SHIFTING LANDSCAPES SHIFT STRATEGIES
The patent cliff is not a ground-breaking story. It is affecting Mexico as well as other pharmaceutical markets across the
globe. Sources say that in Mexico, the market will lose 600 million USD in exclusivity by 2015. Marked socio-economic differences
are also playing an important role in pushing the uptake of generics, and these issues are starting to affect multinational
corporations (MNCs). MNCs are being forced to open up and diversify, quite simply to have their fingers in as many pies where
they can compete successfully. Alternatively they are applying a more focused sales strategy to concentrate on niche markets.
Bertrand Baron, General Director, Sanofi Mexico
Alvarez Tostado of AstraZeneca believes that MNCs need to adjust their activities to become competitive in both the private
and public sector.
"Mexico provides a uniquely generous market structure where you have the institutional sector, the private out-of-pocket segment
of the market, and then you have the new up-and-coming popular insurance systems that will cater to those who have very little
access to medical care, if they have access at all. So in that regard, I think the industry has to realign itself to make
sure that it is able to provide adequate services to the institutional sector; provide broadened access to the out-of-pocket
consumer, and obviously realign to be competitive in the Seguro Popular concept."
Mexico is no exception to the global trend of companies moving towards branded generics either, a successfully growing sector
in a very much brand-driven Mexican society. Bertrand Baron, general director of Sanofi Mexico, is confident that Sanofi's
global strategy of diversification fits well with the current climate in Mexico.
Peter Erlbacher, COO Spanish Latin America, Aspen Labs
"I believe that Sanofi in Mexico is a perfect example of what we are as a diversified healthcare player because here we are
playing in all the markets: human vaccines, consumer healthcare, biotech, rare diseases, innovative products, generics, and
soon we will be in eye care." says Baron.
Sanofi acquired Mexican laboratory Kendrick in 2009, and last year bought Medley, the Brazilian branded generics company that
currently sits at #1 in Brazil and #3 in Latin America for its category. The acquisitions are perfect examples of decisions
that will allow the company to compete in all market segments.
"We believe there is a huge market, and generics were a piece of the market we were not tackling. Now we are doing it with
good quality brands, guaranteeing quality to both the physician and the patient." he continues.
The first products under the Medley brand were launched in the Mexican market just a few months ago with high expectations.
Medley is already rising fast up the industry ranks.
Timothy Daveler, VP and General Director, MSD Mexico
Aspen Labs, the South African pharmaceutical giant and relative newcomer to the Mexican market, started operations in Latin
America through a 50% acquisition of Strides in 2007. Aspen found the key to success in Mexico was through turning an originally
hospital-focused and opportunistic market business into a business driven primarily by promotion and branding.