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Meeting highlights:
- Portfolio Focus and Market Differentiation: The company's presence has been rooted in primary care and in specialty care focused on access and well-being.
- R&D Priorities: Ferrer is committed to purpose-driven R&D, concentrating on pulmonary vascular and interstitial lung diseases, as well as rare neurological diseases.
- B-Corp Commitment: The company's B-Corp certification is not symbolic but fully embedded in its operations, guided by a philosophy of business as a force for social justice.
- Leadership and Company Culture: The example set at the highest levels of leadership demonstrates a new, values-driven model of business that is actively shaping company culture and external impact.
- Call to Collective Action: Ferrer extends an open invitation to governments, peers, and the private sector to co-create responsible and sustainable healthcare systems.
- Vision for the Future: The company seeks to be seen as a trusted partner in reshaping healthcare, anchored in collaboration, impact, and responsibility.
EF: Alejandro, could you elaborate on your regional footprint and your current priorities?
AM: From our base in Costa Rica, we manage operations across seven countries: Guatemala, El Salvador, Honduras, Nicaragua, Panama, the Dominican Republic in the Caribbean, and, of course, Costa Rica itself. We have a history in the region, primarily through our primary care portfolio. Ferrer is an international company with products present in 122 countries, and we are working to further distinguish ourselves by concentrating on core strategic business areas. We are a purpose-driven company dedicated to using our business to fight for social justice. Our primary focus is on R&D in key areas, including pulmonary vascular and interstitial lung diseases, as well as rare neurological diseases. These complex diseases impose a substantial burden on patients, caregivers, healthcare providers, payers, and the healthcare system. Some of them have very low prevalence, resulting in a lack of data and experience in managing these conditions and making informed decisions. Over the past five years, we have developed a specialized care approach that has allowed us to build a promising pipeline in those two main therapeutic areas. Currently, our business operates on a hybrid model that combines both primary and specialty care. We have begun collaborating with various stakeholders to create more effective health ecosystems, setting the stage for a regional and country-based strategy in the future. This year, approximately 20% of our revenue is expected to come from the specialty care sector, while 80% is likely to come from primary care. Both segments are experiencing growth, which is encouraging.
EF: What is your definition of access, and how would you rate the access levels in the region?
AM: In our industry, access typically refers to reimbursed markets, which usually involve one or two national payers and a clear path for getting a product, service, or device approved for inclusion in the healthcare system. However, in Latin America, the situation is different, and each Central American country has its unique system. We define access as the method of delivering our products to patients in the fastest, most efficient, and sustainable way. Sustainability is a crucial issue for our company, not only in terms of environmental impact but also concerning how healthcare systems will sustain themselves in the future while addressing emerging challenges. As people live longer, we see shifts in epidemiological patterns, with diseases such as dementia, Alzheimer's, and vascular conditions becoming more prevalent. Today, a 70-year-old can be very active, and many are still in the workforce. We are striving to manage access to healthcare from a sustainable perspective, which poses a challenge, particularly in our region, where countries do not invest as much in healthcare as recommended by international guidelines. Costa Rica serves as an interesting example, as it invests around 8% of its GDP in healthcare. While this investment is slightly below the OECD's recommended 9%, it is higher than the 6% spent by some other countries in the region. However, managing low-prevalence diseases poses a significant challenge given these budget constraints. We aim to co-create solutions with all stakeholders willing to collaborate with us, including FEDEFARMA, PROCOMER, and payers such as the Seguro Social in Costa Rica and the Programa de Alto Costo in the Dominican Republic. Our approach involves engaging patient NGOs, patients, caregivers, and physicians to gather comprehensive data. By doing so, we can establish new forums to present this data, allowing the system to move beyond decisions based solely on prizes or epidemiological factors. Our goal is to develop a more sustainable and holistic approach. Due to the significant challenges we face, we collaborate with various stakeholders and networks. Costa Rica has an advantage; we have established a government forum that allows us to engage in discussions on specific topics within established spaces. Costa Rica’s receptiveness has been greater than that of other countries in the region.
EF: You are the highest-rated pharmaceutical company globally, holding a B Corp Certification. What role does Ferrer play in leading and helping other companies recognize their significance?
