Read the Conversation
Conversation highlights:
- Teva’s diverse and strategic presence in Mexico: Multiple manufacturing, API, and distribution facilities make Mexico a critical growth hub, supported by a strong five-year pipeline of 50+ new molecules across private and public sectors.
- Portfolio focus and expansion: Growth is driven by world-class branded generics focused on pain management, cardiometabolic, CNS, and high specialty therapies in oncology, uro-oncology, and hematology, plus an upcoming biosimilars pipeline that will both benefit the public and private sectors, all of this complemented by local clinical trials in respiratory and gastroenterology.
- Industrial and geopolitical advantage: Teva’s API plant in Lerma, the only one in the Americas for the Teva group, positions Mexico as a key partner for nearshoring and North American pharmaceutical self-sufficiency, also aligning with “Plan Mexico when it comes to the perfect triangle: Manufacturing, Clinical Trials, and a strong social responsibility agenda.”
- Innovation and AI integration: AI is being embedded across drug development, clinical trials, manufacturing, and forecasting. Employees are also integrating AI into daily processes with generative and predictive AI, for agility and tailor-made business models.
- Leadership and vision: Rafael aims to double Teva Mexico’s size again by fostering a collaborative, patient-centric culture that humanizes health, strengthening key partnerships with government and other relevant local stakeholders, and delivering both innovative and high-quality generic medicines.
EF: Could you tell us what attracted you to join Teva and what mission you have set for yourself? What do you want to achieve in Mexico?
RS: I found it very interesting to see that Teva is quite a diverse company. It has everything: branded generics, biosimilars, innovation, and OTC products with annual sales of approximately $18 billion and employing around 37,000 people. It has a large and diverse footprint worldwide, and in Latin America, the company is also strong in Brazil, Argentina, and Chile, besides Mexico, where it has a significant presence with manufacturing plants in Guadalajara, an API plant in Lerma, a Quality Lab plus, and a distribution centre in Cuautitlán, near Mexico City. Our commercial operations are led from our corporate offices in Mexico City. Therefore, it is a significant undertaking with very promising objectives for the next five years, which attracted me to return to Mexico and be part of Teva’s growth in my country over the coming years.
EF: What makes Mexico so strategic for Teva? Why is investing a dollar in Mexico better than investing it elsewhere?
RS: Teva has invested significantly in Mexico by acquiring several companies. In 2016 alone, it invested 2.3 billion dollars in the acquisition of Rimsa. Teva is the pharmaceutical company that has invested the most in Mexico over the past decade with this acquisition.
This makes Mexico a highly strategic market, also due to the size and potential of the market. If you look at our local pipeline for the next five years, it is quite impressive. We plan to launch more than 50 molecules in different areas, both for the private and public sectors. So, Mexico will be a driver of growth for the company soon.
EF: Could you elaborate on the evolution of Teva’s portfolio?
RS: Rodrigo Fernandez led Teva Mexico for the past four and a half years, and under his leadership, the company doubled in size, achieving an average annual growth rate of around 25 percent, which is remarkable. It is quite a challenge to follow in his footsteps, but it is great to be working with such a strong team.
Teva operates in both the private and public sectors. In the private sector, our focus areas are pain management and cardiometabolic, as the metabolic system continues to be a major growth area for many companies. We are also working through partnerships with local companies to grow into other therapeutic areas, such as the central nervous system. These will be key priorities in the retail market.
In the public sector, we primarily focus on oncology, uro-oncology, and hematologic, for high-specialty products. What is particularly exciting is how the pivot-to-growth strategy connects to innovation. In Mexico, we are just beginning this journey, one step behind countries like the United States, where several innovative products have already been launched. However, we have already started conducting clinical trials here. Currently, we have two active trials. One in respiratory and another in gastroenterology, specifically for Crohn’s disease.
These are quite important for us. For example, in the respiratory trial, we already have five centres recruiting patients for an innovative product. It is a unique opportunity, and we are thrilled to have the chance to treat Mexican patients with this therapy, with the hope of seeing it registered in the next few years.
EF: Given your experience, how do you assess the differences between the Brazilian and the Mexican market in terms of the market dynamics?
RS: Both Brazil and Mexico are very large and important markets. I spent the last five years in Brazil, and it was a great opportunity. The country’s size alone is remarkable, around 9.5 million square kilometres, so even flying from São Paulo across the country can take six hours. Logistics play a critical role, and you need strong distributors to ensure full market coverage.
In Brazil, I worked for another company that was primarily focused on the private sector, particularly in fertility, where we collaborated closely with clinics and developed strong key account management relationships. Brazil also has its own particularities when it comes to taxes. You must work closely with tax consultants and government authorities to ensure compliance with the rules.
One of the challenges Mexico has faced is that, in the past, it has changed the way public sales are conducted, which has become a challenge. However, there is also a clear opportunity, as the government, through Plan Mexico, is putting greater emphasis on health. Here, I would say that Teva has a unique opportunity, as we have APIs and manufacturing plants, plus the previously described clinical trials, to enable us to contribute to one of the government’s visions of vertical integration within the country. Our API plant in Mexico is the only Teva API facility on the entire American continent and one of only 14 globally.
EF: Especially after the pandemic, there has been a real focus on localizing API production. It has become almost a matter of national security.
