CDMX.- Este año fue presentada la segunda edición de Mexico Health Review, publicación que ofrece un panorama general de la industria de la salud de nuestro país.

Por medio de entrevistas con más de 175 líderes de los sectores público y privado, la obra detalla las tendencias, los logros y los desafíos del sector y pretende realizar un análisis de temas vinculantes con el fortalecimiento de la industria de la salud.

El libro fue presentado en el Mexico Health Summit 2016, evento que reunió a más de 300 representantes de la industria, proveedores, prestadores de servicio y autoridades del Instituto Mexicano del Seguro Social, Instituto de Seguridad y Servicios Sociales para los Trabajadores del Estado y de la Comisión Federal para la Protección contra Riesgos Sanitarios.

Por supuesto, B. Braun no podía faltar y, por segundo año consecutivo, participamos con una entrevista a Carlos Jiménez, Director General de B. Braun Aesculap de México, titulada “Health Trade Gap Highlights Business Oportunity”.

En ella, Carlos Jimenez habla sobre las contribuciones y los retos del sector de dispositivos médicos en la industria de la salud, y hasta de las inversiones y retos de la compañía.

Los invitarlos a leer esta interesante entrevista en inglés, a través de la versión electrónica del libro, página 122.

¡Esperamos que la disfruten!

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HEALTH TRADE GAP HIGHLIGHTS BUSINESS OPPORTUNITY

How has the medical device industry contributed to the country’s health sector and economy?

The Secretary of Economy (SE) is increasing its involvement in this sector, as the country has reached number 8 the eight position in the world ranking of medical device manufacturing. Mexico is at number 28 in consumption of said products, however. The difference between exports and purchasing in the country is drastic. While this is excellent for our balance of trade, the gap indicates too little spending on medicine in the public sector and a lack of integration of innovation.

B. Braun specifically exports 4% of its total sales, and 6% of itsour manufacturing. Between B. Braun’s production and imports, the latter is the most significant quantity. Last year we grew an outstanding 46% as a company, and to date we have grown 30%. B. Braun hopes to close 2016 with 25% growth. Our greatest growth has been in the private sector, while our public sector participation remainsis stable.

The medical devices that are most popular in Mexico tend to be those with very basic applications. The public sector represents 70% of our business, and the majority neglects to employ innovative products. A large part of the costs of treating a patient is in infrastructure or other non-medicinal aspects, as the treatment only tends to be 5% of the cost. Therefore, the public sector’s focus on saving money in this small proportion of patient cost simply generates a cost-oriented mentality, which rejects innovation.

Which areas of the industry drive growth for B. Braun?

Hemodialysis, blood filtering is one of the fastest growing areas, representing 10-15% market share participation for our company. B. Braun’s vanguard technology for hemodialysis helped gain our current market participation. Glaucoma is another expanding market, as chronic renal failure is affecting an increasing number of people and B. Braun has solutions for these conditions. Across all business areas, our company is growing by a minimum of 18% thanks to the high level of service that differentiates us, as well as our technology that is generating success in the private sector.

Our new short-stem hip prosthesis, called metaphyseal prosthesis, is becoming more popular. This minimizes the bone damage on implantation, thus making future replacement hips easier to insert. The previous product offered by B. Braun, designed according to the anatomy of Mexican citizens, called Logical Angioplasty System (SLA), enjoyed 15 years of success in the market for more than 20,000 individuals. The new prostheses have benefitted 250 people so far, an impressive statistic for an implant in its first nine months on the market. Doctors must be trained to use any new technology, the process of which has been speeded up for the metaphyseal prosthesis by us, taking 20 surgeons to Germany to learn from experienced experts in this new treatment.

Our 3D endoscope equipment is another example of innovative technology. Said system allows a surgeon to observe depth on a screen while operating, which makes tying and closing surgery easier and more accurate. This year we are launching hydrocephalus valve systems, a further example of our pioneering treatments. Our wide range of 35000 products in the pipeline increases patient safety and probability of recovery.

Which integral solutions will B. Braun launch in the run-up to 2020?

