Background on Rafael Gual and Canifarma
Rafael Gual serves as the General Director of the National Chamber of the Pharmaceutical Industry (Canifarma) in Mexico. Canifarma is a prominent organization representing the interests of the pharmaceutical industry in Mexico, advocating for policies that foster growth and development within the sector. Given Gual’s position, his opinions carry significant weight in shaping discussions around regulatory changes and industry investment.
Government’s Debt and its Impact on the Pharmaceutical Industry
According to Gual, the Mexican federal government must address its outstanding debt of 15,000 million pesos to the pharmaceutical industry and provide legal certainty to encourage development. This debt, which remains substantial, acts as a disincentive for investment in the country.
Clarity in Regulations and Industry Incentives
Gual emphasized that one of the most crucial aspects of the recently announced decree is the agility in regulation and clear rules. He stressed that knowing precisely what changes will provide the pharmaceutical industry with incentives to invest in Mexico.
Decreto’s Objectives and Canifarma’s Perspective
The new decree aims to boost foreign investment in the pharmaceutical and medical supply industries starting from 2026. It seeks to increase the production of medicines and medical supplies in the Economic Development Poles for Well-being (PODECOBI) and revitalize Laboratorios de Biológicos y Reactivos de México (Birmex).
While Gual acknowledged the decree’s positive signal towards developing the pharmaceutical industry, which is Latin America’s second-largest but competes with other nations for investment, he highlighted the need for regulatory agility and clear rules.
Strategic Placement of Manufacturing Plants
Gual clarified that the pharmaceutical industry does not install manufacturing plants in every country. Instead, they strategically place them where it’s most efficient for global supply chains. He stressed that imposing restrictions on plant requirements would generate uncertainty and discourage investment.
Legal Certainty: A Crucial Factor for Investment
In addition to regulatory agility, Gual underscored the importance of legal certainty for attracting investment. He pointed out that even with good intentions, companies will not invest if the country fails to build trust through transparent regulations and reliable payment practices.
Key Questions and Answers
- What is the main concern of Rafael Gual regarding the pharmaceutical industry in Mexico? Gual’s primary concern is the government’s outstanding debt to the pharmaceutical industry and the need for regulatory agility and legal certainty to encourage investment.
- What does Rafael Gual mean by regulatory agility? Regulatory agility refers to clear, efficient, and timely rule-making processes that provide the pharmaceutical industry with precise knowledge of upcoming changes, enabling them to plan investments accordingly.
- Why is legal certainty important for attracting foreign investment? Legal certainty builds trust between potential investors and the host country. Transparent regulations, reliable payment practices, and a stable legal framework are essential for companies to feel confident investing in Mexico.
- How does the pharmaceutical industry approach the placement of manufacturing plants? The pharmaceutical industry strategically places manufacturing plants based on global supply chain efficiency rather than uniform distribution across countries.
