MEXICO: - ProMéxico

MEDICALDEVICE INDUSTRYResearch & Innovationfrom MexicoVIII X - - 2012MEXICO:COMPETITIVENESS,THE KEY TO SUCCESSInterview with Bruno FerrariMexico’s Secretary of Economy

Contents.October 2012Cover FeatureMedicalDevices,a HealthyBusiness20From the Ceo 5Briefs 6Business TipsMexico and AdvancedManufacturing 14Mexico in the WorldMedical Devices in Mexico:Opportunities for Baja California 18Mexico’s PartnerAmgen 24ARZZT 26Bisoft 28Hetlabs 30Medix 32Medtronic 34Arigmed 36Arroba Ingeniería 38Somar 40Novaprint 42Medutravel 44Figures 46InterviewBruno FerrariMexico’sSecretary of Economy10

BriefsThe LifestyleThe Complete Guide tothe Mexican Way of LifeProMéxicoCarlos Guzmán BofillceoSebastián EscalanteDirector of Publications and Contentsebastian.escalante@promexico.gob.mxJosé ÁlvarezStaring Realityin the Face60Miguel Ángel SamayoaAdvertising and Suscriptionsnegocios@promexico.gob.mxNatalia HerreroSuzette CelayaCopy EditingLaboratorio EditorialFelipe ZúñigaEditor in Chieffelipe@laboratorioeditorial.comPaola ValenciaThe Lifestyle EditorMalena LópezDesignThe Lifestyle BriefsPage 5048 Hours in...San Miguel de AllendePage 52Mexico According To...León LarreguiPage 58The Lifestyle ReportRed forIndependenceA Selection of Mexican WinesPage 64A Brief History ofThe Day of the DeadPage 72Quórum AwardsCelebrating Mexico’sCreative Talent68photo courtesy of josé álvarezphoto courtesy of quórum awardsGraeme StewartProofreadingCM IdiomasAlison StewartTranslationThis is an editorial project for ProMéxicoby Laboratorio Editorial, S.A. de C.V.Download the PDF version and read the interactiveedition of Negocios ProMéxico at:negocios.promexico.gob.mxThis publication is not for sale. Its sale andcommercial distribution are forbidden.Negocios ProMéxico es una publicaciónmensual editada en inglés por ProMéxico,Camino a Santa Teresa número 1679,colonia Jardines del Pedregal, DelegaciónÁlvaro Obregón, C.P. 01900, México, D.F.Teléfono: (52) 55 54477000. Página Web:www.promexico.gob.mx. Correo electrónico:negocios@promexico.gob.mxEditor responsable: Gabriel Sebastián EscalanteBañuelos. Reserva de derechos al uso exclusivoNo. 04-2009-012714564800-102. Licitud de título:14459. Licitud de contenido: 12032, ambos otorgadospor la Comisión Calificadora de Publicacionesy Revistas Ilustradas de la Secretaría de Gobernación.ISSN: 2007-1795.Negocios ProMéxico año 5, número X, octubre 2012,se terminó de imprimir el 13 de octubre de 2012, conun tiraje de 11,000 ejemplares. Impresa por Cía. ImpresoraEl Universal, S.A. de C.V. Las opiniones expresadaspor los autores no reflejan necesariamentela postura del editor de la publicación. Queda estrictamenteprohibida la reproducción total o parcial delos contenidos e imágenes de la publicación, sin previaautorización de ProMéxico. Publicación Gratuita.Prohibida su venta y distribución comercial.ProMéxico is not responsible for inaccurate informationor omissions that might exist in the informationprovided by the participant companies nor of theireconomic solvency. The institution might or might notagree with an author’s statements; therefore the responsibilityof each text falls on the writers, not on theinstitution, except when it states otherwise. Althoughthis magazine verifies all the information printed on itspages, it will not accept responsibility derived from anyomissions, inaccuracies or mistakes. October 2012.Fromthe CEO.An increasing number of companies in Mexico manufacture products with a higheradded value and incorporate largely home-grown research, design and technology.The country’s industrial sector is strongly committed to the development of whatis known as advanced manufacturing, leveraging the country’s advantages forinternational trade and investment, as well as the strength of its multi-sector supplychains and human capital.A fine example of an industry which incorporates advanced manufacturing intoall its processes is the one responsible for the production and commercializationof medical devices. Not only does it create jobs and income for Mexico, but it putsthe country in the international market spotlight with goods that meet the strictestinternational standards, and incorporate Mexican research and development.The talent of Mexican engineers, doctors and researchers, and the experience andknowledge gathered by the Mexican industry are key components.It is clear that the development of the medical device industry and other sectorsin Mexico has been largely boosted by the trade openness policy that the country hasmaintained in recent decades. This policy has brought about exponential growth inthe trade of Mexican medical inputs and finished goods, furthering the developmentof Mexico’s leading medical device clusters.Today, Mexico’s new competitiveness and commercial openness strategies areunlocking new opportunities to develop sectors that employ advanced manufacturingto operate successfully; as is the case with the medical device industry. What manypeople have yet to realize is that many of the devices used to monitor their health, carrya part of Mexico with them, which is why here at Negocios we are confident that theMexican medical device industry will be strengthened further by a new generation oftrade agreements in which the country will no doubt choose to participate.Welcome to Negocios!Carlos Guzmán BofillCEOProMéxico

BriefsBriefsMETALLURGICALTubacero’sNew Plant_____Mexican tube manufacturer Tubacerohas started the constructionof a new plant which will bethe only one in the world to producetubes from steel coils of 96inches.The new facility will requirea 90 million usd investment andwill have an annual productioncapacity of 200,000 tons of spiraltubes with diameters up to144 inches.www.tubacero.comphoto courtesy of johnson electricAUTOMOTIVEFrom Mexico tothe Americas_____Johnson Electric Holdings Limited, a globalleader in motion subsystems and micromotors, has broken ground for a new productionfacility in Zacatecas, Mexico. Thisnew plant will produce products primarilyfor Johnson Electric’s North and SouthAmerican automotive customers. In additionto geographic considerations, Zacatecaswas selected because of the availabilityof a stable and skilled workforce. The firstphase of the project includes an 80,000square feet plant with 500 workers.www.johnsonelectric.comLOGISTICSphoto archiveDHL KeepsBetting onMexico_____With an investment of close to 35million usd, DHL, the giant courierservice provider, opened a newOperations Center in CuautitlánIzcalli, Estado de México, north ofMexico City.The new facility has the capacityto load and unload trailers in 20incoming platforms and 44 cargoplatforms. It also has a fully automatedsystem, which scans packagesover six sides at a time, andthen sorts them.www.dhl.comphoto courtesy of dhlAEROSPACEHawker BeechcraftConfirms its FlightPlan in Mexico_____With an investment of 5.5 million usd, Hawker Beechcraft GlobalCustomer Support opened a new factory service center at theAeropuerto Internacional del Norte (MMAN) in Monterrey.The 48,000-square-foot (4,460 square meters) facility includesa 13,400-square-foot (1,245 square meters) paint hangar, a24,000-square-foot (2,230 square meters) maintenance hangar and10,700 square feet (1,000 square meters) of office and customer hospitalityspace. In addition to offering maintenance, repair and modificationof airframes, powerplants and avionics systems, the newHawker Beechcraft’s facility, which is certified by the DGAC (DirecciónGeneral de Aeronáutica Civil), also provides interior modificationservices and exterior paint capabilities.This is the second Hawker Beechcraft’s facility in Mexico–the other one has been operating for 12 years just outsideMexico City in Toluca, Estado de México, at Licenciado AdolfoLópez Mateos International Airport (MMTO). The MMAN locationis 120 miles from the US border.www.hawkerbeechcraft.comphoto courtesy of hawker beechcraft

12 Negocios ProMéxico Negocios ProMéxico 13—In your opinion, why shouldcompanies view Mexico as aninvestment option?Mexico is currently one of the top destinationsin the world for productive investmentand there are many reasons for this.According to the World Investment Reportpublished annually since 1991 by theUnited Nations Conference on Trade andDevelopment (UNCTAD), in 2011 Mexicowas rated the seventeenth most popularinvestor choice worldwide and seventhamong developing nations.This can be attributed to factors suchas the size and appeal of the domesticmarket, macroeconomic stability, preferentialaccess to international markets, thecompetitiveness of Mexico’s manufacturingsector and the availability of qualifiedhuman resources. Also, Mexico is a countrythat affords investors protection andhas a legal framework for the enforcementof property rights. But perhaps the aspectthat is most appealing to today’s investoris the level of competitiveness Mexico hasattained.In its Doing Business 2011 report, theWorld Bank rates Mexico as the best LatinAmerican country to do business in. Likewise,the International Institute of ManagementDevelopment (IMD) selectedMexico as one of the most competitivecountries in the region, ahead of Brazil,Colombia, Peru and Argentina. The countryalso climbed eight places to number53 out of the 144 countries that made iton to the Global Competitiveness Reportrankings published recently by the WorldEconomic Forum (WEF).—What does Mexico need to doto hold on to its position as apreferred destination for productiveinvestment?Boosting the competitiveness of Mexico’seconomy is a strategic move that willensure the country remains attractive toinvestors.To this end, Mexico is working onseveral levels. On the legislative front,the Mexican government has introducedone of the most far-reaching structuralreforms of recent years, including amendmentsto the Federal Economic CompetitionLaw that will guarantee more efficientand competitive markets.Innovation is another area in which effortsare being made to boost competitivenessby promoting scientific research andtechnological development in the productivesector. Likewise, measures are being taken toconsolidate Mexico as an export force.—Why is Mexico such a staunchadvocate of free trade? What role doesfree trade play in this drive to makeMexico more competitive?It is common knowledge that countriesthat practice free trade enjoy greater economicgrowth and prosperity, and offertheir population more and better jobs andgreater wellbeing. Free trade boosts a nation’sproductivity and competitiveness.Mexico currently has 12 free tradeagreements in place, in addition to nineagreements within the framework of theLatin American Integration Association(LAIA) and 28 agreements for thepromotion and reciprocal protection ofinvestments, which translates into preferentialaccess to 44 economies worldwide,representing almost 70% of global GrossDomestic Product (GDP).This strategy has brought Mexicotangible benefits. International trade hasbeen one of the main drivers of the country’sgrowth. In 1993, foreign trade accountedfor 29% of GDP; today, it makesup approximately 60%, while one out ofevery five jobs in Mexico is now related tocompanies that export or receive foreigninvestment. It is due to free trade thatMexico has established itself as an attractivecountry to foreign investors. Priorto 1994, when the North American FreeTrade Agreement (NAFTA) came intoforce, foreign direct investment flows toMexico averaged 2.5 billion usd a year;today, as a result of the various free tradeagreements the country has entered into,this figure has increased almost eightfold,reaching 20.3 billion usd in 2011.Free trade is not an end in itself, but atool for economic development, to promotebusiness and provide a better standardof living for the general population.—As mentioned before, Mexico has oneof the largest networks of free tradeagreements in the world. What’s next?What strategy will Mexico implementin the years to come?Mexico’s strategy will be to continue promotingforeign trade, diversifying not justthe products and services exported, but thecountries these are exported to. With thisgoal in mind, Mexico is participating in anew generation of free trade agreementsthat seek to strengthen the multilateraltrade system, while encouraging regionaleconomic integration and the consolidationof global supply chains.These are agreements that look to exploitsynergies and the specific characteristicsof each participating economy, witha view to building more solid trade blocksfor the promotion of regional economicgrowth and development.—In this context, what is thesignificance of Mexico’s decision tojoin Trans-Pacific Partnership (TPP)negotiations?Mexico acknowledges the strategicimportance of the Asia-Pacific region.TPP negotiations are presently the mostambitious and most important multilateraltrade talks taking place on theinternational scene. Participants includeAustralia, Brunei Darussalam, Canada,Chile, Malaysia, Mexico, New Zealand,Singapore, the US, Peru and Vietnam,countries that, together, have over 658million inhabitants –roughly 10% of theworld population– and represent 30% ofglobal GDP.The foreign trade of these nationsmakes up 22% of global imports and 18%of global exports. In 2011, Mexico’s tradewith all 10 TPP members was valued at486 billion usd; exports to these countriestotaled 290 billion usd, while importsstood at 195 billion usd.This data reveals just how importantit is for Mexico to be a part of TPP talks,especially the ones that are geared towardeliminating barriers –both customs andnon-customs– to the trade of goods andservices, and establishing rules for foreigndirect investment and a wide range ofother economic activities.By joining TPP negotiations, Mexicoseized an historic opportunity that couldlead to a potential 50% increase in exports.For example, Mexico has identified potentialexports valued at 103 billion usd in the caseof the automotive sector; 15 billion usd in thecase of the electrical-electronics sector; 3billion usd in the agro-industrial sector; approximately2 billion in the chemical sector;and some 5 billion in the steel and perfumesand cosmetics sectors, respectively.—What role does Latin America play inthis new strategy?In April 2011, the presidents of Chile,Colombia, Peru and Mexico signed theLima Declaration, which sets forth generalcommitments and goals for the PacificAlliance integration process.Following several rounds of talks,a framework agreement outliningthe institutional guidelines for thisimportant integration process was signedin June 2012.The Pacific Alliance aims to promotethe integration of its member States(Chile, Colombia, Peru and Mexico) –someof the Latin American economies thathave reported the highest growth ratesin recent years– into an area that willeventually evolve into a trade and economicdevelopment platform with global reach,particularly toward the Asia-Pacific region.Just to give you an idea of howimportant this agreement is, here is somedata: the four member countries of thePacific Alliance have a total population of208 million and together represent 35%of Latin America’s GDP (1.9 trillion usd),while the exports of these countries have amarket value of 533 billion usd, equivalentto almost 50% of the value of LatinAmerica’s total exports.If we take into account Colombia, Chile,Peru and Mexico, the Pacific Alliancewould be the ninth-largest economy in theworld and would be ranked 16th in termsof global trade.Clearly, the Pacific Alliance stands togive the region unprecedented clout, somuch so that countries like the US, Japan,Australia, Indonesia, Guatemala andParaguay have expressed an interest injoining. Uruguay and Canada have alreadyrequested observer status.Meanwhile, August 2012 saw the firstconcrete actions by the Pacific Alliancewith the setting up of a Business Councilat the first ministerial meeting to takeplace in Mexico after the signing of theaforementioned framework agreement.Created to strengthen economicties between member countries, theBusiness Council will facilitate dialogand cooperation between the businesscommunities of each country and theirgovernments, and propose actionsto promote economic growth anddevelopment in the interests of regionalintegration.A Multilateral Cooperation Agreementon Tourism was also signed at saidmeeting, with a view to strengthening tiesand promoting the development of theregion’s tourism industry. n

