Six drug manufacturers have signed an agreement with the Hidalgo State of Mexico to establish a large pharmaceutical cluster for manufacturing and logistics — Dr. Reddy Laboratories, Zydus Cadila, Glenmark Pharmaceuticals, Torrent Pharmaceuticals, Hetero Drugs, and Ackerman Pharma.
The step, facilitated by the Ministry of Commerce of the Union, is expected to help them enter neighboring markets in Latin America. A Ministry of Commerce official said a few Indian drug manufacturers have also agreed, in principle, to set up manufacturing facilities in Hidalgo to make Mexico their production and logistics hub and cater to regions in Latin America.
Last year, the Mexican pharmaceutical industry, Latin America’s second-largest after Brazil, was worth $10.6 billion. Considered one of the region’s most advanced drug markets, the country is home to some 200 pharmaceutical firms, including some major multinationals.
Mexico has tight regulatory requirements, superior to most of its neighbors in the South, and last year its pharmaceutical imports amounted to $4.3 billion. In the first five months of the current fiscal year through August, India recorded a 67.6 percent rise in drug exports to Mexico to $92 million, from around $55 million in the same time last year. Total exports to Mexico were about $160 million in the previous fiscal year.
The letters of intent deliver preferential status to Indian generic drug manufacturers in the public procurement of medicines, except for easier drug registration in Mexico and exports to other Latin American markets from there, officials said. There are already production facilities in Mexico for some of the companies that signed the agreement with the Mexican state, while others have marketing offices. Currently, about 21 Indian drug firms have set up business operations in Mexico.