The federal government’s decision to condition pharmaceutical companies’ participation in the 2026 consolidated drug procurement only on having production plants within the country will worsen the drug shortage, experts warned. They assert that it could take Mexico up to 20 years to develop a robust value chain to replace imports.
“Forcing pharmaceutical companies to establish a plant within the country does not, in itself, guarantee better medicines or more affordable prices, much less that this will end the shortage. What I do see is that it could significantly reduce the number of companies participating in the bidding processes,” warned Héctor Juan Villarreal Páez, founder of the Center for Economic and Budgetary Research (CIEP).
The warning stems from the proposal presented in the reinforcement of Plan Mexico, which establishes a requirement for pharmaceutical companies to have a national manufacturing plant to participate in the consolidated drug procurement scheduled for 2026.
“The financial limitations demonstrated by the federal government call into question their capacity to support a profound transformation of the sector, a transformation that requires investment, research, and a lot of patience, because this is not something that will happen in 5 or 6 years; developing a robust value chain will take up to 20 years,” the specialist added.
In fact, public spending on health continues to lag, as according to data from the Organization for Economic Cooperation and Development (OECD), in 2024 Mexico allocated just 2.4 percent of GDP to public health spending, well below the global average of 6.6 percent.
Furthermore, Mexico currently imports nearly 80 percent of its active pharmaceutical ingredients (APIs), mostly from India and China, according to data from the National Chamber of the Pharmaceutical Industry (Canifarma).
“The government must clearly define its vision for the pharmaceutical sector: whether it seeks to transform Mexico into a pharmaceutical manufacturer that competes with India or China, or whether we are simply talking about a model focused on domestic supply,” said the specialist from the Monterrey Institute of Technology (TEC).
He added that the best option for Mexico is to position itself as a comprehensive pharmaceutical powerhouse, which also includes research and development. However, to achieve this, he considered, clear regulations must be in place and analyzed before 2026.
The Goal
Mexico is scaring away investment from the pharmaceutical industry
For Mexico to become a pharmaceutical powerhouse—as the government proposes—it is essential to modernize and streamline the regulatory framework of the Federal Commission for the Protection against Sanitary Risks (Cofepris).
Currently, approval times in Mexico can extend for several months, which contrasts with countries that offer more streamlined and predictable processes, such as the US, Canada, or even Brazil, where approval times average three to four weeks.
“There’s a black box of approximately 10,000 backlogged applications that don’t help promote the commercialization of cutting-edge medicines. We haven’t known whether the dengue vaccine alone will be released or not for three years,” Larry Rubin, executive director of the Mexican Association of the Pharmaceutical Research Industry (AMIIF), previously stated.
For her part, Karla Alcázar, president of Eli Lilly Latin America, stated that the reduction in Cofepris approval times for clinical trials is essential for the pharmaceutical company to consolidate its investment in the country, estimated at $130 million.
“We celebrate Plan Mexico in terms of the commitment to accelerating regulatory times, but for Eli Lilly it’s very important because we have the mission and vision to launch at least two different innovations in the country per year,” the executive said.
Héctor Juan Villarreal affirmed that the country still faces a latent shortage of medicines for the coming years.
“It would be foolish to believe that next year’s consolidated purchases will already be resolved and that we won’t have shortages, because this doesn’t happen overnight, but I do believe that we need to examine our conscience because the shortage situation is lamentable,” said the CIEP founder.
He believed it is necessary for the government to assume responsibility for developing a comprehensive policy that guarantees efficient and continuous supply, including bidding rules, strengthening the supply chain, and ensuring sufficient financing.
Source: elfinanciero
