Expansion over next five years will be helped by branded drugs losing market exclusivity
Mexico’s healthcare market will be worth almost US$28bn by 2020, up from $17.6bn in 2013, says a new report from research and consulting firm GlobalData. This total is a combination of $22.5bn for pharmaceuticals and $5.4bn for medical devices.
The company’s latest report, CountryFocus: Healthcare, Regulatory and Reimbursement Landscape – Mexico, says this overall increase will represent a Compound Annual Growth Rate (CAGR) of 6.8%.
According to GlobalData, a number of factors, including the prevalence of non-communicable diseases, improvements in regulatory guidelines, government support for the healthcare sector, and the North American Free Trade Agreement, will help drive the growth.
More than 350 domestic and multinational companies are manufacturing pharmaceutical products in Mexico, making the country one of the leading producers in the Americas.
According to Joshua Owide, GlobalData’s Director of Healthcare Industry Dynamics: 'During the next five years, the pharmaceutical sector will have the opportunity to expand, due to a number of branded drugs losing market exclusivity. This will benefit domestic manufacturers, as the top pharmaceutical companies in Mexico mostly deal with generic drugs.'
Mexico was Latin America’s main exporter of pharmaceutical products in 2012, and is a key exporter to Europe and the US, thanks largely to free trade agreements.
'While the Mexican pharmaceutical market may be vulnerable, with a high share of private healthcare expenditure, alongside out-of-pocket payments and the problem of counterfeit drugs, the overall outlook remains bright,' added Owide.
'Non-communicable disease, which is rising in prevalence due to the increasing elderly population and changes to diet and lifestyle, combined with the Mexican government’s aim to provide universal healthcare coverage, will increase public expenditure and create greater market opportunities for both the pharmaceutical and medical device industries.'