Background on the Decree and Its Implications
On Thursday, President Claudia Sheinbaum announced a decree to encourage production and foreign investment in Mexico’s pharmaceutical industry. However, this move has sparked uncertainty within the sector due to the lack of technical details regarding its implementation, according to Enrique Martínez Moreno, Director of the Instituto Farmacéutico de México (INEFAM).
Key Points of the Decree
- Starting in 2026, companies participating in public tenders for medication and having production plants in Mexico will receive advantages, such as additional points in the evaluation process.
- The decree aims to promote local production of medications and ensure the availability of essential pharmaceutical ingredients.
Current State of Medication Production in Mexico
Currently, approximately 70% of medications for the most prevalent diseases in Mexico are produced domestically. However, only 30% of more complex medications, biotechnological products, or those under patent have local production.
Uncertainties Regarding Decree Implementation
Martínez Moreno expressed concerns about the unclear definition of the “plant” requirement for foreign companies. This crucial detail must be specified in the technical aspects of the decree, which are expected to be published soon in the Federal Official Gazette.
Challenges in Public Procurement
The INEFAM Director highlighted issues within the current health sector procurement system, including over-purchasing and under-purchasing of certain products. He emphasized the need for health institutions to better understand and define their genuine needs.
Positive Aspects of the Pharmaceutical Industry
Despite procurement challenges, the pharmaceutical industry has maintained investment levels, modernized production facilities, and increased local and export market production. Martínez Moreno believes this is an opportune time to boost the industry.
Potential for a Balanced Pharmaceutical Policy
The decree could initiate a national pharmaceutical policy that harmonizes health and industrial objectives. For this to succeed, coordination between the Secretariats of Health and Economy is essential.
Key Questions and Answers
- What is the main concern regarding the new decree? The primary worry is that the implementation details, such as which medications can be fully produced locally with incentives and securing raw materials, have not been thoroughly planned.
- What percentage of medications for prevalent diseases in Mexico are produced domestically? Approximately 70%.
- What percentage of more complex medications, biotechnological products, or patented drugs are produced locally? Only around 30%.
- What issues does the INEFAM Director highlight in the current health sector procurement system? Over-purchasing and under-purchasing of products, along with the need for health institutions to better understand their genuine needs.
- What potential does the new decree hold for Mexico’s pharmaceutical industry? The decree could lead to a balanced national pharmaceutical policy that combines health and industrial objectives, fostering growth in the sector.
