In a move that signals a strategic shift in Mexico’s industrial and health policy, the federal government has issued a new presidential decree aimed at strengthening the country’s pharmaceutical and medical devices sector. This introduces a set of measures designed to incentivize local production and research by leveraging public procurement. As Mexico seeks to position itself as a regional hub for biopharmaceutical innovation, this new policy framework outlines the government’s vision for reducing dependency on imports while encouraging investment and technological development within national borders.
On June 3, 2025, the Mexican government published a presidential decree aimed at strengthening the national pharmaceutical and medical devices industry.The measure introduces a new policy framework that leverages public procurement as a tool to promote local investment and production across the healthcare supply chain—including medicines, medical devices, and R&D activities. Starting in fiscal year 2026, consolidated public tenders will include an evaluation system that awards additional points to companies with manufacturing infrastructure or scientific research capabilities in Mexico.
The decree is aligned with the broader goals of Mexico’s 2025–2030 National Development Plan, which seeks to reduce import dependency, ensure universal access to medicines, and position the country as a regional hub for biopharmaceutical innovation. A new Inter-Ministerial Committee will also be created to review investment proposals and facilitate agreements with private-sector actors to enhance local capacity. In addition, the government has committed to strengthening COFEPRIS, the national regulatory agency, to streamline regulatory processes and accelerate market entry, ensuring alignment between industrial policy and health system efficiency.
Implications for the Industry:
The decree marks a significant shift in industrial policy. While it no longer mandates a manufacturing facility in Mexico as a prerequisite for participation, as initially considered, it still introduces preferential conditions that could act as non-tariff barriers. This adjustment followed engagement with industry representatives, who voiced strong concerns over the original policy’s feasibility. The government showed openness to dialogue and softened the implementation to focus on incentives rather than restrictions.
Nevertheless, several risks remain. Experts warn that favoring domestic operations through point-based evaluations may discourage participation from global innovators, particularly in biotech and advanced medical technologies, where local replication is neither technically nor economically viable. This could limit patient access to cutting-edge treatments and undermine Mexico’s competitiveness in the global health ecosystem
The new presidential decree represents a clear attempt by the Mexican government to integrate industrial policy with public health priorities. By offering incentives for local investment and strengthening regulatory infrastructure, the policy could drive long-term growth and innovation in the sector. However, its success will depend on balanced implementation, open dialogue with industry stakeholders, and careful consideration of potential unintended consequences—particularly regarding market access and international collaboration. As the 2026 implementation approaches, both public and private actors will be watching closely to see how the decree translates from policy into practice.
Conclusion
The decree signals a strategic push to align health and industrial policy in Mexico. Its success will depend on maintaining collaboration with the private sector, ensuring fair access to innovation, and avoiding unintended barriers that could limit global partnerships or patient access to advanced treatments.
