Read the Conversation
EF: Could you give us an overview of the evolution of TRADICHEM?
JM: The company was founded in 1993, and it began as a marketer of active pharmaceutical ingredients. Progress and growth were steady, and when I joined in 2008, the company had great capital but lacked assets beyond money. My role was to transform that financial wealth into technology capable of building tangible value. Around 2010, we underwent a profound cultural and technological change. We have since established manufacturing sites in diverse areas, such as pharmaceuticals, nutraceuticals, and food supplements, and our presence has grown to more than 200 employees with businesses in 52 countries.
As a PhD in Biochemistry and Molecular Biology, I brought in new talent to create industrial platforms and various technologies and fostered organic growth. This involved internal knowledge development, technology creation, and significant acquisitions to enhance our capabilities. It is essentially about turning money into value and then transforming that value back into financial success, which is the essence of our business journey.
EF: What are the current priorities for TRADICHEM in 2024?
JM: This year, our focus is on realizing returns from our investments. We acquired a company in the botanical sector just before the lockdown in March 2020. Despite the challenges, we made substantial investments to turn this manufacturing site into a cutting-edge botanical extract facility. As we enter 2024, we plan to launch additional manufacturing processes for new botanical extract ingredients at this site.
EF: What were the significant lessons you learned in leading TRADICHEM through the challenges of the pandemic?
JM: It was quite a unique situation; everyone was facing unprecedented challenges. As a former Harvard Business School alumni, I received an email advising against major decisions due to the lack of certainty. Despite this, we decided to acquire a company just a day before the lockdown. Throughout the pandemic, our focus shifted to internal development, enhancing our company's structure and technological capabilities. From 2020 to 2024, we achieved significant milestones, including three new European patents, one U.S. patent, three research papers, and the creation of two innovative botanical extracts. Despite the uncertainties, our strong financial position allowed us to navigate these new times successfully, gaining deeper insights into our strengths.
EF: Can you explain the strategic thinking you saw in acquiring the botanical extracts plant during the pandemic?
JM: We recognize significant potential in the market. In Europe, there is a scarcity of botanical extract manufacturing sites, and we stand out as the sole provider of 100% reliable extracts. Owning the crops, understanding the soil, and having precise locations allow us to offer unparalleled traceability. Using QR data, we can showcase the harvest location with GPS precision through Google. We take pride in pioneering innovation, specifically in traceability, making us the exclusive source for fully trustworthy botanical extracts, a distinctive feature that sets us apart.
EF: What are the three main pillars that you believe are crucial for running a sustainable business, especially in the context of the healthcare sector?
JM: Substantial investment is crucial to establishing a sustainable business, especially in terms of energy. The first focus was achieving sustainability in energy production. Fortunately, our company now generates 80% of its energy through solar panels, something that we are very proud of. The second aspect involved in-depth knowledge of crops, understanding their potential, growth patterns, and botanicals obtainable from our vast landholdings, equivalent to about 20 golf courses.
Sustainability, in this context, means understanding the unique conditions of the land, including temperature, humidity, rainfall, and daylight, and making efforts to enhance and optimize cultivation. Lastly, investing in manufacturing process technology is considered vital. In our API manufacturing site for pharmaceuticals, we employ environmentally friendly technology, aligning with the principles of sustainability. The manufacturing facility's proximity to the regional park underscores our commitment to preserving nature and its values, reflecting our dedication to both botany and advanced manufacturing technology.
EF: Why do you believe that investing a Euro in Spain yields better results than investing in other regions?
JM: We are naturally inclined to operate in Spain, leveraging our understanding of the local network and the market dynamics. While we receive industry investment support from the local region, finding the best talent to manage the company has been a challenge. In response, we have strategically balanced the availability of support from regional funds with the need for skilled individuals.
Looking ahead, our company's upcoming investment will be in the U.S., specifically in Connecticut. We concluded that our technology is better understood in the U.S., and it has a vast array of high-level talent, making it the ideal location for our next venture. Additionally, we have investments in Hawaii and Germany. In Germany, we have established an R&D site focused on Microbiome, where we are working to navigate cultural differences. Despite these complexities, our commitment to expanding globally remains firm, guided by our dedication to innovation and creating a positive impact in the field of botanical extracts.
EF: What advice would you offer to someone entering the API manufacturing sector?
JM: From my standpoint, the critical factors for running a successful business, particularly in technology, involve having the right people who are fully committed to the company's vision. This commitment should extend to the board and be rooted in a long-term perspective.
Our acquisition of a company in 2020 was not aimed at achieving success within a short timeframe. Instead, we anticipate seeing the best results for this company in seven to eight years. Our approach differs from that of private equity; we view our investments as long-term commitments. This aligns with our belief that running a manufacturing and technology company requires the development of mature technology. Once mature technology is established, the next steps involve creating market awareness through knowledgeable individuals with a long-term vision. This, in essence, summarizes what we consider essential for success.
EF: How do you encourage an innovative mindset within the company?
JM: When it comes to motivating and engaging people, my strategy involves effective communication. Hiring committed individuals and conveying the company's goals and values takes up a significant portion of my time—around 60 to 70 percent. The key is to establish clear communication channels so that the team internalizes the company's objectives. It is like tattooing the company's values on their skin, a permanent reminder of the shared vision.
In terms of our future focus, microbiome and gut health are areas of keen interest for us. We are currently digging into the world of the gut-brain nexus as part of our product line. Simultaneously, we are investing in internal knowledge through an AI platform. This platform aids us in understanding and optimizing our processes, allowing us to anticipate the right parameters for cost-effective, high-value production. We recognize the rising interest in the gut-brain connection, particularly concerning mood disorders. To stay ahead, we are linking AI technology with pharmaceutical processes, aligning with the growing awareness of cognitive health and its impact on mood disorders.
EF: Congratulations on the remarkable 30-year milestone for the company. What achievements are you most proud of, and what would you consider a significant milestone to celebrate in the memory of these 30 years?
JM: Transforming from a chemical company to a technology-driven entity was a pivotal change for us. The success of this shift owes much to our team's ability to embrace a new mindset. Changing perspectives can be challenging, but our people demonstrated a remarkable commitment to our company's goals, values, and investments.
Looking ahead, we see our future not only in the current European and Asian markets, where we are already making strides but also in the expanding US market. Demographics, especially population dynamics, play a significant role. As I spoke during our celebration, I correlated our team to an orchestra, where I was the conductor. My role is to ensure that each member, be it the violin or the flute, plays in harmony and synchrony, following the same melody at the right moments. This analogy captures the essence of our cohesive and harmonious work environment.