14 Negocios ProMéxico Negocios ProMéxico 15Mexico andAdvancedManufacturingThe reconversion of industrial activityin Mexico can largely be attributedto the growth of industries, such asautomotive and aerospace, and othersin which advanced manufacturinghas been a key factor in attractinginvestment and fostering the creation ofnew enterprises that have contributedto the country’s development.____by maría cristina rosasphoto archiveThe rapid growth of countries likeChina and India and ever greaterglobal economic integration associatedwith the dismantling oftrade barriers, the opening up of marketsand the development of information andcommunication technologies (ICTs) havechanged the face of industrial activity.And while the long-term impact of thesechanges –and the underlying patterns ofinter-industrial specialization that havestarted to surface in today’s increasinglycompetitive world– are not yet known, theyhave far-reaching implications for all nations,particularly emerging economieslike Mexico, which are branching out fromtraditional, labor intensive manufacturingactivities to ones that require more specializedhuman capital and technology.For instance, in the area of advancedmanufacturing, China has benefited mostfrom the erosion of the manufacturingsupremacy formerly exercised by Japan,the US and, to a lesser extent, the EuropeanUnion, capturing approximately threequarters of the market ceded by the latter.This is because China has a ready supplyof cheap labor, which means it can producelarge quantities of low added value productsat competitive prices.Notwithstanding, in its most recentfive-year plan, measures to position Chinaas a “country-brand” were unveiled. TheChinese authorities want the country to berecognized not only as a producer of cheap,poor quality goods but also of high addedvalue products on a par with those manufacturedby the most prestigious brands inthe world. Consequently, China has specializedin manufacturing products that requiregreater expertise and more advancedtechnology, which explains why it is one ofthe few countries with a home grown aerospaceindustry capable of competing withthe US, Europe and Russia.China is a prime example of how themanufacturing industry has changed,proving that countries with young, skilledworkforces can compete on the internationalmarket with products that werethought to be the exclusive domain of developednations.Advanced manufacturing is a broadterm that can include labor intensive processes,provided these employ innovativedesign and cutting-edge techniques andexclude companies most of us would considerat the forefront of modern technology.So broad is the definition that evenexperts can’t agree on where it begins andwhere it ends.Generally speaking, though, “advancedmanufacturing” is taken to mean the manufactureof high added value products withcomplex specifications that create demandfor both raw materials and intermediarycomponents, as well as financial services,transportation, software and many otherproducts and services, making it an extremelyimportant factor when it comes tobolstering the competitiveness of a country’seconomy.Taking China as an example again, thecountry’s outstanding performance can belargely attributed to its progress in the areaof advanced manufacturing, specificallyITC-related products, which have experiencedexponential growth in recent years.By way of contrast, progress in other, non

16 Negocios ProMéxico Negocios ProMéxico 17ITC-related areas of advanced manufacturinghas been less noteworthy, althoughcertainly not negligible.As regards Mexico, the country boastsone of the most developed manufacturingsectors in Latin America, accounting forover one third of domestic GDP (Gross DomesticProduct). Likewise, the excellentgrowth potential of certain advanced manufacturingactivities makes this a highly appealingsector for foreign investors. Whatgives Mexico a competitive edge over othercountries is that it has production chainsin the automotive, aerospace and electronicsindustries, while areas like embeddedsystems have registered substantial growth.According to the Boston Consulting Group(BCG), Mexico offers investors good infrastructure,sufficient labor and an establishedsupplier base in advanced manufacturingsectors like the automotive one.Another example is the aerospace industry.There are some 249 enterprisesoperating in that sector, where investorsstand to gain from Mexico’s strategic geographiclocation within the regional andglobal context and where world class companieslike Lockheed Martin, Bombardier,Honeywell and General Electric have consolidatedtheir presence.In terms of advanced manufacturing,Mexico is the undisputed leader in LatinAmerica, producing 80% of all such productsmanufactured in the region. That isdue to several factors: first, the introductionof industrial and educational developmentpolicies in key areas have fosteredthe manufacture of complex, high-techproducts and, second, Mexico’s universitiesproduce more engineers than any othercountry on the American continent. Theresult is a perfect mix of leadership in innovationand the assimilation of the technologyrequired for advanced manufacturingprocesses.Advanced manufacturing is an area ofparticular interest to the Mexican government,which has backed its developmentvia the Technological InnovationMexico is already shaping up to be one of theworld’s leading producers of manufacturedgoods that employ advanced technologies. ifit can successfully exploit increased laborcosts in China and its geostrategic location, itcould take the lead relatively soon.Trust (FIT), coordinated by the Ministryof Economy (SE) in conjunction with theNational Council of Science and Technology(CONACYT). This is so, given that advancedmanufacturing involves not onlyrelatively new fields of knowledge but alsobecause the country has the human andmaterial resources suitable for these typesof manufacturing processes.Investment opportunities in the arearange from metal forging processes for theautomotive and aerospace industries, themanufacture of molds and dies, again, forthe automotive industry –not just makingthe die but adapting it to the design innovationsrequired by the electrical and electronics,aerospace, metal-mechanic, constructionand other industries– and plasticinjection molding processes to produce thehighly specialized molds employed by theautomotive, and electrical and electronicsindustries.In light of the importance of Mexico’s automotivemanufacturing sector and demandfor vehicle components, it’s reasonable toassume that the advanced manufacturingprocesses in greatest demand that will registerthe highest growth over coming yearswill be those required by the automotive andthe electrical and electronics industries.In fact, American and Canadian expertspredict that Mexico will post the highestgrowth in demand for auto parts and electricmotors, to the extent that it will outpurchasethe US. In such event, the countryshould consider relocating its manufacturingindustry with a view to producing thesecomponents in-house.According to EADS, the global pan-European aerospace corporation thatmanufactures Airbus aircraft, demand foradvanced manufacturing in the aerospacesector will also increase. Mexico is “strategic”to EADS’ operations in the regionand its executives applaud the Mexicangovernment’s decision to back the developmentof such a relevant industry. Thecorporation values potential business opportunitiesat 12 billion euros and plans toconsolidate its investments in the sector,to the point where it expects to have closeto 10,000 direct and indirect employees inMexico by 2020.Mexico is already shaping up to be oneof the world’s leading producers of manufacturedgoods that employ advancedtechnologies. And if it can successfully exploitincreased labor costs in China andits geostrategic location, it could take thelead relatively soon, especially if the goodhealth of the domestic economy holds out–Mexico has managed to post admirableGDP growth and the economy is experiencingan expansive cycle, despite volatility oninternational markets.Thus, by opting to shore up its manufacturingbase as a foundation for economicgrowth and a platform for socialdevelopment, Mexico can now reap thebenefits of an advanced manufacturingsector with attractive growth and investmentpotential. n* Professor and researcher in the Political andSocial Sciences Faculty, National AutonomousUniversity of Mexico (UNAM).

18 Negocios ProMéxico Negocios ProMéxico 19MedicalDevicesin Mexico:Opportunitiesfor Baja CaliforniaDue to several factors, the medicaldevice industry has consolidated itselfas a highly dynamic sector in BajaCalifornia. The state has become oneof the most attractive destinations forproductive investments in the medicaldevice sector.___by josé mario juárez lópez de nava*photos archivebillion usd of supplies every year, whichshows the potential for local providers todevelop and traders from other countriesto be attracted to the area. It bears notingthat other states in the country play a majorrole in medical device manufacturing, suchas: Chihuahua, Mexico City, Jalisco, Sonora,Nuevo León, Coahuila, Tamaulipas andEstado de México.Mexico has plants that carry out theprocesses needed to complement the manufacturingactivities of the medical devicesector and agencies that facilitate their development,which is something that BajaCalifornia leverages to promote investmentopportunities and attract companiesthat are eager to take advantage of such favorableconditions.Investing in Baja California significantlyreduces production costs, while givingaccess to highly-skilled labor and strategicmarkets in the medical device industry.According to KPMG, Mexico has thehighest percentage of cost productionsavings for pharmaceutical products andmedical devices throughout the Americas.The advantages found in Baja Californiahave made it an attractive destination forinvestment in the medical device industrydue to factors such as:Baja California has consolidateditself as a major internationalcenter for medical device manufacturingand distribution.Its proximity to the US and the benefitsprovided under the North American FreeTrade Agreement (NAFTA) have allowedthe state to emerge as the most importantmedical device cluster in Mexico with 67companies that, together, have a share ofmore than 36% of total Mexican exportsin the sector. These corporations make up50% of the Mexican-based firms involvedin manufacturing and assembly of equipmentand components for the medical industryand are primarily located in the citiesof Tijuana, Tecate and Mexicali.Mexico is the fifth-largest global exporterof medical instruments and equipmentand the medical device industry’s biggestexporter in Latin America, as well as themain supplier to the US.Due to a number of factors, including thedynamic nature of the medical device industryin Baja California, Mexico exportedover 6 billion usd and attracted a total of23 investment projects in 2011. In the last10 years, the number of employees directlylinked with Baja California’s medical devicesector has increased from 17,000 in 2002 tomore than 32,000 in 2011. It is expected thatthese numbers will increase as new companiesstart operations; such is the case of Össurand Fisher & Paykel Healthcare.Southern California and the Mexicanstate of Baja California comprise a binationalcluster of the most sophisticated anddiversified medical products in the world.Plastic parts, orthopedic and orthodonticproducts and surgical instruments, toname a few, are designed, assembled andmanufactured within a 400-mile radius ofthis group. The sector imports around 1.5Southern California and theMexican state of Baja Californiacomprise a binational clusterof the most sophisticated anddiversified medical productsin the world. Plastic parts,orthopedic and orthodonticproducts and surgicalinstruments, to name a feware designed, assembled andmanufactured within a 400-mileradius.• A young and highly-skilled workforce,with over 15,000 students across the differentfields of engineering.• Immediate access to California and therest of the US.• Modern communications and logisticsinfrastructure.• World class manufacturing quality, withmore than 90% of plants ISO certified.• Business culture focused on the developmentof manufacturing clusters.• More than 45 years’ experience in medicaldevice production.Due to the importance of the medicaldevice industry in the state, every year theBaja Medical Device event is held with thepurpose of gathering the leading companiesin the sector, as well as local and internationalsuppliers of different productsand services.In 2012, Baja Medical Device took placein the city of Tijuana with the participationof leading global companies such asMedtronic, CareFusion, Teleflex, DJ Orthopedics,Greatbatch, Welch Allyn, ThermoFisher, Fisher & Paykel Healthcare,Augen, Masimo, Avantti Mediclear, Össur,NxStage, Flextronics Medical, Martech,Smiths Medical, among many others, all ofwhich had personal contact areas to evaluateshort and medium term business opportunities,with a positive outcome for theindustry.In short, Baja California has become anextremely important bastion for shoring upproductive investments in the medical devicesector, which will certainly help createmore and better jobs in Mexico. n* Trade Commissioner at ProMéxico´s Office inLos Angeles, California.

20 Negocios ProMéxico Negocios ProMéxico 21Medical Devices,a Healthy BusinessThe countless advantages Mexico offers investorsin the medical device industry has put the countryon a par with leading global actors.____by jesús estrada cortésphotos archiveMexico’s medical deviceindustry is in excellenthealth. Tests run on thesector point to sustainedupward trends in production, sales, exportsand investment, with a favorableoutlook for the future.According to data furnished by the NationalInstitute of Statistics and Geography(INEGI) and ProMéxico, the industry’soutput was valued at 8.56 billion usd in2011 and is expected to increase to 14.91billion usd by 2020, with an estimated annualaverage growth rate of 6.4% –wellabove projections for the North AmericanFree Trade Agreement (NAFTA) regionand major producing countries like Germany,Japan and Switzerland.Production has grown due to increaseddemand, which can be attributed to factorssuch as demographic growth, a largerprogram, an area into which the Mexicangovernment has channeled 78.2 billion pesos(over 6 billion usd) and continues toinvest heavily –in 2012, the sector was assigneda budget of 435 million pesos (approximately34 million usd), an increase of84% compared to 2006.Mexico’s medical device industry is fitand active on the home front but it also hasa strong presence abroad. In 2011, exportswere valued at 6.07 billion usd, positioningthe country as the eleventh largest exporterworldwide, the leading exporter in LatinAmerica and the main supplier to the US.According to GTA, Mexico is LatinAmerica’s leading exporter of gloves, gauzeand bandages; the third-largest exporter oftubular metal and suture needles; the fifthlargestexporter of medical, surgical, dentaland veterinary instruments and devices andthe sixth-largest exporter of mechanother-brand locally, as well as medical instrumentsand respiratory therapy equipment;Greatbatch, which employs 650 people inthe manufacture of orthopedic devices;Becton Dickinson, which has been operatingin Mexico since 1931 and has two plantswhere it manufactures glass and pre-filledsyringes and hypodermic products; Össur,which specializes in non-invasive orthopedicsand that invested some 85 million usdin its Mexican operations in 2011, creating800 jobs in the process, and Medline,which provides consulting and logisticsservices for health centers and manufactureswound care products, medical uniformsand gloves.Supporting that diagnosis are the findingsof the 1st Pharmaceutical IndustryCensus, conducted by the Mexican PharmaceuticalIndustry Chamber (CANIFARMA).According to the survey, companies in theMexico’s medical device industry is fit and active on the homefront but it also has a strong presence abroad. In 2011, exportswere valued at 6.07 billion usd, positioning the country as theeleventh largest exporter worldwide, the leading exporter inLatin America and the main supplier to the US.adult population and increased public andprivate investment in the health sector.Sales on the Mexican market alone totaled6.45 billion usd in 2011 and could climb upto 11.97 billion usd by 2020, if estimates byGlobal Insight, Global Trade Atlas (GTA)and ProMéxico pan out.This translates into projected growthin domestic sales of 11.5% between 2010and 2020, again exceeding estimates forthe NAFTA region and countries like Germany,Japan and Switzerland, all of whichis good news for investors.In 2011, Mexico’s public health sectorwas allocated the largest budget in thecountry’s history, with the Mexican SocialSecurity Institute (IMSS), the State Workers’Health and Social Services Institute(ISSSTE) and the Ministry of Health receivingannual budget hikes of 10%, 12%and 12.6%, respectively.Over 107 million Mexicans are affiliatedto a certain state funded health insuranceapy, massage and psychotechnical equipment,putting it on a par with major globalactors in the medical device industry.Another healthy indicator of Mexico’smedical device industry is the number ofcompanies operating in it, which totaled2,321 in 2010. One year later, in 2011, 744 ofthese –located mainly in Central and WesternMexico (Jalisco, Mexico City and Estadode México) and Northern Mexico (Chihuahua,Coahuila, Nuevo León, Sonora,Tamaulipas and Baja California, which hasthe largest cluster in the country)– wereexporting their products.Foreign companies operating in Mexicoinclude Medtronic, which has been presentin the country since 1970 and currentlyemploys 2,500 people in the manufactureof technology for the treatment and controlof cardiovascular disease, orthopedicdevices and medical instruments; NellcorPuritian Bennett, a member of the Covidiengroup, which manufactures the Kendallmedical device sector registered a 24.2%sales growth between 2007 and 2010.In monetary terms, the private sectoraccounted for 62.7% of sales between 2007and 2009, with the public sector making upthe remaining 37.3%, although the latterreported a higher growth rate –26.6% comparedto 7.5% in the private sector.The census also measured sales interms of units sold, which grew an impressive45% in the reference period. In thiscase, the private sector accounted for 75%and the public sector 25%, with the formerposting 48% growth and the latter 38%.According to the document, “This canbe attributed to growth in public and privatehospital services and the introductionof comprehensive service contracts by thepublic health system, which seek to integrateand complement the services offeredby both systems in the interests of timelypatient care, particularly in the case of theIMSS and the ISSSTE.”

