Impact of Mexico on the Pharmaceutical Industry - Thematic Research

Impact of Mexico on the Pharmaceutical Industry - Thematic Research

Summary

Mexico has a large and rising middle-class population, a favorable environment for private sector investment, a rise in demand for healthcare services, and relatively high drug prices.

Low-cost manufacturing of pharmaceuticals is attracting increasing foreign investment to Mexico. Many US manufacturing companies aiming to reduce dependence on China perceive nearshoring to Mexico or Canada as even more advantageous than reshoring to the US. Since 2020, COVID-19-related supply chain disruptions have caused many US companies to take steps to bring some of their manufacturing closer to home.

Corruption, lack of transparency, and misuse of public funds within the health sector remain an issue, particularly at the state level, although the current government has made stamping them out a key priority.

There is a substantial presence of international pharma companies and contract manufacturing organizations (CMOs) in Mexico. Slightly less than half of the CMOs have international owners, demonstrating international investment and a high level of interest in the country. There is also increasing investment from other emerging markets like India.

Synopsis

• Mexico has over 5,000 marketed drugs but only 47 pipeline drugs in development.
• Marketed drugs in Mexico mainly follow global trends, as Mexico matches the global market in having CNS and infectious diseases within its top three therapeutic areas.
• Of the currently marketed drugs, 75% are generics, on par with the US and South/Central America. 4% of the currently marketed biologics are biosimilars. 
• There are currently 10 marketed COVID-19 vaccines.
• Metabolic disorders, CNS, and infectious diseases have historically dominated in clinical trials in Mexico but were eclipsed at the end of the decade by oncology. The resurgence of infectious disease trials in 2020 is as would be expected due to the COVID-19 pandemic.
• 24 of the pipeline drugs in development target infectious diseases, primarily COVID-19.
• In the pipeline, 27 drugs are novel biologics, 19 are small molecules, and only one is a biosimilar.

• Mexico has the second largest pharma market in Latin America and is the 11th largest pharmaceutical market in the world, developing as one of the most promising destinations for pharmaceutical investments.
• Mexico is emerging as a promising area for contract manufacturing and increasing government regulations are driving Mexico to become more competitive in the biosimilars market and in the R&D of innovative drugs.
• The top therapy areas among marketed and pipeline products in Mexico are central nervous system (CNS) and infectious disease, respectively.

• This report provides an assessment of the major industry, regulatory, macroeconomic, and technology trends shaping the Mexico pharma industry.
• It provides detailed analysis of deals, clinical trials, marketed and pipeline products, and contract manufacturing.
• It also provides an overview of key regulatory and market access information, market drivers and barriers, and key players in the Mexican pharma sector.

• See what trends are shaping the Mexican pharma market and driving innovation, including key government policies and strategic initiatives.
• Get an analysis of Mexico's strong manufacturing and outsourcing sector, including plans to further strengthen these capabilities.