Mexican Govt To Invest In Pharma Sector

The Mexican government has announced that an investment of $40 million is to be made in the domestic pharmaceutical industry, in order to assist locally-owned companies which have been suffering serious financial losses, largely as a result of fierce competition from Chinese and Indian drug manufacturers.

Officials of the Ministry of Commerce have noted their concern that a number of pharmaceutical products are no longer manufactured in Mexico, and added that the annual trade surplus of approximately $40 million which the sector had operated until 1988 had turned into a loss of $200 million in 1992, the last year for which figures are available. Sales had declined 23% during 1988-92, particularly those of antibiotics and steroids, although they rose about 5% in real terms last year, and a further small recovery is expected for 1994. Nevertheless, they said, damage to the sector has been substantial.

Moves To Boost Exports To EU Nations The Ministry has presented the industry with official commitments for assistance, and drawn up a productivity plan. Agreement has been reached on production goals and also, a special meeting with the industry is scheduled to be held the second half of next year, to discuss methods of boosting exports in accordance with the cooperative agreement which Mexico has signed with the European Union.