GRANT`S DESI ACHIEVER
A BRAND UNTO HIMSELF IN GENERIC PHARMA
Atul Aggarwal, the founder-President and CEO of A&A Pharmachem; and co-founder, President and CEO of Marcan Pharmaceuticals.
By SHAGORIKA EASWAR
There are more pharmacies in Canada than there are Tim Hortons, says Atul Aggarwal – close to 12000 pharmacies, as against over 4000 coffee franchises.
The founder-President and CEO of A&A Pharmachem and co-founder, President and CEO of Marcan Pharmaceuticals knows of what he speaks as they deal with every pharmacy chain in the country.
Aggarwal founded A&A Pharmachem in 1992 and Marcan Pharmaceuticals in 2005, and currently is overall in-charge of both. He is also on the board of Mantra Pharma, a subsidiary of Marcan.
A&A is a leading supplier of sports nutrition ingredients, over-the-counter and prescription ingredients, and nutraceutical ingredients for dietary supplements. Marcan supplies OTC and prescription finished products.
While in the generics business there’s no brand presence, customers across Canada use Aggarwal’s products through private labels. Shoppers Drug Mart, for instance, sells them under their label. As do Loblaws, Rexall and several others.
“All the major retailers in the country, all the pharmacy chains work with us,” says Aggarwal. “We introduce new generics to the market on a regular basis. Last year alone we did 15-20 products across various therapies and have 70-80 drugs in active development.”
While branded drugs can take several years to develop and manufacturers get monopoly for 10-15 years, generics basically reverse-engineer the brand after the patent expires, he explains.
“We do a shorter clinical study with actual patients and send all the documents to Health Canada to verify that the product works the same as the branded drug.”
Aggarwal launched A&A with his own money – $25,000. And just one employee – himself.
“I bootstrapped my way, I did everything and reinvested all my profit back in the company. I bet on myself.”
Marcan was acquired by Indian pharmaceutical giant Emcure in 2015.
Today, A&A employs 30; Marcan, 55; and Mantra, 150.
A&A’s annual turnover is $40 million. And Marcan’s – which he launched with $500 K – and Mantra’s combined turnover is $250 million.
“My brother Navneet was running A&A until some months ago,” says Aggarwal. “Now I’ve taken over operational control and we have aggressive new growth plans.”
He was drawn to the field due to the values their parents instilled in them, he says. Helping others was paramount, and pharmaceuticals have a direct impact on people’s lives, whether it be for pain relief or for health conditions.
“I see it as kind of a noble business. We’re not in luxury products or financial engineering. I’m not diminishing their value, but our products are irreplaceable, critical to well-being. What we do is very, very important for countless people. Having access to medication is as important as access to food and water. When we offer meds at a much lower cost, we get what is referred to as higher compliance – people don’t have to choose between bus fare or a meal and meds.”
With a B Math from University of Waterloo, an MBA from Wilfrid Laurier University, and as a Chartered Accountant, he also saw a business opportunity.
“I was looking at a necessity-based business, not one driven by economy. There was going to be an increased demand for retirement homes and pharmaceuticals in the Baby Boomer generation over the next decades. We were in real estate, but in that business, there are boom and bust cycles. I was looking at long-term growth.”
They buy millions of dollars worth of generics from India and he is proud of having been instrumental in introducing many Indian companies to the Canadian market.
Did the young man taking on Big Pharma face any pushback?
“I will do anything to the best of my ability, but only if I am making a difference.” Atul Aggarwal with his wife Richa.
“Well, we were targeting generics, but yes, Big Pharma also does generic drugs. No one knew us. I knocked on doors, I went to trade shows... You have to be persistent. It takes time to develop credibility. And when you get an opportunity, don’t over-promise and under-deliver. I have always believed in being straightforward and honest with customers. And communicating well. If I couldn’t deliver something, I was upfront about it and suggested others who might be able to, even if they were my competitor. I worked to be a solution provider, to make life easier for my clients.
“People saw something in me, they gave me a chance. Barry Sherman at Apotex liked me and at one time Apotex was A&A’s biggest customer and Shoppers is the biggest for Marcan.
