COFEPRIS: Using regulation to better protect the population’s health and transform the market. The Case of Mexico September 2016 Regulated Sectors by COFEPRIS COFEPRIS is an agency with broad regulatory powers, which main activity is the prevention against sanitary risks. It is related with industries that represents 9.8% of GDP, and 10.94% of foreign Mexican trade. Regulated Sectors Distribution 1. Food and beverages Marketing 2. Health supplies 3. Health services Production Imports 4. Emergences 5. Pesticides, Vegetable nutrients and Toxic substances 6. Cosmetics and beauty products 7. Environmental Risks 8. Labor Safety and Health Retail and Suply Exports Advertising The value of the products regulated by COFEPRIS represents 9.8% of Mexican GDP. Industries Regulated by COFEPRIS Billions (2009 last available year) 700 624 600 500 400 237 300 151 200 139 100 - 24 Industria Alimentaria Industria Tabaco y Bebidas Industria Farmacéutica Industria química Fabricación de Fertilizantes, pesticidas y otro agroquímicos 10 Fabricación Material Desechable de uso médico, dental, oftálmico 3 COFEPRIS regulates 44 cents out of every peso spent by households in Mexico through 3 categories: Food, beverages; health care; and personal care products. Household Expenditures per Category (as a % of total household expenditures)* 34.0% Food, beverages and tobacco Health care products Personal care products 56.2% Others 2.5% 7.3% Source: Encuesta Nacional de Ingresos y Gastos de los Hogares (ENIGH, 2012). INEGI (2013). * Only current monetary expenditures are considered. COFEPRIS regulates about 11% of the total trade flow between Mexico and the rest of the world (64% of GDP). 3.5 25,214 mdd 3 % of total trade flow 2.5 2 15,037 mdd 10,551 mdd 1.5 6,747 mdd 1 6,422 mdd 5,394 mdd 5,142 mdd 4,732 mdd 0.5 0 2,200 mdd Instrumentos y Otros aparatos de Productos óptica y Alimentarios y médicos Derivados de Materias Primas Productos químicos orgánicos e inorgánicos Source: DEOI with data from Banco de Mexico (2014). Productos farmacéuticos Aceites escenciales, Jabon, Ceras, Lubricantes Productos de las industrias químicas Carne y despojos comestibles Bebidas y vinagre Leche, lácteos, huevos y miel 1,421 mdd Pescados, crustáceos y moluscos 439 mdd Tabaco y sucedáneos elaborados 5 Pharmaceutical Policy 6 Characteristics of pharmaceutical policy – Rests on four fundamental pillars – The pillars are aligned with the 3 priorities of health policy established by the Federal Government. – Its main objective is to improve access of the population to a well-supplied drug market that offers innovative and generic medicines at the best prices. Pillars of Pharmaceutical Policy Government’s Health Policy Priorities A regulatory agency that guarantees the safety, quality and eficacy of all drugs. A reliable scheme to authorize sanitary registrations. Removal of barriers to market entry for products that are safe and of high quality. Harmonization of the sanitary agency with best international practices. 1. Effective Access 2. Service Quality 3. Prevention Evolution of the Mexican Pharmaceutical Regulation During this period the market 1. The legal requirement of bioequivalence is authorizations for medicines had implemented. indefinite duration and without the legal 2. A netwrork of laboratories obligation to be bioequivalent. is created to perform bioequivalence tests through Authorized Third Parties. 1920 First Saniitary Registration issued in Mexico 2001 July 5 COFEPRIS is created 2005 2009 Enactment of Reform to the the National Health Biotechnological Law Medicines Act. Domestic market with only two types of medicines: 1. Innovative Drugs 2. Generics 2010 Implementatio n of National Healh Law Reform on renewal of Sanitary Registrations 2011 2012 2014 PAHO WHO recognizes SecondaryCOFEPRIS as declares COFEPRIS Regulation NRA of a Functional Regional s for NRA Biotechnol Reference ogy Medicines Benefits of Authorized Third Parties Prórroga Registro Average processing time for filings of drug products (months) Modificación • Third Parties issue a “Pre-dictamination” certificate, which must be submitted together with the complete paperwork when filing for a New Registration, an Extension or a Modification to an existent Registration to Cofepris. The “Pre-dictamination” certificate of Third Parties allow to reduce signifcantly the processing time of each individual filing. For example, in the case of new registrations the processing time was reduced by an average of approximately 2 years. Type of filing • Trámite COFEPRIS 30 Trámite con