22 Negocios ProMéxicoNegocios ProMéxico 23Several Mexican states are home tocompanies operating in the medical deviceindustry but Baja California has more thanany other –67 to be precise– all workingin conjunction with the Medical ProductsCluster, an association comprised ofrepresentatives of manufacturing companiesand their suppliers, educational institutionsand economic development agencies.The general upward trend in the industryis corroborated by investment data. Between2007 and 2010, investment grew at anannual average rate of 24.9%, while foreigndirect investment climbed a substantial67.2% on average between 2007 and 2009.Investment, Hale and HeartyInvestors are taking an increasing interestin Mexico’s medical device industry for anumber of reasons. According to ProMéxico,the country has “development capacity andhighly-skilled, competitive human capital.Plus, there are some 16 universities in Mexicooffering degree courses in Biotechnologyand Biomedical Engineering and more thannine related postgraduate courses,” whilethe number of engineering graduates hasincreased 7% over the last decade.Furthermore, the cost of manufacturingmedical instruments, electronic devicesand precision components, concepttesting, operating and labor costs are allsubstantially lower than in other countriesacross all levels of specialization.For KPMG, moving its operations fromthe US to Mexico in 2011 represented savingsof as much as 23.3%. In the case ofelectronics and precision component manufacturingand concept testing costs, thetransfer translated into savings of 14.6%,11.9% and 47.8%, respectively.The same holds true for labor costs,which are much lower in Mexico than inthe US and other Latin American countries,according to FDI Benchmark.Likewise, proximity to the US facilitateslogistics, closer supervision of manufacturingprocesses, FDA (Food and Drug Administration)plant inspections and allowscompanies to respond faster to suddenshifts in demand, making Mexico a strategicexport platform.That is precisely where investor opportunitiesabound, specifically as regardsexports to the US, where 62% of importsof medical devices are currently suppliedby countries like Germany, Ireland, Chinaand Australia.Additionally, Mexico’s extensive networkof trade agreements helps companies gaina foothold in other export markets on theAmerican continent, where sales of medicaldevices are valued at 51.42 billion usd.In light of these competitive advantages,coupled with the sustained growth of thedomestic industry and ever increasing globaldemand for medical devices as the worldpopulation ages and the incidence of chronicdegenerative diseases spike, the sector’sprognosis couldn’t be more promising.Baja California,At the Heart of the IndustrySeveral Mexican states are home to companiesoperating in the medical device industrybut Baja California has more thanany other –67 to be precise– all workingin conjunction with the Medical ProductsCluster, an association comprised of representativesof manufacturing companiesand their suppliers, educational institutionsand economic development agencies.This year, the association’s membersgot together and came up with a numberof initiatives, like the 2020 New StrategicPlan, which establishes goals for the nexteight years, one of which is a developmentprogram targeting suppliers, theaim being to increase the local content ofsupplies by 20%.The cluster is also looking to hold thesector’s first patent and to attract five newgrowth-driving enterprises, while measureswill be taken to streamline import-exportprocedures with a view to cutting down onred tape and boosting competitiveness.Other actions carried out this year includedthe 5th Suppliers’ Day, where morethan 250 business meetings were held withthe participation of 230 Mexican companiesand 35 foreign ones.This year also saw the constructionand fitting out of Avantti MediClear’s e-beam sterilizer in Tijuana, the first projectof its kind that will no doubt provestrategic to the development of the state’smedical industry.Extending the supply chain, attractingnew strategic investment, developing thehuman capital the industry requires andencouraging the forging of alliances aresome of the other goals the association hasset for itself.The medical device industry employsabout 32,000 people in the state of BajaCalifornia, which accounts for 50% of thesector’s exports, while the presence ofworld-class companies like Tyco Healthcare,Smiths Medical, Cardinal Health, PallLife Sciences, Medtronic, Gambro, Medimexico,ICU Medical Inc., Hudson Aci,DJ Ortho, CLP, Sunrise Medical and NorthSafety Products reveals just how importantthe cluster is to the industry. nThe cost ofmanufacturingmedical instruments,electronic devicesand precisioncomponents, concepttesting, operatingand labor costs areall substantiallylower than inother countriesacross all levels ofspecialization.

24 Negocios ProMéxicoNegocios ProMéxico 25Amgen ProtectsMexico withbio-artillery“We’re lucky that Mexico has one of the mostadvanced set of regulations in the world. Not so longago, the Federal Commission for Protection againstHealth Risks (COFEPRIS) published the rules of thegame, which are of great help, because they set forthin black and white what is needed to register a biotechproduct in Mexico,” says Saráchaga.It’s taken a while, butpatients of serious,chronic diseases nowhave biotech drugsolutions at theirdisposal thanks toAmgen, a Californianbasedcompany whosesuccess on the Mexicanmarket over the last twoyears points to a ‘blightfreefuture.’____by omar magañaphotos courtesy of amgenAmgen is relatively new to theMexican market, but accordingto Max Saráchaga, thecompany’s medical director inMexico, it has reached excellent growthand demand for its innovative therapeuticsis on the rise.The number of jobs Amgen has createdin just two years is as good a measure as anyof the growth of its operations in Mexico.In 2010, Amgen employed just 18 people atits offices in the Santa Fe district of MexicoCity; today, even though the companydoesn’t have manufacturing facilities inMexico, it has over 100 employees engagedin the sale and distribution of seven Amgenproducts –six of which are biotech drugsincorporating innovations in both cellularand molecular biology– and research intonew therapies that are currently undergoingclinical trials.Of these employees, approximatelyhalf are involved in some aspect of R&D(Research & Development), be it developingnew drug therapies, taking part in theclinical trials Amgen conducts around theworld, obtaining authorization for the saleof existing drugs or improving and diversifyingthose already approved by healthauthorities in different countries.“We perform clinical trials at numerousnational health institutes and privatemedical institutions,” says Saráchaga.Past and projected investment is anotherreliable way of diagnosing Amgen’slevel of commitment to Mexico – around 35million usd over the last six years, a figurethe company estimates will climb to 100million usd in the next five years.From Thousand Oaks to MexicoFounded in Thousand Oaks, California, inthe early 1980s, Amgen is as young and asfull of potential as the market it operateson –just 30 years ago the development ofinsulin marked the first steps in biotechnologyapplied to medicine.A leader in its field, Amgen is a solidcompany that continues to increase its assetvalue in the US thanks to its exclusivetreatments for serious illnesses.Amgen offers solutions like Prolia, whichis a major contributor to Amgen’s profits.This drug is designed to treat postmenopausalosteoporosis, and recently, the FDA(Food and Drug Administration), approveda version of this medicine.Amgen began conducting clinical trialsin Mexico in 2006, but it wasn’t until 2009,after the plant requirement for medicationdistribution was eliminated, that it wasable to tap into the domestic market.“We’re lucky that Mexico has one ofthe most advanced set of regulations inthe world. Not so long ago, the FederalCommission for Protection againstHealth Risks (COFEPRIS) published therules of the game, which are of great help,because they set forth in black and whitewhat is needed to register a biotech productin Mexico,” says Saráchaga.“In coming years, we plan to launchseveral highly innovative therapies forproblems that currently have no solutionor for which existing treatments aren’t100% satisfactory.”Approximately 60% of the drug therapiesAmgen offers target cancer-relatedillnesses, while the rest are designed totreat equally serious chronic diseaseslike anemia and osteoporosis. These includedrugs like Aranesp, a long lastingerythropoietin hormone treatment forpatients with renal anemia a treatmentthat requires less frequent applicationthan other treatment options.Amgen also offers solutions for idiopathicthrombocytopenic purpura, anautoimmune disease in which the patientproduces antibodies that destroy plateletsresponsible for blood coagulation;metastatic colorectal cancer, and prostateand breast cancer that has metastasizedto the bone. Treatment for thelatter two was launched recently on theMexican market.Research into new therapies typicallytakes into account the epidemiologicalreality of the market these are intendedfor. In the case of Mexico, “we expectto have treatments for diabetes, whichis a priority health issue in Mexico andothers for kidney failure, which is also amajor concern,” says Saráchaga, addingthat “cancer is a major health problem inMexico and we are developing medicinesto treat ovarian, pancreatic and othertypes of tumors.”The last two years have been criticalin positioning the company’s therapieson the market. The next step, saysSaráchaga, will be to make biotechnologyavailable to more patients.“We have completed all the necessaryprocedures to ensure our medicines areavailable at health institutions and aremaking good progress in this respect,” heconcludes. nwww.amgen.com

26 Negocios ProMéxico Negocios ProMéxico 27thetics but also have a team of five specialistsdeveloping innovative productswith excellent results.Take, for example, the Ins HildenSystem for femoral, talus and humerus,the Talus Plate 3.5 mm and Sceclé’s newYeixpan 3-1 central medullary nailingsystem.Combining almost 40 years of knowhowand expertise, the 3-1system has exceeded marketexpectations as regards cost,ease of use and technique.It employs one single supportand the same equipmenttools can be used tolocate proximal and distalorifices for the insertion ofcentral medullary nails forthe femur, tibia and humerus,thereby reducing surgicalcosts and the need for imageintensifiers, while savingtime in the operating room and hasteningthe patient’s recovery.“We have several innovative productslike this one,” says Trujillo, adding thatARZZT has 25 distributors in Mexico,who are guaranteed both quality andproximity, since the company overseesall manufacturing processes and certainmarketing aspects. “Ours is a win-wintype business model that backs exclusivedistributors, whom we treat as partners,”he affirms.To assure the quality of the prosthesesand instruments they manufacture,ARZZT and Sceclé use ASTM S-138 gradesteel that complies with Mexican healthregulations. Enough steel for 10 months’worth of production is purchased at aToday, ARZZT, which isheadquartered in Mexico City, andits sister company, Sceclé, not onlyoffer the most popular conventionalprosthetics but also have a team offive specialists developing innovativeproducts, with excellent results.time, with exclusive batch numbers makingit possible to trace the product’s origin.“During surgery, the quality of even thesmallest screw matters. We not only guaranteethe quality but also the consistentquality of our products. Doctors and theirpatients can rest assured the product willnot be an issue on the operating table,”says Trujillo.ARZZT employs 70 people at itsplant, all of whom are highly-skilled andcommitted to upholding the company’squality standards.These standards have opened the doorto markets in Colombia and, in the not toodistant future, Nicaragua. On the strengthof these same standards, the brand has appliedfor Food and Drug Administration(FDA) approval in the US andis seeking ISO 13485:2003certification.“Our target market is theUS, which is just two hoursfrom our plant by plane, allowingfor synergies anda successful distributionchain,” says Trujillo.Over the next four years,ARZZT plans to expand intothe Middle East, Africa, theUS, Canada, Europe and Centraland South America.“We are a vital instrument in the handsof surgeons seeking to give their patientsquality of life in the aftermath of a traumaticevent,” states Trujillo, who firmlybelieves his company’s products and systemsmake a difference; that they can meana before and an after in a person’s life. nwww.arzzt.comARZZT,Making Life Livable forTrauma VictimsInspired by German manufacturingstandards, the orthopedic implantsand surgical instruments designed bythis Mexican company are soon to becertified for sale on markets in the US,Europe and Asia.____by sandra robláguiphotos courtesy of arzztARZZT is a Mexican companywhose specialized orthopedicproducts make life livableagain for trauma victims. Interms of quality, it competes on a par withthe most prestigious names in the worldand, in keeping with its slogan –“Alwaysone step beyond”– is currently tappinginto global markets.“Our prostheses –and the surgical instrumentsrequired to fit them– are referredto as state-of-the-art products, surpassingthe quality of others available onthe market,” says ARZZT director JorgeTrujillo. “We offer the same products andof comparable quality to those being developedin Germany and the US but atmore competitive prices.”Trujillo’s father founded the companyin 1973 at a time when it was virtuallyimpossible to find Mexican-made medicalprostheses along with the necessary instrumentsto fit them. At present, ARZZT,which is headquartered in Mexico City,and its sister company, Sceclé, not onlyoffer the most popular conventional pros-

