PHARM VILLE
Since the government has shifted its focus onto core sectors, health being one of them, pharmaceutical companies must remain competitive to win government contracts and develop new drugs.
R&D activities require large amounts of investment, and in the particular case of Pfizer, the company has several international centers that constantly work on developing more innovative and advanced products for the market. In Ecuador, we distribute such products, and we conduct extensive market research to establish the best products that can successfully impact patients' lives and, therefore, become a commercial opportunity in the country. In this particular market, products such as antibiotics, cardiovascular medicines, and pain relievers are the most important. We focus on providing high-quality products for these segments in general. Therefore, we do not plan to establish research centers in Ecuador. The Ecuadorean market and the government of the country are strongly pushing toward having more high-quality products on the market. Pfizer's strategy and mission perfectly fits with this aim for the industry, and it coincides with what is happening in the surrounding region as well.
It was a dream come true when we first came to Ecuador in 2008. Siegfried represented a particular bet for the company, as we had tried to enter this market long ago with little success. The success of the first years encouraged us to keep up the high level of investment, and we are pleased with the results. Today, Ecuador enjoys stable and clear policies, and the pharmaceutical market is very competitive. At the same time, Laboratorios Siegfried has been operating in the industry for over 90 years, and we are experts in the field. In terms of regional percentages, Ecuador represents around 8% of the company's activities, and we believe we can grow this figure a little more. We have to keep in mind that we cannot compare a market such as the Ecuadorean one, where the overall production of the industry reached $1.1 billion, to other larger markets like Argentina, Brazil, or Mexico.
In pharmaceutical manufacturing, if you are not continually investing you will fall behind. The regulatory side is becoming more stringent all over the world; therefore, you have to be aware of that and know which trends will be reflected in regulations. You have to be in front of that to be competitive. It means that you need to invest in technology, facilities, and equipment, as well as in people. Pharmaceutical manufacturing is very specialized, each and every unit has to comply with the highest standards, there is no room for mistakes, and you must have complete control of your processes. In 2013, we are going to make a large investment in a new line of large-volume parenterals and a complete line of lyophilized products. Those two are the most important facilities investments for 2013; the new lines will be started up at the beginning of 2014. In addition to that, we are investing in ERP-CRM administrative software. In total, we will be investing around $9 million.
The Ecuadorean market has had for a long time a control over prices, which limits selling prices. The 2008 Constitution brought a very important change to the pharmaceutical sector, because health is now considered as a strategic sector, meaning that government investment increases every year; for example, health coverage among society has expanded, which means that more people have access to services and medicines than ever before. This also means that the market for the private sector has become smaller, which has led to companies trying to diversify their activities and portfolios, or else trying to become more efficient to grab opportunities within the government's scope of responsibilities. Additionally, we have to say that in the Ecuadorean pharmaceutical industry the percentage of exports is very small, meaning that imports are high, especially when it comes to multinational companies operating here. Domestic pharmaceutical production only reaches 15% to 20% of the current overall market production. For example, we import from the UAE, Brazil, and Mexico.
PHARM VILLE
TABLE OF CONTENTS
Year In Review
Ecuadors of Perception
Underpinning Ecuador's recovery from the depths of historically its worst crisis has been a radical transformation of the economic, financial, and commercial environment. This has seen a systematic ramping up of strategic national infrastructure to springboard the country's economic prosperity. The government's “National Plan for Living Well," implemented in 2009, pinpointed strategic sectors for development and more efficient utilization of an extensive natural resource base. It also established priority areas for social expenditure, most notably to address social imbalances. President Rafael Correa's administration—in office since January of 2007—has indeed reduced these imbalances. Unemployment among Ecuador's population of 15 million is estimated at 6.2% for 2013, down from a high of 12.05% in April of 2004. Meanwhile, the middle class continues to expand, with the familiar knock-on effect of rising demand for goods and services, thus spurring investment in education and further stimulating economic growth. A more FDI-friendly business environment, too, has energized the private sector. Ecuador's GDP was at $84.53 billion in 2012, with the growth in oil and commodity revenues cushioning the blow from the global financial crisis, the shockwaves of which were felt in 2009.
read articleFocus: Cuenca
Excellence in Quality of Life
Improving the quality of life of our citizens is possible through the efforts, dedication, and determination of the Municipality of Cuenca by implementing programs and projects that show, day by day, that Buen Vivir, or Good Living, is possible.
read articleInterview
René Ramírez Gallegos, National Secretary, SENESCYT
TBY talks to René Ramírez Gallegos, National Secretary of the National Secretariat of Higher Education, Science, Technology and Innovation (SENESCYT), on the development of the country, international students, and the Yachay project.
read articleReview: Accountancy
Number Crunch
Over the past few years, the world has experienced an extraordinary financial and economic upheaval. Despite that, Latin American economies have largely avoided that situation, and therefore become a more attractive place for foreign investors, something
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