• CHALLENGE: The López Obrador administration effort to cut out large wholesalers for the public health sector -in the name of rooting out corruption- has created a logistical challenge for pharma manufacturers, forcing even big companies to enter into the distribution aspect of the sector.
• TENDERS: Starting in the second half of 2019, the Mexican Government allocated the equivalent USD 906 million in resources to buy medicines, medical devices and other inputs for its public health sector. However, Mexican Treasury banned the longtime handful of wholesalers dedicated to it.
• EFFORT: “We developed capabilities that we did not have. It required a great deal of effort in human capital, and a new system was established. We also added people in finance and operations because the handling of medicines is very relevant”, said Carlos Baños, VP for Eli Lilly for Latin America.
• TRANSPORT: Given that the new centralization of pharma procurement, under Mexico’s Treasury Department left out wholesalers, up to four firms have had to lay off 2,000 employees. The US Commerce Department warns of the evolving nature of the sector.
