Read the Conversation
EF: What specific priorities does Emcure have in 2024?
JM: Our company's focus remains consistent with our strategy for Latin America. We aim to offer a diverse portfolio of high-quality products, emphasizing differentiation rather than solely generic offerings. Our commitment lies with the countries we serve and the patients within them, ensuring accessibility to excellent products at competitive prices.
While our dedication and approach remain steadfast, the political landscape in Latin America presents challenges we must navigate. On the pharmaceutical side, we look forward to changes and more openness towards the industry. We are still pursuing new market authorizations, and regulatory responses have to improve for the benefit of the patient.
Our focus as an industry is keeping patients at the center and creating better structures to deliver products. Mexico, alongside Brazil and potentially Argentina, has historically served as a model for healthcare systems within Latin America. Mexico's emphasis on its Social Security system and public healthcare services has been viewed as a guiding light for other countries in the region. It is crucial for nations to maintain a strong healthcare infrastructure, avoiding any decline in quality or accessibility, which could negatively impact citizens. Healthcare systems supported through public finances alone cannot work. We also need the private sector to contribute. We can do better. The basics are there; we need the government to bring us into the loop.
EF: Why is a dollar in Mexico better invested here than anywhere else?
JM: We find ourselves in a unique position now, especially considering that we have recently become the primary supplier for the US, surpassing China. The US's decision to reduce its dependence on China stems from concerns about perceived risks associated with manufacturing in China. We need to take advantage of this situation and capitalize on this opportunity.
Nearshoring has become popular lately, but the truth is, it is more than just a trend. The recent growth in Mexican exports is not solely attributable to government action; it is because the industry did very well in the last 20 years. Nonetheless, we need to improve the regulatory aspect of this industry, particularly with the recognition issue. By law, any product registered by WHO Level 4 agencies—such as ANMAT, ANVISA, ISP, INVIMA, and COFEPRIS —should be automatically accepted.
As LATAM, we need to be a step ahead to be recognized by the FDA, Canada, and Europe. We need to set the standard and convey to them the opportunity at hand: a chance to secure excellent pricing and positioning. With every interaction, we encourage the authorities to open up more and embrace new possibilities.
In Mexico, we have the manufacturing and regulatory capabilities and are tracking quite well with APIs. Our manufacturers have received GMP recognition. As an industry, we need to push COFEPRIS a little bit more to achieve further recognition. Otherwise, other industries will take advantage of nearshoring.
EF: Which areas are you looking to introduce in your portfolio, and what products are you particularly enthusiastic about bringing to Mexico?
JM: We acknowledge the vast potential of the Mexican market and are eager to explore diverse business ventures. Currently, we are manufacturing a product for Mexican CMO. Additionally, to establish Emcure Pharmaceutical’s presence in the country, we have formed a subsidiary with a specific focus.
Our primary focus is on oncology and bone marrow transplants. We are confident in the appeal of our offerings, which include compelling products from our biotech arm, Gennova, that we believe will significantly benefit patients. Vaccines are also an area of interest for us in terms of registration. Our strategy revolves around delivering high-quality, well-manufactured products, particularly chiral molecules. For instance, we have developed a chiral gastro product, a variant of pantoprazole, which we manufactured for a Mexican company. We are performing well in this regard, and such products exemplify our commitment to the market.
EF: What advice would you give another executive or professional looking to bring their business to Mexico?
JM: The Mexican pharmaceutical market requires a serious commitment and adherence to rigorous standards. Mexico presents unique challenges for market entry, requiring a thorough and diligent strategy. It is essential to prioritize the submission of high-quality products, as anything less may hinder your ability to gain traction in the market. Over 90% of tenders were awarded to Mexican manufacturers as it is not easy to navigate this system.
Mexico is a large market. For example, if you go into the IV solutions market, you would need to be able to supply millions of bottles. This is a difficult task, but it is a good opportunity for those who can do it.
EF: How are you going to celebrate your fifth year at Emcure? What are your proudest achievements so far?
JM: My responsibility extends beyond Mexico, as I manage our regional operations. We have laid the groundwork for accelerated growth, evident in our strong performance in countries like the Dominican Republic. In Mexico, we have made significant strides, particularly through our partnerships. This year, we are focused on establishing a solid foundation, and I am proud to have developed a good, long-term strategy that sets us on the path to success.
Beyond enhancing our market presence, we have succeeded in establishing Emcure as a recognized brand. While there have been challenges, particularly in navigating the complexities of the Mexican industry and competition from China, our growing recognition in the market positions us well for future endeavors. Whether as a distributor or leveraging our brand recognition, I am confident in our ability to capitalize on opportunities and drive further growth.
EF: While managing the whole region, how are you prioritizing each country's needs and delivering service for each country's priorities?
JM: It is certainly challenging because our team is still small. Mexico is one of my priorities because what we do here will live on for a long time, and we want to put Emcure first.
In the meantime, our commercial operations in other countries are also doing quite well. Understanding the region and finding the right partners are key to success. We are trying to develop new partnerships and foster collaboration.
EF: What is your final message for our readers?
JM: Mexico presents numerous opportunities. Collaboration among industry stakeholders is crucial; without it, the industry may stagnate. Indians, Mexicans, and other Latin American providers have to be united and progress together. Collaboration with governments and regulators is essential.
The patient must always be at the center of our collaboration strategy. This will work out to the benefit of everybody.
