Introduction to the Policy Change
The Mexican federal government announced on Thursday that, starting with the next biannual drug purchase in 2026, pharmaceutical companies wishing to participate must demonstrate investment in Mexico. This strategy, explained by President Claudia Sheinbaum and Subsecretary of Health Integration and Development, Eduardo Clark, aims to encourage the relocation of production processes, stimulate clinical research, and strengthen the national pharmaceutical ecosystem.
Key Objectives and Requirements
“We want companies that sell medications to the public sector to have more than just representation offices in Mexico; we want them to have factories, labs, warehouses, or research centers,” stated Clark. Currently, around 40 transnational pharmaceutical companies account for approximately 150,000 million pesos in purchases every two years, mainly for patented and single-source medications.
“If we are purchasing such large volumes, it is fair to ask that a portion of those earnings be reinvested in Mexico,” added Clark.
- A promotion commission for pharmaceutical investment: This commission will negotiate commitments with these companies.
- A set of evaluation criteria: These criteria will favor companies with operations in Mexico, including research centers or partnerships with public institutions.
Encouraging Foreign Investment
President Sheinbaum emphasized the desire to attract foreign companies from various countries, such as India, the United States, Europe, Latin America, and Brazil, to invest in Mexico for producing medications. This will make them more affordable and create jobs, she stated.
Sheinbaum also highlighted the role of Birmex, the state-owned company responsible for vaccine production, as a potential partner in these investments. Additionally, she stressed the importance of linking the pharmaceutical industry with universities and public research centers, such as UNAM, the Polytechnic, UdeG, and the Autonomous University of Nuevo León.
Prioritizing Investment Regions
The government aims to prioritize these new investments in the Bienestar Poles, strategic regions identified to foster regional development. These areas will offer infrastructure, fast permits, and some tax incentives.
Key Questions and Answers
- What is the main objective of this policy change? The Mexican government aims to encourage domestic investment in the pharmaceutical sector, relocate production processes, stimulate clinical research, and strengthen the national pharmaceutical ecosystem.
- Which companies are affected by this policy change? Transnational pharmaceutical companies that wish to participate in public drug purchases must demonstrate investment in Mexico.
- What are the two fronts of this strategy?
- A promotion commission for pharmaceutical investment that will negotiate commitments with companies.
- A set of evaluation criteria favoring companies with operations in Mexico, including research centers or partnerships with public institutions.
- What role do universities and public research centers play in this strategy? Universities like UNAM, the Polytechnic, UdeG, and the Autonomous University of Nuevo León are encouraged to collaborate in research and development with the pharmaceutical industry.
- How will the government prioritize investment regions? The government aims to prioritize new investments in Bienestar Poles, strategic regions for regional development, offering infrastructure, fast permits, and tax incentives.
