Read the Conversation
EF: What are your priorities for 2024, and what opportunities do you see for the year?
PR: In 2024, our focus lies on two core objectives. Firstly, our emphasis remains on R&D, where we are committed to robust investment in expanding our product pipeline and portfolio. Our strategic direction includes significant investment in value-added medicines, particularly generics enriched with enhancements to elevate the patient experience.
Strategically, this domain holds paramount importance for us, and we are actively pursuing both independent initiatives and collaborative ventures. Recently, we finalized a pivotal collaboration with a Chinese counterpart, focusing on product development tailored for the US, China, and other global markets. Concurrently, we are poised to introduce a distinct product line targeting the European market. These territorial agreements serve as fundamental pillars driving our growth trajectory.
Secondly, we are steadfast in our pursuit of internationalization. Although our primary market is Spain, our global footprint has been steadily expanding, with international operations now constituting approximately 25% of our overall revenue. With a presence in over 70 countries, recent years have witnessed substantial growth in our international ventures. Notably, we established an affiliate in Italy to cater to the food supplements sector and entered the US market through a joint venture for select diagnostics.
Our international expansion strategy is twofold: Firstly, through direct market presence in targeted regions. Secondly, by extending our reach to encompass more territories, enabling direct product distribution. We also aspire to serve as a reliable commercial partner for international entities seeking entry into the European market, offering comprehensive support across multiple jurisdictions.
EF: What market strategies does Laboratorios Rubió have, particularly in terms of developing unique offerings?
PR: Our presence encompasses both the over-the-counter (OTC) and food supplement markets, with a clear distinction between products recommended in pharmacies and those prescribed by healthcare professionals. Primarily, we focus on the latter category, forging strong partnerships with physicians, who serve as key allies in our business endeavors. By collaborating closely with doctors, we gain valuable insights into the composition, efficacy, and clinical backing of our products. This strategic approach allows us to develop unique offerings that stand out amidst competition.
In pursuit of diversification, we entered the OTC market to mitigate dependency on government-regulated reimbursed products. Our strategic focus revolves around niche markets, particularly in the realm of generics combined with value-added medicines, targeting low-incidence and low-prevalence diseases. Despite the specialized nature of these markets, our strategy shields us from aggressive competition, albeit not entirely immune to generic alternatives. To safeguard against such competition, our portfolio includes products that are prescribed exclusively, providing additional value to healthcare providers and patients alike.
Central to our mission is delivering optimal and convenient solutions for patients, achieved through continuous innovation. Leveraging digital health technologies, we integrate various products into digital health platforms and therapeutic interventions, facilitating enhanced monitoring and management of treatments. These digital tools not only augment patient care but also contribute to our differentiation strategy in competitive markets.
Our commitment to staying at the forefront of medical advancements is exemplified by our strategic investments in startups. By backing companies at the forefront of digital therapeutics and AI-driven drug development, we position ourselves to leverage cutting-edge technologies and insights. Notably, our investments in digital therapeutics for ADHD and AI-driven drug development underscore our proactive approach toward future-proofing our operations and enhancing our capabilities.
The recent surge in digital health, accelerated by the COVID-19 pandemic, underscores the growing relevance and acceptance of such technologies. As the landscape stabilizes, we remain poised to capitalize on the burgeoning opportunities within digital health, recognizing its integral role in shaping the future of healthcare delivery.
EF: Could you elaborate on your manufacturing plant in Barcelona and how this is strategic?
PR: Our manufacturing plant plays a vital role in our operations by offering cost-effective production and meeting the diverse needs of our customers across 70+ countries. We prioritize providing exceptional service by occasionally delivering complete batches, necessitating a flexible production approach tailored to client requirements. While we specialize in solid forms such as tablets, capsules, and sachets, we're expanding into other formulations like liquids to enhance our offerings.
While we acknowledge that we may not possess every technology required to meet market demands, we aim to control the critical final stages of production to ensure export flexibility. To achieve this, we're investing in expanding our current manufacturing site, doubling its capacity over the next 3 to 4 years. This significant investment will be strategically phased to minimize financial impact.
Our manufacturing capabilities are valuable assets for potential collaborations, broadening the scope of collaborative opportunities. However, we do not identify as a Contract Manufacturing Organization (CMO), as our primary focus remains on manufacturing for both domestic and international markets.
EF: How difficult is it to innovate when tradition is part of your DNA, and what initiatives are you taking to drive innovation?
PR: As a company, we recognize the importance of adapting to evolving market dynamics to ensure our longevity. Our ability to remain agile and responsive to the changing needs of patients and the market is crucial for our sustained success over the next five decades. Being a family-owned enterprise affords us the flexibility needed to embrace change effectively.
While we maintain a conservative approach, we are keenly aware of our strengths and limitations. With a clear understanding of our resources, we strategically prioritize projects that align with our capabilities. This self-awareness enables us to navigate shifting currents with ease and make swift adjustments as needed.
EF: What leadership style do you use to pursue these initiatives, and how do you stay on top of everything?
PR: In a family business, maintaining a competitive edge often entails dedication around the clock. Fortunately, I collaborate with a team of adept professionals who share a cohesive vision. My leadership approach prioritizes inclusivity, fostering consensus among team members. Rather than adopting an aggressive stance, I value collective input and strive for unanimity in decision-making.
Engaging in dialogue with diverse perspectives is paramount to our process, yet I ultimately bear the responsibility of final decisions. By assembling robust teams comprising top-tier talent, we mitigate reliance on any single individual, facilitating smooth operations and strategic focus.
Our sustained growth in recent years can be attributed to our commitment to a culture of delegation and teamwork. This ethos liberates bandwidth for addressing pivotal matters and allows for agile decision-making. Recognizing the limitations of centralized decision-making, we have institutionalized a culture of delegation throughout our organizational framework, prioritizing employee satisfaction and empowerment.
EF: Do you have any final messages you want to give to our readers?
PR: In our sector, success is contingent upon meticulous long-term strategic planning, necessitating a vision that extends far into the future. While maintaining this foresight, companies must also demonstrate agility in responding to short-term exigencies. Our ability to strike this balance between long-term vision and short-term adaptability has been instrumental in our achievements.