28 Negocios ProMéxico Negocios ProMéxico 29Software for thePharmaceuticalIndustrySoftware made in Mexico is among the best in the world andBisoft is proof of that, having specialized in pharmacy chainmanagement software, hardware, consulting services andbusiness intelligence during its 18 years of existence.____The Mexican company’s services are currently dividedinto five lines of business: wholesaler services; businessintelligence (performance analysis for decision-makingprocesses); computing infrastructure sales;tailor-made software developmentand training and consultancy services.by sandra robláguiphoto archivePharmacy Soft, one of the softwareinnovations of Mexicancompany Bisoft, is currentlyused in 1,800 points of sale indifferent regions across Mexico.The software has made inroads intocountries such as Colombia since thecompany administration streamlined itsmanagement in 2012, which will yieldhigher revenues among the members ofthe National Union of Argentinean Pharmacies(Unión Nacional de FarmaciasArgentinas), who will secure a return ontheir investment in two years.However, medicinal market sales andmanagement are just part of the activitiesBisoft does; it also serves supermarketchains, jewelry stores, public institutionsand bookshops, among many other clients.The interesting thing is that the company,founded in the state of Sinaloa in 1994,was born from farming land, as stated byits general manager, José Flores.That year, the current CEO of the company,Jesús Hernández, designed a computerizedmethod focused on agriculturaldevelopment, a sector representing 80%of all business activity in Sinaloa.If anyone could imagine a connectionbetween agriculture and computers, thatwould be Jesús Hernández. His programwas a success, since virtually for the firsttime in Mexico a computer helped agriculturalistscontrol their production costsand revenues per hectare, while also calculatingdeclining food production.Specialized computing products for agriculturedid not exist in Mexico and the ideasbehind that very first version of Bisoft positionedthe company in the major leagues asit spearheaded its effort in Mexico.A group of pharmacists followed, whomet with developer Jesús Hernández tounderstand the workings of the softwareprogram that would help them simplifyand manage their business more efficiently.This, in turn, led the company to a newversion of its own creation.Despite becoming known for its participationat medicine retail points and laboratories,which make up half of its clients,Bisoft’s mission goes further. According toits website, that involves offering “versatile,high-quality software solutions withcutting-edge technology, as well as guidance,consultancy and specialized servicesso clients can make the best decisionswith the information they have and applybest practices in all business processes.”The Mexican company’s services are currentlydivided into five lines of business:wholesaler services; business intelligence(performance analysis for decision-makingprocesses); computing infrastructure sales;tailor-made software development andtraining and consultancy services.These areas are broken down intonine specific services that comprise thecompany’s portfolio. One is outsourcing.Another is Microsoft licensing wherebyBisoft, one of the multinational’s GoldPartners, offers its clients lower purchasingcosts and personalized guidance.The company’s range of solutions alsoincludes Pharmacy Express, which controlspoints of sale and other pharmaceutical administrativefunctions from a PC withoutthe need for a server, through a user-friendlyprogram. Pharmacy Express generates suggestedand optimal order information basedon daily demand. It allows for electronicservice payments, keeps total control of thegeneral cash fund, has connection interfaceswith drug wholesalers and features electronicinvoicing capabilities.Another service is called PharmacySoft, which controls all administrativeand operating processes of pharmacies:sales, purchases, returns, stock adjustments,shareholder orders, doorstep salesand branch transfers. The program hasproved efficient in 36 large pharmaceuticalchain stores in Mexico, which have increasedtheir profits by an average of 4%.Its portfolio also features solutionsbased on client requirements: QlikView, abusiness analysis software package; TI Bisoft,an information technology divisionthat includes product and program installationservices and TechSoft, which offerstraining courses in advanced technology.“We develop software that competes atthe same level as the one that exists in otherparts of the world. Our programs lacknothing thanks to their excellent quality(certified with international standardssuch as the CMMI Level III) and creativitythat distinguish many Mexican products,”asserts José Flores, who guarantees thatno one in Latin America has improved thesoftware offered by Bisoft, a company thatcurrently employs 58 people. nwww.bisoft.com.mx

30 Negocios ProMéxico Negocios ProMéxico 31Hetlabs:The SynergyFormulaThe presence of Indian company Hetero’slaboratories in Mexico does not signifygreater competition for the Mexicanpharmaceutical industry but rather anopportunity to create synergies forbusiness development.____This year, thecompany has createdsynergies not only withMexican companiessuch as LaboratoriosRIMSA and Silanesbut also hopes to takethese laboratories’products to the Indianmarket, the secondlargest market afterChina, says Ruiz.by karla garduñophotos courtesy of hetlabsIt was only a year ago that Hetero, oneof the fastest growing pharmaceuticalcompanies in India, came to Mexicowith an innovative vision for doingbusiness. The company, an active elementsmanufacturer, did not arrive with the intentionof competing directly with Mexicanlaboratories or multinationals establishedin Mexico. Its plan was to grow together.The firm offers innovative products (inIndia alone it has introduced around 100active elements into the market) and thelarge laboratories make its infrastructureavailable to sell finished drug products.Adrián G. Ruiz, director of Hetero Drugsin Mexico, confirms that this manner ofdoing business by leveraging synergies isbeing adopted by other companies that initiallycompeted against each other in theMexican market.“We are looking to partner up with laboratoriesalready established in Mexico. Wehave the products and they have the infrastructureand skilled staff needed to marketsuch products, increasing their salesand ensuring our profitability, which isultimately what all companies are lookingfor,” notes Ruiz.“Today we see companies that previouslycompeted against each other, look for synergieswith such competitors, which meansimproving productivity on both sides of thecoin,” he adds.Hetero is one of the largest pharmaceuticalcompanies in India. Between 2006and 2011, its sales increased from 200 to800 million usd a year according to its ownfigures. So far, it has more than 200 activeingredients in the market and is the largestmanufacturer of antiretroviral drugs.Both its active elements and finishedproducts focus on specific areas such asantiretroviral, gastrointestinal, cardiovascular,anti-depressive, anti-psychotic, antidiabetic,pain relief, anti-infectious and thedermatological and oncological fields.The company does business in 10 countriesacross the globe and has been in Mexicofor one year, where it arrived certain inthe knowledge that the country offers excellentprospects for growth.“Many companies in Mexico, includingMexican and international businesses, werein need of new products and this helped ourbusiness grow fairly quickly,” adds Ruiz.This year, the company has created synergiesnot only with Mexican companiessuch as Laboratorios RIMSA and Silanesbut also hopes to take these laboratories’products to the Indian market, the secondlargest market after China, says Ruiz.“We have noticed that countries hostingIndian subsidiaries have also found a marketopen to receiving their products. Now thatwe are underway here in Mexico, we have notonly seen how we can sell our products butalso how we can bring some of the drug productsin Mexico to India and create synergieswith laboratories nationwide,” he adds.Hetero values Mexican talent in thefield of research. In fact, 90% of all employeesin its factory in Long Island, NewYork, are Mexican.The company does not yet have a factoryin Mexico and as such does not generate jobsdirectly. However, Ruiz explains that newjobs are created indirectly with companiesthat were on the verge of cutting jobs sincethey had no innovative product to market.The Generics Market:An OpportunityThe growth of Hetero has gone hand in handwith a rise in the global generics market.These types of drugs, which have the sameactive elements as their originals but arefree from patents, have been recognized byMexican law since 2004.From that time on, generics have offereda cheaper option for the public and for governments.Since the 2004 legislation, thequality of these products has been guaranteed,meaning a greater market share.“The industry benefits because there isgreater competition. It means we have to bemore efficient at all levels and in all aspectsand it has also allowed companies like Hetero,which perhaps had never previouslyshown an interest in the Mexican marketbecause it seemed closed to the outside, toturn towards Mexico. That has led to a largenumber of companies investing in Mexicoand committing to a greater development ofnew products,” notes Ruiz.A study by IMS Health, a consultantspecialized in providing information on thepharmaceutical industry, notes that 39%of all drug products sold in Mexico in 2011were generics.At present, 90% of Hetero’s productionis in active elements and just 10% in finishedproducts. However, the firm plans toinvest in this share so that 70% of its outputis in finished products and just 30% in activeelements.Hetero is also committed to researchfocused on developing new drugs for selectedtherapeutic areas such as HIV anddiabetes. nwww.heterodrugs.com

32 Negocios ProMéxico Negocios ProMéxico 33Medix,a full-scaleanti-obesitysystemThis Mexican company expects toclose 2012 with over 100 million usdin sales. Its future expectations: toalign exports with domestic sales insix years’ time.____by antonio vázquezphotos courtesy of medixMedix was created to deal with obesity, an issue thatwould become a serious health threat worldwidehalf a century later.The firm opened its doors 56 years ago with aclear purpose: to tackle overweight and obesity in Mexico.“The company’s founders knew that obesity would become aserious problem. Medix is the only pharmaceutical company inMexico and Latin America that systematically tackles obesity,” saysRoberto Goti, the company’s international business director.When speaking of “systematically tackling” this health issue,Goti refers to a model that involves multiple factors, such as demographics,genetics, psychological, emotional and, of course,physical matters.The Medix philosophy covers medical care, therapeutics and theconsumption of 13 products the company has created to fight overweightand obesity.“We start out with psychological treatment and a healthy lifemodel in which our products play a major role. Our mission is toprovide a full-scale treatment for obesity,” adds Goti.In addition to the 13 products Medix sells to treat obesity, thecompany also features a portfolio of products to improve metabolisms,in its line of gastroenterological products and related with thecentral nervous system.Medix’s model of success, as described by Goti, also covers medicaltraining. The company has been recognized by the National AutonomousUniversity of Mexico (UNAM) for the obesity treatmenttraining courses it has shared with over 10,000 physicians.“We don’t sell our products in an effort to find our place on supermarketshelves. Our products are strictly for medicinal use becausewe believe doctors are a key factor in this equation. The patient hasto feel that the doctor is helping him solve his problems, not only interms of aesthetics but also in terms of health,” says Goti, who explainsthat if someone who is overweight or obese follows the fulltreatment Medix offers to the letter, they can see up to a 16% improvementin their condition.Data from the World Health Organization (WHO) indicates thatobesity is a problem that is on the rise worldwide. Approximately60% of the population in Latin America is overweight.Medix has thus been looking to reach beyond Mexico’s bordersto offer its solutions in other markets, particularly in Latin America.“Latin America is heavily affected by the problem of obesity,just like countries such as Australia and the US; the latter beingranked with the world’s highest rate of obesity,” states Goti.The company started exporting to several countries in SouthAmerica nearly four years ago, followed by opening operationsin Argentina in 2012, from where it intends to begin exports toColombia in October.Exports currently account for 3% of Medix’s sales but the objectiveis to increase that figure. Medix hopes to close 2012 withThe Medix philosophy coversmedical care, therapeutics andthe consumption of 13 productsthe company has created to fightoverweight and obesity.100 million usd in sales and expects its exports to South America,the US and Canada to reach the 95 million usd mark by 2018.Medix has grown over the last five decades, to the point thatit now directly employs more than 500 people in Mexico, 40 inArgentina and 10 in Colombia.Roberto Goti expects the company to focus its energy on thediagnosis of obesity for future generations.“We are moving into the field of diagnosis. Doctors needmore diagnostic tools to be more assertive in prescribing whatpatients need to have the best chance of losing weight. That isan area we are working on, that’s what our research center isfor,” explains Goti.“There are numerous products and systematic treatments.That’s where Medix has an important role to play. We have themost experience in the field, we offer credible products and webelieve obesity should be seen from a health perspective and notjust an aesthetic one,” he concludes. nwww.medix.com.mx

34 Negocios ProMéxico Negocios ProMéxico 35Medtronic,Growing with MexicanProfessionalsProducts, Tristate, Lancer Orthodonticsand I Flow.He has played a key role in Medtronic’sevolution in Mexico, from being a subsidiarythat was solely responsible for productswith low added value to participatingin the transfer for first generation devicessuch as CoreValve, an aortic valve that isimplanted without surgery.CoreValve is one of Medtronic’s greatestadvances. Since 2007, it has been implantedin 30,000 people in 60 countries,and is currently in the process of being approvedin the US, Japan and Mexico.Medtronic Tijuana produces cathetersused in angioplasty (unblocking of bloodvessels) and in the treatment of peripheralvascular problems. It also manufacturesdevices for treating thoracic aneurysms(dilation of a section of the vascular system)and “surgery kits” for heart bypassesand valve replacements. The companyalso produces animal tissue (biological)valves to replace aortic or pulmonaryvalves. Medtronic’s Baja California planthas generated nearly 5,000 part numbers.As a result, Medtronic’s unit has grownby about 250 employees a year, reachinga total of 3,300, with 2,800 employees responsiblefor the company’s productionprocesses.De la Concha acknowledges that it willbe a long time before the plant he managescan take on new challenges not onlyin process development but also in productdevelopment, a task that involves upto seven years of research and testing andwhich Medtronic currently handles in itsResearch and Development in Europe andthe US. In order for that to happen, Mexicowould have to develop specialists invery specific areas, such as doctors with afull engineering education.De la Concha points out that the company’sgreatest achievements to date havebeen to raise the profile of its Mexicanoperations’ performance by improvingthe quality of its products. The corporategroup is increasingly entrusting itsMexican subsidiary with manufacturingits devices because it has always met theprovisions set forth by the US Food andDrug Administration (FDA) and its counterpartsin Europe and Asia, as well asthe regulations verified in Mexico by theFederal Commission for the Protectionagainst Sanitary Risks (COFEPRIS).In fact, Mexico’s northern border medicaldevice cluster is recognized abroadfor the excellent work carried out overthe last 14 years and for the certificationsachieved in that period.“Above all, we have accomplished qualityresults,” asserts de la Concha, whorecognizes the need to broadcast theseachievements to the corporate group inorder to get the acknowledgement and investmentnecessary for growth.“In absolute terms, our products accountfor 2.5 billion usd a year of a total of 17.5 billionusd the Medtronic corporate group generatesworldwide,” de la Concha adds.The Medtronic plant in Empalme, Sonora,produces its own titanium and nickelalloy (nitinol) parts. These are smallrings that are then assembled in endovascularprostheses.However, the company continues tostrive for the creation and integration ofnew suppliers of the parts required by theMedical Products Cluster in the Californias.Ángel de la Campa, the president ofsaid group, which comprises 67 companiesin the sector, puts the industry’s demandfor supplies, particularly plastics, at1.5 billion usd.“As is the case with many companies onthe Mexico-US border, our domestic shareis very low, let’s say between 5% and 8%.We are therefore encouraging domesticsuppliers to move closer to the region inorder to be more competitive in terms oftime and service,” de la Concha indicates.As a result, the cluster, ranked amongthe most important in Latin America, hasset several goals it must meet betweennow and 2020, including the developmentof a supply and human capital chain, encouragementof investment in technologyand innovation and strengthening of itsrelations with government. Needless tosay, Medtronic is fully committed to thatstrategy. nwww.medtronic.comBaja California, NorthAmerica’s meccaof medical productmanufacturing, is hometo Medtronic, whichgradually recognizesMexico as one of itsgreatest allies.____by omar magañaphotos courtesy of medtronicGlobal medical device companyMedtronic is growing in Mexicoby leveraging its availabilityof skilled human capital in thehighly specialized production processes itperforms in its plant in Tijuana, Baja California,and, to a lesser extent, in its plantin Empalme, Sonora.In the past 14 years, the manufacturingprocesses performed in the countryhave become more complex, leaving behindthe strictly “maquila” or in-bondwork initially performed by its Mexicanplant, which is now fully involved in thecorporate group (that operates over 50production plants worldwide) as a manufacturingcenter known for the quality ofits processes.This transition has drawn Medtroniccloser to the country’s educational institutionsto attract the talent needed for thejobs the corporate group has transferredto Mexico, including mechatronic, chemical,mechanical, electronic, industrial andbiomedical engineers and veterinarians.“A wide range of disciplines are representedwithin the plant so that technicalproblems can be solved from differentviewpoints. But that is not all. Many of ourpeople have Master’s degrees in materialsciences. We have metallurgical engineersin our Sonora plant since that is wherethose kinds of processes take place,” explainsGerardo de la Concha, Vice Presidentof manufacturing operations.De la Concha is part of a team thatstarted working at the Medtronic Tijuanafacility in 1998, when Baja Californiastarted to brand itself as North America’snew mecca of medical device manufacturingwith the arrival of companies suchas Smiths, Tyco Healthcare, CardinalHealth, Medimexico, ICU Medical, HudsonACI, Sunrise Medical, North SafetyMedtronic isincreasingly entrustingits Mexican subsidiarywith manufacturingits devices becauseit has always met theprovisions set forth bythe US Food and DrugAdministration and itscounterparts in Europeand Asia.

