MEXICO, INDIA CONSIDERING CLOSER ECONOMIC CO-OPERATION

Officials from Mexico and India met recently to discuss ways to increase trade, investment and economic co-operation between the countries. Indian companies have invested more than US$1bn in Mexico and are beginning to explore the possibilities offered by the country's US$9.3bn drug market. A number of major Indian generics companies have already invested in manufacturing facilities in Mexico and have begun creating joint ventures with local firms.

Mexico is keen to encourage this trade. In March 2005, an 11-member delegation comprising representatives of the Mexican drug industry visited India. Discussions are reported to have focused on easing Indian generics makers' access to the Mexican market. Delegation members also inspected Indian manufacturing facilities and a number of research institutions.

Generics play a minor role in Mexico at the moment, accounting for only 2-3% of the total market, although industry observers acknowledge that there is considerable growth potential. Traditionally, consumers have a preference for branded drugs due to uncertainty over the safety and efficacy of generics and the reluctance of doctors to prescribe them. Generics are also threatened by the popularity of low-priced private label drugs, and the prevalence of illicit copies, known as "similares."