The Mexican healthcare industry needs to readjust for the changing demographics of its citizens. The declining birth rate and increasing share of the elderly population represents an impending healthcare challenge for the Mexican government, as healthcare expenditure will be driven up, while there will be fewer taxpayers to support it.
With a population of approximately 112 million, Mexico has a large work force available to support the country's economy. However, the Mexican labour forces are also generally low skilled, with less schooling than those of developed industrial economies, and so low labour productivity and low real wages amplify this burden further.
There are currently more than 200 pharmaceutical companies operating in the country and Mexico's pharmaceutical market has been forecast to increase at a compound annual growth rate (CAGR) of 7%, from a valuation of $8.1 billion in 2005, to be worth $22.5 billion by 2020.
Factors contributing to the growth of Mexico's pharmaceutical market include the growth in hospital drug expenditure, a rise in drug consumption, as ageing Mexicans spending power increases, prescription drug price increases, further consolidation of the industry and a still infant bioequivalent generic sector, as well as an emerging biosimilars sector.
Key players within the Mexican pharmaceutical market include Pfizer, Sanofi and Genomma Lab.
The US and European countries are the major export markets for the Mexican pharmaceutical industry, and patent expiries of blockbuster drugs over coming years are also expected to act as a driver for the generic pharma export market.
The cost of healthcare is generally lower than one might expect to pay in the US. On average, prescription drugs that are manufactured in Mexico are about 50% cheaper compared to similar drugs manufactured in the US.
For more information on the Mexican healthcare market, see the latest research: Mexican Healthcare Market Report
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