Read the Conversation
Meeting Highlights:
- Market Innovation Strategy: Faes Farma capitalizes on the opportunity to provide innovation, quality, and product differentiation in the Mexican market.
- Mexico Growth Ambition: Faes Farma is committed to growing Mexico’s subsidiary, aiming to become one of the top 50 companies in Mexico by 2030.
- Education-Driven Development: Recognizing education as the cornerstone of sustainable development, Faes Farma strongly emphasizes empowering healthcare professionals and fostering employee engagement to achieve its ambitious growth objectives.
- Strategic Market Insights: Perspectives on Mexico's dynamic trends and untapped opportunities, underscoring Faes Farma’s role in shaping the future of healthcare in the region.
EF: What is your perspective on the pharmaceutical industry in Mexico for 2025?
AB: The geopolitical situation will influence trends not only in the pharmaceutical industry but also across the entire industrial sector in Mexico. We will encounter significant transitions that differ greatly from those we have faced. Mexico operates largely on an out-of-pocket payment model, which is unlikely to change because of the market dynamics and patient care needs. I believe that chemical synthesis products will continue to be preferred over gene and cell therapies and treatments for orphan and rare diseases because the population will need affordable and readily available medicines. Patients will have to rely on out-of-pocket expenses to access drugs. Therefore, we will continue to operate as we have in the last five or six years. As a result, the companies with the greatest opportunities will focus on chemical synthesis products, particularly national and regional laboratories. As major pharmaceutical companies shift their portfolio and strategies towards gene and cell therapies -options that Mexico and many other countries in the region cannot afford, our presence in the market will become more relevant.
This shift will create a gap between big pharmaceutical companies and generic brands, allowing generic laboratories to continue growing to meet the population's needs. Companies that offer generic brand drugs, generics, or innovative medications at reasonable prices are likely to experience growth in Mexico and other Latin American markets. Particularly concerning oncological products, access to innovative treatments will remain limited due to their high costs for the general public. While there will always be individuals who can purchase or import these medications from other countries, the general population will continue seeking affordable alternatives. Mexico has no purely generic market; it offers reasonably priced branded and innovative generics. We do not have reimbursement, so the products prescribed by the physicians will be provided at the drugstore counter. We do not have reimbursement so the products prescribed by the physicians will be provided at the counter of the drugstore.
EF: In Africa and Latin America, major pharmaceutical companies are shifting toward highly specialized portfolios, often unaffordable for most of the population. As a result, companies like Faes are stepping in to fill this market gap, creating significant growth opportunities. Faes has a wide range of products and a large portfolio and has been experiencing growth. How do you manage this growth, and what is your advice for managing growth in Mexico?
AB: We offer innovative, differentiated, and high-quality products at reasonable prices. Once our products are introduced, we provide continuous medical education for physicians. Over the past three years, we have been one of the three fastest-growing laboratories in Mexico. Our unique approach focuses on innovative products that significantly improve patient care while remaining affordable. Additionally, we share medical scientific information with doctors about our products' design, technology, advantages, and benefits for their patients.
EF: How would you assess Mexican physicians' adoption and openness to your innovation?
AB: Physicians in Mexico are very receptive to European technology, including that from Eastern Europe. Their main priorities are efficiency, efficacy with reasonable price, and high quality. Faes Pharma is not the first company to introduce European products; I have previously imported products from various companies in Canada and Europe. This has been one of the key factors in our success, as Mexican doctors tend to trust products from European technology and research.
EF: Effective communication with physicians is crucial for driving growth and facilitating the prescription of new products. However, aside from innovation and pricing, what are key growth drivers for therapeutic areas, and which product launches are you most excited about this year?
