Farmalisto matches the price and deducts double the difference in their next purchase. That is to say, clients get a MX$10 (US$0.5) discount if there is an initial MX$5 (US$0.27) difference.

Q: What led Farmalisto to come into the Mexican market rather than expanding into the South Cone?

A: There are two key reasons why Mexico made sense to us. Firstly, it is the second largest Latin American market following Brazil. Secondly, the out-of-pocket drug payment percentage in Mexico is nearly 80 percent. As such, Farmalisto foresaw that Mexico was essential to its success. Our strategy is to attract direct consumers rather than state institutions, which perfectly fits Mexico’s market conditions.

Q: How did the Farmalisto Esencial program get started and what results have you reached from this initiative?

A: Patients constantly look for added information regarding their medical conditions especially in therapeutic areas. Therefore, we created categories for Mexico’s largest market segments, where clients have the opportunity to ask questions and get a referral to companies that can further provide information. Patients value information and our program has helped them in their efforts. If patients have not found a good supplier Farmalisto Esencial helps them purchase the drug they need.

We provide optimal information while helping clients reach the medicine they truly need. By receiving this type of support from the pharmaceutical industry clients have more inclination to use our services, creating brand loyalty. Our business model calls for constant evaluations in each operational activity. The Farmalisto Esencial program has positively impacted our sales with a clear ROI.