In Mexico it has always grown steadily at around 4% yearly, representing a 1.2% of the GDP. However, although it might sound counter intuitive, it is estimated that this year, due to covid-19, the industry will grow around 7%.
Mexico shows great potential on becoming number one in Latin America
Mexico has the 11th largest pharma production in the world, and second only to Brazil in Latin America. This is in par with other major industries the country has. However, the pandemic brought new obstacles this industry had to overcome.
Nevertheless, even facing the challenges the pandemic brought, Mexico is doing better than many and has become the Latin American pharmaceutical industry epicenter.
This has been in part thanks to the Mexican Federal Commission for Protection Against Health Risks (COFEPRIS) being accepted as a regulatory body of the Latam region. This could open new business opportunities for pharmaceutical companies settled in Mexico. This is because it could make it easier to export to Central and South America.
COFEPRIS responsibilities don’t end with the pharmaceutical industry. It oversees many health related topics in Mexico.
What is COFEPRIS and what is its function?
Founded 2001, COFEPRIS is the Mexican administrative authority that mainly identifies and evaluates risks to human health. It also can propose national sanitary protection policies. Other responsibilities of the Federal Commission for Protection Against Health Risks include:
- Exercising sanitary control and surveillance on the different applicable industries.
- Imposing sanctions (related to health risks) when protocols are not being followed by a company.
- Applying health safety measures.
COFEPRIS was admitted as a regulatory body for Latin America. This greenlights all new products developed by the pharmaceutical industry in Mexico to instantly enter the region’s market.
A great example of this is Sanfer, a company that forms part of the Invekra group. It is one of the biggest pharmaceutical companies in Mexico, with over 300 products in circulation. Most of which are generic medicines. Sanfer is expanding its reach to Latin America and the Caribbean, like Dominican Republic and Peru.
This is a great advantage for the pharma industry in Mexico. It could be the drive to surpass Brazil and become the largest pharmaceutical industry in Latin America. However, tangible growth is needed for this to happen.
Is the pharmaceutical industry in Mexico growing?
Each year, around $49 billion MX are invested in the Mexican pharmaceutical industry. However, this year’s estimation has not taken into account the efforts done to fight covid-19. Rafael Gual Cosío, head of the Mexican National Chamber of the Pharmaceutical Industry (CANIFARMA), confirmed investments have been on the rise in the country.
“What we know is that there have been continuous investments, even some manufacturing plants have been opening up. Some have been repurposed to aid in the battle against coronavirus, and that is also an investment. We need to take all this into account when the year ends,” said Gual Cosío.
Gual Cosío also stated that it is projected that this industry will grow from 6% to 7% during 2020. As seen in 2019, pharma company Pfizer invested $26 million MX in clinical research and modernizing their quality control laboratory in Toluca. So did Merck, investing $600 million MX to expand their base of operations in Mexico.
There is a good panorama for the pharmaceutical industry in Mexico, never has it been as relevant and crucial as it is today. Settling in a country that has such a promising industry is crucial. Thus, we would like to assist you with setting up shop here.
Sources: Forbes, El Economista, Dinero en Imagen, CEO Latam, Opportimes, Elsevier