AB: A new molecule derived from Vitamin D is available in Mexico and offers qualities that make it superior to any other product on the market. We anticipate more than 100% growth next year in this area. Doctors have embraced our product because we have provided evidence from studies conducted in Germany involving oncological patients and research from France focusing on renal patients, and it is the preferred Vitamin D for patients with diabetes and obesity. Through extensive data, we can demonstrate why our product outperforms what the competition offers. Patients only need to take it once a month, and its price is more competitive, making it a clear choice for healthcare providers and patients alike. We are excited about our gastro product for functional dyspepsia, a novel offering in America. We are proud to be the first to launch it here. We are opening a new business unit called Gastro, based on our formula of innovation, patented technology, and differentiated products that provide significant advantages over our competitors in terms of features and price. The product has already been launched in Europe and Japan. When we presented it to the medical community in Mexico, they were already familiar with it and thrilled to see it available. We believe this product will drive over 100% growth for us next year. Faes Farma is deeply committed to Mexico. Starting in January, I will be increasing the size of my sales team. We are currently in the process of registering new drugs, and our goal is for Mexico to become the leading market in Latin America soon. We are making significant investments to achieve this. In the medium term, we aim to make our Mexican subsidiary the most important within the organization. I am dedicated to reaching these goals with the support of my team.
EF: How can you attract the best and brightest talent to Faes? What is your pitch when growing your team?
AB: Training and Development. Our team values training, and we consistently invest in their preparation regarding our products, therapies, and the diseases we address. This commitment allows them to gain a broad range of knowledge, which we believe contributes to their personal and professional growth, even beyond monetary compensation. Recognition is another crucial aspect of our culture. We provide unequivocal acknowledgement to our team members, our most valuable asset. We prioritize open communication and ensure everyone can access me; I am always here to listen. We focus on developing intellectual capital and enhancing knowledge among our healthcare professionals and employees, ultimately adding value to our organization. Our commitment to compliance and respect for all individuals is unwavering. We pride ourselves on being an inclusive organization, consistently delivering on its promises. These practices are instrumental in attracting talent to our company.
EF: What is Faes Farma's roadmap for sustainable healthcare in Mexico? How do you envision Faes Farma in five years, by 2030?
AB: By 2030, if we continue registering health products, Faes Farma will be one of the most relevant pharmaceutical companies in the market. Our pipeline is currently working at an accelerated pace. In large pharmaceutical companies and innovative firms, not all innovation comes from within; often, it involves licensing, business development, and in-licensing. While we are active in internal innovation, we seek new licensing opportunities. Many small companies and universities lack commercial potential, but we possess that capability, which we can offer to others. We have the resources and knowledge to launch products successfully, and our processes are already well-established. We have launched more products in the past three years than any other company in Mexico and will continue to introduce innovative and differentiated products. We have the best physicians on our Advisory Boards and Key Opinion Leaders. They will help us explain the product's unique features, benefits, and advantages to the medical community.
EF: Why is a dollar better invested in Mexico than anywhere else?
AB: In my case, it is straightforward since Faes HQ is fully committed to investing in Mexico. We have a solid foundation -the Mexican population- and must collaborate with them to improve their quality of life. Many people in Mexico cannot afford expensive therapies, such as gene and cell therapies and certain oncology products, a situation that should not be overlooked. Now is the time to invest and seize opportunities in the Mexican market to make a meaningful impact, ensuring that we are recognized when the market eventually expands with new therapies and products.
EF: During our interview with IFC, they stated that developments in Mexico resemble Brazil a decade ago. If we overlook Mexico, we disregard the future. What is your perspective on this?
AB: I completely agree that it’s time for the Mexican pharmaceutical industry to expand beyond Mexico and grow into other countries. The Mexican health industry has traditionally relied heavily on the government as a primary client, attracting numerous products from local pharmaceutical companies. Business owners in Mexico have recognized the need to establish a presence in countries such as Colombia, Peru, Brazil, and Canada. Some local companies are already making strides in this direction, significantly increasing their international presence. A similar transformation occurred in Brazil ten years ago, when its pharmaceutical companies only operated within Brazil, but that has changed dramatically. We will likely see a similar evolution in the Mexican pharmaceutical industry.
