Mexico Pharmaceutical & Medical Device Market Worth $22.5B & $5.4B by 2020 Says a New Report at ReportsnReports.com

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The healthcare market of Mexico has significant potential for growth. The increasing elderly population, prevalence of non-communicable diseases, improvements in regulatory guidelines, government support for the healthcare sector, and the North American Free Trade Agreement, which assures its members protection of intellectual property rights, provide the impetus for the growth of the Mexican pharmaceutical market.

The pharmaceutical market was valued at approximately $10 billion in 2008, and is projected to reach approximately $22.5 billion by 2020 at a Compound Annual Growth Rate (CAGR) of 7%. In 2010, the Mexican pharmaceutical market was the 14th largest pharmaceutical market in the world, and second in Latin America after Brazil (Daiichi Sankyo, News Release, August 2, 2011).

The prevalence of non-communicable disease is increasing due to the increasing elderly population, which accounted for approximately 7% of the population in 2013, as well as changes to food and lifestyle habits. The government has been successful in implementing steps needed to achieve universal healthcare coverage, such as reforms in the System of Social Protection in Health (Sistema de Protección Social en Salud). In 2012, approximately 56 million people in Mexico were covered by Public Health Insurance (Seguro Popular, PHI) (Bristol, 2014; OECD, 2011). The rest of the population uses either social security coverage for healthcare or private healthcare insurance.

Regulatory regulations have attracted significant investment in Mexico's pharmaceutical industry. The pharmaceutical sector had a cumulative Foreign Direct Investment (FDI) of $2.9 billion from 2005 to 2012. In 2012, Mexico received a total of $981M in FDI in pharmaceutical sector. The US, Luxemburg, Ireland, Canada, and Japan were main investors in the Mexican industry. The share of multi-national companies in Mexico is high, compared with the share of domestic companies in the total pharmaceutical market. The leading multi-national companies are Pfizer, Merck, Sanofi, and Novartis, the leading domestic players are Genomma Lab Internacional and Laboratorios Liomont.

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