Pharmaceutical Manufacturing In Mexico Part Of 2nd Largest Production Sector
After conducting a recent assessment, industry chamber organization, Canifarma, has concluded that any pharmaceutical Manufacturing Plant In Mexico is contributing to the second largest manufacturing sector in the country. This was a surprise even to the industry, not having known how large their presence has been to Mexico’s economy. In fact, it is so substantial it accounts for 1.2% of Mexico’s GDP and 7.2% of manufacturing GDP. (Automotive manufacturing being first.) The country’s 112 million people buy 2.5 billion unit sales ($14 billion U.S) annually. Further, it has been suggested with this kind of purchasing clout, Mexico is a strategic location for such multinational firms as Pfizer, Novartis, Merck and Sanofi, to name a few.
President of Canifarma and CEO of Merck’s Mexican operations, Robelio Ambrosi commented, “we’re more relevant than we thought”. Merck represents a little over 3% of Mexican pharmaceutical sales. The recent study has further pointed out that the pharmaceutical industry gets $1.52 billion annually in investments, constituting 8% of FDI that the country now receives. As a ‘bright spot’ in a turbulent international economic environment, the Mexican domestic economy remains robust, with pharmaceutical annual sales growing at a sequential 6% year over year. Any pharmaceutical manufacturing plant in Mexico supports 75% of medicine produced in-country it is also consumed in-country. Even so, there is room for growth. It is estimated the industry is operating at 70% capacity. With the global market at $700 billion and American consumers accounting for half of that, Mexico’s pharma industry will likely expand.