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EF: What are your key objectives for 2024? Do you see this year as a challenge or opportunity?
FC: After the pandemic, as a leading global supplier of PCR tests, we faced the challenge of returning to routine healthcare. Particularly in Latin America, the healthcare systems confronted a backlog of patients whose diseases were deprioritized due to COVID-19.
The Lab service capacities that expanded significantly during the pandemic had to face the decreased demand afterwards. Thermo Fisher recognized this opportunity to support the customers and took on a consultancy role to assist these businesses in pivoting and diversifying portfolios to attract new patients and remain competitive.
Taking advantage of fields that lay dormant during the pandemic, Latin America is now highly relevant in the area of rare diseases, thanks to the region's diversity. Additionally, respiratory and cardiovascular diseases and diabetes, which present high prevalence in Latin American countries, became a top priority.
During COVID-19, simplifying patient experiences was a key lesson, leading to innovations like at-home PCR tests and expanded home care services. The shift towards patient-centric care, coupled with rapid digital communication of test results, became the new standard in healthcare. With digital transformation, artificial intelligence is now a unique focal point in healthcare and life sciences, and this has opened many market opportunities, especially from the private healthcare perspective. The sector is fueled by increased demand for private hospitals and insurance due to high out-of-pocket healthcare expenses.
Meanwhile, the lack of funding is one of the main challenges for Mexico’s public healthcare. Public spending is a complex issue, and even two years later, many countries are still in the process of overcoming the pandemic impact on the public sector. Large lab infrastructure investments have become white elephants, and governments are suffering huge debts and considering restructuring their healthcare systems.
Amidst political transitions and global trade tensions, many Latin American countries face economic recovery challenges. We will be monitoring the outcomes of the US and Mexico elections as they are crucial for regional progress.
EF: How does Thermo Fisher's portfolio adapt to the region’s needs, and how is Latin America evolving as an innovation hub?
FC: Thermo Fisher is interested in various market segments. There are slight differences between the countries where we operate, yet academia and research show minimal growth due to reliance on public institution funding.
Despite the global downturn, our pharma and biotech segments remain strong in Latin America. The emergence of vaccines and new drugs around COVID-19 created a significant market, prompting substantial investments in vaccine production sites, particularly in Brazil. With the decline of the pandemic, we are exploring alternative uses for these sites, such as the development of new cell and gene therapies. This shift represents a significant private investment trend in the healthcare industry across Latin America.
Brazil's balanced market, leveraging private and government institutions, positions it as a regional leader in gene and cell therapy research, with cutting-edge work that will drive differentiation in the future.
Meanwhile, Mexico is showing promising growth in the industrial sector, particularly with nearshoring initiatives attracting new companies. Contrary to expectations of mainly US companies setting foot in the country, over 50 percent of the companies establishing operations are from various parts of the world, including China, Korea, India, and Taiwan. Regarding healthcare, the medical device market has the potential to become a new hub for the supply chain.
Nearshoring presents both an opportunity and a challenge in Mexico. While the country's north benefits from proximity to the US, the challenge lies in building infrastructure and workforce availability, especially in the less-developed southern region. Multinationals prefer established areas like Monterrey and Baja California. However, the government incentivizes companies to move south with tax exemptions and preferential land prices.
Nearshoring, particularly in the medical devices sector, presents our greatest opportunity. Nonetheless, for Mexico to truly benefit from nearshoring in the long term, it must transition away from the maquiladora scheme and begin manufacturing finished products for end customers. Changing the arrangement will depend largely on the new US government.
Regarding the clinical trial landscape in Latin America, with over 650 million people of diverse backgrounds, robust regulatory frameworks, and competitive pricing, the region is increasingly preferred for clinical studies. Latin America's capacity for developing new drugs is rapidly advancing and attracting numerous projects. Clinical trials offer substantial incremental opportunities across various sectors, especially in biotech and innovation.
EF: How are AI and digital tools impacting the expansion of access and innovation in Latin America? How is Thermo Fisher Scientific leveraging digital transformation in its operations?
FC: One of our core values at Thermo Fisher is innovation, and innovation is closely related to digitization and digital transformation. Take genetic evolution, for instance, which has been a significant development over the last two decades. Genetic tests generate large amounts of data, posing a challenge in interpreting these insights accurately and swiftly. To address this, we are leveraging AI models to enhance the speed and accuracy of result interpretations.
Imagine a centralized interpretation center for test results, ensuring faster resolutions and efficient resource use. We could correlate and process data in seconds, comparing millions of similar tests, greatly improving diagnostic quality. Artificial intelligence would play a crucial role in such an advancement.
Hospitals in Latin America are working on smarter databases, addressing the historical challenge of inefficient electronic medical record management. Developments in artificial intelligence will allow us to connect the dots. We are helping our customers streamline patient information more effectively, enhancing the overall patient experience and improving their outcomes.
In the field of proteomics, AI is revolutionizing disease identification and accelerating result delivery.
Additionally, Thermo Fisher is applying AI algorithms to improve customer communication and product design. We can quickly analyze multiple scenarios and obtain detailed insights within seconds. This allows us to make faster and more informed decisions, particularly on new product introductions.
In regards to the workforce, a key challenge lies in ensuring employees understand that AI is not meant to replace their jobs but rather transform their roles over time, allowing them to focus more on strategic tasks and product development.
There are ongoing discussions regarding the ethical boundaries of AI, particularly in fields like bioethics and surgery, where AI is enhancing accuracy and efficiency beyond human capabilities while keeping a cautious approach to potential risks.
EF: What advice would you give to young people aspiring to pursue a career in the healthcare industry?
FC: There are many beliefs or myths surrounding science, like the idea that you need to be exceptionally intelligent to pursue a career in it. - It may be true, but I believe you need to be super smart to do pretty much anything.
For the young ones, my advice is to stay motivated and passionate. The healthcare industry can be challenging, but it also offers immense rewards. Stay motivated by reminding yourself of the positive impact you can make on people's lives through your work. Maintain your passion for helping others and strive to make a difference every day.
Remember, a career in healthcare requires dedication, hard work, and a commitment to lifelong learning.
At Thermo Fisher, we seek to overcome these perceptions and have embarked on the initiative to democratize science. We work with voluntary programs in different areas to promote accessible STEM education worldwide. We take kids to the labs, teach them about the equipment, and introduce them to scientists. We are getting good results from these initiatives, which shows that the new generation is interested.
We look forward to collaborating with more institutions to open and visualize the field of science. Oncology, a key focus area for us, is particularly inspiring. I once brought my own teenager to our facilities here, and he was impressed by our efforts to broaden access to the field. I am immensely proud of Thermo Fisher's contributions to our customers, aligning with our mission to create a healthier, cleaner, and safer world.
EF: You are celebrating 10 years at Thermo Fisher Scientific this year. What is your celebration speech going to be about? What is your proudest achievement?
FC: I am truly grateful for my role and time at Thermo Fisher. I transitioned from engineering to life sciences because I needed to work on something that had a bigger purpose than just making money and sending kids to college. Therefore, I want to celebrate the impact we have had on society.
It has been rewarding to learn about the business and our customers, explore new markets, and collaborate with bright people from different backgrounds. Working across diverse portfolios, our mission drives us to create relevant products that positively change lives. We are part of an ecosystem where we contribute to innovation and discovery to get the tools to make the world safer and better. It has been an amazing 10 years and quite a journey.
