- Over-the-counter (OTC) medicines are the cheapest in the world.
- While oncology drugs are more expensive, they are also the ones that generate the highest profits for pharmaceutical companies.
- From the patent to the market competition and the offers of the establishments determine the price of the medicines.
The Medicines are necessary to cure people’s diseases but something that not everyone knows is the way in which their price is determined. To date there is a wide variety and there are even different options for the same discomfort but each one has a different value. In this case, its cost is very important because it can increase or decrease your sales.
Where are the medicines purchased?
For any patient, mainly in urban areas, it is increasingly common to go to the branches of pharmaceutical chains to fill their prescriptions and purchase OTC (over-the-counter) medicines, or health care products.
Of course, they have not only advanced thanks to face-to-face purchases, but also due to online sales and other practices and processes that have contributed to pharmacy chains designing new strategies that include unique value propositions that adapt to the demands of Mexican consumers and patients.
Due to this, over time, the over-the-counter, pharmaceutical and dermo-cosmetic retail market in our country has been consolidated into three main segments: pharmacy chains, independent pharmacies and supermarket pharmacies, which focus mainly on the sale of OTC, vitamins, supplements, beauty products and personal care.
Of those segments, chains have the largest marketing share in terms of value, with 65% of consumer health and pharmaceutical sales. Next come independent pharmacies, where small and medium-sized companies are located, with 19.5% of the sales share and, finally, supermarket chains, with a 14.5% market share.
Factors that influence the price of medicines in Mexico
As in any market, the price of medicines in Mexico is affected by factors such as inflation, supply, demand, and production costs. At the same time, there are also other factors that influence the final figure at which they are offered to patients.
1. Government control. The Mexican government has great influence on the cost of medicines. In order to maintain the accessibility of necessary or in-demand pharmaceutical products, the Federal Commission for the Protection against Sanitary Risks (Cofepris) oversees the pharmaceutical business and sets standards for drug pricing.
2. Generic drugs and patent protection. Patent protection can affect drug prices, as when a drug’s patent expires, generic equivalents may come onto the market, generally resulting in less expensive substitutes. In Mexico, generic medicines tend to have a lower price than their brand equivalents, which benefits patients financially.
3. Market competition. Rivalry between pharmacies can affect prices. In places with a high concentration of pharmacies, competition can result in lower prices; however, they could be higher in places with few options since there is less dispute.
4. Discounts and promotions. To attract patients, Mexican pharmacies frequently offer rewards programs, discounts for large purchases, cost savings on specific prescriptions, or benefits with their own cards. It is common to find temporary special offers or discounts on well-known medications.
5. International Trade Agreements. The Agreement between the United States, Mexico and Canada (T-MEC) and the agreements between Mexico and the European Union can influence the price of pharmaceutical products, in addition to having an impact on the accessibility, cost and availability of pharmaceutical products specific to the Mexican market.
Also read:
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Medicines in Mexico increase their price up to 40% due to distribution