PHARMACEUTICAL

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The IndusTry In MexIco

Industry Indicators in Mexico 2014

Production 2013

us$14,283 million

Consumption 2013

us$17,612 million

Exports of the pharmaceutical industry

us$1,847 million

Imports of the pharmaceutical industry

us$4,938 million

Main investor countries in the sector United States, Ireland and Spain

Companies in Mexico

MSD, Boehringer Ingelheim, Schering Plough, Bayer, AstraZeneca, Pfizer and GlaxoSmithKline, among others.

Total employees

59,650

Foreign Direct Investment (FDI) 2005-2014

us$3,172 million

CAGR 2014-2020

7%

CAGR 2014-2020

6.7%

The PharMaceuTIcal IndusTry In MexIco

Mexico has becoMe an attractive destination for investMent in the pharMaceutical industry

due to an iMproved regulatory fraMework and to the increase in

quality certifications.

Mexico is the second largest Market in latin aMerica in the pharMaceutical industry and also an iMportant producer of high-tech drugs.

20 out of the 25 Most iMportant coMpanies worldwide have a presence in the country.

In 2013, Mexico’s pharmaceutical sector produced US$14,283 million. It is expected to reach US$22,382 million by 2020 and to record a 7% CAGR in the period between 2014 and 2020.

In 2014, Mexico was the leading pharmaceutical exporter in Latin America, with total exports of US$1,847 million.

Mexico consumed US$17,612 million of pharmaceutical products. It is expected to record a 6.7% CAGR for the 2014-2020 period.

Source: INEGI and Global Insight

2013 2013

2015 2015

2017 2017

2019 2019

2014 2014

2016 2016

2018 2018

2020 2020

Pharmaceutical Production Forecast 2014-2020 (Millions of US dollars)

Pharmaceutical Consumption Forecast 2014-2020 (Millions of US dollars)

MexIco’s InTernaTIonal TradeProducTIon and consuMPTIon

14,283

14,939

16,631

20,121

22,382

14,862

18,621

21,289

17,612

18,212

20,355

24,421

26,856

18,232

22,691

25,704

Main Export Destinations 2014

2012country 2013

Millions of US dollars

2014 2014

% Share

2014/2013

%

United States

Switzerland

Panama

Venezuela

Colombia

Ecuador

Guatemala

Brazil

Canada

France

Others

Total

414

17

223

329

111

79

68

141

55

34

404

1,874

452

17

191

263

96

67

62

105

30

42

385

1,709

444

225

206

202

109

77

73

67

55

43

346

1,847

  24.03

  12.21

  11.16

  10.92

  5.93

  4.15

  3.96

  3.64

  2.97

  2.31

18.7

  100.00

- 1.77

1252.08

7.97

- 23.21

13.94

13.75

18.10

- 36.18

81.48

2.57

10.2

8.03

Main products exported by Mexico:

• Medicines containing alkaloids or their derivatives• Antiserums• Drugs containing antibiotics

Source: Global Trade Atlas

ForeIgn dIrecT InvesTMenTMexIco’s InTernaTIonal Trade

The same year, Mexico imported pharmaceutical products for a total of US$4,939 million. Mexico’s main suppliers were the United States, Germany and France.

Between 2005 and 2014, the pharmaceutical sector received US$3,172 million of FDI. In 2014, the country received US$174 million of FDI.

Main Suppliers 2014

2012country 2013

Millions of US dollars

2014 2014/2013

%

United States

Germany

France

Puerto Rico

Switzerland

Italy

Canada

Ireland

Belgium

Spain

Others

Total

1,168

791

470

429

288

218

152

103

90

100

1,175

4,985

1,130

849

554

345

292

202

156

138

111

113

1,150

5,038

1,045

901

559

423

303

215

189

118

115

112

958

4,939

 - 7.47

  6.16

  0.84

  22.75

  3.80

  6.47

  21.71

 - 14.65

  3.72

 - 0.49

-0.17

 - 1.98

FDI by country (millions of US dollars) 2005-2014

country countryFdI FdI

United States

Luxembourg

Ireland

1,154

370

369

Germany

Spain

Others

Total

364

234

681

3,172

Spanish companies like Almi-rall and Genome Systems are interested in investing in Mexi-co in order to expand its pre-sence in emerging markets.

Mexico has become an attrac-tive destination for investment in the pharmaceutical industry due to its large market and the improved legal framework that protects intellectual pro-perty and opens new business niches such as generic drugs and biopharmaceuticals.

The industry requires greater investment in the pharmo-chemicals subsector, in order to provide inputs and active ingredients for the Mexican pharmaceutical industry.Several companies such as

Daiichi Sankyo Pharmaceuti-cal Company and Chiesi have begun operations in Mexico in order to sell their products in the Mexican market and other countries in Latin America.

There are a total of 718 economic units* in Mexico that specialize in the pharmaceutical industry. Currently, the pharmaceutical sector generates approximately 59,650 jobs. The com-panies are located mainly in Mexico City, Jalisco, Estado de México, and Puebla.

The Mexican pharmaceutical industry stands out because of the presence of 20 out of the 25 largest companies worldwide, and also because its domestic companies are well known for their quality and experience.

*Includes companies, plants and administrative and sales offices

Source: DENUE, ANFAM and CNN Expansión

coMPanIes

Main companies in Mexico by sales 2014(Millions of US dollars)

company country Millions of us dollars

Bayer de México

Pfizer

MSD

Grupo Novartis México

Germany

USA

USA

Switzerland

1,430

876

789

529

Economic Units

state # economic units

Distrito Federal

Jalisco

Estado de México

Puebla

Morelos

Nuevo León

Veracruz

Querétaro

Guanajuato

Michoacán

Others

Total

222

135

72

33

31

27

26

23

19

19

130

718

chaMbers and assocIaTIons ProMÉxIco WorldWIde oFFIces

legal FraMeWork

The Mexican regulatory system is one of the most developed in Latin America. Under the Ge-neral Health Law, the authority in charge of regulating, controlling and promoting health is the Ministry of Health, through the Federal Health Risk Protection Commission (COFEPRIS).

The following are some of the documents that regulate the pharmaceutical industry in Mexico:

Ministry of Health

Mexican Social Security Institute

State Workers’ Social Insurance Institution

Federal Health Risk Protection Commission

National Chamber of the Pharmaceutical Industry

Mexican Association of Pharmaceutical Research Industries

National Association of Drug Manufacturers

Mexican Pharmaceutical Association

http://portal.salud.gob.mx/

www.imss.gob.mx

www.issste.gob.mx

www.cofepris.gob.mx

www.canifarma.org.mx/

www.amiif.org.mx

www.anafam.org.mx/index.php

http://afmac.org.mx/

Regulations of the General Health Law for Health Research

Regulations of the Federal Health Risk Protection Commission

Regulations for Health Inputs

Guidelines to comply with Good Clinical Practices in Health Research

Guidelines for Provisions for Bioequivalence Studies

PHARMACEUTICAL

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