38 Negocios ProMéxicoNegocios ProMéxico 39Health ServiceInnovationArroba Ingeniería, a Mexican companyspecialized in the development of medicaltechnologies, is designing a new deviceto diagnose children’s vulnerability todiabetes.____by maría sávilphoto courtesy of arroba ingenieríaDevelopment of new medical technologiesin Mexico is ArrobaIngeniería’s core principle. Withmore than 20 years as a leader inthe manufacture of neonatology units, thecompany believes 2013 will provide new opportunitiesin detecting diabetes in childrenwith an innovative device laboratories canuse to run routine studies and determinesusceptibility to the condition early on in life.According to Juan Pablo Dovarganes,CEO of the company founded in 1989, childhoodobesity is one of the main health problemsin Mexico. “If we have an instrumentthe population can use to detect diabetes inits early stages, we can prevent a growingnumber of obese adults in the future who sufferfrom this chronic degenerative illness as aresult,” he says.Arroba Ingeniería is a Mexican companyengaged in the manufacture of incubatorsfor newborns, transport incubators,radiant heat cribs, heated cribs andphototherapy lamps. However, that wasn’talways the case. The company was birthedin the late 1980s when Dovarganes was afledging biomedical engineer concernedwith the financial solvency needed to undertakethe project.The company has invested more than625,000 usd in machinery and 155,000 usd insoftware since its early beginnings.Arroba Ingeniería runs two operationscenters; the first in Mexico City houses itsadministrative, commercial and technologicaldevelopment headquarters, whereas itsmanufacturing center is based in Cholula,Puebla, as the company intends to integrateall processes into its Puebla plant. “One wayto compete is by way of technological innovationbut another is by means of cost. Corporatestrategy has been to focus on incorporatingadditional manufacturing processes tocontrol rising costs. We originally had everythingproduced in other countries but nowwe make many of the parts used in our equipmentlocally,” explains Dovarganes.Since its first year in business, ArrobaIngeniería has been developing technology.From 1989 to 1993, it manufactured cardiology,urology and neonatology equipment,working on an independent basis through1994, when the company was incorporatedand focused on manufacturing equipmentfor neonatal care.“Medical technology requires substantialinvestment. We couldn’t afford everythingwhen we first started out and focused on neonatology.The first thing we did was to updatethe incubators by outfitting old ones withnew electronic technologies. We would onlymake the brains of the machines and putthem in the incubators that were alreadythere,” says Dovarganes.Thanks to the ties established with theindustrial design faculty of the National AutonomousUniversity of Mexico (UNAM),Arroba Ingeniería manufactured its firstcomplete incubator in 1997. It was very wellreceived in the market, with the first modelselling a total of 2,500 units.The average market life of an incubatoris about five years, which means that manufacturersoperate on the assumption that itcan take years to sell their entire production.Arroba Ingeniería currently sells around 300incubators in Mexico per year.Arroba Ingeniería will launch a transportincubator, its most recent innovation,in November 2012. Its production is particularlyuseful for the medical field, sinceit is designed to carry newborns in a criticalcondition inside and outside of the hospital.Incubators are a source of stiff internationalcompetition, there being a number ofmanufacturers in countries such as China,Japan and India. The advantage that ArrobaIngeniería has is that it offers affordable pricesfor the Mexican market because it manufacturesits entire production in Mexico, thusreducing costs. Furthermore, the company’sincubators are conceived to meet the specificneeds of its market.“We build equipment so that a countrylike ours can be dealt a stronger hand. Weimagine that the incubators will be in a placewhere a nurse has to look after three babiesat once rather than one. They are made toprevent easy breakage,” Dovarganes explains.Arroba Ingeniería’s new transport incubatorhas an examination lamp and canincorporate a ventilator, monitors and aninfusion pump. Moreover, the product lineincludes phototherapy lamps, a gas systemand heated cribs.The technology used to design the incubatormakes it a lightweight and small incubatorwith foldable cots. It has LCD screens anda system that controls oxygen concentrationand temperature, as well as backup batteries,which allow them to run for five hours withoutpower supply.One of Arroba Ingeniería’s main goals for2013 is to get its products certified for exportto Latin American countries. “We have beenworking on certification for three years. Weare going to start with the natural marketssuch as Bolivia, Venezuela, Colombia andEcuador. Every year since 2007, we have attendedthe medical tradeshow Medica inGermany, which has helped us to open up themarket,” Dovarganes notes.Another of the company’s short termplans is to incorporate numerical controllathes, machining centers and numericalcontrol benders into its industrial premisesand to invest in staff training.As far as Juan Pablo Dovarganes is concerned,the medical field can experience realgrowth in Mexico: “The medical device sectoris one of the largest worldwide. Mexicohas everything it needs to grow. It has anexcellent location and enables more competitivetrade thanks to its proximity to theUS. We have access to all the technology andknowledge needed to develop all types ofequipment. For example, our electro-medicalequipment includes the production of thingsas simple as water baths and as complicatedas imaging equipment. But I am certain thatMexico can go much further, if we truly committo it,” he adds. nwww.arrobaing.com.mxArroba Ingenieríawill launcha transportincubator, its mostrecent innovation,in November 2012.Its production isparticularly usefulfor the medical field,since it is designed tocarry newborns ina critical conditioninside and outside ofthe hospital.

40 Negocios ProMéxico Negocios ProMéxico 41Somar:Growth inall DirectionsFormed by 10 companies,each with a specificobjective, Grupo Somaris committed to stayingat the forefront of thepharmaceutical sectorby developing innovativeproducts for differentmarkets.____by karla garduñophotos courtesy of grupo somarand 2008, and exports grew from 2.07 billion usd to 3.37 billionusd, according to data from the National Chamber of the PharmaceuticalIndustry (CANIFARMA).“We’re entering a stage of greater stability, more moderategrowth and, of course, many challenges, because markets are beginningto consolidate and our growth has to be forged by actionssuch as the Lakeside acquisition,” says Ramos.It is clear that growth in the generics market has a lot to dowith the achievements of the pharmaceutical sector. Accordingto data from research consultancy IMS Health, the generics marketcomprises 30% of its total, while in 2007 it was just 11%.Laboratories that have a patented product with formulaethat are being released to make generics are facing enormouschallenges.“They have to find a market niche that continues to welcomethem in order to keep their customers in the medical sector anda great part of the population. Our group’s success is based preciselyon the fact that we have companies in every market. Weconduct research and have patented products but we also understandthat patents last only so long and you need to have othercompanies that are aggressive in the market once the patent expires,”explains Ramos.Grupo Somar is focusing its goals on developing drugs for acquiredand infectious diseases. Its challenge is to become one ofthe major players in all matters concerning infectious diseases,whether caused by bacteria, viruses, protozoa or fungi.“We want to be the organization that links infection withtreatment and not only limit our involvement to treatments butalso work in disease prevention and diagnosis, so we must nowstrengthen our product mix,” states Ramos.Although there is stiff competition, Somar is committed to itsvalue proposition and the purchase of Lakeside is a step in thatdirection thanks to its reputation in anti-infection drugs.The Trend: BiotechnologyFor about five years, Grupo Somar has been working on the developmentof biotechnology. Ramos says that the company willhave completed construction of a manufacturing plant for biotechnologicalproducts by the end of 2012.In the words of the company’s directors, biotechnology hasserved as a milestone during the history of the pharmaceuticalindustry. In the next 20 years, the best selling drugs will have biotechnologicalroots.Grupo Somar could not overlook the challenge to stay at theforefront of the industry in its commitment to diversification.“We focus on individual projects to make sure each one of theGroup’s companies is able to preserve the energy and flexibilityof a start-up operating with just 80 or 100 employees. That is thereason why we have so many companies in the group, becausethey are all working towards an objective and have a clear visionof where they want to go. That guarantees our constant renewalas we go about creating new companies and new projects to makesure the employees stay excited about the business and the idea,”Ramos concludes. nwww.gruposomar.com.mxWith 64 years of experience and 10 companies focusedon different pharmaceutical branches,Grupo Somar is committed to diversification andflexibility in order to constantly renew itself, withincreasingly ambitious plans.In August 2012, this Mexican pharmaceutical group acquiredLakeside, a Swiss company specialized in anti-infection productsthat has an impressive history, as does its new owner: Grupo Somar.Lakeside is joining a powerful group that also owns Serral,which dominates the generic drugs market; Advaita, focusedon dermatology, oncology and hematology; AlliancePharma,engaged on the manufacture of OTC (Over-the-counter) drugs;GenVent, producer of drugs for animals; Life Sense, dedicated tonutraceutical products; Suplemed, which provides healing materials;Genbio, develops biotechnological products; Sun Pharmaand Kedrion, two foreign companies that Grupo Somar hasteamed up with.“Our general objective is health, in all of its shapes and forms:we have companies dedicated to brand and prescription generics,which is certainly a growing trend, as well as companies dedicatedto OTC products, veterinary medicine or government, whichis an important drug purchaser in Mexico. A competitive advantageof our group is precisely that diversification,” explains JoséMiguel Ramos, CEO of Grupo Somar.Another of Grupo Somar’s competitive advantages is its commitmentto product development. Nearly 100 people are engagedin the pharmaceutical and analytical development of drugs forhuman and animal use.Based on the registrations granted by the Federal Commissionfor the Protection against Sanitary Risks (COFEPRIS), GrupoSomar ranks second in terms of registrations granted.“We develop new pharmaceutical formulas and new releaseforms,” adds Ramos.The company looks for combinations that can preserve theright therapeutic synergies. Grupo Somar works in the field ofstratified or personalized medicine, for example, which is focusedon creating treatments aimed at people with greater probabilitiesof response rather than mass markets.A Growing IndustryGrupo Somar’s CEO views the regulations applied to the pharmaceuticalindustry over the last decade in a positive light as hebelieves that proves “we are much more solid.”“I can tell you that things are more complex these days; the barto enter the industry is much higher due to a number of factorssuch as GMP (Good Manufacturing Practices), then you need tomeet the directions of Standard 59, which are quite complex, andthis has given us a level of quality we did not have 10 years ago,”notes Ramos.The industry’s growth has been constant. In recent years, anannual growth rate of 3% and 4% has been recorded, its value represented1.3% of Gross Domestic Product (GDP) between 2003Grupo Somar isfocusing its goalson developing drugsfor acquired andinfectious diseases.Its challenge is tobecome one of themajor players in allmatters concerninginfectious diseases,whether caused bybacteria, viruses,protozoa or fungi.

42 Negocios ProMéxicoNovaprint,Drug Packing ScienceWith over three decades of experience, Novaprint is a cuttingedgemanufacturer of materials for preserving drugs and anindisputable leader in Latin America.____by vanesa roblesphotos courtesy of novaprintNegocios ProMéxico 43This Mexican companyprovides packaging andservices for pharmaceuticalmanufacturers such asPfizer, Sanofi, LaboratoriosArmstrong and LaboratoriosJanssen, as well as 85% ofMexican pharmacologists.It promises to be a clean room, anarea which is absolutely clean. Inthe case of drug packing, it is aboveall a vital space for the pharmaceuticalindustry’s end users. One of the firstclean rooms in Latin America has beenone of the innovations of Mexican companyNovaprint, engaged in the manufactureof medicine preservation materialsand drug packaging.With an area of 1,000 square metersand a Class 100,000 certificate, Novaprint’sPharmaceutical Packing ConversionCenter offers total control of theflow of flexible packing materials thatpass through the site and a clean air systemthat processes packaging under thesame conditions used during drug manufacturingprocesses.“The Conversion Center aims to protectthe integrity of drugs and pharmaceuticalproducts, as well as their potencyand efficacy. Drugs must have ashelf life of between two to five years.Our packaging must guarantee their integrity,”explains José Manuel CantúRamírez, the company’s Business DevelopmentManager.However, the clean room is just one ofNovaprint’s work areas, which is basedin Xochimilco, in the Mexico City metropolitanarea.For over 35 years, the firm and itsnewly-founded sister company Pharmapack,based in Zapopan, Jalisco, have engagedin cutting, inscribing, printing andsupplying flexible packing material forthe pharmaceutical industry, as well asdrug packaging. Both activities have beencertified in accordance with the mostdemanding Mexican and internationalquality standards, e.g. by the US Food andDrug Administration (FDA).Novaprint performs electronicallyrecordedfront and reverse side printingwith one to eight FDA-approved inks;makes cuts and dies for security seals;manufactures rollers for rotogravureprinting; manages inventories in Mexicofor the world’s leading pharmaceuticalsuppliers to help them reduce deliverytimes and decrease stocks; and providesguidance on packing, among other activities,in a number of specialized fields andusing its own manufacturing machinery,adjusted to the needs of its clients.The company’s mission is to provide custom-madeplans and just-in-time servicesfor multinational laboratories in the region.“It is a specialized niche because thereare various types of materials and packaging,but ours must be for entirely pharmaceuticalpurposes, having passed very highquality controls. We have to prepare themin pharmaceutical industry conditions,with the same environmental care andtreatment used in drug manufacturing,”Cantú explains.The company’s healthy environment isnot only perceived in its processing roomsbut also in its surroundings. On March 1,2012, Novaprint received Clean Industrycertification from the Federal Agency forEnvironmental Protection (PROFEPA),which carried exhaustive reviews beforecoming to its decision.According to Novaprint’s executive,its sister companies must also meet thehighest standards of one of the strictestindustries on the planet: pharmaceuticals.For example, they are audited by clientsthree or four times a month to guaranteeits quality processes.Every month, Novaprint cuts andprints around 190 tons of packaging in itsproduct lines, which are approximately400 million blisters and 300 million pharmaceuticalunits. These are blister packs,casings for tablets, pills or capsules, envelopesand cellophane wrapping for sachets,stand-up pouches and stick packsand single doses for drugs in cream, gel,powder or tablet form and, finally, its lineof suppositories and ovuli, i.e. rectal orvaginal pharmaceutical forms with a solidconsistency and conical shape.Meanwhile, Pharmapack receives between5 and 7 million pharmaceutical unitsof bulk and packaged drug products in theirdifferent forms: “We are an extension of thelaboratories,” claim company executives.Indeed, this Mexican company providespackaging and services for pharmaceuticalmanufacturers such as Pfizer,Sanofi, Laboratorios Armstrong and LaboratoriosJanssen, as well as 85% of Mexicanpharmacologists.Novaprint directly exports 8% of itsoutput to countries such as Nicaragua,Ecuador, Peru, Colombia, the DominicanRepublic and Brazil. Its packaging arrivesindirectly to almost all parts of the worldvia multinational laboratories, accordingto the company’s Business DevelopmentManager.Cantú believes that the company’ssuccess is due to the commitment of the150 workers of its sister companies, whoshare the common denominator of havinggone through technical or professionaleducation in the country’s schools.“Mexican universities provide the fullspectrum,” adds Cantú.Novaprint does too. It boasts one ofthe best clean rooms in Latin America,the most extensive range of industrymaterials and the knowledge to developproducts that adapt to the needs of its clientsand today’s world. nwww.novaprint.com.mx

