Mexican Pharma Sector Continues In Crisis

Although the administration of Mexico's President Ernesto Zedillo Ponce de Leon has consistently affirmed that the country's economic crisis (sparked by the peso devaluation in December 1994) is no longer a problem, his optimism is belied by the grave problems still existing.

In the pharmaceutical sector, a total of 3,000 firms, including pharmacies, smaller laboratories and allied sector companies have gone into bankruptcy and/or have closed their operations, and the outlook for 8,000 more firms looks grim, the Marketletter's local correspondent says.

In view of the gravity of the situation, the Ministry of Commerce has said it will initiate a "rescue operation" for the sector, including aid for ailing small and medium-sized operations, which includes low interest loans by the National Domestic Trade Bank. Meantime, the elimination of unfair pricing policies of some laboratories was called for by pharmacists.