AM: In a very humble way, we work to inspire other companies to join our way of doing business, embodying the principles we advocate. I can share some interesting examples. In Costa Rica, we have developed an ecosystem through a program we call World Caring. Following the pandemic, we encountered a significant issue with the management of medical samples. During the pandemic, due to difficulties accessing healthcare professionals, many companies were providing large amounts of samples. A year or two later, we found that many drugs were left in doctors' offices, and much of this medication was disposed of inappropriately. This presented a challenge, so we approached the Ministry of Health to work out a solution. We decided to create an ecosystem with the Ministry of Health, an NGO called Ecoins, and a partner for proper drug disposal. We visited all the doctors' offices and asked them not to dispose of expired medications in the trash but to return them to us for proper disposal. We recycled all paper and plastic, while tablets and syrups were disposed of in an environmentally friendly manner. We have been doing this for three years and have recovered five tons of expired medical samples. Additionally, we are implementing a similar initiative in Guatemala, though the ecosystem there is quite different since we are not based in that country. As a B Corp Company, we are trusted because we prioritize our social and environmental initiatives over profits. When we have something to contribute to discussions, people listen because they understand that we are not motivated solely by profit. We need to create more forums and leverage our B Corp Certification to demonstrate to governments how they can collaborate with the private sector to develop programs that add value to the economic system and society. It's not just about commerce; it's about fostering an environment of trust to address existing challenges collectively. Being the highest-rated B Corp pharma in the world serves as a significant credential, allowing us to engage in conversations in a new and meaningful way. Initially, during the FEDEFARMA meetings, I was one of the few advocating for sustainable approaches to mitigate future carbon emissions. However, it has now become more common for these forums to address such topics, which is a positive sign that we are moving in the right direction.
EF: Costa Rica is known for its great talent. How do you attract and develop that talent?
AM: Five years ago, I took on the challenge of working for a Spanish company that was not well-known in the region, as its products were managed through third-party distributors. Today, we require a great deal of talent, and our competitive advantage lies in our purpose, which our team takes great pride in. The company is truly making a difference as it operates in a fundamentally different way. While I have nothing against profit-driven companies, having been part of one for many years, I can now see how my job contributes to the improvement of communities and the planet. My first year here was challenging; we were not very well-known at that time, and I relied heavily on my network to recruit talent. However, now we find ourselves in a position where we cannot accommodate all the individuals interested in working at Ferrer. A reason for our growing popularity is our purpose. There is a personal and professional reward in making a positive impact on the community. When I speak with the families of my colleagues, it is incredibly gratifying to hear young children express pride in their dads for working to make a difference. The company has a strong and positive culture built on a foundation of mutual trust and responsibility. We believe in trusting and empowering our people, providing them with training and guidance. Together, we define our goals, enabling everyone to perform at their best because we have confidence in their abilities. They frequently surprise us with innovative ideas, challenge the status quo, and offer new perspectives we hadn't considered. Additionally, we offer an attractive work policy that enhances the overall work experience. Our colleagues can work from anywhere they choose, and every six months, we hold a meeting to discuss and agree on our working arrangements. We started with a highly digital approach and have since transitioned to a more hybrid model, continually evolving to keep our team engaged and productive. Our hybrid model has proven effective. With a limited number of team members, we have achieved remarkable success in various countries. One reason for this success is our shared understanding of how to work together, which stems from our trust-based responsibility strategy.
As a Ferrer employee, I take pride in knowing that, instead of maximizing shareholder returns, we reinvest much of our profit (more than 50% in the last 5 years) in initiatives that give back to society. Back where it belongs. It’s a great feeling to know that the company's earnings are contributing to the betterment of society. The shared commitment to our purpose makes me proud to be part of the Ferrer team.
EF: Do you have a final message to share?
AM: Rely on Ferrer as your trusted partner. Allow us to demonstrate our approach to business, and the results will be both impactful and rewarding. Whether in the public or private sector, among competitors or allies, patients or payers, we must collaborate to achieve our shared goals. Collaboration is crucial for developing a sustainable strategy, strengthening the pharmaceutical industry, and creating a health system that positively impacts our society. We are the ideal partner to help build a sustainable system.
