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EF: Entering a new decade, what are the key priorities on Blanver’s agenda for the year 2023/24?
SF: Next March marks our 40th anniversary. We originally ventured into the pharmaceutical sector, providing PDPs to the government. However, we are shifting our focus towards innovation, the private sector, internationalization, and diversification. In our biotechnology segment, we have established a platform for manufacturing new active pharmaceutical ingredients (APIs). This platform features our proprietary technology, which we are actively investing in.
The health sector faces growing challenges, primarily due to the increasing costs of innovative technologies. Finding sustainable solutions is becoming harder for individuals, companies, and healthcare systems worldwide. Without change, many countries will confront severe healthcare system issues. Some European nations have already started implementing co-payments and rejecting certain prices.
The global population is expanding, with more older people living longer, posing new healthcare challenges. Our main focus is oncology and rare diseases, and we collaborate with the government to drive these initiatives.
Our company's foundation lies in partnering with established pharmaceutical companies. We recently joined forces with Pierre Fabre and are currently finalizing agreements with other medium to large pharmaceutical firms seeking a foothold in Brazil. This strategy enables us to introduce innovative products to our region. Our collaboration with Varifarma is a notable example of providing an alternative market entry for our partners, aligning with our mission to create opportunities in the healthcare sector.
EF: What is your perspective on Brazil's transformation into an innovation hub, and what do you believe are the remaining steps to be taken in this journey?
SF: Manufacturing in Brazil poses challenges. The government is recognizing the need for change, as regulations favor imports over local production. There is a global reliance on Asia, particularly China and India, for raw materials. Companies once focused on APIs are now producing medications, making us dependent on them.
Local production is vital in Brazil, given its large population. While technology import is necessary, current conditions are unfavorable. However, the government is becoming more receptive. The president emphasized the importance of healthcare and product verticalization.
Large pharmaceutical companies aim to extend patents, limiting access. Balancing cost and patient access is crucial, especially as product pricing may decrease post-patent expiration. Achieving this balance is essential.
EF: What are the key pillars for establishing a sustainable business in Brazil?
SF: Courage often walks a fine line between bravery and recklessness. In Brazil, unique factors like taxation, sanitary regulations, and environmental considerations play a significant role. We have strict ecological rules here, which differ from those in other countries. Labor taxes are also higher, making our costs comparatively higher.
Comparing our costs and prices to those in countries like Switzerland or the US is challenging due to these disparities. Brazil operates in an unpredictable environment. Embracing uncertainty is essential; the ups and downs make us resilient and more focused. In our setting, uncertainty is the only certainty.
EF: Where would you like to see the development of Blanver on a global scale?
SF: Our focus is on technology. Up until 2017, we supplied our products to 100 countries. However, we learned two vital lessons: never depend on a single market and always seek reliable partners. These principles are key.
While Brazil does present challenges, it also offers notable advantages. The local people are exceptional, and there are abundant opportunities in emerging markets. Brazil stands as a land of promise within the realm of emerging markets, boasting distinct advantages. In contrast, established markets like the US and Europe are characterized by fierce competition and well-established family businesses.
Our primary challenge in Brazil centers on financial matters, tax issues, and operational costs. We are approaching a critical threshold, and it is imperative for both the government and society to initiate necessary changes. Staying on the current course will likely lead to future problems.
EF: How do you view pharmaceutical companies expanding beyond production, delving into medical implications, and attracting more people to the sector?
SF: We are reviving key innovation tools in Brazil, and organizations like Finep are becoming social partners rather than traditional banks. What we have learned from developed countries is the role of government in supporting technological advancements.
These agencies are evolving in Brazil, with exceptional, non-political individuals leading them. This shift toward a more technical focus has the potential to bring to life innovative developments. There are brilliant and motivated people in Brazil who are eager to contribute toward growth, which is important.
EF: Acknowledging Blanver’s important contribution to Brazil’s health ecosystem? How are you going to celebrate your 40th Anniversary?
SF: Our marketing team is currently working on organizing two events. One is intended for the public, and the other is an internal event for our team. I firmly believe that companies are built by people, not just by assets. Therefore, it is crucial that we share both our successes and our challenges.
Although we have encountered setbacks along the way, it is important to recognize that these shared experiences have strengthened our unity as a company.
