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New Market Report: Mexico Pharmaceuticals Competitive Intelligence Report Q4 2010

New Healthcare research report from Business Monitor International is now available from Fast Market Research

FOR IMMEDIATE RELEASE

 
PRLog (Press Release) - Nov. 23, 2010 - There are around 200 registered pharmaceutical companies operating in Mexico, employing around 40,000 people. However, large-scale production is limited to approximately 40 facilities, which account for about 95% of the market. The leading 10 firms account for around 33% of sales. According to the trade association CANIFARMA, which includes around 150 facilities, investment in production was expected to be worth US$600mn by the end of 2008. Leading local producers include Armstrong, Laboratorios Liomont, Sanfer, and Pisa. The US and other Latin American markets represent significant export markets.

Mexico had 480 over-the-counter (OTC) drug manufacturers in 2004, according to the most recent Economic Census. By the end of 2005, OTC drug maker Genomma estimated there were 25,000 pharmacies in Mexico, with Genomma itself using around 21,000 points of sale. Its key customers include Walmex, Soriana, Comercial Mexicana, Farmacias del Ahorro, Benavides, Nadro, Casa Marzam, Farmacos Nacionales, Fragua, Chedraui, and Casa Saba.

From a historical perspective, Mexico's pharmaceutical industry has focused on the production of finished drugs, as opposed to active ingredients and intermediate products. The active ingredients industry has declined since the country's entry to the General Agreement on Tariffs and Trade (GATT) regime in 1986, which opened the sector to foreign competitors. In 2006, only 26 were registered with market regulator COFEPRIS, compared with 48 in 1994, producing an unknown quantity of active pharmaceutical ingredients (APIs). Despite foreign sales of an estimated US$1.5bn in 2008, officials are disappointed with the performance of Mexico's drug exports. Manufacturers face strong competition from growing Brazilian exports and the ever-present threat of Indian generics makers.

The Mexican government has committed to encouraging the genuine generics market, and battle consumer and prescriber misconceptions about the products sector. Generics are set to be a key element of healthcare modernisation, although at present very few advanced generics are included on the government's basic drugs basket (known as the Cuadro Basico). Today, perhaps the bulk of the Mexican pharmaceutical manufacturing sector has opted to pursue bioequivalent generics. Even manufacturers who have opposed tougher bioequivalence requirements now see legitimate generics as the only way to secure market position domestically and in the regional marketplace in the long term.

Mexico's Centro Integrador de Datos (CID) estimated the market share of local producer Quifa Perrigo at 49.7% of the interchangeable generics market in 2007, followed by Protein-Apotex (13.8%), and Laboratorios Kendrick (13.2%). Quifa Perrigo's huge market share is driven by its strong presence in Walmex (which is owned by US-based Wal-Mart, the world's largest retailer in turnover), as well as discounter Costco.

Moreover, the private-label segment is currently one of the Mexican drug market's fastest-growing areas and grew by an estimated 50% in 2005. Large retail chains such as El Fenix and Benavides, both owned by Chilean firm Farmacias Ahumada, are aggressively promoting private-label medicines. There are some concerns, however, that some of these products may not be 'true generics' in the internationally accepted sense, owing to loopholes in the current legislation defining generics.

On the other hand, growing sales by chains such as Comercial Mexicana and Walmex should help in the long-term shift towards greater consumer acceptance of generics in Mexico, with cost considerations an obvious critical factor. US-Mexican OTC and generics firm Quifa-Perrigo estimates that own-brand, offpatent drugs are, on average, roughly half the price of leading patented alternatives.

Foreign companies with a significant direct manufacturing presence in Mexico include Boehringer Ingelheim/Promeco, Bayer, Bristol-Myers Squibb (BMS), Eli Lilly, GlaxoSmithKline (GSK), Merck & Co, Roche and Sanofi-Aventis. Other companies market products through agreements with third parties. Indian manufacturers have entered the market with force in recent years, seeking to benefit from the growth of the generics market as well as to access other Latin American markets through Mexicanbased production. Wockhardt has established a new majority-owned venture to market its insulin products in Mexico jointly with the local drug marketer RIMSA. US investors, too, have invested in the sector. For example, private equity fund Darby Overseas acquired a controlling stake in Kendrick, which claims to be Mexico's second-largest independent generics maker. In 2009, Kendrick was acquired by Sanofi-Aventis.

Mexico's relatively low-cost environment, growing domestic market and NAFTA have made it an attractive export base. Meanwhile, the domestic market has been looking more attractive to multinational drug makers because of improved performance by market regulator COFEPRIS, which has allowed Mexico to acquire a reputation for early approvals of innovative medicines that meet urgent local epidemiological needs. In 2005, Mexico was the first to approve GSK's rotavirus vaccine Rotarix. The disease was declared a national priority in 2004 and vaccine coverage is now estimated at 95% of all Mexican children. In June 2006, a Merck & Co product, the HPV vaccine Gardasil, also received early approval by the country's Secretariat of Health.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/94303_mexico_pharmaceuticals_c...

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

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Tags:generics, pharmaceutical, drug, mexican, Manufacturers, maker, vaccine, sanofi-aventis, kendrick, genomma
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