Our business models aim to combine products with services, and offer added value for patients. Our integral services are targeted at CEYE, and across surgical treatments. Moreover, the cost of our solutions are reasonable, which is vital for long-term treatments. The fact that our prices are in Mexican pesos, means that we can offer the same value for clients over 12-month periods. While B. Braun’s prices are not under pressure due to fluctuations in the dollar, changes to the dollar and euro’s value in the past 18 months have affected our operational costs by 40%. We push to find profitability internally without affecting our clients’ budgets, for which they are grateful.

What are the greatest challenges that you have faced in pharmaceutical logistics?

We directly manage our own logistics, for which we are beginning to construct a new 3,000 m2 logistics center with space for 4,000 pallets. This narrow-aisle center will manage heights of up to six pallets, advanced water treatments, and sustainable elements including Helios photovoltaic technology. This modern building will be ahead of its time in order to last us for 20-30 years.

We manage a mixed logistics solution, including direct delivery to hospitals or personally collecting medical equipment that requires maintenance. This type of service cannot be matched by other logistics providers due to technical particularities. Our eight vehicles are dedicated solely to distributing products in the Metropolitan zone. Outside this area, we contract independent logistics companies., including FedEx.

Concerning the supply chain, logistics is becoming more challenging. Today, federal900 institutions are participating in a consolidated purchase, wherein they offer one price for allabout 900 locations and require a logistics solution across several states. This will be challenging for manufacturers and distributors of medical devices, as no singleone company currently has that logistics capacity. DHL has not yet entered into that area but they would have a considerable advantage in distribution. Our partner, B. Braun Medical, works with DHL, as they are experts in managing pharmaceutical products.

Where is B. Braun focusing the reinvestment of its profits in Mexico?

Every year as standard, B. Braun invests MX$20-30 million in modernization and introducing new technology to itsour manufacturing. We are focusing investments in three key areas, the most important of which is our logistics center. The center’s cost will surpass MX$50 million. Subsequently, we intend to adapt production areas following space being freed up by the logistics center. Thirdly, our investments in fixed assets allow us to rent or lease to hospitals, facilitating their operations as well.

Our company finances an independent foundation, called School Aesculap Academy Mexico Foundation of Mexico (Fundación de Academia Escolar Aesculap México, A.C.). Our support has educated 8,000 people in 2015 alone, with diverse programs such as hand hygiene. We manage alliances with schools and local associations, which are certified in these topics to offer an academic structure. Investment from other institutions would be dedicated to grant study scholarships.

Would the company consider introducing more manufacturing operations to Mexico in the future?

All companies in the market are in a delicate situation, wherein competition relies on a delicate fragile market. Despite the large population in Mexico, guaranteeing a certain number of patients as well as professionalsworkforce, the lack of market hdemandere  for our products weakens the country’s advantages as a manufacturing location. Our company is participating in internal tenders for contracts, wherein we can easily defend Mexico’s competitiveness in terms ofdue to its proximity to important markets, coupled with and  capable workforce. Nonetheless, our down-point is the fact that most of our manufacturing would be exported. For the company to expand manufacturing in Mexico, domestic demand must increase.

Mexico’s main competitiveness is generated by exports to the US. The Latin American regionmarket does not represent an important export destination, as most products are not registered in the country. Rather, manufacturing leaves the workshop to be certified in the US. The Dominican Republic is equally competitive for certain US medical device manufacturers, but the domestic market is commercially more attractive.

How could the public sector encourage private companies to encourage investment in Mexican manufacturing?

We are coordinating with the Secretary of the Economy, who is interested in adding value in the supply chain. The concept of having a workshop that imports raw materials and exports a finished products is not attractive to most companies. Therefore, the Secretary aims to establish industries that would supply raw materials, and introduce services such as sterilization among other links in the chain that are lacking in the country. This would make the country much more attractive for medical device investments.

The expectation that Mexico could participate more in research and development operations has attracted universities to develop investigations into the medical devices industry. We have yet to see the industry respond similarly in Mexico. Collaborations with innovative institutes continue to be bureaucratically complex, which is a barrier to entry. In pharmaceuticals, there are much fewer R&D operations, representing an important area of opportunity. Our company’s roots in innovation are 80% thanks to German funding, whereas Mexico has practically zero funding for medium-term R&D incentives. This generates a culture of an opportunist country, rather than developing sufficient long term funding into investigative research. The OECD has issued a report stating the inefficiency of the current health system, and urging the sector to invest more in medical devices.

http://www.mexicohealthreview.com/mhronline2016/index.html