Mexican Research Sector Cites Lack of Investment

According to local studies, investment in R&D in Mexico remains at low levels, continuing a trend begun as long ago as the first half of the twentieth century. Pharmaceuticals group Canifarma has joined protests that the multinational drug sector continues to overlook Mexico as a potential research base.

In the 1940s and 1950s, reinvestment of a portion of drug companies' sales revenue was obligatory in the country under the so-called Fondo Mexico scheme. Local players claim that foreign investment in drug research has since failed to compensate for the end of Mexico's statist policy on the sector. Many also cite the recent fortunes of Syntex, which became Mexico's fifth-largest exporter in the 1950s. The company, an early pioneer of oral contraceptives, is now a local unit of Swiss drug major Roche.

Contrary to the claims, however, it appears that significant discovery work continues to be carried out by multinationals in Mexico. Observers cite as evidence the recent development of UK drug major GlaxoSmithKline's Rotarix vaccine for gastroentiritis associated with the rotavirus. While critics argue that Mexico's proposed patent reforms are likely to lead to a period of contraction, supporters argue that investment will follow the introduction of internationally recognised standards in intellectual property rights. Mexico's continued significance as a drug market should also be a catalyst for investment, as further likely developments in the healthcare system are expected to increase market value to US$7.8bn by 2007.