Pre-dictamen 4.5 Trámite COFEPRIS 6 Trámite con Pre-dictamen 3.75 Trámite COFEPRIS 2 Trámite con Pre-dictamen 0.5 0 5 10 15 Months 20 25 30 9 Authorized Third Parties • There are 19 Authorized Third Party Companies currently in operation and 8,456 products have been authorized in an average of less than 20 days. • The following table shows the type of procedure, the total number of filings submitted and its composition between approved and in process. Filings submitted with Pre-dictamination of Authorized Third Parties Procedure Number of Filings In process Approved New Registration 3,342 410 2,931 Extensions 772 36 736 Modification 2,189 182 2,007 New Registration 715 95 592 Extensions 495 58 425 Modification 2,046 254 1,765 9,559 1,035 8,456 Medical Devices Medicines Total The approval of those registers have been achieved with a team of 105 evaluators in the verification units; they also contribute to the activities performed by the 141 evaluators from COFEPRIS, in order to increase the productivity in 10 the issuing of registers. Generics Policy • The Mexican Government has released 37 active substances. This corresponds to 491 new registrations of generic medications, which address 71% of Mexico´s mortality causes. • The Generics Policy of the Mexican Government has allowed an average reduction of 61% in medicines prices, which represents average savings of $1,047 pesos for the consumer. Number of Packages Released Substances New Generics Options Accumulated Savings (billions of dollars) Mortality causes attended, as a % of total of deaths Additional Patients 14 37 491 24,632 71% 1,998,202 • There is no international record of a generics releasing strategy of such magnitud and in a reduced period of time. 11 • With this increse in the supply of medications, the most frequent and costly diseases, which correspond with 71% of mortality causes in Mexico, are covered. Causes of Mortality in Mexico (% of total of deaths) Atorvastatine Valsartan Clopidogrel Losartan Irbersartan Telmisartan 18.1 29.0 14.1 Lamivudine Abacavir Meropenem Valganciclovir Escitalopram Donepezil Quetiapine Olanzapine 12.2 2.1 12.2 5.3 7.0 Source: INEGI (2014). * Linezolid is a wide spectrum antibiotic used mainly in pulmonary diseases. Montelukast Cefepime Mometasone Linezolid* Pioglitazone Imiquimod Docetaxel Gemcitabine Bicalutamide Anastrozol Pemetrexed Zoledronic Acid Topotecán Bortezomib Cardiovascular Endocrinology Oncology Pulmonary Neurology Infectious and transmittable Other generic medicines Other diseases Private Market The average reduction in prices of generics has been 61%, which represents an average saving of $1,047 pesos for the consumer. 6000 Precio de Innovador (Promedio) Average price of innovator Precio de Genérico (Promedio) Average price of generics Average reduction in prices: $1,052 (Reduction of 62%) 5000 Reduction of 82% in price Pesos 4000 3000 2000 Reduction of 61% in price Reduction of 88% in price Reduction of 89% in price Reduction of 86% in price Reduction of 79% in price Reduction of 81% in price Reduction of 83% in price Reduction of 81% in price Reduction of 80% in price Reduction of 68% in price Reduction of 72% in price Reduction of 73% in price Reduction of 70% in price Reduction of 59% in price 1000 0 Source: COFEPRIS (2015). 13 • For example, treatments for cardiovascular diseases have decreased 89%, for oncological diseases, 88%, and for diabetes mellitus, 86%. Average price of innovator Precio de Innovador (Promedio) 18000 Average price of generics Precio de Genérico (Promedio) Reduction of 29% in price 16000 14000 Average reduction in prices: $1,052 (Reduction of Pesos 12000 10000 8000 6000 4000 Reduction of 59% in price Reduction of 55% in price 2000 0 Source: COFEPRIS (2015). Reduction of 54% in price Reduction of 53% in price Reduction of 53% in price Reduction of 53% in price Reduction of 49% in price Reduction of 46% in price Reduction of 46% in price Reduction of 42% in price Reduction of 39% in price Reduction of 27% in price Reduction of 27% in price Public Tender prices Price reduction of generics averaged 60%. The largest decreases are related with cardio vascular diseases (90%), Diabetes (91%) and oncological diseases (82%). Precio Promedio en Licitaciones Públicas IMSS 2011 Average IMSS public auction price indel 2011 $6,000 Pesos $5,000 $4,000 PrecioAverage Promedio en public Licitaciones del IMSS 2012 IMSS auction Públicas price in 2012-2015 Reduction of 11% in price Average reduction in prices: $440 (Reduction of 60%) Reduction of 82% in price $3,000 $2,000 $1,000 Reduction of 94% in price Reduction of 91% in price Reduction of 91% in price Reduction of 90% in price Reduction of 76% in price Reduction of 48% in price Reduction of 46% in price Reduction of 43% in price Reduction of 24% in price Reduction of 19% in price $0 Source: IMSS (2012, 2013) and COFEPRIS (2015). 