Innovation and Talent in the Pharmaceutical Industry to Improve Access to Medicines in Latin America

Introduction

Access to medicines is a crucial component of global public health. However, various challenges prevent many people from receiving the medicines they need, including high costs, lack of infrastructure, and unequal distribution. Factors such as patents and trade agreements also influence the availability and pricing of medicines. A significant challenge for pharmaceutical companies is accessing government institutions, which require navigating complex bureaucracies, stringent regulations, and shifting policies. As Manuel Morales highlighted in an interview: “In some countries, access has not worsened, but the premises and processes that were deeply ingrained have changed,” with a push towards “low-cost medicines” in several Latin American countries.

The objective of this article is to share the evolution of the pharmaceutical industry in recent years, focusing on innovation and talent management to overcome challenges and improve access to medicines in Latin America.

Evolution of the Pharmaceutical Industry

Changes in Recent Decades

The pharmaceutical industry has undergone significant transformation over the past decades, driven by globalization and the evolution of healthcare systems. In Mexico, for instance, the transition from a fragmented healthcare system has required the sector to adapt. In Colombia, Alberto Retana stated that “since the new president’s arrival, Colombia is immersed in a process of transforming its healthcare system,” underscoring the importance of observing these changes in the regional context.

Globalization and access to medicines 

Globalization has fostered greater interconnectedness among pharmaceutical markets, facilitating the introduction of innovative and generic medicines. However, challenges related to regulations and pricing policies remain prominent. As Manuel Morales noted: “In countries like Argentina and Mexico, price negotiation remains a critical issue, especially when the dialogue focuses more on cost than on therapeutic value.” On the other hand, Alberto Retana emphasized that “in Mexico, although health investments are lower compared to other OECD (Organization for Economic Co-operation and Development) countries, mortality rates are lower.”

Some pharmaceutical companies have initiated campaigns in different Latin American countries to negotiate prices for innovative medicines in collaboration with governments, balancing therapeutic value and cost.

Innovation as a Driving Force

Advances in Research and Development (R&D) 

Advances in R&D are crucial for developing innovative medicines that address complex diseases. Cost pressure remains a dominant factor. Jorge Tanaka highlights that “For a medicine to succeed, it is necessary to demonstrate not only its clinical effectiveness but also its budgetary impact and its cost-saving capacity within the healthcare system.” In Mexico, the lack of consistent healthcare funding, as noted by the CIEP (Center for Economic and Budgetary Research), has limited coverage and access to treatments.

Alberto Retana mentioned that “It is relevant to consider how the budget is invested and what the health objectives are, as the selection of medicines and the prioritization of resources play a fundamental role.”

Innovation is essential for developing new medicines throughout Latin America. Manuel Morales commented that “If you only focus on your product and it does not have a significant difference in efficacy, you will face strong price pressure.” This underscores the need for a balanced approach between innovation and accessibility.

Digital Transformation in the Industry 

Digital transformation is changing how companies approach the production and distribution of medicines. Pharmaceutical companies have implemented artificial intelligence solutions in their clinical research processes, reducing the time needed to analyze data and optimizing the selection of candidates for clinical trials. In Latin America and some use digital platforms to educate doctors and patients about diseases and treatments, improving adherence and optimizing access.

Technologies such as artificial intelligence and automation enable pharmaceutical companies to better adapt to regulatory changes and improve responsiveness, optimizing both efficiency and access.

Talent Management in the Pharmaceutical Industry

Challenges in Attracting and Retaining Talent 

Attracting and retaining talent is essential to overcoming access challenges. Teams in access areas must have a combination of technical and strategic skills. As Jorge Tanaka expressed: “It is important to have specialized teams that deeply understand regulations, Pharmacoeconomics, and the structure of the healthcare system.” In the context of limited healthcare budgets and growing out-of-pocket expenses, as indicated by the CIEP, a more efficient approach to talent development is necessary, requiring teams that understand both technical and operational language.

