Foreign Pharma Firms Optimistic About Mexico

While Mexico is still in the process of recovering from the economiccrisis of the past two years, recovery signs are increasing, reports the Marketletter's local correspondent. In the pharmaceutical industry, he adds, three major foreign laboratories have expressed confidence about the country and their own prospects there.

Schering-Plough opened a new plant in Mexico City just five months after the sharp devaluation of the peso, and its vice president and director general, Ricardo Alvarez Tostado, says the company is highly optimistic about the future. In his opinion, although there are "lingering political and economic problems, Mexico provides a sound market for long-term investment."

While admitting that Schering-Plough has had "difficulties since the devastating collapse of the peso in December 1994, with sales negatively affected in 1995 due to the contraction of the pharmaceutical market," Mr Alvarez Tostado expressed the opinion that stabilization has occurred, both for demand and prices. The indications are that the recovery will continue to strengthen from now on.