Companies shift focus as Covid-19 threat diminishes
As the threat of Covid-19 has already been significantly reduced in the country, some companies which earlier invested in point-of-care and home test kits, have started shifting its operations to other business lines.
In the case of the local company MOHS, it pivoted its business ventures to businesses include products and services in retail, dermatology and medical services, technology services, distribution and logistics.
“We knew as early as 2022 that we needed to pivot to non-COVID products with the pandemic winding down. We aggressively moved into new lines, particularly health care and dermatology, as we know these businesses well, and sought the vertical integration of our operations through strategic acquisitions in distribution and logistics and technology services,” said MOHS chief executive officer Michael B. Hortaleza.
“These new businesses remain true to MOHS’s DNA of engaging in businesses that add value to Philippine society. Our COVID diagnostics and consumables business and home-based test kits certainly helped ease the physiological and financial burden that the pandemic brought to many patients,” he added.
While the COVID-19 business amounted for 100 percent of sales in 2021 and 2022, non-COVID sales accounted for 40 percent of MOHS business in 2023 and is projected to increase to 99 percent in 2024.
In 2023, even with COVID-19 cases rapidly declining, MOHS’s revenues grew by 24 percent.
The group’s chief finance officer, Kenji M. Asano Jr., says, “MOHS’s timely pivot beyond its COVID-19 business, under the strategic direction of CEO Hortaleza, positions MOHS for rapid and sustained growth in 2024 and beyond. MOHS’s new product and services mix is poised to meet the exciting challenges of the post-pandemic era.”
Diversifying into other business lines with established brands and aggressive competitors meant that the playing field was going to be tougher and in the case of the MOHS, some of its business ventures include dermatology clinics—the Arkana neurocosmetics and Swiss Image skin care products, and Scatter scalp micropigmentation technology for hair loss and bald spots.
Its recent acquisition of Zenfro Corporation, a distribution company in South GMA and modern trade distributing food, beverage and personal care products, expands MOHS’s distribution footprint and product lines.
Likewise, its purchase of Revery Digital Technologies brings it in-house technology services as well as new services in digital transformation and Artificial Intelligence to small and medium-sized enterprises.