Overview and Key Players
The Mexican federal government recently announced a new policy requiring pharmaceutical companies to invest in Mexico if they wish to participate in public procurement of medications. This decision was made by President Claudia Sheinbaum and Subsecretary of Health Integration and Development, Eduardo Clark.
Rationale and Goals
The primary objective of this strategy is to encourage the relocation of manufacturing processes, stimulate clinical research, and strengthen the national pharmaceutical ecosystem. Clark emphasized that the government aims for more than just representation offices; they want actual production facilities, laboratories, warehouses, or research centers within Mexico.
Financial Aspects
Approximately 40 transnational pharmaceutical companies account for around 150,000 million pesos in purchases every two years, mainly for patented and single-source medications. Clark believes it is fair to request that a portion of these earnings be reinvested in Mexico.
Implementation Details
The strategy comprises two fronts: a promotion commission for pharmaceutical investment that will negotiate commitments with these companies and a set of qualification criteria favoring companies with operations in Mexico, including research centers or partnerships with public institutions.
Incentives for Foreign Investment
Sheinbaum highlighted the importance of attracting foreign companies from various countries, such as India, the United States, Europe, Latin America, and Brazil, to invest in Mexico for local medication production. This would make medications more affordable and create jobs.
Prioritizing Regions for Investment
The government will prioritize these new investments in the Bienestar Poles, strategic regions identified to foster regional development. These areas will offer infrastructure, fast permit processing, and some tax incentives.
Role of Public Institutions
Sheinbaum also emphasized the potential collaboration between Birmex, the state-owned vaccine production company, and other public universities like UNAM, the Polytechnic Institute, UdeG, and the Autonomous University of Nuevo León in research and development.
Uncertainty and Concerns
Lack of Technical Details
Enrique Martínez Moreno, Director of the Mexican Institute of Pharmaceuticals (Inefam), expressed concerns about the announced decree’s lack of technical details regarding its implementation. He stressed that proper planning, measurement, and study are necessary to ensure the policy’s success.
Unresolved Medication Procurement
Martínez Moreno pointed out that about 70% of medications for prevalent diseases in Mexico are locally produced, while the remaining 30%—including complex, biotechnological, or patented medications—lack domestic production. The decree’s ambiguity on defining the “plant” requirement for foreign companies remains unclear.
Current System Shortcomings
Martínez Moreno also criticized the existing procurement system in the health sector, noting inconsistencies in purchased quantities and the need for better understanding of real needs by healthcare institutions.
Key Questions and Answers
- What is the main objective of this new policy? The Mexican government aims to encourage local production, clinical research, and strengthen the national pharmaceutical ecosystem by requiring foreign companies to invest in Mexico.
- Which companies are primarily affected by this policy? Approximately 40 transnational pharmaceutical companies that account for around 150,000 million pesos in purchases every two years.
- What are the implementation details? A promotion commission for pharmaceutical investment and qualification criteria favoring companies with operations in Mexico.
- What incentives are offered for foreign investment? Prioritizing investment in Bienestar Poles, offering infrastructure, fast permit processing, and tax incentives.
- What concerns have been raised about this policy? Lack of technical details, unresolved medication procurement issues, and shortcomings in the current health sector procurement system.
