Maypharm’s distinctive strategy targets high-entry-barrier markets with bespoke business models, setting itself apart within a competitive and highly regulated environment. The company emphasizes niche, region-specific products like Metamizole, alongside complex injectables, pioneering generics, and advanced drug delivery systems, to cultivate a diverse and substantial portfolio.
Sameer Kolhe, President of Maypharm, shares the company’s ambitious growth vision for Latin America and beyond in an exclusive discussion with Shardul Nautiyal. With a significant presence in Brazil and Mexico—comprising over 65% of Latin America’s pharmaceutical sector—Maypharm now aims to expand in Peru, Colombia, and other critical regions in Central and South America.
Looking forward, Kolhe identified two pivotal trends likely to shape the pharmaceutical industry’s future: the pivot to emerging markets and prospective regulatory harmonization, which may lower entry barriers while heightening competition. To maintain a competitive advantage, Maypharm is heavily investing in technology-oriented products and digital transformation, which includes advanced project management tools and data-centric decision-making.
Kolhe also disclosed plans for targeted acquisitions, notably partnerships within Brazil and Mexico, to bolster the company’s infrastructure and distribution network. By focusing on talent development and innovation, Maypharm aims to rank as one of the top five Indian pharmaceutical firms in Latin America within the next five to seven years, paving the way for an expanding presence in Mexico through a fortified sales force. Excerpts:
Maypharm has an established reputation in Brazil and Mexico. What strategies are in place for entering other countries soon?
“Our strategic focus on high-entry-barrier markets, initiating in Brazil and Mexico, allows us an enhanced market position. As these two account for over 65% of the Latin American pharmaceutical industry, our approach ensures value addition across the supply chain, including marketing to manufacturing, following product registration. We are now venturing into important regional markets like Peru and Colombia, extending into Central and South America as well as the Caribbean. However, we are committed to adapting our business models to meet the unique demands of each market, ensuring gradual, sustainable growth. Establishing robust sales teams in select markets is among our primary objectives.”
As a newcomer in a stringent industry, what significant challenges have you encountered, and how do you tackle them?
“Operating in highly regulated markets has been exceedingly challenging. Unlike in major markets dominated by multinational corporations, the pharmaceutical landscape in Latin America is mainly led by indigenous giants. This requires meticulously strategic selections of market segments, product lines, and business models. We have focused intensely on exclusivity, unique portfolios, and both B2B and B2C strategies to obtain a competitive position. By observing failures within the industry, we’ve crafted a model central to our current success and differentiation.”
What emerging pharmaceutical trends do you predict will considerably impact Maypharm’s business over the next 5-10 years?
“Two significant trends poised to influence the pharma sector include:
Market Transition: As growth slows in traditional regions such as the US and Europe, underutilized markets, including Brazil, Mexico, and Russia, will present new opportunities for companies equipped with advanced technological capabilities and specialized offerings.
Regulatory Evolution: Potential regional regulatory alignment could transform market dynamics. As entry restrictions lessen, competition is expected to intensify, potentially driving prices down. To retain market competence, Maypharm is channeling investments toward technology-driven solutions, combination products, pioneering generics, and state-of-the-art drug delivery systems, all essential for maintaining our edge in niche sectors.
In your expansion phase, any plans for new alliances or acquisitions? What criteria guide your selection of partners or candidates?
“Our acquisition priority centers on infrastructure improvements and forming influential distributor partnerships, especially in Brazil and Mexico, to reinforce our market presence. While we’re not actively eyeing manufacturing acquisitions, we are open to investing in Greenfield R&D facilities in India, which can support our product developments, notably pre-formulation and innovative drug delivery systems. The consumer product sector also holds great potential, particularly where innovations can enhance compliance and life quality.”
How does Maypharm envisage expanding its product lineup? Are there specific therapeutic categories you’re keenly pursuing?
“We are enlarging our portfolio within several key domains:
Regional-Specific Products: We’re targeting products unique to Latin America. For instance, Metamizole—a significant anti-inflammatory locally—provides a market-specific advantage due to its limited presence elsewhere.
Complex Injectables: Given the regulatory complexities in Latin America, investing in complex injectables is crucial, addressing the regional R&D and production voids.
First-to-Market Innovations: Building access to combination products, first-time generics, and unique drug delivery mechanisms help establish our distinctiveness.
Innovative Consumer Offerings (OTC): This sector promises vast opportunities for innovations that appeal to regional customers, despite its regulatory intricacies.”
What is the significance of digital transformation within your expansion strategy, both internally and for your client services?
“Digital transformation underpins our growth plan, critically impacting our interactions with B2B customers. Through digital tools, we enhance project management, boost customer service, and derive insights via data analytics. By providing real-time project updates and embracing data-driven decisions, we streamline operations and consolidate our competitive stance.”
How do you envisage Maypharm’s growth over the coming decade? What strategies are in place to nurture and retain essential talent?
“While setting a 10-year goal in today’s volatile market seems ambitious, we consider a more feasible horizon of 5 to 7 years—aiming to ascend the ranks among Latin America’s leading Indian pharmaceutical enterprises. Our strategy includes cultivating and maintaining top talent. We prioritize nurturing young professionals, advancing their growth and creativity, and instilling a culture of passion and innovation—key components for achieving our long-term objectives.”