15 Price Comparison between Mexico and Central America • A comparison between the generics market of Mexico and Central America shows that medicine prices are 71% lower in Mexico for drugs used for oncological and cardiovascular diseases. • Moreover, medicines used in the treatment of type 2 Diabetes show prices that are 66% lower in Mexico than in Central America. Price Comparison in the Generics Market in Mexico and Central America (2014)* México (current $US) Prices in current US dollars $350 Average Central America (current $US) Promedio Centroamérica $307.60 $300 $250 $200 $150 $100 $87.00 $50 $0 $9.00 Oncology Oncología $31.40 Cardiovascular $5.32 $15.67 Diabetes Source: COFEPRIS (2015) with data from the pharmaceutical market in Mexico and IMS Health (2014). * The following countries are considered for Central America: Panama, Costa Rica, Honduras, Guatemala, El Salvador and Nicaragua. The following active substances were considered by therapeutic group: Oncology (Bicalutamide, Imiquimod and Gemcitabine); Cardiovascular (Atorvastatine, Clopidogrel, Valsartan, Irbesartan and Losartan); Diabetes (Pioglitazone). Price Comparison between Mexico and South America • A comparison between the generics markets of Mexico and South America shows that, on average, the prices of medicines for cardiovascular diseases are 55% lower in Mexico. • Moreover, medicines used in the treatment of diabetes are 83% lower in Mexico than in South American countries. Price Comparison in the Generics Market in Mexico and South America (2014)* MEXICO CURRENT US Prices in Current US Dollars 120 100 AVERAGE SOUTH AMERICA CURRENT US 110.29 87 80 60 40 20 0 9 ONCOLOGY 30.71 19.81 CARDIOVASCULAR 5.32 DIABETES Source: COFEPRIS (2015) with data from the pharmaceutical market in Mexico, Argentina, Brazil and Colombia (2014). * The following countries were considered for South America: Argentina, Brazil and Colombia. The following active substances were considered by therapeutical group: Oncology (Bicalutamide); Cardiovascular (Atorvastatine); Diabetes (Pioglitazone). Innovation policy Agreement for the promotion of innovation • The Mexican Government established an innovation policy relying on regulatory cooperation among different sanitary agencies in order to expedite the entry of new drugs to Mexico. This policy consists of: 1. Equivalence Agreements of new drugs with the US, Canada, Australia, Switzerland and the European Union. 2. To encourage clinical research, Mexico substituted the requirement of a foreign free sale certificate with a report of clinical studies in Mexican population. Days to Grant Registration for Innovative Drugs 360 270 220 200 203 180 180 150 120 120 India Argentina Reino Unido Estados Unidos China Australia España Singapur Arabia Saudita 0 Canadá 100 90 60 México (con acuerdos) 290 Brasil 300 300 México (antes) Number of Days 400 Agreement for the Promotion of Innovation • The opportunity cost associated with the days a file is processed has decreased in approximately 40 million dollars (500 million pesos). This cost was estimated in 45 million dollars (570 million pesos).* • Further, with the equivalence agreement on new molecules, the regulatory burden for each file decreases in 82%. Benefits of the agreement on new molecules 45 million dollars Before the agreement With the agreement Decrease in opportunity cost of 40 million dollars (500 million pesos). 7 million dollars Reduction in regulatory burden of 82%. 100% 18% Oportunity Cost (in million dollars) Regulatory Burden (%) * Calculation of the opportunity cost consists of the daily administrative cost to process registrations for new molecules multiplied by the number of days requeried to grant authorization. 