President Claudia Sheinbaum and Health Minister David Kershenobich on Thursday presented the Health Investment Project, which the administration says will lower medicine costs and reduce Mexico’s dependence on foreign sources of medications.

The project will be funded by investments from various pharmaceutical companies totaling 21 billion pesos (US $1.2 billion), which will be used for seven different production ventures. Companies announced Thursday as participants are Abbott, Bristol Myers Squibb, Grupo Neolpharma, Opella, Kener, Liomont, Sanofi and Bayer.

“We appreciate the confidence [these companies] are showing in Mexico,” Sheinbaum said. “We are seeking greater production in Mexico, so we don’t have to import so much from abroad.”

The Health Investment Project — which will also focus on clinical research — is linked to Sheinbaum’s Plan México, a sweeping economic and industrial strategy designed to stimulate national growth and position Mexico as an independent global production leader. 

Sheinbaum said the project will also play a critical role in establishing health sovereignty, i.e., ensuring Mexico has the capacity to develop and produce the medicines and vaccines its population needs.

Kershenobich said the investment will play a critical role in strengthening the health sector as well as Plan México.

“We have strengthened the investment climate and potential for development in the pharmaceutical industry,” he said. “Having access to production in Mexico will be a key part of continued growth in the pharmaceutical industry.”

What is each investor contributing?

Abbott will invest 3.5 billion pesos (US $202 million) and expects to create 1,200 direct jobs by 2030, while Bristol announced an investment of 1 billion pesos (US $58 million) over the next four years. 

“This project is focused on strengthening Mexico’s health sovereignty through expansion and investment, clinical management, and the implementation of local manufacturing processes,” Oswaldo Bernal, CEO of Bristol Myers Squibb, said.

For its part, Liomont will invest more than 4 billion pesos (US $231 million) over the next five years in order to expand its infrastructure and technological capabilities in Mexico.

Grupo Neolpharma announced a 750 million-peso investment (US $43 million), which it says will create 250 direct and 900 indirect jobs.

Opella pledged an investment of 2.3 billion pesos (US $132.6 million), and expects to produce 50 direct and 450 indirect jobs, while Kener Labs intends to invest 5.36 billion pesos (US $309 million), resulting in 220 direct and 550 indirect jobs.

Bayer Mexico will invest 150 million pesos (US $8.7 million) in clinical studies, while Sanofi has committed to an insulin and technology transfer project in Mexico with a potential investment of over 2 billion pesos (US $115.3 million).

With reports from El Universal, La Jornada and Reforma