Today we visited a pharmaceutical company located here in Buenos Aires called Andromaco. I really enjoyed this site visit because unlike many I have been on before I was able to see the creation and pre-distribution of the product firsthand. For me, this is really important as I am a supply chain and marketing double major and on typical site visits you cannot see this part of the process in supply chain. This company produces over 30% of the medical and cosmetic creams here in Argentina. While on the tour they also told us that 90% of the product Is sold and distributed within the country of Argentina and less than 10% is sold in other countries. I think this may be one of the largest challenges the company faces. While they did not touch on challenges they may face in sales, having a greater number of exports or available exports would greatly increase the profits of the company.
Another challenge I assume the company faces is the cost of raw materials for their products. What I mean by this is that the company likely faces a challenge in regard to how much it costs them to buy the necessary products to produce their own. In Argentina there is a great concern of the growing inflation rate. With this, if most of the sales are being done at a lower price than in other countries, it may require a very large ratio of the revenue to continue production.
In general, Argentina’s pharmaceutical industry is not one of great influence in the world. With their troubling economy it is much harder to expand and keep a sustainable presence in foreign markets. Taking that in, it is incredibly impressive that Andromaco has been a strong company for so many years while keeping most of its product market strictly in Argentina.
Overall, today was a great day, not only because the site visit was super awesome and a great way to experience a new field of business up close, but also because of the culture we were able to experience after the visit. I loved going to a real Argentine style barbecue and getting to stroll around through San Telmo afterwards. Not to mention, the ESMA was a really eye-opening experience and allowed for an even deeper of the Argentine culture and history.