44 Negocios ProMéxicoNegocios ProMéxico 45Medutravel currently offers cosmetic,laryngeal and pharyngeal, dental,eye and bariatric (anti-obesity)treatments, all of which are carefullyperformed by certified physicians.MedutravelHealth and Leisurein One TripMedical tourism in Mexico is a sector with greatpotential. Top quality medical services providedin unique tourist destinations make this sectora business opportunity that companies such asMedutravel have decided to explore.____by sandra robláguiphotos courtesy of medutravelHealth care and leisure are two areas that have alwaysgone together but it is only recently that they have startedtaking the same flight. Mexican agency Medutravelhas made this possible, by offering medical and tourismpackages on the same ticket and on some of the most covetedbeaches in Mexico.Humberto Romero and Aarón Díaz, the company’s Latin Americanand North American directors respectively, are the founders ofMedutravel, representing a network of prestigious Mexican doctorsspecialized in different fields of medicine in Canada and the US. Butthat is only half of their daily work. The other half consists of findingtop quality hospitals adjacent to heavenly landscapes with excellentservices.The result: anyone having to undergo a medical procedure canexperience a health-restoring tourist procedure with their family,either beforehand or afterwards.But why is Mexico a good choice for undergoing medical treatmentthat becomes a leisure trip? Humberto Romero gives conciseand convincing reasons for that: because the country has excellentprofessional training and medical infrastructure which is in thesame league as any developed country; because it offers landscapesfor all tastes, from big cities to heavenly beaches, not to mention itsmountain destinations; because medical procedures in Mexico costbetween one third and half of what they cost in the US, Canada andEurope and, even including the leisure part of the trip, it is still athird cheaper; because medicine in Mexico sets itself apart due to itshumanistic vision and because happiness, with travel as an example,generates endorphins that produce a sense of wellbeing, whichrelieve pain naturally and activate the immune system.Humberto Romero reminds people that thousands of US and Canadiancitizens cross the border every year to check into a Mexicanspa and submit to medical treatments, particularly as related to dermatological,aesthetic and relax procedures, specifically in Tijuana,Baja California.Medutravel is looking to attract more patients, initially fromcities such as Seattle and Chicago, as many people from these citieshave enjoyed an excellent experience visiting a number of destinationsin Mexico.The company will introduce itself to the North American marketin late October 2012 during the World Medical Tourism Congressin Miami, Florida. Humberto Romero says that the company hadinitially signed agreements with several hospitals in Puerto Vallartaand Nuevo Vallarta, on the Mexican Pacific coast. Other medical andtourist destinations Medutravel features are Mazatlán, in Sinaloaand Cabo San Lucas, on the southern Baja California peninsula.Medutravel currently offers cosmetic, laryngeal and pharyngeal,dental, eye and bariatric (anti-obesity) treatments, all of which arecarefully performed by certified physicians.The health and tourist services agency is planning to expand inthe short term, not only in its specialized fields of medicine but alsoto the white beaches and clear blue seas of Cancún, Quintana Roo.Medutravel is preparing for exponential growth in the forthcomingyears and understandably so: health and leisure are a great ticket fordoing business. nwww.medutravel.com

46 Negocios ProMéxico Negocios ProMéxico 47Mexico’sMEDICALDEVICEIndustryIn 2011,Mexico’smedicaldevice industryexported6.07billion USD.1stexporterof padding,gauzes andbandages inLatin America.1stexporterof medicaldevicesin LatinAmerica.world’slargestexporter3 rd of tubularmetal needlesand sutureneedles.Consumptionin the sector inMexico reached6.45billion USDin 2011.exporter ofsurgical,5 th dental andveterinaryinstrumentsand devices.exporter ofmechanotherapy6 th devices, massagedevices andpsychotechnicaldevices.11 th largestexporterof medicaldevicesglobally.Mexico’smain tradepartnersMexican exportsby country in 2011(million USD)US 5,639In 2011,Mexico’sproductionof medicaldevices reached8.56billion USD.By 2020, it isestimated to be11.97billion USD.Mexico is themain supplier ofmedical devices tothe US.France145Ireland144Germany 19It is estimatedthat medicaldevices productionwill reach14.91billion USDby 2020.In terms ofgrowth, Mexicoprojects a higherdynamism in thecoming yearsthan theindustry’sleading producercountries.The average annualgrowth rate (AAGR) ofMexico’s medical deviceindustry is estimated toreach 6.4% between2011 and 2020, higherthan the NAFTA regionand countries such asGermany, Japan andSwitzerland.As withproduction,projections forMexico suggesta higherdynamism thanthe majorconsumers inthe industry.It is estimated thatbetween 2010 and2020 AAGR willbe 7.1% higherthan the NAFTAregion andcountries such asGermany, Japanand Switzerland.Mexico’s manufacturing costsfor medical instruments,electronic devices, precisioncomponents, concept testing,operation and labor costs atall levels of specialization aresignificantly lower thancountries that are representativeof the industry.Netherlands 15Belgium 11Canada 11Venezuela 10Colombia 8UK 8According toKPMG,compared tothe US, in 2011Mexico offered:47.8%savings onconcepttesting costs.23.3%savings onmanufacturingcosts for themedical deviceindustry.14.6%savings onelectronicsmanufacturingcosts.11.9%savings onprecisioncomponentmanufacturingcosts.MexicanExportsMain medicaldevices exportedin 2011 (million USD).4,669Medical,surgical, dentalor veterinaryinstruments.77%Share616Orthopedicitems anddevices.10%433Other.7%354Mechanicalrespiratorytherapy andmassage devices.Source: Global Trade Atlas6%infographic oldemar

48 Negocios ProMéxicoMexico’sMEDICALDEVICECompaniesThe Lifestyle.the Complete Guide tothe Mexican Way of LifeLocationof medical device exporting companies in 2011Baja California67Sonora ChihuahuaCoahuila Nuevo León Tamaulipas1945214638In 2010,2,321economic unitsspecialized inmedical deviceswere operatingin Mexico.In 2011,744medical devicecompaniesoperating inMexico reportedexports.JoséÁlvarezStaring Realityin the Face60The Lifestyle BriefsPage 5048 Hours in...San Miguel de AllendePage 52Mexico According To...León LarreguiPage 58The Lifestyle ReportRed for IndependenceA Selection of Mexican WinesPage 64DesignQuórum AwardsCelebrating Mexico’sCreative TalentPage 68A Brief History ofThe day of the deadPage 72Mexico City238The mostimportant clusterin Mexico islocated in BajaCalifornia, withcompanies thataccount for36%of total nationalexports of medicaldevices and thatare mainly relatedto equipment andcomponentmanufacturingand assembly.52Jalisco48Estado de MéxicoOther states170Source: Ministry of Economyinfographic oldemarphoto courtesy of josé álvarez

The Lifestyle BriefsThe Lifestyle BriefsartDavid Alfaro Siqueiros. La Tallera.A great muralist and an evengreater patron of the arts.La Tallera is one of two ateliers David Alfaro Siqueiros has contributedto Mexico’s cultural heritage and is scheduled to reopenits doors this month in Cuernavaca, Morelos, after three years ofrenovations.Featuring exhibition halls, a digital documentation center, aninternational residency program for artists, art critics and curators,conference rooms and workshops, the studio retains the industrialfeel of the original space designed by Siqueiros –who took his inspirationfrom auto assembly plants– but incorporates elements ofRussian constructivism and Mexican architecture of the 1950s. Therenovations were overseen by Mexican architect Frida Escobedo,who came up with an innovative architectural plan that highlightsthe social aspects of Mexico’s muralist movement and the problemsassociated with creating such monumental works.To mark the reopening of the atelier, curators Mónica Montesand Natalia de la Rosa bring us La Tallera: Factory in Movement, anexhibition on the creation of the mural The March of Humanity onEarth and Toward the Cosmos, commissioned by one of Siqueiros’greatest sponsors, Manuel Suárez y Suárez.www.saps-latallera.orgFILMAmbulante 2013Chris Marker retrospectiveFrench filmmaker, writer and photographer Chris Marker –whopassed away in Paris this July at the age of 91– will be the subject ofa retrospective at the 2013 Ambulante documentary film festival.The films of this multi-faceted artist span six decades and Ambulanteaims to bring them together in a tribute to one of the essentialfigures in the documentary genre. “Chris Marker is an importantauthor, one who has defined avant-garde visual culture in the secondhalf of the 20th century. The retrospective will focus on severalrecurring themes in his films: militant cinema, portraits of peopleand places, imaginary travels and his homages to the seventh art. Inaddition to his most representative films, the work of directors whohave been influenced by Marker will also be shown, with a view tooffering a comprehensive overview of his oeuvre and his transcendence,”says Ambulante programmer Antonio Zirión.Marker is known for exercising total freedom as a filmmaker, interms of form, content and purpose, and for his unwavering politicalengagement, which has been described as an ode to revolution andrebellion against the cynicism of society. His is a cinema of ideasthat frequently resorts to the video diary format. In fact, he has beencredited with inventing the “subjective documentary.” Through hisfilm essays, he has rescued the visual heritage of several generationsfrom oblivion, preserving their collective memory and merging itwith his own. It is a body of work that sets out to unnerve spectators,forcing them to question the world around them. And what could bemore fitting for the 2013 Ambulante documentary festival, whichhas chosen liberation as its central theme?artFrancis Alÿs. Fabiola.At the AmparoMuseum in PueblaFollowing an extensive tour of the US, Peruand several European countries, Fabiola, bythe Belgian artist Francis Alÿs (Antwerp,1959), has finally arrived in Mexico, whereit will be shown by the Amparo Museum inPuebla. The exhibition comprises 400-pluspaintings and other depictions of Fabiolaof Italy, canonized by the Catholic Churchand held to be the patron saint of nurses, theabused and divorcees.Alÿs, who has been living in Mexico sincethe early 1990s, set out to compile a collectionof reproductions of the most importantworks of Western art, motivated by aninterest in how these affect the productioneconomy. But when he noticed portraits ofSt. Fabiola kept appearing and reappearingat flea markets and antique shops, shebecame his new object of desire. It took theartist around two decades to put this collectiontogether.At first sight, the paintings seem identicalbut if you look closer, you’ll notice thatthis apparently homogeneous collectionis actually heterogeneous: each portrait isunique in its own way, which raises questionsabout their authenticity, the authorof the original painting, artistic techniquesand iconography.Francis Alÿs. Fabiola was curated byLynne Cooke and commissioned by the DiaArt Foundation of New York. The exhibitionwill be showing at the Amparo Museum untilOctober 15.www.museoamparo.comwww.ambulante.com.mx

photo courtesy of denis larosephoto courtesy of rebecca caplice54 Negocios ProMéxico | The Lifestyle Negocios ProMéxico | The Lifestyle 557:30 p.m.There are two buildings in San Miguel yousimply have to visit: the Ignacio Ramírez “El3:00 P.M.For lunch, Casa Allende is an excellentoption. The restaurant is owned by ChefEduardo Osuna, who learned his culinarytechniques from the Roca brothersof Spain but who has used them togive new meaning to Mexican cuisine.We recommend the duck carnitas andcrema bandera, a soup inspired by thecolors of the Mexican flag.Casa AllendeAvenida San Francisco 25CentroT. +52 (415) 152 186012:00 p.m.In Plaza de la Soledad, also known as Plaza Cívica,is the Colegio de San Francisco de Sales. What wasonce the university chapel is now a church (Templode Nuestra Señora de la Salud) that welcomes visitorswith a huge seashell carved out of stone. Inside arepaintings by colonial artists of the stature of MiguelCabrera, Juan Rodríguez Juárez and Antonio Torres.Up next is the arts and crafts market, wheremountains of rugs, shawls, blown-glass vases, papiermâché figures, ceramic, tin mirrors, trinket boxes andmany pointed stars pay tribute to the nimble-fingeredhands of San Miguel.5:00 P.M.North of the city, just before the exit to Dolores Hidalgo,is Fábrica La Aurora, a factory where cottonwas processed from the early 20th century right upuntil it closed its doors in 1991. A decade later, it hasbeen occupied by contemporary art galleries andworkshops, book, jewelry and handicraft stores. Ifyou’re lucky, you might see an artist at work, the oddmachine in the background serving as a stalwartreminder of La Aurora’s industrial past.Fábrica La AuroraCalzada de la Aurora S/NLa AuroraT. +52 (415) 152 1312www.fabricalaaurora.comNigromante” Cultural Center (HernándezMacías 75) and the Allende Institute(Ancha de San Antonio 22). The formerused to be the University Academy of FineArts. In the 1930s, it set the city’s bohemianscene and was famous among Americanartists and war veterans. Eleanor Coen,Pablo O’Higgins and Canada’s LeonardBrooks are some of the artists who walkedits halls and Mexican muralist David AlfaroSiqueiros lectured here. The AllendeInstitute took over from the academy in the1950s and became so famous it drew figureslike the Beat Generation’s Jack Kerouacand Neal Cassady.photo courtesy of roberto valenciaSunday9:00 A.m.If you’re longing to wake up to the smell of homemadebread and pastries, Cumpanio is just the ticket for awholesome breakfast. Next it’s off to La Esquina, a museumthat boasts a collection of over 1,000 traditionaltoys from all over the country. Cardboard dolls, a rollercoastermade from spikes of wheat, a miniature circuswoven out of palm leaves and little tin sheet boats takeyou back to carefree childhood days.CumpanioCorreo 29T. +52 (415) 152 2984La Esquina, Museo del Juguete Popular MexicanoNúñez 40T. +52 (415) 152 2602Opening hours: Tuesday through Saturdayfrom 10:00 a.m.to 6:00 p.m.Sundays from 10:00 a.m. to 3:00 p.m.www.museolaesquina.org.mx9:00 p.m.To end the day on a high note, go for dinner and drinks at Harry’s NewOrleans Café & Oyster Bar. Specialties include oysters au gratin withseafood cream and breast of duck in raspberry sauce. But be warned–the great atmosphere and good food mean it’s always packed!Harry’s New Orleans Café & Oyster BarHidalgo 12T. +52 (415) 152 2645photo courtesy of margeanne

