Mexico

mexico-city-cathedral-small.jpgMexico’s pharmaceutical industry generates revenues of around $11 billion, making it the 11th largest pharma market in the world. In Latin America, Mexico comes in second after Brazil, which leads the region with $16 billion.

In Mexico, the sector has been traditionally stable with large profit margins, but it is currently undergoing a rapid transformation. Companies are starting to adapt their strategies to the new conditions in different ways. The changes cut across a number of areas including product development, competition, distribution, and regulation.

Generics lead the way

The adoption of generics means that more than 60% of all units sold in Mexico are generic. In the private market, their growth has been exponential for the last few years. While new regulation has helped eliminate products that did not fulfill regulatory therapeutic efficiency, there are patients and doctors who are still wary of these products, which has allowed patented medicines to extend their life cycles.

In 2008, the Mexican government eliminated the mandatory manufacturing requirement allowing new companies to establish operations in the country, including Takeda, Daiichi Ranbaxy and Astellas. Other Mexican players who bet on niche OTC products, such as Genomma Lab, have experienced substantial growth. Given this heightened competition, local and global players need to modify their strategies and reposition themselves in the market.

Source: Russell Reynolds Associates.

1 to 10 of 11 results

Mexico News

1 to 10 of 11 results

Back to top