19 Innovation Policy • As a result of the innovation policy, from 2012 to 2016, COFEPRIS issued 213 new marketing authorizations for innovative medicines, treating 21 different therapeutical classes representing 73% of mortality causes in Mexico. • This represents an increase of 7,000% in the supply of medicines with respect to the 3 registrations issued in 2010. Registros emitidos a medicamentos innovadores • . (2010-2016) 213 From 2012 to 2016, 213 sanitary registrations were issued. This represents an increase of 7,000%, compared to 2010 3 2010 2012-2016 2012-2015 Prices Comparison: Neumological Medicines • Before the entry of the drug Eklira Genuair (Aclidinium bromide) to the Mexican pharmaceutical market, consumers paid, on average, $5,031 pesos for this medication. • Currently, as a result of the equivalence agreements derived from the innovation policy, the price of this medication in the Mexican market is $745 pesos (a price reduction of 85%). Pesos Prices Comparison: Neumological Medicines* $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 $6,996 (in pesos) $5,780 $2,316 $745 Región Centro Región Sureste Before entry to the Mexican pharmaceutical market Región Frontera México After entry to the Mexican pharmaceutical market * For cardiovascular medicines, the active substance Apixaban is considered. Transportation costs and time used to obtain the medicine are considered. • Central Region: Mexico City and its Metropolitan Area. • Southeast Region:Yucatan Península and Cancún. • Border Region: Includes the city of Tijuana. Prices Comparison: Medicines for Diabetes • The Mexican Government has introduced five new medications to the Mexican pharmaceutical market as a platform of global launching: two are used in the treatment of Type 2 Diabetes; one more is used in the treatment of Chronic Obstructive Pulmonary Disease (COPD). Another medication is used in the treatment of pulmonary hypertension and the last medicine is used, in combination with a medical device, in the treatment of prostate cancer. • The drug Empagliflozine is currently sold in the United States at a price of $316 USD ($4,679 pesos). The price of this medicine in Mexico is $1,222 pesos, that is, 74% lower than in the United States. Prices Comparison: Medicines for Diabetes* (in pesos) $5,000.00 Pesos $4,000.00 $3,000.00 $2,000.00 $4,679 Price of the medication is 74% lower in Mexico $1,222 $1,000.00 $0.00 México * Prices in México were obtained in Wal Mart supermarkets. Prices in the United States were obtained in Wal Mart supermarkets. EUA Removal of the requirements to have a manufacturing plant on national soil In 2011 the Mexican Government removed the requisite to have a manufacturing plant in Mexico to market a medicine Approval of the first 633 registrations in this category which had been requested more than 10 months before. BENEFITS: • Increase the supply of pharmaceuticals. • Availability of new molecules for research and development. Impact: Investment above 100 million dollars in the following five years have been made. 100% increase in the workforce of the firms involved. 23 Deregulation of Medical Devices The new scheme for the Medical Devices clasification was performed in two stages: 1. Stage 1: December, 2011 (1,669 products). 2. Stage 2: January, 2015 (573 products). Medical Devices No Yes Low List of products that are Not Medical Devices Stage 1: 1,669 products. Stage 2: 2,242 products. 98 “IA” I Medium High II III Deregulation program of Medical Devices • The Medical Devices Desregulation program implemented by COFEPRIS, gives the following results: Deregulation of Medical Devices Comparative Staged Stage 1 Stage 2 Total 1,669 products 573 products 2,242 products 12.1% 4.1% 16.2% Releasing of economic resources 4,021 million of pesos 1,414 million of pesos 5,435 million of pesos Releasing of economic resources (% of GDP) 0.031% of GDP 0.007% of GDP 0.038% of GDP 12.9% of MD market 4.5% of MD market 17.4% of MD market MD excluded from registration (units) Reduced in the regulatory load (%) Releasing of economic resources (% of MD market) • These actions allow a more efficient use of economic resources for the industry of medical devices. Issuance of Registrations through Equivalence Agreements • The scheme is based upon the recognition of the registrations issued by FDA, Health Canada, and Japan for medical devices of any class and COFEPRIS will issue the corresponding registration in a maximum period of 30 working days. Received Applications Market Value of the applications Reduction in the Regulatory Burden Approved Applications The Incoming Applications Correspond to: (Medical Devices) 4,824 417.5 million dollars in the Mexican market (2.09 million pesos each registration). 