Sheinbaum Pushes Dialogue-Based Plan to Lower Medicine Prices

Mexico is pursuing a multi-pronged strategy to reduce medicine prices without imposing caps, strengthen domestic vaccine production, and modernize healthcare infrastructure. The approach affects pharmaceutical manufacturers, distributors, and public health institutions while addressing rising medical costs, supply chain gaps, and access inequities. Partnerships with companies such as Moderna, BIRMEX, and Laboratorios Liomont, along with international collaboration with India, aim to expand local production capacity, enhance supply chain resilience, and support equitable access to medicines and vaccines across public and private health sectors.

Mexico’s government is preparing a strategy to reduce medicine prices without imposing administrative caps, President Claudia Sheinbaum said Friday, Feb. 13. The plan is to establish a dialogue with pharmaceutical companies and distributors while maintaining free access to medicines in public health facilities. The announcement coincides with expanded vaccine production and strengthened supply chain oversight.

“We are reviewing this with the economy and health sectors to determine which mechanisms can be promoted to reduce prices. It is not about imposing caps, but rather talking with pharmaceutical companies and distributors because there are some cases where prices are excessive,” said Sheinbaum during her morning press conference. 

Dialogue and Supply Chain Oversight

Sheinbaum said the administration is refining the proposal in coordination with the Ministry of Economy and the Ministry of Health. The approach focuses on negotiated agreements with industry actors rather than direct price controls, seeking to lower end-user costs across manufacturing, distribution, and commercialization channels.

The plan responds to rising medical costs. In April 2025, private consultations rose 6.1%—the highest monthly increase since 2004—while general inflation was 3.93%, according to El Universal. Experts attribute the rise to public system shortcomings, including post-pandemic demand and persistent medicine shortages. Prices for anti-inflammatory drugs, diabetes treatments, and common cold medications increased more than 6% year-over-year, with over half of out-of-pocket expenditures directed toward medicines. Analysts warn that unchecked medical inflation may prompt patients to suspend treatments or seek less effective alternatives.

To address gaps, the Ministry of Health launched the Monitoring System for Compliance with the Supply of Health Supplies, covering IMSS, ISSSTE, IMSS-Bienestar, BIRMEX, and the ministry itself. The platform tracks domestic and international deliveries, identifies fulfillment gaps, and issues compliance certificates. According to Eduardo Clark, Deputy Minister for Integration and Development, IMSS achieved a 97% supply rate, ISSSTE reached similar levels, and IMSS-Bienestar reported 92% coverage, including 96% for oncology medicines.

Expanding Domestic Production and Vaccines

The government is simultaneously expanding domestic pharmaceutical manufacturing. Sheinbaum announced a five-year agreement with Moderna, BIRMEX, and Laboratorios Liomont to produce messenger RNA (mRNA) vaccines in Mexico. The phased technology transfer begins with fill-and-finish operations and progresses to full domestic production. The collaboration aims to extend beyond COVID-19 vaccines to projects addressing dengue and certain cancers. Sheinbaum highlighted the role of Mexican biomedical specialists working alongside multidisciplinary scientific teams to foster research and development locally.

mRNA vaccines prompt cells to produce a protein associated with a pathogen, stimulating antibody production without introducing the full virus or altering DNA. In Mexico, only COVID-19 vaccines currently hold regulatory approval, but studies are ongoing for dengue and cancer applications.

The move aligns with global initiatives, as the World Health Organization recently prequalified an additional novel oral polio vaccine type 2 (nOPV2), enhancing international supply and outbreak response capacity. Tedros Adhanom Ghebreyesus, Director-General, WHO, emphasized that sustained immunization is essential to prevent reversals in disease control gains. The diversification of suppliers, including Biological E. Limited and PT Bio Farma, is intended to reinforce resilience in global vaccine manufacturing and distribution systems.

Mexico also faces renewed measles transmission, with more than 6,400 confirmed cases and 24 deaths in 2025. Children under five were the most affected, while young adults showed lower immunity due to incomplete vaccination. Authorities deployed over 23.5 million doses nationwide, extending vaccination points to Metro stations and other high-traffic hubs. These efforts coincide with preparations for the 2026 FIFA World Cup, when millions of visitors are expected.

Healthcare Infrastructure and International Collaboration

Beyond vaccines, Mexico is investing in high-technology medical equipment. The IMSS allocated MX$1.7 billion (US$87.4 million) to deploy 123 imaging systems, including mammography, CT, MRI, and angiography units, across 26 states. Additional acquisitions in 2026 will total MX$11.3 billion, covering 816 devices across IMSS, ISSSTE, IMSS-Bienestar, PEMEX, and the National Institutes of Health. Officials emphasized competitive dialogue and direct manufacturer engagement to ensure efficiency, timely delivery, and proper staff training.

International partnerships complement domestic investment. Mexico is strengthening ties with India to attract pharmaceutical investment and promote technological collaboration. Eight out of 10 medicines consumed in Mexico are generics, and Indian firms such as Micro Pharmaceuticals México and Accord Farma are active in the market. India produces nearly 19% of global drug volume and four of the world’s ten largest generic manufacturers, making collaboration key for supply chain resilience. Officials anticipate that growing Indian investment in Mexico will support infrastructure, workforce development, and clinical research.

These domestic and international initiatives address broader systemic issues highlighted by experts. Persistent medicine shortages, logistical bottlenecks, and rising costs have widened healthcare gaps. Programs such as IMSS-Bienestar and the Rutas de la Salud logistics network aim to increase nationwide access, with over 1,000 routes and 190 trucks now supporting deliveries to urban and remote clinics. Transparency platforms allow public tracking of supplies, including the March 2025 order of 381 million medication units covering 1.8 months of demand, of which 61% has been delivered.

Officials underscore that full coverage depends on supplier compliance. Alejandro Svarch, Director of IMSS-Bienestar, said, “The greatest equity we can aspire to is that for the same illness, all people receive the same treatment, and that treatment is the best.” Authorities are also expanding workforce capacity to ensure operational readiness.