In the long term, Mexico's improving private health insurance sector and potentially significant investment from the government will boost patented drug consumption.
(PRWEB UK) 15 May 2014
Business Monitor has just released its latest findings on Mexico’s Pharmaceuticals & Healthcare sector in its newly-published Mexico Pharmaceuticals & Healthcare Report.
Although Mexico has made great efforts to improve its regulatory framework and create a more hospitable business environment to entice pharmaceutical companies, Business Monitor identify that it is still hard for multinationals to fully materialise their commercial benefit due to the significant market share of generic drugs. They believe that generic drugs will be a key element of Mexico's healthcare modernisation. Generic drugs are a very effective way in which the government can control public spending while trying to increase medicines coverage. However, Business Monitor forecast that in the long term, Mexico's improving private health insurance sector and potentially significant investment from the government will boost patented drug consumption in the country.
Key Trends And Developments
■ Mexico's secretary of Health, Mercedes Juan Lopez, stated that the federal agency plans to reduce out-ofpocket spending on healthcare and improve the quality of service through Seguro Popular in Mexico. The Health secretary has also planned to reform Seguro Popular to address issues such as the fragmented healthcare system and inefficient use of resources in Mexico.
■ Mexico's Federal Commission for Protection Against Health Risks (COFEPRIS) signed an agreement to promote innovation, under which the registration approval timeline for new molecules will be reduced to 60 working days from the previous 360 days.
■ COFEPRIS changed its clinical research protocol to reduce the pre-approval time for clinical trials from three months to one month. COFEPRIS has also authorised the National Institutes of Health, as well as speciality hospitals, to assist its clinical trial evaluation process.
■ Indian drugmaker Lupin revealed its acquisition of a 100% equity stake in Laboratorios Grin (Grin), a leading Mexican pharmaceutical company specialising in branded ophthalmic products.
■ Genomma acquired a 50% interest in Marzam Commercial and Industrial Group for MXN600mn (USD45.15mn).
■ GlaxoSmithKline Mexico's vice president and general manager, Jose Alberto Peña, told a local media organisation that the company has accelerated product registration in Mexico since November 2012.
Economic View: Business Monitor forecast Mexican real GDP growth to accelerate from 1.5% in 2013 to 3.5% in 2014, amid an acceleration in household spending growth and an improvement in investment, bolstered by a successful reform drive in 2013. Exports will also pick up this year as US demand for manufacturing exports strengthens.
Political View: The recent approval of an energy sector liberalisation bill in Mexico, while monumental for the economy's long-term growth prospects, will create an extremely challenging political environment for President Enrique Peña Nieto throughout the rest of his administration. Popular perceptions of energy sector reform remain highly divisive, and Business Monitor expect social and political tensions to increase over the coming months.
To find out more about this report and Business Monitor’s forecasts for the Mexico Pharmaceuticals & Healthcare sector please click here.
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