Mexican Generics Makers Face Low Consumer Acceptance

Generics makers in Mexico continue to battle negative public perceptions of the sector and pharmacies' reluctance to stock the products. Local generic drugmakers' association DINAMEGI estimates that generics have little more than a 2.7% share in Mexico's drug market.

Much of the slow growth has been attributed to the lower profit margins that generics offer to local retailers, as well as the superior marketing capability of many foreign branded drug firms. Consumer confusion over illicit copy products has been blamed for the fact that sales of generics grew only 1% in 2003 to roughly US$59.6mn.

Another problem for the sector is the cost of the now mandatory government bioequivalence trials, which can reach up to US$70,000 per product. Meanwhile, some domestic producers are attempting to get around the retail problem by developing their own distribution chains. With the bulk of the Mexican manufacturing sector now opting to pursue generics, this seems the only course of action likely to allow many firms to break their current mould of limited, regional brand awareness.