Introduction
The Mexican government has unveiled a strategic plan to position the country as a hub for pharmaceutical development, research, and production. This initiative aims to lure international investments, foster innovation, and create more job opportunities within the pharmaceutical sector.
The Plan: A Two-Pronged Approach
The plan comprises two main components targeting different segments of the pharmaceutical market:
- Generic Medicines: The government intends to prioritize the procurement of generic medications, which account for a significant portion of healthcare expenditures. By doing so, they aim to encourage domestic investments in pharmaceutical production.
- High-Cost Medicines: This component focuses on medications with patent protection, often sourced from single manufacturers. The government seeks to tie these purchases to commitments of investment from international pharmaceutical companies in Mexico.
Generic Medicines: Encouraging Domestic Investment
Under this component, the government will implement a scoring system for public procurement of generic medicines. Points will be allocated based on factors such as domestic investment in production facilities, research and development initiatives, and the creation of new laboratories or storage units along the pharmaceutical supply chain.
Eduardo Clark, the subsecretary of Health Sector Integration and Development, believes that Mexico’s substantial public healthcare procurement market will attract numerous international companies looking to relocate their production processes for greater competitiveness in the Mexican market.
High-Cost Medicines: Linking Purchases to Investment
Approximately 40 major international pharmaceutical companies account for around 150 billion pesos in annual medication purchases. To ensure these investments benefit Mexico, the government will require a commitment to domestic investment from these companies before securing procurement contracts.
By 2027, the government plans to implement a more aggressive strategy in medication and pharmaceutical company procurement, with the ultimate goal of relocating foreign companies to Mexico.
Context and Considerations
This new strategy comes after previous administrations’ failed attempts at medication procurement models. Despite this, there is optimism about attracting foreign investment from the pharmaceutical sector. However, there is a lack of emphasis on strengthening Mexico’s domestic pharmaceutical industry, which played a crucial role during the COVID-19 pandemic.
It remains to be seen whether this strategy will successfully entice foreign investors while ensuring that only high-quality products enter the Mexican market. Additionally, safeguards must be put in place to prevent subsidized foreign laboratories from undercutting local competition with inferior products.
Key Questions and Answers
- What is the main goal of Mexico’s new pharmaceutical strategy? The primary objective is to establish Mexico as a leading center for pharmaceutical development, research, and production, attracting international investments and fostering job growth.
- How does the government plan to encourage domestic investment in pharmaceuticals? By prioritizing the procurement of generic medicines and linking high-cost medicine purchases to investment commitments from international companies.
- What are the potential benefits of this strategy for Mexico’s pharmaceutical sector? The plan aims to strengthen domestic production capabilities, create new job opportunities, and position Mexico as a competitive player in the global pharmaceutical market.
- What concerns have been raised regarding this strategy? Critics question the lack of emphasis on bolstering Mexico’s domestic pharmaceutical industry and the potential for subsidized foreign companies to undermine local producers with lower-quality products.
