Scientists at the Medquímica facility, Brazil
THE LATIN AMERICA REGION (LATAM) REPRESENTS LUPIN’S YOUNGEST BUSINESS GLOBALLY WITH THE COMPANY HAVING ESTABLISHED OPERATIONS IN THE REGION’S TWO LARGEST MARKETS, MEXICO AND BRAZIL THROUGH ITS SUBSIDIARIES, LABORATORIOS GRIN S.A. DE C.V., MEXICO (GRIN) AND MEDQUÍMICA INDÚSTRIA FARMACÊUTICA LTDA, BRAZIL (MEDQUÍMICA). BOTH THESE BUSINESSES HAVE BEEN ACQUIRED BY LUPIN IN THE LAST 18 MONTHS.
The LATAM region is amongst the fastest growing pharmaceutical markets in the world, projected to grow at around 6.1% annually till 2018 with governments trying to improve accessibility as well public health care systems.
Lupin is working on an aggressive strategy in this region building on the existing presence and we continue to review bolt-on acquisitions that will complement both Grin and Medquímica. The Company is looking to build efficiencies in sales by expanding our distribution channels; growing our portfolio and relationships with existing partners and exporting from Mexico and Brazil to adjoining regions. Lupin’s therapeutic focus in LATAM is on Ophthalmology, Dermatology, CNS and General Medicine and we are looking to expand this portfolio by leveraging Lupin’s global portfolio, in-licensing, acquisitions and through strategic alliances.
Mexico is LATAM’s 2nd largest pharmaceutical market valued at about USD 12 billion, growing by 5% annually. Incorporated in 1955, Lupin’s subsidiary Grin is a specialty pharmaceutical company engaged in the development, manufacturing and commercialization of branded Ophthalmic products. Grin is the 2nd largest
Ophthalmic player by prescriptions and the 4th largest Ophthalmic player by value; a trusted brand in Mexico. Grin recorded revenues of MXP 503 million (` 1,980 million) during FY 2016.
The Brazilian Market is valued at over USD 25 billion, accounting for more than 35% of LATAM pharmaceutical sales and is expected to grow by 9-12%. Brazil is the 6th largest market in the world.
Lupin marked its foray into the high growth Brazilian market with the acquisition of Medquímica in May, 2015. Medquímica is a broad-based pharmaceutical company engaged in the development, manufacturing and commercialization of branded generics, pure generics and OTC products. It is one of the fastest growing companies in the Brazilian branded generics market and a trusted brand with the distribution channel. Revenues grew 15% as compared to last fiscal, reaching BRL 82 million ( 1,464 million) in 9 months post-acquisition. We plan to not only leverage our research and technology strengths to build a high quality product pipeline but also use Medquímica’s commercial presence to expand business by targeting niche high-growth therapy segments.