Alberto Retana emphasized that “the adjustment of teams to changing policies and the ability to measure the real benefit of innovation post-access are increasingly important aspects.”

Talent Development Strategies 

To improve access to medicines, companies must develop teams with advanced competencies in Pharmacoeconomics, negotiation, and project management. Jorge Tanaka highlighted the importance of having a team prepared to present proposals that include education and support for treatment adherence.

Similarly, Manuel Morales mentioned the importance of “a comprehensive value proposition,” which involves training teams in negotiation and project management skills to adapt to a more complex access environment.

Alberto Retana stated that “Team training must include a deep understanding of drug selection and economic evaluation.”

Innovation and Talent to Improve Access to Medicines

Key Challenges in Accessing Medicines

Challenges remain significant in the region. In Mexico, the approval and reimbursement process can take more than four years, impacting the availability of innovative medicines.

In countries like Colombia, there is notable pressure regarding drug pricing and the economic evaluation of new technologies.

In Latin America, access to medicines faces even greater challenges. Limited healthcare budgets and the lack of an adequate financing scheme are key factors. For example, healthcare spending as a percentage of GDP (Gross Domestic Product) in many countries in the region is below the OECD average, restricting the capacity to acquire innovative medicines. Alberto Retana mentioned that “It is relevant not only to consider the percentage of GDP invested in health but also how that budget is invested and what the health objectives are.”

Moreover, the COVID-19 pandemic highlighted the region’s dependence on international suppliers, underscoring the need for policies that promote local production and reduce vulnerability to health crises.

Successful Talent Management Initiatives 

The key to improving access to medicines in Latin America lies in strengthening access teams. Manuel Morales emphasized: “Today, access professionals must be able to articulate a business that benefits both parties, not only through the relationship but through the comprehensive value proposition presented.”

The region has started implementing collaborative solutions, such as the joint purchasing mechanisms promoted by PAHO (Pan American Health Organization), which allow for acquiring medicines and vaccines at lower prices and ensuring a consistent supply. Additionally, improving pricing transparency is essential to ensuring effective and affordable treatments are included.

Conclusion

Summary of the Importance of Innovation and Talent

The pharmaceutical industry faces a constantly changing landscape that requires innovation and more sophisticated talent management. Digital transformation, along with well-trained and prepared teams, can make a difference in overcoming access challenges and improving medicine availability. The need for adequate funding and policies that strengthen local production, as highlighted by the CIEP and other sources, is essential to ensuring a more equitable and efficient healthcare system.

Innovation and talent are fundamental not only for developing new medicines but also for ensuring their equitable distribution. As Manuel Morales concludes, access to medicines depends not only on product availability but also on how companies engage with governments and other actors in the healthcare ecosystem.

Future perspectives

Looking ahead, greater collaboration between the pharmaceutical industry and government institutions is required, along with a focus on policies that promote more equitable access to treatments. Building strong relationships and a deep understanding of the context in which companies operate will be key to improving access to medicines in the region

Contributors

• Dr. Jorge Tanaka, Market Access and Public Affairs Director at Roche Mexico. (Source: Private interview, 2024)
• Manuel Morales, Commercial and Access Director at Pint Pharma. (Source: Private interview, 2024)
• Alberto Retana, Strategic Access Manager at Novo Nordisk Mexico. (Source: Private interview, 2024)

References

• Center for Economic and Budgetary Research (CIEP). “Efficiency in Healthcare Spending: Consolidated Medicine Purchasing.” Information on procurement and budget management in the healthcare sector. Available at ciep.mx
• Pan American Health Organization (PAHO). “Study on Access to Hypertension Medicines in Latin America and the Caribbean.” Data on challenges in the region for accessing essential medicines and PAHO’s proposals to improve availability. Available at paho.org
• W.A.I.T. Report 2024. Data on patient waiting times in Latin America to access innovative medicines and their health impact. Available at consultorsalud.com
• IQVIA. Analysis on healthcare spending and access to innovative medicines in the Latin American region, compared to OECD standards, highlighting economic challenges. Available at iqvia.com