56 Negocios ProMéxico | The Lifestyle Negocios ProMéxico | The Lifestyle 5712:30 p.m.Northeast of San Miguel, in a universeunto itself, is the Charco del Ingenio naturalreserve. Founded in 1991 as a communityenvironmental project, its landscapeis dominated by a deep gully and a dam. Italso boasts a botanical garden and a conservatorywhere you can see native Mexicanplants. Kick off your shoes and walkamong the aromatic herbs or meditate inthe square where all four winds are said toconverge.3:00 p.m.Two kilometers from Atotonilco, on the road back toSan Miguel de Allende, is Nirvana, a heavenly retreatcreated by Juan Carlos Escalante. Swim in a pool ofthermal water, pamper yourself at the spa surroundedby lush vegetation or take a stroll through the eucalyptus,walnut and American pepper trees. A vegetablegarden produces the organic ingredients that end up inthe dishes Juan Carlos dreams up. There are nine guestroomssculpted out of adobe but if you can’t spend thenight, at least stay to experience the restaurant’s dailygourmet food ceremony.Charco del IngenioPaloma S/NLas ColoniasT. +52 (415) 154 8383Opening hours: Monday through Sundayfrom 9:00 a.m. to 6:00 p.m.www.elcharco.org.mxNirvanaAntigua Vía del Ferrocarril 21El CortijoT. +52 (415) 185 2194www.hotelnirvana.mx2:00 p.m.If you drive 14 kilometers in the directionof Dolores Hidalgo, you’ll come to theSantuario de Atotonilco. The walls andceilings of the central nave and chapels ofthis 18th-century church are decoratedwith mesmerizing religious imagery. Youcould spend an entire lifetime admiringthis tour de force by the artist ManuelAntonio Martínez de Pocasangre.6:30 p.m.You can’t leave San Miguel without visitingPaseo del Chorro, a cobbled street thatfollows what used to be the course of anatural spring whose waters have sincebeen piped. It winds its way downhill,resting momentarily at the balconies andslopes of the Cultural Center before continuingon through the trees to Los Lavaderos– a series of red public wash tubswhere people used to wash their clothes,and still do today. If you carry on right tothe end of the street, you’ll find yourself atthe entrance to the Benito Juárez Park (Aldamaand Diezmo Viejo). What better wayto say goodbye to San Miguel de Allendethan with a relaxing stroll in the companyof Mother Nature?

58 Negocios ProMéxico | The LifestyleNegocios ProMéxico | The Lifestyle 59Mexico According ToLEÓNLARREGUI____by naomi palovitsphoto courtesy of león larreguiUnarguably, León Larregui is the national hero of today’srock scene in Mexico. Along with his Latin GrammyAward-winning band Zoé, Larregui last year sold outa series of shows performing the unplugged sessionoriginally recorded for the album MTV Unplugged: Música de Fondo,a collection of Zoé’s hits to date. After touring extensively withZoé, León took a much needed break but instead of relaxing, theunstoppable rock star decided to use the time wisely and pursuean inner ambition, to work on his own music, thus Solstis was born.Recorded in Paris and with influences pointing to Serge Gainsbourg,Agustín Lara, 70s classic rock and French chanson, his debutsolo album took everyone by surprise, including León himself,who was not really planning on releasing a full length until hisfriend and Solstis co-producer Adanowsky convinced him to doso. Highly applauded by Zoé fans and media in general, a few daysafter the release, Solstis reached number one on iTunes.León is not planning to leave Zoé. This is just another aspectof the highly prolific and multidisciplinary artist, who one dayabandoned art school in order to pursue a career in music. Andjudging by the vastness of Leon’s creative cosmos, we should not besurprised to see his spirit filtering into poetry, films and other artforms with the same authenticity and quality.–What is your favorite place in Mexico to relax?The beach. Mexico has so many beautiful beaches that I try togo whenever I get the chance.—Where is your favorite place in Mexico to relax?My home in Mexico City.—Which is your favorite Mexican beach to wind down on?Tulum, in Quintana Roo.—Which Mexican town do you find most inspirational?There are two: Tepoztlán, in Morelos, and Pátzcuaro, inMichoacán.—Name a Mexican restaurant that serves excellent food.Mi Gusto Es, a seafood restaurant in Mexico City.—Name one place in Mexico every tourist should visit.Teotihuacán.—Do you have any Mexican handicrafts at home thatyou’re particularly attached to?A mask from the state of Guerrero.—What is your favorite building in Mexico?The Palace of Fine Arts, in Mexico City.—Name a contemporary Mexican artist whose work youadmire.Gabriel Orozco.—What is your favorite museum in Mexico?The National Museum of Archaeology, Anthropology and History,in Mexico City.—Where in Mexico is the best place to hear live music?El Plaza Condesa, in Mexico City.—Is there anywhere in Mexico you haven’t been to and that’son your “must visit” list?Las Barrancas del Cobre, in Chihuahua.—What do you miss most about Mexico when you’re abroad?Mexican food, people and weather.—What do you love most about Mexico?Its people. n

60 Negocios ProMéxico | The Lifestyle Negocios ProMéxico | The Lifestyle 61José ÁlvarezStaring Reality in the FaceThis former radio station director has achieved international fame asdirector of the documentaries Flowers in the Desert and Dog Days. Ininterview with Negocios, José Álvarez talks about how he made the leapfrom radio to the big screen.____by naomi palovitsphotos courtesy of josé álvarez“I have always considered Mexico to bea country that offers a great deal ofpossibilities. It is a very interesting marketand a great platform for developing andexpanding the brand. I really like Mexico.”After 11 years with the legendaryMexico City radio stationRadioactivo 98.5 FM, few canclaim to have José Álvarez’ understandingof music and new communicationsmedia in Mexico. Radioactivo,which he manned from 1992 to 2003,launched the first online radio station inLatin America.Together with Alejandro GonzálezIñárritu and Olallo Rubio, Álvarezfeatures on the list of Mexican filmmakerswho began their careers in radio. Unlikehis colleagues, though, Álvarez optedfor the documentary. Flowers in theDesert (Flores en el desierto, 2009) andDog Days (Canícula, 2011) are the twodocumentaries that have earned himinternational acclaim.—It seems a little radical to leaveradio for cinema. Why?Radio and cinema are very similardisciplines as far as their creative andproduction processes are concerned. Youwork with human concepts, critiquesthat require keen observation and atthe end, it gets public exposure. Plus,both processes have the same goal: tocommunicate.When the media group where Iworked for almost 13 years was sold,I thought it was time to make the leapfrom radio to cinema. I’ve always lovedmusic –promoting it, concerts, rock, thecritical humor– but I’ve always beenfascinated by cinema, too. I simply tookthe second option open to me.—Can you describe your firstexperience behind the camera?In 1996, I directed The Silence ofSarajevo (El silencio de Sarajevo), myfirst documentary on the post war inSarajevo. At the time I was still workingin radio. It was an enriching experience,although somewhat complicated.Working with a team of professionalswhen I wasn’t yet one myself gave me aslightly unorthodox training and showedme a path that was to determine myfuture. And here I am today!—Why did you choose thedocumentary over other genres?Mexico has plenty of good stories,interesting characters, amazinglocations and excellent photographers.With a little bit of effort and somecommon sense, you can make adocumentary with these basiccinematographic elements. You becomea witness and must aim not to alterthe natural chain of events with yourpresence. If you can do that, then you candocument your experience visually.The documentary is a genre thatentails a great deal of responsibilitybecause it has to reflect reality as itis. This is an honest, authentic humangenre by nature and, in some cases,confrontational.

62 Negocios ProMéxico | The LifestyleNegocios ProMéxico | The Lifestyle 63“Talent overflowsin Mexico and LatinAmerica, both atthe creative andthe productivelevel. In fact, wehave exceptionaltraditionalcraftsmanship inMexico.”—What is your view of contemporaryMexican cinema?In my opinion, the best films being madein Mexico today are documentaries.There are some very respectableexceptions in the fiction category butthey are few and far between. Conversely,documentary filmmaking has experiencedsomething of a boom and is recognizedworldwide. The contemporary Mexicandocumentary covers an immense varietyof themes and is of an excellent standard.—Have you considered dabbling infiction?I think fiction should be left to the greatmaestros. Recreating reality requirestalent in many production areas andwhoever undertakes it needs to be verysensitive and extremely self critical.It’s hard to recreate reality and makeit seem credible, which is why so fewmanage to succeed. That’s not to say Iwon’t try making a fictional feature atsome point. I love watching fictional filmsand it’d be interesting to give it a shot andsee if I can pull it off. It’s not that I thinkone genre is superior to the other. On thecontrary, in many respects, I think theyhave a lot in common; it’s just a differentkind of storytelling.—Your first production, Venus,portrays faith from an unusual angle.It was my first film job after leaving radio,my first experience with an indigenouscommunity in the state of Morelos.Venus is a short, 20-minute documentarythat mixes fact and fiction –a hybridsometimes referred to as docufiction.It’s about a Catholic practice knownas mayordomía, where the parish leaderor mayordomo removes the statue of thetown’s patron saint from the local churchand takes it to his home so the faithful canpray, ask favors and offer up thanks to it.We installed the camera as a kind of“third eye” on the statue of the patronsaint –in this case, Mary Magdalene–and shot over 200 people coming upand praying to her. The entire short is asubjective portrait of Mary Magdalene,which is why we never get to see her; thespectator becomes the saint. The filmgarnered international recognition andpaved the way for my next project.—Where did you get the idea forFlowers in the Desert?Hugh Fitzsimons, the film’s producer,who I met during the screening of Venusat the Telluride Festival in the US, askedme to direct it. After Hugh saw Venus hesuggested we do a film about the Huichol.Personally, from the first time I came intocontact with the Huichol or Wixárika in thedesert –during a peregrination– I’d wantedto film them. In that moment, two of mywishes materializedThe Huichol have a very complex,all-encompassing cosmogony. We shotthem for over two years on differenttrips to their communities in the SierraOccidental, the Wirikuta desert in SanLuis Potosí, San Blas beach in Nayarit,Lake Chapala and Mexico City.All those trips coincided withHuichol ceremonies held according toan agricultural calendar, festivities atwhich they ask for the blessing of MotherEarth and thank their gods for the giftsthey have bestowed on mankind. TheHuichol offer up prayers and express theirgratitude for everyone, even those whodon’t share their beliefs.The hardest part was editing the film.We had almost 100 hours of footage andit was important not to repeat what hadbeen done before. Plus, we had to find away of putting very complex events acrossin an understandable format. In the end,the editor and I decided to show how wecame to forge a close relationship with thecommunity we worked with for over twoyears, thinking this would help shed light onthe inner workings of the group. And that’sthe story behind Flowers in the Desert.—What did you take away from theexperience?It taught me to look at Mexico’s customsfrom a new perspective, with greaterattention and respect. I learned a greatdeal about a type of spirituality that fallsnaturally into step with daily life and thatis concerned with the wellbeing of theplanet as a whole.—Dog Days, another of yourdocumentaries, met with criticalacclaim in Mexico and, especially,abroad.Clara Vega and Mauricio Fabre invitedme to document the work of a group ofTotonac potters near the sacred zone of ElTajín, in Veracruz, and that’s how we cameto make Dog Days.As we filmed that amazing group of artists,a series of interconnected stories emerged.One of them was about a school deep in thetropical forest of Veracruz where childrenare taught the art of pole flying.The beauty of man and nature were whatinspired this project. As the days passed,the camera gradually molded to theprotagonists and we became a vehicle thatenabled them to tell the story of their dailylives organically.We shouldn’t forget these women pottersand pole flyers are artists, which is why thefilm pursues beauty so relentlessly.—How do you get the protagonists ofyour documentaries to trust you?In both Flowers in the Desert and Dog Days,they [the communities] were interested indoing the films and that strengthens therelationship. But even more fundamentalto filming them is, I think, respect for theircustoms and that almost imperceptibleline between distance and proximity. Bothcultures have a lot to say, contribute andshare; they want to live in a fairer world, aworld that is more connected to the landand nature –which is ultimately whatthey know how to do. That’s how they’vemanaged to survive for thousands of years.We have much to learn from both cultures.Curiosity, prudence and respect willnearly always open doors and humanhearts but you have to be honest aboutyour intentions. Generally speaking, it’snot easy to get these cultures to open up;they tend to be insular and they knowfull well this is one of the reasons theirtraditions have survived.—What is the greatest challenge youface when it comes to telling a story?The story needs to have the power to breakdown barriers between the film’s contentand the audience. Spectators shouldfeel a connection; they should be able toidentify with the reality, the proximity, thesimilarities, and at the same time sensethat distance.—Your work is appreciated and hasbeen applauded by cultures otherthan your own. What does thatmean to you?Foreigners are interested in learning moreabout our country. Mexico has worlds thatamaze and astonish them, that jolt themout of their own reality, even if it’s onlymomentarily. Mexico incites reflectionand amazement; it plays on spiritualchords, especially in the Judeo-Christianworld, which finds examples of syncretismand a surfeit of references to draw on. Also,foreigners tend to appreciate the color,music and human beliefs of cultures aliento their own. n

