Pharmabiz
 

Leader in Latin America

Y V Phani Raj, HyderabadThursday, June 15, 2006, 08:00 Hrs  [IST]

Mexico's pharma industry is one of the most developed in Latin America, with a large capacity of active pharmaceutical ingredients and finished products. Mexico is positioned to serve both established pharmaceutical markets in the US and Canada and emerging markets in Latin America. Latin America is an under-served patient population of more than 500 million and is an important market for existing and new pharmaceuticals. The prescription drug market is estimated at over US$6.6bn, accounting for 80 per cent of expenditure, with further developments in the healthcare system expected to increase its market value to US$7.8bn by 2007. Meanwhile, OTC products account for around 20 per cent of the Mexican drug market, equating to a retail value of US$1.7bn. The products' low cost and easy availability should see the value of the market reach US$1.9bn by 2007. Generics though does not play a major role in the Mexican drug market at present, with the market currently valued at over US$0.08bn. Steady growth is expected even in this segment and it is likely that the market value may head towards US $0.10bn by 2007. Mexico's per capita drug expenditure in 2003 was an estimated US$81 per head, among the highest in Latin America. Mexico is among the ninth largest drug markets in the world and has overtaken Brazil as the biggest market in Latin America. Spending was equal to around US$8.3bn at consumer prices in 2003, and despite the slump in the Latin America market, steady domestic growth should push this total towards US$9.7bn by 2007, as per estimates. In Latin America, Mexico represents not only the largest pharma market but also with over 35 production facilities of national and international companies and increasing exports to Europe and America, the most important location for investments. Multinational pharmaceutical companies have targeted Mexico and Latin America as emerging markets and are increasing investments in the region. Pharmaceutical producers already having operations in Mexico are Abbott Laboratories, Apotex Inc, AstraZeneca, Aventis, Bayer, Bristol Myers Squibb, Glaxo Smith Kline, Johnson & Johnson, Merck, Novartis and Sanofi. Several multinational pharma companies have initiated acquisitions in Mexico.

 
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