Scaling Up for Success: Interview with Lucio Nieto – Vice President, Kamberg Group, Mexico

Meeting Highlights:

• Kamberg Group as a Local Player in API Manufacturing: Specializing in CNS-focused and high-value molecules.
• Partner of Choice in the Americas: Establishing Grupo Kamberg as a trusted collaborator across the region.
• Expanding Production Capacity: Tripling capacity while consolidating operations to enhance efficiency and output.
• Agility and Innovation: Kamberg Group is positioned as a young, dynamic company known for its flexibility and speed.
• Advice to Entrepreneurs: Focus on building long-term goals and fostering strategic partnerships for sustainable growth.
• Biosynthesis as a Key Growth Opportunity: Lucio Nieto views biosynthesis as a significant avenue for innovation and industry development.
• Reducing Dependency on Imports: Kamberg Group is setting a benchmark by reducing reliance on imports from India and China while supporting regional production.

EF: What was the vision behind establishing Kamberg Lab, and where do you stand today regarding the significance of local manufacturing in Mexico?

RG: Over twenty years ago, IIQUIAP and its team of scientists conducted groundbreaking research. At the time, I was managing my own business, while my two sons had founded a health tech and services company with which I occasionally collaborated. Drawing on my background as a chemical engineer and my seven years of research and process experience at DuPont, I eventually joined their team to focus on the technical aspects of our operations. Today, my sons manage health services and medication distribution.

The turning point came when we recognized a clear opportunity to produce APIs locally by acquiring a company previously led by scientists (IIQUIAP). I saw this acquisition as a diamond in the rough—one that required refinement to truly shine. The critical need for local API production became even more apparent during the pandemic, which caused significant medicine shortages in Mexico. Given that API manufacturing is heavily concentrated in Asia, particularly in India and China, we saw an urgent need to change this dynamic.

In response, we developed a strategic plan with the support of the Mexican Association of Manufacturers (AMELAF) and are actively implementing it. We remain highly optimistic about the future, believing that significant investment and increased production capacity will drive substantial growth in local API manufacturing, ultimately meeting the immense demand and reinforcing Mexico’s pharmaceutical independence.

EF: The development of self-sufficiency and self-reliance is essential for the country. Where does Kamberg Group currently stand? What types of customers are you targeting, and what does your product pipeline look like?

LN: At Kamberg, we specialize in Active Pharmaceutical Ingredients (APIs) for the Central Nervous System (CNS), focusing on small-batch production. Since final medications require only minimal amounts of these APIs, our production batches are significantly smaller—typically ranging from 25 to 100 kg—compared to the ton-scale batches produced by larger manufacturers.

Our production plant and research laboratory are designed specifically for small-scale production, allowing us to target molecules that larger pharmaceutical companies often overlook due to their incompatibility with high-volume manufacturing. Even when there is demand for these APIs, large-scale operations do not find them viable to produce, leaving a gap that we are uniquely positioned to fill.

Currently, we produce batches ranging from 1 kg to 100 kg, a niche largely underserved in Mexico, where most API production is dominated by facilities in China and India. By focusing on these specialized APIs, we aim to meet market demands that conventional large-scale manufacturers cannot. As demand increases, we plan to scale up production to batches of up to 300 kg.

EF: Focusing on APIs that prioritize value over volume in niche therapeutic areas sounds like a solid strategy. In your B2B business, are you looking to engage with large local Mexican companies, multinationals, or national companies from Brazil or Colombia?

LN: We are actively seeking partnerships and negotiating with key customers in Mexico and the United States to develop innovative products and expand market opportunities. While we all face similar challenges, we believe that by enhancing our capabilities and excelling in our field, we can leverage our quality, competitiveness, and strong research foundation.

Despite being a small company, our research is highly regarded and integral to our development process. We utilize cutting-edge techniques, including artificial intelligence, and pride ourselves on being an agile organization.

Through extensive feasibility studies, we have moved beyond research into tangible development, making this an exciting time for us. To ensure the success of our initiatives, we maintain a strong business-oriented approach. As a young, flexible, and fast-moving company, we operate without bureaucratic constraints, allowing us to identify and address market needs efficiently. Our integrated approach and effective communication foster strong relationships with potential partners, enabling us to respond promptly and present business-savvy solutions. We strive for win-win relationships, leveraging the strengths of all our partners to create a productive and collaborative environment.

EF: As a chemical engineer, if you had to choose one element from the periodic table that represents you, which would it be and why?

LN: It would have to be carbon because it is the foundation of life and energy. Carbon is unique in its ability to form bonds and complex chains, making it essential in organic chemistry. The field of organic synthesis is incredibly exciting, especially with the advancements in biosynthesis and its vast potential, which seems limitless.

New medicines and products are continuously emerging, and with innovative tools at our disposal, the possibilities for discovery and development are endless.

EF: What advice would you give to entrepreneurs looking to invest in and build a health-related company in Mexico?

LN: The healthcare industry presents numerous opportunities, particularly in the study of natural medicinal substances, which often remain under-researched. The supplement sector, for example, has yielded fascinating results, yet relatively little scientific investigation has been conducted, making it a lower-risk investment. In my opinion, investing in natural products could prove to be highly successful.

Biochemistry is an evolving field that focuses on identifying natural compounds and transforming them into viable pharmaceutical products. Many significant medications have originated from natural molecules. A notable example is the discovery of steroid precursors in plants, which led to the development of many essential medicines. With relatively simple chemistry, these natural molecules can be synthesized into high-value pharmaceuticals.

This area is particularly promising for entrepreneurs seeking tangible results with a medium-term vision. Success in this field requires patience and dedication, but the potential rewards are substantial. We need entrepreneurs with long-term vision and the ambition to drive large-scale results. The healthcare sector demands commitment and resilience, but its impact on society can be profound.

EF: What does 2025 look like for Kamberg Group? What key decisions are you making that will shape the next five years?

LN: We are currently focused on consolidating our capacity and strengthening customer relationships, which serve as the foundation for our next phase of growth. Since 2021, we have been undergoing a transition in our company’s name, a process that caused delays due to the administrative requirements involved. While only the name changed, everything else remained the same. Now that this transition is nearly complete, we have maintained consistent communication with our customers.

We are in the process of tripling our production capacity and are considering acquiring an additional facility to support supply to the Latin American and U.S. markets in the medium term. We recognize that the regulatory framework in the U.S. is stringent, but we are committed to full compliance. We understand that achieving results in this market will take time, as regulatory approval is ultimately in the hands of the FDA. However, we are focused on diligent work, research, and quality assurance to establish a strong foundation for our operations in the Americas.

Notably, labor costs in Mexico are comparable to those in India and China, while raw materials are widely available as commodities. Additionally, we have highly skilled researchers, technicians, and managers, which makes us highly competitive. Lastly, our geographic location provides a strategic advantage, being close to the largest markets and benefiting from excellent logistics.

Kamberg is a young company establishing itself as a leader in the CNS API segment, with a clear focus on the Americas and a strategy centered on highly specialized APIs.