Solid Growth Expected in Mexican OTC Sector

According to Mexican OTC medicines producers' association AFAMELA, OTC medicines accounted for 33 percent of local drug unit sales in the first eleven months of 2004, and roughly 18 percent of the market in terms of sales. The OTC market's value is currently estimated at US$1.7bn.

The studies highlight several factors in the strong growth in Mexico's OTC market in recent years, including a greater tendency for consumers to self-medicate as prescription drug prices outpace real earnings growth. Further, local producers also cite climatic factors in the expansion of the local market for influenza treatments.

In the medium term, consolidation in the sector is also expected to enhance availability, with the recent purchase by German healthcare major Bayer of Swiss drugmaker Roche's OTC business expected to give the company pole position in the Mexican sector. The acquisition will bring together leading OTC brands such as Alka-Seltzer and Redoxon. Meanwhile, local companies with a strong OTC presence include drug group Techsphere and skincare products maker Laboratorios Darier, which recently formed an alliance with Germany's Merz Pharmaceuticals.

The share of OTC medicines in Mexico's drug market is expected to increase in the medium term, with the products' low cost and easy availability bringing the segment's value to US$1.9bn by 2007.