Pharma Major Lupin, headquartered in Mumbai, is a global pharmaceutical company involved in many sectors of the medical device and drug industry, producing both branded and generic medical implements and medications. It concentrates on cardiovascular, diabetology, asthma, pediatric, CNS, GI, anti-infective and NSAID products, and is also a leader in anti-TB and cephalosporin products. It is the fifth-largest generics company in the U.S. and the third-largest Indian pharmaceutical company by sales.
Recently, Lupin announced it had acquired 100 percent equity stake in Laboratorios Grin, S.A. de C.V. in Mexico, marking the company's entry into the high-growth Mexican medical market. In terms of pharmaceuticals alone, Mexico's market is currently valued at $13.5 billion and growing at a pace of 9 to 10 percent a year.
Grin is involved in developing, manufacturing and selling ophthalmic products, and is a trusted brand in Mexico.
"We are very pleased with our entry into the Mexican market through Laboratorios Grin," Lupin CEO Ms. Vinita Gupta said in a release. "This acquisition is a reflection of Lupin's commitment to expand into the Latin American market and build its global specialty business. We see a lot of synergies in this acquisition and plan to bring our ophthalmic pipeline to build the Grin business as well as leverage their commercial presence to enter other promising therapy segments."
On the other side of the deal, Victor Fregoso, President of Grin, said he was equally happy with the move. He is excited for Lupin's management and technology skills to help grow Grin.
More on Mexico's medical market
Mexico has the second-largest medical device market in the Latin American region, according to Espicom. It was valued at $4 billion in 2013. The market is growing for many reasons, including political stability, general economic growth, higher chronic disease incidence and increasing expenditure.
Furthermore, Mexican medical exports were worth $6.4 billion in 2012, and 91.1 percent of those exports went to the U.S. It is still the biggest market for Mexico's medical devices due to its geographic proximity and low-cost-operation environment.
Medical-sector manufacturing companies may want to take a page from Lupin's book and begin manufacturing in Mexico through a reputable offshoring program for lower costs and a better bottom line.