By Once Noticias. Mexican Press Agency
Mexico seeks reinvestment from pharmaceutical companies, from which it purchases 150 billion pesos (7.77 billion dollars) in single-source supplies every two years.
The Mexican Government has issued a decree, to be published this week, aimed at promoting investment and pharmaceutical production within the country.
“Mexico has the potential to become a leader in the production of pharmaceuticals and medical devices. As more companies begin to look at our country as an investment hub, we are convinced that Mexico has the capacity to lead the healthcare supply industry,” emphasized Eduardo Clark García, Deputy Minister for Healthcare Sector Integration and Development.
The Mexican government purchases approximately 300 billion pesos (US$15.31 billion) worth of pharmaceuticals and medical supplies annually. The goal of the decree is to encourage companies “to come and invest in the country, to produce their medicines here, which will help reduce costs,” said President Claudia Sheinbaum Pardo during the People’s Morning Press Conference.
“In addition, this will create jobs, and companies will collaborate with research institutes for the development of medications for diseases affecting Mexico […] and we want all of this to be linked to Laboratorios de Biológicos y Reactivos de México S.A. de C.V.,” she added.
Minister of Health David Kershenobich said that both domestic and international laboratories have expressed interest in investing in Mexico.
What does the decree include?
The first component of the decree, according to Clark García, includes a point and percentage-based system that grants additional points in all procurement processes for generic supplies to companies that:
Demonstrate investment within the country in the supply chain of pharmaceuticals, healthcare supplies, and medical devices, have begun installing factories, laboratories, or warehouses in the country that form part of this supply chain.
The second component, he explained, aims to link the purchase of high-cost and patented supplies to investments in production and research in Mexico. A Committee for the Promotion of Pharmaceutical Research will be established to negotiate the amounts of investment with companies prior to any procurement.
Reinvestment from 40 Pharmaceutical Companies
Every two years, Clark García noted, the purchase of single-source and patented supplies is concentrated in 40 companies that receive around 150 billion pesos (7.77 billion dollars). Through this decree, the government seeks to ensure that a portion of this revenue is reinvested in Mexico.
With this strategy, Mexico aims to have a more effective plan in place for the next round of medicine and supply procurement—expected in about a year—to boost investment, the establishment of production facilities, and pharmaceutical research.
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