COMPANY REPORT
Grupo CPQ | Company Report | 3
From Innovative to Generic: The Race Everyone Wants to Win Increasing access to healthcare is a major challenge, especially for a country that has one of the largest out-of-pocket expenditures in the OECD. Generic medications are significantly less expensive than their patented counterparts, providing relief for cash-strapped households. Beyond cost-savings, generics also represent an attractive market opportunity in which the first company to launch a generic alternative stands to gain the largest share of the pie. The generics industry has boomed in Mexico as patents for innovative drugs expire. Estimates suggest that nine out of 10 drugs sold in Mexico are generic, representing more than half of the pharmaceutical industry market in Mexico by value. This figure may change depending on the development of new competing drugs in the innovative segment. The growth of the national pharmaceutical industry through the development of generic products is crucial to the population’s access to health. But it is not a short or easy path. For a generic medicine to enter the market, it is necessary to verify it is equivalent to the innovative or reference medicine, in addition to demonstrating its safety and efficacy. Innovative drug laboratories also put up several barriers to generics through patent extensions. Patents grant limited and temporary legal protection over the technical aspects of any invention to cover the R&D expenses incurred by the developer. By giving a period of sales exclusivity, patents allow the owner to recoup the cost of developing the product and promote the creation of new inventions. However, using patents as a competitive tool to delay the launch of generic products to the market is quite common. Generic companies often race to obtain a privileged place in the market by launching the first generic product, which involves the collaboration of multidisciplinary teams that were not previously considered part of pharmaceutical development. The process has incorporated raw material suppliers, which in consideration of the previous challenges have developed strategies to support the development of generics. Grupo CPQ is an example of this effort, standing out thanks to its collaboration with the pharmaceutical sector in the early development of generic drugs. For over 35 years, Grupo CPQ has been a consolidated distributor of raw materials and active ingredients. Aware of the importance of the accelerated development of generic products, Grupo CPQ recently developed an innovation area focused on supporting the areas involved in the development of new generic products to overcome the obstacles that hold back their launch to the market. One of the main obstacles to the launch of generic drugs is the intellectual property strategy of innovative companies, which focus on protecting different characteristics of the active principle, such as salts or crystalline structures. Grupo CPQ has adopted this challenge as its own and, as part of its evolution, has committed itself to distributing active ingredients. This means its buyers do not need to worry about the issue related Read the complete article More about this topic
to the patents involved. In addition, Grupo CPQ provides advice regarding intellectual property to accelerate the development and launch of generic products.
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from the
Q: What role does the Development and New Business Department play in Grupo CPQ’s business strategy? A: This department offers integral solutions to meet our clients’ daily needs thanks to our multidisciplinary team, which includes people with different technical and professional training. The department works together with our innovation team, which is in charge of patents and molecules for generic drugs. Grupo CPQ also has a quality management system that handles regulatory matters, technical staff focused on the chemical field and a marketing team that generates proposals for our clients and commercial partners for APIs and functional ingredients. Q: What is Grupo CPQ’s value proposition and what differentiates it from its competitors? A: Grupo CPQ does not only rely on client demand but also innovates its own portfolio to offer a wider variety of products. As distributors, we have to be proactive. By integrating APIs and allying with excipient suppliers, we generate a stronger value proposition that strengthens our clients’ portfolios. Since 2020 Grupo CPQ has made alliance with Lubrizol Life Science (LLS Health) which is part of the Berkshire Hathaway Group, and has had a presence in Mexico for over than 70
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years. Lubrizol is one of the world’s largest manufacturers of pharmaceutical grade carbomer and polycarbophilic, currently we are working in an integral strategy with clients in order to accelerate the commercialization of differentiated
Development and New Business Manager | Grupo CPQ
pharmaceuticals. Lubrizol’s team is dedicated to providing best-in-class polymers and excipients, along with state-of-the-art product design, development and manufacturing services. Its high-
Partnerships are Key to Integrated Solutions
performance pharmaceutical´s excipients are used in a wide range of applications including sustained release oral solid dosage forms, transdermal applications, drug delivery device solutions, semi-solid and liquid formulations that help improve absorption and efficacy of drugs, with the goal of creating solutions that improve patient outcomes and quality of life. Q: The pharmaceutical industry has high quality standards. How does Grupo CPQ verify the quality of its suppliers? A: Quality is crucial for Grupo CPQ. Recently, we partnered with Lubrizol Life Science Health, which is one of the biggest carbomer and polycarbophil manufacturers globally. Lubrizol has been operating for over 90 years and is part of Berkshire Hathaway, a multinational conglomerate. This alliance gives us security due to the great experience Lubrizol has in manufacturing excipients. The company also helps us offer the best solutions and even propose innovative dosage solutions. Q: What is Grupo CPQ’s vision for the short and midterm? A: We will continue offering solutions to our clients that help
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them put in the market innovative and efficient products that improve the quality of life of patients. Grupo CPQ has been a great partner for the APIs and excipients market. We want our clients to feel sheltered by us as they search for molecules that can make a difference in the pharmaceutical industry.