A Shift Toward Delivering Therapeutic-Specific Value Propositions

Q: How has DVA Group evolved in the Mexican market, and what key shifts have you observed in the broader pharmaceutical ecosystem?

A: Our core focus remains unchanged: delivering active pharmaceutical ingredients (APIs) and excipients to drug manufacturers across a wide therapeutic spectrum. However, the market has undergone substantial shifts. Despite overall growth, the industry faced cash-flow pressures caused by delays in public health system payments, creating significant tension across supply chains. Additionally, price competition intensified after major government tenders were re-tendered in mid-2025. In the API space, cost pressure forced many drug manufacturers to bypass distributors and buy directly from primary chemical producers.

To adapt, DVA Group reconfigured its commercial model. Rather than acting as a standard distributor, we shifted toward delivering therapeutic-specific value propositions. The public sector represents roughly 65% of national drug consumption, while the private market holds 35%. While public sector delivery has stabilized, private consumption has expanded as consumers seek alternative options, accelerating market consolidation and growth in community pharmacies.

Q: What is DVA Group's commercial strategy for managing these ongoing economic and pricing pressures?

A: We are specializing in different therapeutic areas rather than taking a transactional, on-demand approach. We align our sourcing directly with key health priorities in Mexico, such as cardiovascular disease, metabolic syndrome, diabetes, renal conditions, and dermatology.

Furthermore, we offer complete formulation ecosystems. For example, in dermatology, we do not simply sell an active ingredient like clotrimazole; we provide the entire base material, including fatty alcohols and specialized excipients, alongside optional fragrances or colorants tailored to client specifications.

By combining long-term supplier agreements, secure logistics, technical support, and regulatory guidance, we serve as an integrated solutions partner for drug manufacturers rather than just a raw materials supplier.

Q: How is DVA Group positioning itself in response to the growing market demand for nutraceuticals in Mexico?

A: Nutraceuticals serve as an essential bridge between nutrition and pharmaceuticals. Physicians in Mexico are increasingly prescribing preventive supplements alongside active treatments, such as combining statins with Omega-3 for cardiovascular care, or prescribing Vitamin C during urinary tract treatments.

We focus specifically on targeted health areas like cognitive health, sleep support, and metabolic wellness. Rather than trying to cover every supplement category, we secure strong partnerships with specialized primary producers across the European Union, the United States, and India. This focused approach allows us to deliver high-quality, scientifically backed ingredients that meet the rigorous standards expected by pharmaceutical manufacturers.

Q: How has Mexico’s regulatory environment evolved, and how does DVA Group handle compliance challenges?

A: Regulatory compliance is fundamental to our operational setup. Two years ago, we restructured our internal operations to elevate regulatory affairs, establishing direct reporting to general management. Our Regulatory, Quality, Safety, Health & Enviroment team  consists of 14 specialists covering sanitary responsibility, quality assurance, environmental health, and regulatory submission processes. In Mexico, COFEPRIS’s timelines have improved significantly. Dossier approvals that previously took 24 to 36 months are now being processed in approximately 12 months. Our team works closely with industry trade associations and regulatory bodies to ensure our suppliers maintain proper Good Manufacturing Practice (GMP) certifications, ensuring our clients receive compliant materials on time.

Q: How has DVA Group prepared for the nearshoring trend and supply chain shifts in Mexico?

A: We anticipated these supply chain shifts long before nearshoring became a standard industry term. Historically, we relied on third-party contract manufacturers in Mexico to produce our proprietary formulas. In 2016, we initiated a plan to build our own dedicated manufacturing plant in Atitalaquia, Hidalgo.

Operational since 2019, this facility represented an investment between US$10 million and US$12 million in land and pharmaceutical-grade infrastructure. The plant holds international certifications, including Excipact for excipients and FSSC 22000 for food safety. Featuring three dedicated development laboratories and one of them is for pharmaceutical research, this local facility allows us to shield our clients from global supply chain disruptions caused by international events.

Q: What is DVA Group's long-term vision and commitment to the Mexican market?

A: DVA Group exists to generate sustainable value by developing our workforce, serving as a reliable partner for clients and suppliers, and supporting public health. Mexico is the largest pharmaceutical manufacturing hub in Latin America, supported by a skilled workforce and advanced technical capabilities.

Despite broader economic fluctuations, our physical volume sales continue to grow. We remain committed to strengthening Mexico's healthcare supply chain, expanding our specialized portfolio, and delivering high-value technical solutions that improve quality of life for patients.