“As for pushback, it happens. We have patent cases – they say they still hold a patent, we believe the patent has expired – there are lawyers involved. It’s normal, just one aspect of the business!”
While as a generic drugs provider, Aggarwal is helping Canadians access affordable meds, an overall misconception about the industry’s evil designs on the populace that took hold during the pandemic lingers.
Some people don’t like the idea of ingesting what they think of as chemicals, he says, and that’s their prerogative, they have the right to decide.
“I think the problem during COVID was the mandate. People were forced/coerced into taking vaccines, otherwise they couldn’t travel or go to work. That took their agency away. I understand that. While there are side-effects with any drug and no drug is 100 per cent safe, it doesn’t mean drugs are unsafe. Our drugs are based on solid science and tested in world-class facilities. They are helping millions of people every day.”
Aggarwal’s father came to Canada as a teacher in 1964 with $10. He was looking for new opportunities for his family and also planning on doing his PhD.
His mother, also a teacher, pregnant at the time with Aggarwal, joined him later with a two-month-old baby.
The family settled in Whycocomagh in rural Nova Scotia and their first home was a trailer behind the school where his parents taught.
The plan was to return to India after a few years, but then his younger brother was born, followed by their sister, by which time the family had moved to Ottawa.
And they stayed, becoming an immigrant success story.
He describes his parents as pioneers who helped bring over family members and friends.
“There are at least 120 people who are here either directly or indirectly through their efforts. For many of them, their first home in Canada was our home. My mother took care of everyone. And this, while sourcing ingredients in the early days for her Indian cooking from Toronto!”
Aggarwal imbibed this attitude of caring for others from a young age.
The Queensway Carleton Hospital thanked him recently on the completion of his tenure on their board for helping steer the Hospital through post-pandemic recovery. “Atul has supported this hospital during the pandemic, through our recovery, with the launch of our True North strategic plan, and the development of our framework for equity, diversity, inclusion and belonging.”
He served on various committees and worked with the CEO and senior management on performance and any issues that arose at the hospital. He chaired the executive compensation committee and was also board chair for two years.
“I learnt a lot during my time there,” he says.
Aggarwal is married to Richa, an engineer and homemaker, and they have three daughters, Rishika, 29; Ambika, 27; and Meera, 23.
“They are all following their passions in various fields. They can always come work for the company, but they don’t have to. We’ve been very clear about that, and encouraged them to make their own mark.”
This belief in and desire to empower young women drives his philanthropy.
Along with supporting charitable organizations with an emphasis on local hospitals, education, and religious institutions, he and Richa partnered with Gravis and Raju Agarwal of OneProsper to set up Project Parivartan in Rajasthan.
“What we basically did was create the infrastructure for the girls to have better opportunities through education. Around 500 girls have been helped break the cycle of poverty from generation to generation – and we have 100 per cent retention rate. There are charities that require regular and repeat infusion of funds – this is self-sustaining. All the girls needed was a helping hand and then they take it forward. It is a great feeling knowing that you are making a difference in so many lives. Richa and I are personally involved, we invest our time and effort, not just money, and we now want to raise funds to expand the program so more girls and their families can benefit.”
In his free time Aggarwal enjoys playing golf.
“I’m a huge fan of the sport and though not a very good player, a decent one! We winter in Florida and I enjoy playing there as well. Spending time with my family and friends is very important to me.”
He describes himself as a nonconformist.
“I will do anything to the best of my ability, but only if I am making a difference. That is more important to me than making money. I have a reputation for being an open book – my wife thinks too open! I believe in being straightforward and people respect that. A reputation is built brick by brick and one can lose it in a minute. My father always said we have to work hard and be honest and those are the principles I live by, lifelong.”
His advice for those who seek his guidance on how to succeed in Canada is to be focused.
“That applies anywhere in the world, in any field, really. People try to do too many things all at once, but focus drives success. And persistence. If you work hard and are persistent, nine times out of ten, you’ll find success.”
To learn more about Project Parivartan or to donate, visit www.oneprosper.org.
• Grant’s is proud to present this series about people who are making a difference in the community. Represented by PMA Canada (www.pmacanada.com).
