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New pharmaceutical company enters Latin American ophthalmic market
A strong sales force and an association with a former market leader are driving company success.
COTIA, Brazil — Despite the uncertain and vulnerable Brazilian economic climate, in October of last year a new pharmaceuticals company entered the Latin American ophthalmic pharmaceutical market.
Located here, Latinofarma Indústrias Farmacêuticas Ltda. is a Brazilan-owned pharmaceuticals company specializing in anti-infective drugs, artificial tears, glaucoma medications and other ophthalmic products.
“We are unique — a Brazilian company competing in the Brazilian market — not like other companies like Alcon, Allergan, CIBA Vision or Bausch & Lomb. We let our doctors know that — that we are a Brazilian company and that they are providing their country some benefit by investing their money in their country,” said Gerson Cespi, marketing and sales manager for the company.
Mr. Cespi told Ocular Surgery News in an interview that the company was faced with all the problems currently troubling Brazil. The country is suffering through an economic crisis coupled with political changes stemming from the presidential election at the end of last year.
“If you consider this perspective, it should not be easy for a company to enter the market. But even with these events, we did it,” Mr. Cespi said.
“It’s difficult to try to figure out the future here in Brazil, but the results have been very good, much better than we have expected. In the future, we intend to maybe launch an [over-the-counter] line, increase our pipeline, increase our sales force. And who knows, maybe expand to other countries here in South America. But that all depends on our results,” he said.
The company
According to Mr. Cespi, sales have been better than expected since the new company’s products hit the market. Mr. Cespi said one of the reasons for this is the association of some of Latinofarma’s management to Frumtost, a long-time Brazilian pharmaceutical company that had a reputation as a leader in the South American ophthalmic pharmaceuticals market. The company was bought by Allergan in 1995.
Latinofarma’s owner and president, Fermím Sánches Valle, was the former president of Frumtost, and he holds over 35 years of experience. Additionally, Dr. Morio Sato, the director of technical operations, held that same position with Frumtost.
“A lot of doctors here in Brazil remember and miss Frumtost. We are sort of bringing back the company for them,” he said.
However, Mr. Cespi cites Latinofarma’s sales force as the main reason for the company’s initial success. He said about 80% of the people on the sales team have come from other ophthalmic pharmaceutical companies and direct competitors to Latinofarma. On average, representatives on the sales team have 5 to 6 years’ experience in the market.
“They have a strong relationship with the doctors. This is a very good point for us because the relationship is very important in the beginning of a business. We have a lot of doors opened to our reps to do their jobs,” Mr. Cespi said. “They are familiar with the market. They know ophthalmic products, they know the customers, they know the process.”
The company is based here in Cotia, 30 minutes from the center of Sáo Paulo, in an industrial area exclusively established for nonpolluting companies. According to a company statement, the facility is capable of producing some 3.5 million units per month.
Product development
Mr. Cespi said Latinofarma is committed to producing a line of what he called proprietary prescription ophthalmic pharmaceuticals at a competitive price. Some of their major products include anti-infective drugs, combination anti-infective/steroids, artificial tears, glaucoma medications and diagnostic drugs.
The company also will invest heavily in research and development, with 7% of revenue allocated to R&D during its first year. Mr. Cespi noted that there are no new drugs in the pipeline at present, but that the company is focusing on glaucoma medications, artificial tears and steroids.
The management team is considering plans to launch over-the-counter drugs and a generic pharmaceuticals line in 2 to 3 years. It has not ruled out the possibility of developing surgical products as well.
“First we need to establish our base in ophthalmics. It depends on the market here in Brazil. If there is any chance or any opportunity, then we can go to surgical. But, today, it is out of the plan,” Mr. Cespi said.
Latinofarma is also holding in reserve some products for the veterinary market, with no decision having been made on a launch.
For Your Information:
- Gerson Cespi, marketing and sales manager for Latinofarma Indústrias Farmacêuticas Ltda., can be reached at Ruaa Dr. Tomás Sepe, 489, Jd. da Glória, Cep 06711-270, Cotia, SP, Brazil. (55) 11-4612-0819; fax: (55) 11-4612-6349; e-mail: gerson.cespi@latinofarma.com.br.
- Latinofarma Indústrias Farmacêuticas Ltda, can be reached at R Dr Tomás Sepe 489 Jd da Glória, Cotia – SP, Tel: (55) 11-3277-5606; fax: (55) 11-3277-4455; e-mail: latinofarma@latinofarma.com.br; Web site: latinofarma.com.br