The pharmaceutical industry is undergoing a transformative phase, driven by rapid advancements in biotechnology, an ageing global population and an increasing demand for personalised medicine. According to a report by Deloitte, the global market for pharmaceuticals is expected to reach $1.2tr in 2024, driven by innovation, digital transformation and expanding access to emerging markets. However, this growth comes with its own set of challenges, including regulatory complexities, supply chain disruptions and the need for substantial financial investments.
In this changing environment, companies like Swixx Biopharma are setting benchmarks by adopting innovative operating models and expanding their geographical reach. The Swiss-headquartered company, celebrating a decade of operations in 2024, has carved a niche as a preferred partner for multi-national biopharma organisations, opting for an indirect operating model in some markets. Its recent expansion beyond Central Europe into Latin America highlights both the opportunities and challenges of global growth in the pharma sector.
A decade of strategic growth
Since its inception, the company has expanded significantly by addressing a critical need within the pharmaceutical industry. “The wisdom of our success lies in meeting a specific demand from our multi-national corporate partners,” says Jean-Michel Lespinasse, CEO of Swixx. “Pharmaceutical companies want to focus on the top 10 to 20 markets globally. To support them, we provide capabilities around the world that are equivalent to their in-house services, but with added flexibility and local expertise.”
Swixx’s model has proven particularly attractive to large pharma companies looking to optimise their market reach without the overhead of direct operations in every region. This approach has not only driven Swixx’s growth but also supports its reputation for reliable execution. “Our track record with companies like BMS, Alexion and Sanofi speaks volumes,” says Lespinasse. “We consistently demonstrate our ability to integrate and operate seamlessly within tight timeframes. Also, outsourcing operations to Swixx is helping the innovations of small or mid-sized companies to reach more patients.”
Expanding horizons: the move into Latin America
The expansion into Latin America represents a significant strategic move for Swixx. “Our partners encouraged us to explore this region, seeing the potential for similar success as in Europe,” says Lespinasse. The acquisition of Biopas, a leading Latin American pharmaceutical services provider, was a calculated decision aimed at leveraging existing regional expertise. “Starting from scratch wasn't feasible; acquiring a well-established player like Biopas allows us to hit the ground running,” he explains. This expansion is part of a broader strategy to establish a presence in key global regions, with plans already underway to explore opportunities in the Middle East and North Africa (MENA). “We aim to replicate our Latin American success in MENA, driven by strong demand from our partners,” says Lespinasse. This approach not only diversifies Swixx’s market presence but also enhances its ability to offer a cohesive service portfolio across multiple continents.
Overcoming challenges with strategic support
Navigating the complexities of international expansion requires robust financial and operational support. Swixx has relied on a consortium of financial firms to facilitate its growth and have the necessary resources in place. “The acquisition of Biopas required significant financial backing,” says Lespinasse. “Our banking partners have been instrumental in providing the capital and understanding our unique business model.”
Filip Janovsky, relationship manager at Citi Commercial Bank responsible for supporting Swixx’s global expansion, highlights the critical role of financial expertise in such endeavours. “Having an active and close relationship with Swixx for last few years and knowledge of the pharmaceutical sector, helps us meet Swixx’s needs and was important to making the acquisition happen,” he says. “Besides the acquisition, we support Swixx by ensuring they have the financial and operational tools needed to help meet their business demands across various markets.”
The road ahead: innovation and strategic partnerships
Looking to the future, Swixx is poised for further expansion and innovation. “Our immediate focus is on securing our presence in additional regions and exploring new business avenues,” says Lespinasse. This includes potential ventures into pre-commercialisation activities, which could diversify Swixx's service offerings and open new revenue streams.
Janovsky emphasises the importance of strategic financial planning in supporting such ambitions. “As Swixx continues to grow, discussions around capital structure, potential IPO or strategic partnerships will become increasingly relevant,” he says. “Citi’s role is to provide the expertise and support necessary to navigate these complex decisions.”
Lessons in global expansion
For other businesses eyeing international growth, the Swixx story offers valuable insights. “Planning ahead is crucial,” advises Lespinasse. “We spent years studying the Latin American market before making our move, ensuring we were fully prepared.”
He adds that a robust organisational foundation is the cornerstone of success. It’s important to invest in good people, processes and systems from the start, to seize opportunities as they arise and scale efficiently. On-the-ground expertise is also key, as requirements, timelines and compliance needs vary significantly by local market. Entity formation alone can differ by a number of months depending on region, as this PwC report outlines. And as a sector that, arguably more than many others, requires a sense of urgency and speed – to get life-saving therapies to market, for example – Citi’s ability to get Swixx set up financially in new markets in a matter of weeks was invaluable. “The market is fast-moving and companies looking to launch in new countries or for acquisition targets often need to move quickly,” says Janovsky. “Citi helps to make that process as frictionless and efficient as possible.”
In a dynamic global sector, Swixx’s journey exemplifies how strategic planning, robust partnerships and a flexible operating model can drive significant growth and success. As the company continues to expand its footprint, Swixx has positioned itself as a formidable player in the global pharmaceutical landscape, ready to meet the challenges and seek out new opportunities.
