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EF: What are Laboratorios Liomont’s main opportunities and priorities for 2024?
AR: We are proud of the 85th-anniversary celebration we had last year. Our roots trace back to 1938 when my grandfather, a chemist, founded this 100% Mexican company. Over the years, we have faced challenges, but we are now among the top ten companies in Mexico.
Looking back at the past years, our growth has been impressive. Despite the challenges of the pandemic in 2020, the Mexican market experienced a double-digit increase, with a compounded growth of around 9.5% from 2019 to 2022. During the same period, Liomont had a remarkable compounded growth rate of 15.5%.
During those challenging years, our respiratory products and antibiotics experienced high demand. We proudly took on the immense challenge of manufacturing the AstraZeneca vaccine for COVID-19. We carried out a Tech Transfer in a record-breaking six and a half months, we collaborated with AstraZeneca and mAbxience in Argentina to produce around 100 million doses that were distributed throughout Latin America. We had an amazing run until 2022 when pandemic-related manufacturing stopped abruptly in June. Despite aligning well with market needs, the growth slowed in 2023 to around 4% in value. Our major challenges now revolve around shifting product demands, particularly toward cardio-metabolic and chronic disease products.
Despite COFEPRIS opening the dialogue and making significant efforts to keep pace with the developments, we still require more agility in Mexico's regulatory processes to stay competitive. Liomont has over 100 people in R&D, yet we encounter delays in the approval of our submitted dossiers. Additionally, our manufacturing facility, where we produced the COVID-19 vaccine, has been at a regulatory standstill for over a year and a half. Despite initiating the process for a change of use, we are still awaiting approval to resume manufacturing other products. More certainty in approvals and regulatory processes is crucial to seize upcoming opportunities readily.
EF: How is Liomont collaborating with the private and public sectors to advance healthcare in Mexico through strategic partnerships and joint initiatives?
AR: Liomont focuses on a large variety of branded generics, however, we are evolving our portfolio to cover more chronic diseases like cancer and cardiometabolic conditions, which require medium- and long-term collaboration with the government due to the significant investment and effort involved.
We work together with international companies and local academic institutions in Mexico, particularly UNAM, to develop vaccines and monoclonal antibodies.
We collaborate with international companies to sell and distribute products in Mexico and transfer technology to our manufacturing sites. This strategy aims to enhance our competitiveness by using technology locally and bring down costs. We are focusing on vaccine production, with the goal of reviving Mexico's independent vaccine manufacturing capabilities, which have been declining since the 1990s. We have prepared proposals for the upcoming elections to advocate for this cause and plan to engage in discussions with the new government. Mexico should regain its vaccine self-sufficiency, or at least strive for partial sufficiency.
We are in dialogue with the Ministry of Foreign Affairs and Celac International to create a regional vaccine production environment to enhance capacity in Latin America. Currently, we are working on three vaccines, with one already submitted to COFEPRIS. These vaccines are vital due to a significant shortage in Mexico, especially affecting children. Our goal is to meet this urgent need and contribute to the well-being of the younger generation.
When the government encounters challenges, the private market grows but does not sufficiently reach the broader Mexican public. Some products, especially monoclonal antibodies, are primarily targeted for the public market since the government is the only buyer able to cover the great need for these products. We require more stability in the public market to have a meaningful impact on the general population, and we are eager to collaborate toward this goal, supplying products at a more affordable price. We have proved that significant achievements are possible with determination, collaboration, and adherence to regulations. During the pandemic, we exemplified this by swiftly transitioning to production within just six and a half months after rigorous audits. Preparedness is essential, given the unforeseen challenges and threats that may arise. The government must recognize the importance of the industry for the country's future. Unfortunately, the industry has faced more criticism than support, primarily due to a lack of trust. This perception needs to change. Fostering trust between the sectors and supporting trustworthy companies will lead to productive growth for the benefit of the population. Dialogue and mutual understanding are essential to overcome our barriers.
EF: Hypothetically, if you were the next appointed minister of health, and you received different proposals from different health sectors, where would you start to create sustainable healthcare in Mexico?
AR: I was invited as part of a group, to work with Dr. David Kershenobich and Dr. Alejandro Svarch from COFEPRIS on preparing a proposal to the next government in Mexico. The meetings were very insightful and emphasized the importance of building trust and initiating a fresh approach, particularly in the regulatory landscape. Beginning with COFEPRIS, it urgently needs increased funding and recognition. Dr. Svarch's vision of digitalizing is not only important but an urgent necessity for the whole sector. The government must allocate more resources to COFEPRIS, considering its vital role in managing around 12% of the PIP.
Another topic is the establishment of a transparent and long-term public purchasing process. In the last 4 years, the procurement process has undergone seven different approaches, including Hacienda, UNOPS, INSABI, IMSS Bienestar, and now BIRMEX. Seguro Popular, a well-intentioned institution, was unfortunately canceled. The continuous changes have hindered progress. I believe in sticking to an idea, making it work, and addressing issues rather than demolishing and rebuilding.
Mexico has immense potential for growth with its ideal geographic positioning, large population, robust infrastructure, and knowledgeable academic community. We possess the resources to address various needs, especially in the health system, which has faced challenges in supply, and critical shortages. It is time for a collaborative effort to propel the country forward.
