Background on ASMEDIS and José Luis García
José Luis García, the president of the Mexican Association for Institutional Health Distribution (ASMEDIS), has expressed his support for a new regulation that mandates foreign generic drug suppliers to establish local manufacturing plants. This move aims to create a level playing field for Mexican companies and bolster the local supply chain.
The New Regulation: Ensuring Fair Competition
According to García, the new requirement for foreign companies to have manufacturing plants in Mexico will ensure equal conditions for domestic businesses. Currently, many foreign companies operate with minimal local presence, paying taxes and wages in their home countries while competing with Mexican firms. This new regulation will change that by enforcing the same conditions for both national and foreign entities.
Addressing “Fly-by-Night” Investments
García emphasized that without the plant requirement, Mexico attracts “fly-by-night” investments rather than long-term foreign direct investment. These companies set up a basic commercial presence, win bids, import products, deliver them, and take their profits back to their home countries without contributing significantly to the Mexican economy.
Strengthening Local Production and Innovation
The ASMEDIS president highlighted the importance of increasing local production to ensure a robust healthcare system. More manufacturing plants and innovation within Mexico will enable the country to have necessary supplies during future pandemics, as was lacking during COVID-19.
Claudia Sheinbaum’s Announcement and Decreto México
Mexico City’s President Claudia Sheinbaum recently announced a decree to encourage foreign pharmaceutical companies to invest in Mexican production of medications and medical supplies. The goal is to strengthen the domestic industry, create jobs, and acquire medications at more affordable prices.
Incentives for Foreign Investment
Companies investing in Mexico and meeting quality and regulatory requirements will have greater chances of winning public tenders. Moreover, their collaboration with Mexico’s Biologicals and Reagents Laboratory (Birmex) will be promoted.
Key Questions and Answers
- What is the new regulation about? The new requirement mandates foreign generic drug suppliers to establish manufacturing plants in Mexico, ensuring equal conditions for domestic businesses.
- Why is this regulation important? It aims to strengthen the local healthcare industry, create jobs, and provide medications at more affordable prices.
- What were the issues with the previous system? Previously, foreign companies had a minimal local presence, paying taxes and wages in their home countries while competing with Mexican firms. This new regulation aims to change that.
- How will this benefit Mexico during future pandemics? Increased local production and innovation will ensure that Mexico has necessary supplies during health crises, as was lacking during COVID-19.
