Pharmaceutical Overview

1

Pharmaceutical Overview (1)

• Pharmaceuticals partially covered through various health insurance schemes

• Public insurance provision dominated by generics• Traditionally, three main classes of medicines in the market:

- Innovative (patented); - “Interchangeable generics” (approved and registered by MoH based on

bioequivalence tests); and - “Similar generics” or similares (generics approved and registered without

bioequivalence tests)

• Public insurance provision of similares phased out 2005-present

2

Pharmaceutical Overview (2)

• High volume of medicines sold through private pharmacies due to insufficient public health insurance coverage of pharmaceuticals

• Private financing of medicines far outweighs public financing: 80% vs. 20%

• Majority of private spending on medicines is OOP (over 95%)• Still, overall, lowest consumption of pharmaceutical products per

capita in OECD

3

Snapshot of Pharmaceutical Spending

4

• Pharmaceutical spending as % TEH 2nd highest in OECD (27.1% in 2009)

• Per capita spending 2nd lowest in OECD (2009)• Medium growth in per capita pharmaceutical spending in 2000s,

from very low rates at beginning of decade• Between 1999-2009 per capita spending almost tripled from

USD 87.3 to USD 249.9 (PPP)• Incremental growth expected: pharmaceutical sales projected to

rise from US$13 billion (MXN161 billion) in 2011 to US$18 billion in 2015

Total Expenditure on Pharmaceuticals and Other Medical Non-durables, % TEH, Mexico, 1999-2009

Source: OECD Stat (2012)

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

5

10

15

20

25

30

5

Total Expenditure on Pharmaceuticals, % of TEH, 1999-2009, Mexico and Select OECD Countries

Source: OECD Stat (2012)

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

5

10

15

20

25

30

Mexico

United States

Germany

Japan

France

6

Total Per Capita Spending, Pharmaceuticals and Other Medical Non-durables, US$ PPP, Mexico, 1999-2009

Source: OECD Stat (2012)

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

50

100

150

200

250

300

7

Total Per Capita Spending, Pharmaceuticals and Other Medical non-durables, US$ PPP, 2010 or Closest Year, OECD

Source: OECD Stat (2012)

United

Sta

tes

Canad

a

Irelan

d

Greec

e

Germ

any

Franc

e

Japa

n

Belgium

Spain

Slovak

Rep

ublic

Austra

lia

Hunga

ry

Austri

a

Icela

ndIta

ly

Switzer

land

Portu

gal

Nethe

rland

s

Sweden

Sloven

ia

Finlan

d

Korea

Luxe

mbo

urg

Norway

Czech

Rep

ublic

United

King

dom

Denm

ark

Poland

New Z

ealan

d

Eston

ia

Mex

icoChil

e0

100

200

300

400

500

600

700

800

900

1000

8