The Mexican pharmaceutical market worth $12 billion leads the Latin American market . It’s the tenth largest in the world. The next five years are projected to show tremendous growth in the market. Mexico has signed the largest number of FTA’s(Free Trade Agreements) in the world with 33 countries.These include Venezuela and Columbia(G-3), EU,Latin American Countries,Israel,Japan including USA and Canada(NAFTA).Being a member of NAFTA gives Mexico an opportunity to tap both the well-established pharmaceutical markets such as the US and Canada as well as the emerging Latin American pharmaceutical markets. The Mexican pharmaceutical sector is also the fastest growing sectors of Mexican industry. To add to all this there is a positive change in the mindset of Latin American businessmen and political leaders who have started realizing the the importance of India as an emerging economic power .The uncertainity and delay in grant of Visas for Indian exporters is history.Visas are issued promptly. There is immense business opportunity for Indian pharma companies in this region.
Public –Private Market Composition
Two thirds of the population is covered by the social security system. The public sector accounts for huge consumption and the Government health system alone consumes around US $ 2 billion worth of medicines. The Government procurement is done through the tender route and the key requirements are local content/ manufacturing and registration. This segment has stiff price competition, which is however compensated by volumes. In terms of private market, systemic anti-biotics, analgesics, anti-inflammatory/ rheumatic drugs, anti-cough formulations, vitamins, ant-acids, hormones, nasal decongestant, anti-spasmodic, and ace inhibitors dominate the consumption. Private and public sectors account for 80 percent and 20 percent of the total market in terms of value and vice versa in terms of volume. The prices of public sector are five times lower compared to prices of private sector. This results in a minor