Private Label Drugs to Shake Up Mexican Market

Own-brand pharmacy drugs are currently one of the Mexican drug market's fastest-growing segments, with expansion of 50% expected this year. Large retail chains are increasingly embracing the sector, which US-based Abbott Laboratories claims could reduce ethical firms' sales in Mexico by up to 10%.

US-Mexican OTC and generics firm Quifa-Perrigo estimates that off-patent drugs of this type are, on average, roughly half the price of leading branded products. A key factor behind poor generics sales in Mexico has historically been low consumer acceptance, a problem that the endorsement of major retailers such as Comercial Mexicana and Walmex may help to correct.

Despite this growing competitive threat, some research-based drugmakers such as Roche are confident that their branding capability will enable them to continue strong product sales, even after patent expiry. However, smaller local prescription drugmakers are eyeing this high-potential alternative to manufacturing deals with multinationals, as several blockbusters are set to go off patent in the medium term.