40% 64% from FDA 33% from Health Canada 3% from Japan 33% Class 1 40% Class 2 27% Class 3 • To this date 3,681 sanitary registrations have been approved by COFEPRIS. Recognition of foreign Certificates for Good Manufacturing Practices Considering the high impact of the on site visits on the process of approval and renewal of sanitary registrations, Mexico published on June 22, 2011 guidelines to expedite and facilitate the process: 1 2 3 • The certificates of GMP´s issued by FDA (USA), ANVISA (Brazil), Health Canada, Pharmaceutical and Food Safety Bureau (Japan), TGA (Australia) and EMA independently of the country where the manufacturing plant is located will be recognized by COFEPRIS. • The on site verification of GMPs from COFEPRIS will be issued in favor of the manufacturing plant or the firm in question and not the firm doing the import. • Consequently, the recognized GMPs by COFEPRIS could be used by any economic agent to obtain the sanitary registration or the corresponding extension. 27 Recognition of Certificates of Good Manufacturing Practices Savings derived from the measure • The economic benefits are composed in 99% of the opportunity cost of the termination of the administrative process and represent about 200 million dollars. • Each day the termination of an administrative process is delayed it has a cost between $50,000 and $60,000 pesos for the industry. ESTIMATED BENEFITS OF DEREGULATION 1,339 GMP applications eliminated Concept Reduced Aggregated administrative burden Reduced Aggregated Opportunity Cost Total Economic Benefits Savings as percentage of domestic GDP Million USD 15.2 1,850.4 1,865.6 0 0.015% 28 Intellectual Property Rights in Mexico • An international comparison shows that Mexico is a trailblazer regarding the protection of intellectual property rights. • According to the Global Intellectual Property Center (GIPC) Index of the U.S. Chamber of Commerce, Mexico is ranked the highest among Latin American countries. • This index measures three different types of intellectual property rights: patents, trademarks and copyright. It indicates the gaps between advances in legislations and their enforcement. Global Intellectual Property Center (GIPC) Index (overall country scores, 2014) 30 25 6.95 7.34 7.8 8.09 9.45 9.8 10.83 11.6 11.62 11.68 11.72 12.38 13.28 13.55 13.66 14.27 17.4 23.24 24.18 27.15 21.32 14.36 5 25.12 10 27.59 15 28.52 Index 20 0 Source: Global Intellectual Property Center (GIPC, 2014). U.S. Chamber of Commerce. 29 International Harmonization 30 Recognition of COFEPRIS by the WHO for Vaccines • In 2014, COFEPRIS was recognized by the World Health Organization (WHO) for vaccines and was declared as a FUNCTIONAL agency for the period June 2014 - June 2017. • As a result, Mexico entered to the elite group of 28 countries holding this recognition, equivalent to only 14% of the world sanitary agencies. Production of Vaccines (Birmex, 1998-2012) 120 - (Millions of doses MD)) 100 80 - 113.9 (MD) Agents for clinical tests 100 (MD) 100.0 (MoD) 92.4 (MD) WHO Vaccines 75.0 (MD) Biological 79 .0 (MD) 72.1 (MD) 73.3 (MD) 60 - 48.5 (MD) Serums -65.8% 49.8 (MD) 45.4 (MD) 47.2 (MD) 50.7 (MD) 48.7 (MD) 40 - 20 - 0 Bacterial Vaccines 25.6 (MD) 35.8 (MD) Viral Vaccines Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2014 2016 2018 Recognition of sanitary registrations abroad • In 2012, COFEPRIS became the fifth Latin American Agency to receive the PAHO Certification as regional reference body. • As a result of this Certification, sanitary registrations issued by COFEPRIS are currently recognized in 7 countries: Ecuador, El Salvador, Colombia, Chile, Costa Rica, Panama and Belice. 32 Sanitary Market Surveillance 33 Regulation of advertisement versus «miracle» products In its fight against informality, the Ministry of Health proposed the following reforms to the regulation of the Health Law regarding advertisement: • To require sanitary registration and/or advertisement permission to announcers in order to advertise products. • To require the media to cease in 24 hours the advertisement for a product or service that does not comply with the legal provisions. • Increase in 400% the sanctions imposed for not complying with the provisions of the regulation. The reform was published in the Official Gazette on January 19, 2012 and it was enabled on March 2, 2012. 34 Regulation on advertisement of «Miracle» Products • On January 18, 2012 the Health Law was amended aiming to prevent and stop misleading advertisement of fake miracle cures. 60 60 58 52 50 40 45 47 49 CANIPEC agreement 47 41 38 40 Copy Advice´s starts 31 30 20 10 0 PROFECO agreement March 13, 2012. 30 Orders suspension and refusal of advertising Preparation and consensus reforms RLGSMP Publication Entry into force 6 1 Forfeiture 0 0to CV 0 Directo 0 and 0 Innova 0 0 0 0 0 0 0 0 In 12 months, with the implementation of the comprehensive strategy by COFEPRIS, the advertisement of unauthorized products was reduced in 100%, from 58 to 0 products with media appearances. 