Pharmaceutical companies unveil 12 billion peso investments in Mexico
Mexico's Pharmaceutical Sector Experiences Robust Growth with Significant Investments
Mexico's pharmaceutical sector is witnessing a period of substantial growth and strategic transformation, as major multinational companies and domestic players invest heavily in the country. This trend aligns with Mexico's national plan to boost local pharmaceutical manufacturing, reduce dependency on imports, and enhance technological and scientific capabilities.
One of the most notable investments comes from Boehringer Ingelheim, a German company, who plans to invest 3.5 billion pesos ($187.2 million) over multiple years to convert their tablet production plant in Xochimilco into the world’s largest of its kind. The expanded facility is expected to produce 5 billion pills annually, supplying anti-hypertensive and anti-diabetic drugs to the local market and exporting to over 40 countries.
Another significant investor is Bayer, who will invest 3 billion pesos over the next five years, to be distributed across their 14 sites in Mexico. This investment will increase their capacity to produce active pharmaceutical ingredients at their Orizaba, Veracruz plant and add production lines for new medications at their Lerma, México state plant.
AstraZeneca, a British-Swedish multinational pharmaceutical and biopharmaceutical company, will invest $120.7 million through 2026 to increase clinical research and expand manufacturing, focusing on treatments for type 2 diabetes and chronic kidney disease. Their investment in Mexico includes expanding their medication production plant in Naucalpan, Mexico state, and creating 600 direct jobs and 2,500 indirect ones.
Carnot Laboratories, a Mexican company, will invest 3.5 billion pesos over the next five years, building a new production plant in Villa de Tezontepec, Hidalgo. The new facility is expected to generate 600 direct jobs and at least 5,000 indirect ones. Carnot's new plant will be a strategic center for pharmaceutical and biotechnological manufacturing with cutting-edge technology, making it a key player in Mexico's growing pharmaceutical sector.
In addition to these investments, four other pharmaceutical companies (Kener, Genbio, Neolpharma, and Neolsym) have announced investments totaling over 13 billion pesos. AstraZeneca reaffirms their commitment to Mexico's economic initiative, "Plan Mexico".
The development of Mexico's pharmaceutical sector is a high priority for the federal government, due to its positive impact on the health of Mexicans and the need to prepare for future pandemics. The sector is forecasted to grow from $4.39 billion in 2024 to $7.42 billion by 2033, driven by increased demand for generics, prevalence of chronic diseases, enhanced pharma manufacturing capacity, and supportive government policies aimed at ramping up domestic API production to reduce import reliance.
With these investments and government support, Mexico is well-positioned to become a major player in the global pharmaceutical market, reducing its reliance on imports, especially from Asian countries including China, and enhancing its technological and scientific capabilities.
- The robust growth and strategic transformation of Mexico's pharmaceutical sector has attracted not only domestic players but also international businesses, such as Boehringer Ingelheim, Bayer, and AstraZeneca, who have made significant investments in the country's economy, totaling billions of pesos.
- Beyond pharmaceutical giants, technology-focused investments are also shaping Mexico's future in the global market, with companies like Carnot Laboratories, building a new production plant equipped with cutting-edge technology in Villa de Tezontepec, Hidalgo.
- These investments in the pharmaceutical sector not only bolster Mexico's economy but also contribute to the health sector, as companies like AstraZeneca increase their focus on treatments for chronic diseases like type 2 diabetes and chronic kidney disease, aligning with the federal government's priority to prepare for future pandemics. In turn, this growth positions Mexico as a key player in the global market, reducing its reliance on imports and enhancing its technological and scientific capabilities.
