Research Will Drive Growth in the Mexican Market

Q: How would you define FAES Farma’s positioning in Latin America’s pharmaceutical and healthcare markets?

A: FAES Farma has an extensive presence in Latin America. We are active in Mexico, all of Central America, Colombia, Ecuador, Chile, and Peru. Our presence in Central America is particularly significant, as we have a manufacturing plant in Guatemala.

FAES Farma began its internationalization into Latin America 15 years ago, driven by the natural affinity for Spanish-speaking markets. This expansion required considerable effort, as we launched subsidiaries essentially from scratch. We now have over 1,000 employees across the region and strong sales forces in every country. In Mexico, we have a team of 190 representatives in two divisions: 40 in urology and gastroenterology, and 150 in what we call the CORE division.

We recently acquired the ophthalmology company SIFI, adding over 31 sales representatives to our team. Overall, our ambition is growth guided by three strategic pillars over the next five years. 

Q: How has FAES Farma built credibility and trust among healthcare professionals, patients, and partners?

A: While some consider FAES Farma to be a family-owned company, it is not. Its shareholder structure is widely distributed, similar to any major publicly traded pharmaceutical company. The largest shareholder holds only around 4% of the company. Being a publicly traded company requires us to maintain high operational standards, conduct audits, ensure compliance, and maintain transparency in financial reporting. We regularly present performance and strategic plans to the stock exchange.

FAES Farma has a longstanding commitment to research, despite being relatively small. Notable successes include a highly effective antihistamine that causes minimal drowsiness, which is being sold internationally. Other proprietary products, such as our vitamin D formulation, offer improved efficacy and reduced interactions with other medications. Historically, FAES Farma focused on stability and predictability, but under the leadership of our new CEO Eduardo Recoder the company is now pursuing growth.

In Mexico, our pharmaceutical portfolio covers metabolism, respiratory, allergy, urology, and gastroenterology. With SIFI, we also now have a significant presence in ophthalmology.

Q: How is digital health influencing patient care and pharmaceutical operations?

A: The pandemic acted as a catalyst for digital healthcare, which had previously been underutilized. While in-person visits have resumed, digital tools remain relevant for certain straightforward therapeutic areas, allowing faster and more efficient care. Digital health is a tool we continue to explore and optimize.

Q: How would you describe the reception of FAES Farma’s products in Mexico?

A: We are growing at nearly 16% year over year and believe there is still opportunity to expand further. Growth varies by area. For example, urology grew 300% from a small base, while gastroenterology grew 180%. All five core areas have potential for growth, and we are actively pursuing it.

Q: How does sustainability factor into FAES Farma’s operations?

A: We engage in practices considering environmental, social, and long-term viability. FAES Farma has a code of ethics and conduct, and we have implemented a compliance officer position reporting directly to me and to Spain, ensuring we achieve success responsibly. Globally, we manage carbon emissions, pursue renewable energy, and control production waste. In Mexico, our sustainability focus is more limited as we do not have manufacturing plants, but we focus on reducing emissions and fuel consumption. We have also identified an opportunity to expand social responsibility initiatives alongside our employees.

Q: How have local regulations impacted FAES Farma’s growth in Mexico?

A: We comply fully with COFEPRIS. While regulatory delays can occur, significant improvements have been made over the past four and a half years. There is always room for faster processes, but progress has been clear, and the government seems willing to engage with the industry.

Q: What are FAES Farma’s short-term priorities for Mexico?

A: Our primary objective is to achieve double-digit growth over the next five years. This strategy follows three pillars. The first is maximizing growth from our existing portfolio in respiratory, metabolic, urology, and gastroenterology to ensure efficient execution in the field. The second is to integrate SIFI effectively, while maintaining and expanding its market presence. The third is to position FAES Farma as a strategic partner for companies seeking commercial partnerships in Mexico, leveraging our robust sales network and promotional infrastructure.

There is a great opportunity in the Mexican market, which continues to grow and demand high-quality healthcare services. FAES Farma has a clear path to differentiate itself through its strategic pillars, working primarily with the private sector while remaining open to potential government collaboration in the medium term.

FAES Farma, with over 90 years of experience and presence in over 130 countries, develops prescription medicines and healthcare products. Guided by innovation, quality, and sustainability, it aims to be a trusted global leader in health and well-being.