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Mncs in Mexico

In: Historical Events

Submitted By Sofi
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Pages 2
Marked socio-economic differences in Mexico are 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.

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, 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. “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.”

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. 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 in the industry ranks.

Aspen Labs, the South African pharmaceutical giant and relative newcomers to the market, started operations in Latin America through a 50% acquisition of Strides in 2007. They 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.

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