0 35 From January 2011 to March 2012, media appearances of such “miracle” cures was reduced about 87.4%. In november, 2015 there were no media appearances. Advertisements per month (January 2011 - November 2015) 3,500 3,000 2,950 2,929 2,970 2,571 2,468 2,307 2,222 2,1332,212 2,012 1,9031,973 2,000 2,500 1,500 1,386 1,000 0 175 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 500 36 • The strategy of sanitary surveillance includes seizures of tobacco, alcohol, clenbuterol, «miracle» products and health supplies. • From 2011 to Junly 2016, a total of 58 slaughterhouses have been suspended. • With this strategy COFEPRIS has increased its efficacy in 67,885% during 2011 – July 2016 compared with 2010, on average. Sanitary surveillance: Inspections and forfeiture of products (2010-2016*) Product 2010 2011-2016 Total Growth rate Tobacco 40,000 cigarettes 301,419,072 cigarettes 301,459,072 cigarettes 515,581% Alcohol 87,175 litters 5,127,615 litters Clenbuterol 0 suspended slaughterhouses 58 suspended slaughterhouses 5,215,331 litters 58 suspended slaughterhouses 40,000 units 3,944,772 units 3,984,772 units 6,268% 2.5 tons. 381.57 tons. (medicines); 9,005,785pieces (med. devices) 384 tons. (medicines) 14,513% «Miracle» products Health Supplies* Source: COFEPRIS (2014). Includes data from 2010 to July, 2016. * On medicines comparison is between 2009 and the sum of inspections from 2010 to 2016. Average growth rate 2,340% - 67,885% 37 Conclusions 38 • The Mexican pharmaceutical market, estimated at 195.1 billion pesos in 2014, ranked among the 15 most important world markets and the second in Latin America. • Between 2011 and 2014, the growth of the mexican pharmaceutical market was of 13.2%, while in the period of 2008-2010, the rate reached only 1.8%. Value of the Mexican pharmaceutical market, 2005-2014* (millions of pesos) Growth Rate: 1.8% $200,000 Millions of pesos Growth Rate: 13.2% $150,000 $100,000 $50,000 $0 2008 2009 Source: COFEPRIS, witth data from INEGI (2011) and CANIFARMA (2015). *Estimated value for 2014. 2010 2011 2012 2013 2014 • From 2008 to 2012 government spending in medicines increased by 64%. Public Spending in Medicines (2008-2012) 60,000 Millions of pesos 50,000 40,000 30,000 20,000 10,000 0 2008 2009 Source: Author´s elaboration with data from SINAIS, SS. 2010 2011 2012 • Mexico received 337.6 billion dollars in Foreign Direct Investment between 20002013, which represents a yearly average of 10.5%. Foreign Direct Investment (2000-2013) (millions of dollars) $45,000 $40,000 millions of dollars $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 2000 Source: INEGI (2015). 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 • The issuance of 28,802 sanitary registrations from March 2011 to June 2016, represents a market value greater than 2.4 billion dollars. Progress has been as follows: Sanitary registrations issued (Thousands) Issuance of more than 450 sanitary registrations per month, on average, in the period March, 2011- June 2016 19 22 23 25 27 28 28 29 Apr-16 May-16 Jun-16 14 7 0 2010 2011 2012 2013 Jun-14 Dec-14 Jun-15 Dec-15 • A total of 18,556 sanitary registrations have been issued from June 2012 to June 2016. This improvement implies an average of 379 monthly registrations. The issuance of sanitary registrations will continue growing given that COFEPRIS regulates 10% of GDP.. • The Ministry of Health has an important tool to impact the economy in a positive manner through the application of sanitary regulation with measures that increase the efficiency of operation in the regulated sectors. • Through the use of simplified processes of authorization and sanitary regulation, growth and economic benefits for more than 100 billion pesos in those regulated sectors have been created, specifically in pharmaceutical, pharmaceutical chemistry, food and agrochemical industries. • There is a causal relationship between the efficiency and transparency of health policy and the economic growth in the regulated sectors. • For the implementation of these actions is crucial a permanent coordination between the Ministry of Health / COFEPRIS and the Ministries of Finance, Economy, Foreign Affairs, Environment and Agriculture in order to generate comprehensive public policies. COFEPRIS: Using regulation to better protect the population’s health and transform the market. The Case of Mexico September 2016
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