64 Negocios ProMéxico | The Lifestyle Negocios ProMéxico | The Lifestyle 65Red forIndependenceMexican wines are no longer the soledomain of big bodegas. Independentwinemakers are now gaining ground,pleasantly surprising even the mostdiscerning of palates. Here is a smallsampling of home grown wines that arejust begging to be tasted.____by mónica isabel pérezphotos courtesy of the wineriesMexico’s wine industry is headed in the right direction–and not just profit-wise. The establishedbodegas are producing more and better wines,while independent winemakers are giving them arun for their money, creating original, expressive wines that lookset to do national cellars proud. To prove it, here is a choice of sixreds that won’t let you down in front of your connoisseur guests.We recommendSang Bleu. This aromatic blendof Shiraz, Grenache and Garignaneis one of the wines producedat Mariatinto’s vineyards inRoussillon. Intense, elegant andwell balanced, it explodes on thepalate and ends on a long note ofcherry. Sang Bleu is a noble winethat pays liquid homage to theOld World.Sang BleuBy MariatintoQuite possibly the country’s most famouswine project, Mariatinto started out in2002 making accessible wines for the Europeanmarket.Ten years down the grapevine, its styleremains unchanged, with founders ChefGuillermo González Beristáin and sommelierHumberto Falcón providing a guaranteeof quality and vision. The only differenceis that today Mariatinto offers winelovers more blends and labels to choosefrom. In addition to their vineyards inValle de Guadalupe, the duo has purchased1.9 hectares in Roussillon, in the south ofFrance, where production is overseen bythe Catalonian enologist Josep Anton Llaquete,known for spearheading the Freixenetproject in Mexico.www.mariatinto.comConvertible RojoBy Viñas PijoanBorn in Catalonia but Mexican by choice,Pau Pijoan grew up accustomed to seeingwine on the dinner table. Tradition soonblossomed into passion and led him to establishhis own bodega in Ensenada, BajaCalifornia, which he describes as “a verysmall family business that specializes inmaking honest, wholesome wines.”That philosophy has produced wines thatembody the properties of the region’s soils,from the sandiest to the most iron-rich. Andwhile perfect for drinking on their own,these are wines that enjoy the company ofgood food and dinner table conversation offamily and friends –just as the Pijoans alwaysintended.www.vinospijoan.comWe recommendConvertible Rojo, an ephemeralwine made from a blend of 80%Ruby Cabernet, 10% Barbera and10% Colombard grapes that conferit an expressive force its creatorsliken to the engine of a finely tunedsports car. This same vigor givesway to a smoothness that lingerson the palate. Convertible Rojo isthe perfect complement to meatdishes.Del VikoBy Vinícola TorresAlegre & FamilyVíctor Torres Alegre boasts one of the mostimpressive careers of anyone in Mexico’swine industry. Not only does he hold a PhDin Enology from the University of Bordeaux,in France, where he conducted importantresearch into winemaking, but also he isthe only Mexican to have sat on the jury atinternational wine competitions in Viñales,Brussels, Slovenia and other major venues.After years studying the science of winemaking,Torres Alegre went on to foundhis own winery where he and his familyproduce quality wines renowned for theirflavor and meticulous production processes.www.vinicolatorresalegreyfamilia.comWe recommendDel Viko, a blend of CabernetFranc, Grenache, Merlot, Nebbiolo,Tempranillo and Zinfandel,with a deliciously enduring fruitybouquet and velvety texture. Thiswine is the perfect accompanimentto pastas and seafood.

66 Negocios ProMéxico | The LifestyleNegocios ProMéxico | The Lifestyle 67Zonas MéxicoBy Humberto FalcónHumberto Falcón is a well-known name inMexico’s wine world. An enologist and sommelier,his career got off to a robust start in1998 at Vinoteca and in 2002, he and ChefGuillermo González Beristáin started Mariatinto–one of the most transcendental wineventures Baja California’s Valle de Guadalupehas ever witnessed.Following his instinct for adventure,Falcón created Zonas México, a project thatinitially consisted of bottling eight barrelsof wine –two for each of the four regions ofMexico and type of grape chosen for its specificcharacteristics: Grenache from Vallede Ensenada, Shiraz from Valle de Parras,Malbec from Zacatecas and Cabernet Sauvignonfrom Querétaro.We recommendThe Shiraz from Valle de Parras,for the ripe fruity notes that giveit oomph and the hints of pepperand herbs that add elegance andsophistication.Jardín SecretoBy Adobe GuadalupeWe recommendJardín Secreto 2, a wonderfulblend of Tempranillo and “othervarieties” that, as the name suggests,are strictly classified. Sometasters say it’s a combination ofCabernet, Shiraz and Grenachebut whatever the secret formula,there can be no doubt whatsoeverabout this wine’s balanced, approachableflavor.When Tru and Don Miller left California,inspired by their son Arlo’s passion forMexico, little did they imagine how inspiringtheir presence would be for the inhabitantsof Valle de Guadalupe and the region’swinemakers.In 1998, they began a small wine makingbusiness that now comprises 60 acresof vineyards –whose fruits have earnedthem countless national and internationalawards– a Bed & Breakfast (B&B) andbreeding facilities for Azteca horses.It all began as simple curiosity and a lovethat Tru Miller associates with a childhoodmemory. As he told Vinisfera magazine:“One day I was driving through the Italiancountryside with my parents in a Citroënand I happened to look out the back window.What I saw stayed with me: on one side ofthe road were horses grazing peacefully andon the other, vineyards. Right then I thought:“Vineyards and horses, that’s what I wantsome day.” Thanks to the passion conjuredup by that memory, today Mexican qualitywines can be enjoyed.www.adobeguadalupe.comBocetoBy VinícolaFraternidadThere is a building in Valle de Guadalupewhose vanguard design immediately catchesthe eye. Architects will instantly recognizeit as the work of Legorreta+Legorreta.This building houses Vinícola Fraternidad,one of the world’s most famous wineries andcreator of several wines that have earned itthe admiration of connoisseurs from everycorner of the globe.The utmost care is taken at every stage inthe production process to guarantee winesthat uplift the senses. Artfully marryingBaja California’s fertile soils and the sensibilitiesof house enologist José Luis Durand,these are wines designed to win over thehardest palates.www.vinicolafraternidad.com.mxWe recommendBoceto. Tempranillo, CabernetSauvignon and Nebbiolo cometogether to create an intense,fruity bouquet that is confirmedby the palate. Its spicy notes andremarkable integrity make this adelicate and well structured butpowerful wine.

68 Negocios ProMéxico | The Lifestyle Negocios ProMéxico | The Lifestyle 69Since 1992, Quórum has beencelebrating the best of Mexicandesign. Year in, year out, theseawards go to media and innovativeprojects that fuel the growth of smalland medium businesses and the developmentof the country in general.To mark its 20th anniversary, this yearQuórum adopted the slogan Year Zero,inspired by the Maya 2012 end-of-theworldprophecy.The Palace of Fine Arts in Mexico Citywas chosen as the venue for this year’saward ceremony. Here is a small sampleof the work of Mexico’s most creativeminds of 2012, who have made Year Zeroworth remembering.QUÓRUMAWARDSCelebrating Mexico’sCreative Talent____by paola valenciaphotos courtesy of premios quórumIndustrial DesignCategory: Technology, Communications & TransportAward: Best Industrial & Discovery ProjectWinning Project: New Sugarcane Harvesting MachineAuthor: Francisco Lindoro MezaDesigned to improve the working conditionsand productivity of sugarcane farmers,this machine can be used on both flatand sloped terrain. Its ergonomic designincorporates a safety feature that ensuresoperators are always at a safe distancefrom the blades to prevent injury. It alsohas a compartment large enough to store aday’s supply of food and water.An added advantage of Lindoro’s machineis that it eliminates the need to burnthe sugarcane before harvesting, substantiallyreducing air pollution.There is currently no other machinelike it on the market.Francisco Lindoro is from Mexicoand studied a Master’s in AdvancedProduct Design at the Umeå Instituteof Design in Sweden. His sugarcaneharvesting machine served as his thesisproject. He currently works at theAtlas Copco Industrial Design CompetenceCenter, where he designs industrialequipment for the mining andconstruction industries.“Not only does it meet Quórum’s criteria ofconcept, craftsmanship and coherence to aT but also it has a highly professional designand is beneficial to society.”—Industrial Design jury comprised of ArielRojo, Cecilia León de la Barra, MónicaBenítez and Federico Sánchez.

70 Negocios ProMéxico | The LifestyleNegocios ProMéxico | The Lifestyle 71DigitalGraphic DesignCategory: Graphic IdentityAward: Best GraphicDesign ProjectWinning Project: SofíaAgency: Anagrama | BrandIntelligence GroupSofía is a building in the municipality ofSan Pedro in Nuevo León, designed by thearchitect César Pelli for One Development.Using logos and a specially designed typography,the development’s graphic identityseeks to convey a sense of sophisticationand exclusivity to prospective buyers andoccupants.Attention to detail and the graphic elementsof the brand successfully express thegrandeur of the architectural project.Anagrama | Brand Intelligence Groupspecializes in branding and the design anddevelopment of objects, spaces and multimediaprojects.www.anagrama.com“The jury’s decision was unanimous.In just a few minutes, it tells a very goodstory with an excellent visual narrative,concept, character design, layout, lighting,textures and audio design.”—Animation category jury comprisedof Maribel Martínez, José and CarlosMatiella, Samuel Rosete, Raúl Prado andChuck Carey.“It has the element of surprise; all its applicationsare impeccable. Conceptually, it isextremely interesting and manages to communicatewhat the company wants to say toexisting and prospective clients.”—Graphic Design jury comprised of RicardoLozano, Maru Aguzzi, Edoardo Cahavarin,Miguel Vásquez and Andrew Weed.AnimationCategory: Short FilmAward: Best Animation ProjectWinning Project: Dame PosadaAgency: El Bigote de ChaplinCategory: ConceptualAward: Best Digital ProjectWinning Project: Paintingwith TweetsAgency: HotpixelThe Cromafest audiovisual festival commissionedHotpixel to develop an interactive installationin a public space that would allowvisitors to connect with their surroundings.The result was Painting with Tweets, a digitalsculpture created by visualizing tweetsbearing the hashtag #CROMAfest.When users send a tweet, a sphere with apicture of their avatar comes into view onscreen, which in turn generates a uniquesound. The sculpture was mapped to give itphysical limitations and recreate the effectsof gravity, collision and space.Founded in 2008, Hotpixel is an art, designand technology studio engaged in the developmentof new interactive media.www.hotpixel.mx“Painting with Tweets was selected asthe best project in its category because itbreaks with the traditional interactiveenvironment and takes it to the level of aninstallation where people can interact ona mass scale.”—Digital category jury comprised of MiguelCalderón, Iván González, Mircea Turcan,Ricardo Espinosa and Emilio de Haan.FashionThis year, Quórum acknowledged fashionas a discipline central to Mexico’s designculture, with special mentions going totrailblazing couturiers like Julia y Renata,Carla Fernández, Jesús & Bertholdo, Tristaand A7.This project combines computer generatedanimation and modern creative techniquesto bring one of the precursors of the plasticarts in Mexico to life.José Guadalupe Posada is the star of thisentertaining animated film by El Bigote deChaplin. Well produced and moving, with atouch of the avant-garde, Dame Posada receiveda warm round of applause at the 2012Quórum award ceremony.El Bigote de Chaplin was founded by CecilioVargas in 2008 as a creative forum inthe visual, theatrical and performance arts.www.elbigotedechaplin.com“Because this was the first time fashion wasincluded as an award category, we decidedto acknowledge the most exceptional designersin terms of experience, originalityand coherence. The decision was unanimousand four outstanding clothing designersand one footwear designer were selected,because in fashion –as in any other branchof design– a healthy balance between quality,originality, discourse and functionalityneeds to be struck.”—Fashion category jury comprised of MarianaLuna and Malafacha, Lucy Lara, JoséManuel Ruiz, Beatriz Cisneros, David Souza,Johann Mergenthaler, Anna Fusoni, JavierRomero, Mauricio Olvera and Norma Verdín.

72 Negocios ProMéxico | The LifestyleA Brief History ofThe Day ofthe DeadOnly a few places in the world celebrate death;Mexico just happens to be one of them. That’snot to say death is taken lightly or that it’s areason for rejoicing. On the contrary, the Day ofthe Dead, a festivity that takes place every yearin early November, is a time when Mexicanscommemorate their dead and honor theircontinued presence among the living.____by nadia escalantephoto archiveLike so many other Mexican traditions, the Day of theDead is a syncretism of Pre-Columbian and Spanishcultures. The evangelizing zeal of the conquistadors absorbedcountless indigenous customs that subsequentlycame to be part of the Colonial Mexican identity.An unusual fiesta that is still celebrated in many parts of Mexico,the Day of the Dead fuses the Spanish tradition of evoking thedeceased by offering up prayers and reciting the rosary to helpthem attain the grace of God with aspects of indigenous religionsthat survived the cultural impositions of the Conquest. The Mexica,Maya, Purépecha, Totonac, Mixtec and Zapotec worshipedboth death and the dead and, judging from recovered vestiges ofthese civilizations, the afterlife was a central theme in their artand literature.Combining symbols associated with the Catholic religion, likethe cross, with the worldview of these Pre-Hispanic cultures, theDay of the Dead festivities vary from region to region althoughcertain recurring elements make it a tradition immediately recognizableto any Mexican.In honor of the dead, a table is covered with a white tableclothto create an altar of sorts that is then decorated with offerings:flowers, colored tissue paper cut-outs, candles, photos of thedearly departed and a few of their personal objects, toys, candies,traditional foods and beverages like hot chocolate and atole andglasses of water.This colorful tradition remains strongest in Central and SouthMexico, mainly in the states of Oaxaca, Michoacán, Puebla, Estadode México, Veracruz, Yucatán and Mexico City, which were hometo civilizations that built sacred cities and whose festivities coincidedwith the agricultural calendar. n

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