RS: It is a matter of national security because, during the pandemic, the US depended heavily on China and India for many critical supplies. Geographically, Mexico is well-positioned to help reduce its dependence on other markets. For instance, our Teva API plant in Mexico sells more than 50% of the APIs it produces to the US. Our manufacturing here is already supporting the US market, which represents a significant opportunity to continue building and growing in the future.
EF: Mexico is a huge country, both in terms of market size and geography. What are the main challenges for access in Mexico, and how is Teva partnering with different stakeholders to improve access across the country?
RS: In the private sector, we have a huge presence in the therapeutic areas we focus on. We visit doctors to present our portfolio and explain how our branded generics differentiate themselves from other generics in the market. Some are manufactured in Mexico, others are imported, and all of them are of the best-in-class quality. We also collaborate with the medical community through ongoing continuous education that ensures they understand the benefits of our products, particularly in pain management and cardiovascular care.
For example, some of our products combine two or three molecules into a single pill, which improves patient compliance and provides treatment at a more accessible price without sacrificing quality. This helps patients not only gain access to effective medications but also makes it easier for them to follow their treatment.
In the public sector, we help the government by providing branded generics of high-specialty products as soon as patents expire. We work closely with regulatory, legal, and supply teams to ensure that products are available on time, allowing us to participate in tenders to make these best-in-class quality medicines accessible at reasonable prices for Mexicans.
This approach is important because the pharmaceutical market has a cycle. You need both innovation and timely access to post-patent products. By helping the government efficiently utilize resources, we can address challenges such as workforce shortages, infrastructure gaps, and income inequality, ultimately improving access, affordability, and life expectancy for patients.
Our primary objective is to support the healthcare system with Top-quality, best-in-class medicines. With the company’s push for innovation, it aims to cover the entire cycle.
EF: How are you distilling all the AI uses and applying the technology to enhance your operations?
RS: AI is becoming ever more important within Teva. Teva Mexico is part of LATAM, a very relevant Hub that belongs to the International Markets region. Within International Markets, there is a strong focus on AI. Early yesterday, I participated in a conference call reviewing initiatives from other countries, like Russia, to see how we can adapt them locally.
In Mexico, Teva is actively engaged in global operations across several areas. Drug development is a key area, utilizing AI for predictive modelling and virtual screening to identify the most promising compound combinations. Since we work with several molecule combinations, AI helps us find the best ones.
We also utilize AI in clinical trials for patient stratification, recruitment, and digital biomarkers, which enhances the development and utilization of products. Collaborations with tech firms help enhance drug development, quality trials, and other aspects of the pharmaceutical industry. These are just a few examples, but AI is becoming a daily tool across the company.
It is used not only in clinical trials and drug development but also in manufacturing, commercial operations, and finance. For example, predictive models help forecast demand in the coming weeks or months, supporting supply chain planning. We are finding many uses for the AI tools.
A very important point is that you can have these tools, but you also must train people to use them. We are investing in this as well. One interesting project involves different countries presenting their best practices for using AI in various projects. Then, there is an internal Shark Tank–style event where countries present these projects, and a jury evaluates how innovation is applied and shared across other countries.
Therefore, it is not only important to have the tools but also to build a culture that facilitates their development and effective implementation within the company.
EF: How are you building the culture? How do you install a growth mindset within your team and encourage them to drive forward?
RS: I am continuing the work that Rodrigo started. Over the past four and a half years, he has made significant changes to the culture, and one thing I really appreciate about the team is how involved and passionate they are about their work.
One of the changes we are focusing on now is ensuring that each area understands its contribution to the overall objective. Collaboration between areas is also key; sometimes, in Teva, as in other companies, there can be silos. I want to ensure that everyone understands our North Star: we are all working toward the same objectives and striving to improve the health of Mexican patients through our daily efforts. Having a shared vision and purpose is very important.
Another relevant aspect is helping people understand the goal: improving patients’ lives through better disease management. We are humanizing health, and this is a central part of the culture in Mexico. It is about positioning Teva as a partner of choice with patient-centric initiatives, driving corporate actions, and differentiating the company.
EF: How would you like to be remembered ten years from now, both in terms of your impact at Teva and your leadership?
RS: I would like to be remembered as a person who worked closely with the team and helped continue growing Teva. As we mentioned, the company doubled in size over the past four years, and I hope we can continue that trend and double it again.
I also want to be remembered for contributing to the launch of innovative and branded generic products that help patients manage their diseases. Additionally, I hope to be seen as someone who worked with the team to position Teva as a trusted partner for both the government and the private sector, collaborating with health institutes, patient associations, doctors, and KOLs.
I would like to be remembered as a member of a team that achieved the growth Teva expects while helping patients.
EF: Do you have a final message?
RS: It is an honour to be here with Teva, and I am delighted to have the opportunity to work with a great local team. It is also very encouraging to be back in Mexico and see that Teva has a strong brand image and reputation among doctors across the therapeutic areas we cover. I want to ensure that we continue building on this and helping patients, whether in pain management, cardiovascular, central nervous system, or oncology and hematologic care.
Also, our global focus on innovation in areas like mental health, respiratory, and gastroenterology, so many therapeutic areas are available for the near future. My goal is to continue growing and collaborating with all players for the benefit of patients and their caregivers.
