The Italian laboratory Menarini has decided to close its operations in Argentina. The decision was announced yesterday at the Ministry of Labor after a meeting on previously announced layoffs.
The Italian laboratory Menarini has decided to close its operations in Argentina.
The company formally announced the decision yesterday at the Ministry of Labor after a meeting on previously announced layoffs.
The decision was taken by the Headquarters after analyzing the tough local market conditions that make it hard for foreign companies to operate.
The firm decided that business had become unfeasible due to import restrictions, blocks on transferring currencies overseas, the high rate of inflation and resulting impact on costs, and government pressure not to pass on price rises.
The firm had been leaderless from December 2012, when Fernando Fogarín, who had managed the company for a year and a half, resigned and the laboratory decided not to fill his position. See article.
The company’s main brands are the painkiller Enantyum, the antihypertensive Nebilet, and the antispastic Spasmoctyl, all focused on cardiometabolism and pain.
Outside Menarini, the question that arises is if other laboratories may imitate this decision, considering the current macroeconomic context.
Pharmabiz talked with different market sources, who believed that the main laboratories, which focus on special products such as oncological, immunosuppressants, vaccines, and others, have more room for manouvre thanks to the profits and bulk purchases related with social security and public tenders.
The scenario is completely different for small companies such as Menarini, which specialize in primary care products, an area in which Argentine laboratories retain a strong leadership.