"Today, more than 50% of our products are made specifically with regard to fulfillment of pandemic requirements."
How has the pandemic impacted Espee Group over the past year?
It has been a roller coaster ride for everybody. Drugs quickly entered the market as potential game changers for the pandemic, but everyone quickly realized that many of these drugs were ineffective in mitigating the spread of the virus. Supply chain planning has been extremely tough, as lockdowns across the globe complicated supply chains. For Espee Group, we had a few products that were prescribed for COVID treatment in markets like Latam and Southeast Asia, so there were some positives. At the managerial level, the challenging time taught us the significance of aligning the robust supply chain with other related businesses to execute the access of opportunities out there in the market on a timely basis.
Can you describe Espee Group’s business model and how it has evolved?
We are a fully vertically integrated group specialized in the intermediate manufacturing stage to distribution of finished dosages, all under one conglomerate. Since the pandemic hit, there have been medications that are part of the global supply chain to address COVID-19. In this regard, the demand and supply as well as the manufacturing capacities have increased for these medications. In particular, we have multiplied our production of items such as anesthetics, blood thinners, and products that are indirectly or directly used for in-patient treatment in the pandemic. At the same time, demand for normal medications dropped substantially. This is because people have not been visiting doctors over the past year out of fear. This market is increasingly coming back today. Today, more than 50% of our products are made specifically with regard to fulfillment of pandemic requirements. We want to ensure that the 50% mix that we have, will slow down and get to sub 20% as we move forward in the next six months.
What percentage of Espee Group’s business comes from the US compared to the rest of the world?
The US market contributes more than 60% of our revenue today, but our rest of the world business is growing fast and we have 400 plus products that are already filed and waiting for approval in next 12-18 months. Therefore, you will see the pie of rest of the world business growing drastically higher compared to our US business moving forward.
What is Espee Group’s strategy over the medium term?
We are present in oral solids, injectables, DPI- which is dry powder injections, and liquids - we do oral suspensions. Our vision is to be introducing newer therapies, so we are actively working into the oncology space, oral solids, injectables and lyophilized injections, and there are some niche 505 (B)(2) products to be launched in the US. We want to increase our footprint in the top market that we are currently present in. Our next step of growth will be to bring access to our products in the direct market where we are present. This is through channel partners and direct business in these countries.
What makes Espee Group a quality company for potential partners to work with?
We believe in partnership more than anyone. We research our products taking into consideration all top global regulatory standards as well all the top global parameters that exist. Our manufacturing facilities are inspected and approved by top global regulatory authorities. As far as partnering with our group is concerned, I can assure our partners would be getting products with the highest quality and standards, regulatory compliances, and most affordable pricing. We do not compromise on the API partner that we pick. The partner we pick for our formulation is also audited and follows similar quality and regulatory standard as ours. Only such a high standard of quality has made us and continue to be the leader in the industry.