Industry Trend Analysis - Supply Chain Disruption Poses Drugmaker Risks - NOV 2017

BMI View: Multinational pharmaceutical firms will face challenges over the coming years due to supply chain disruption. Both the wholesale and retail markets have undergone significant changes in recent years, with the consolidation of vertically integrated major pharmacy chains increasing cost- competitiveness. Drugmakers must adapt to this shifting landscape to benefit from the opportunities present in the market.

Pharmaceutical cost-containment will become more prominent in the Mexican pharmaceutical market, driven by the rising cost of chronic disease treatment and the limited available funds for public healthcare payers. These policies will repress hospital and reimbursed medicine sales growth, posing significant risk to innovative drugmakers. In addition, there has been significant change within Mexico's pharmaceutical supply chain in recent years which will pose additional headwinds. Here we analyse this shifting landscape, with specific focus on the wholesale and retail sectors.

Pharmacy Chains Suffocating Retail Sector

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