Implementing Effective Competition Law in the Pharmaceutical Industry in Mexico

This paper analyses how governments can introduce more competition in the pharmaceutical sector.Considering it involves harmonizing issues such as incentives to innovate and perform research and development (R&D), Intellectual Property (IP) rights, healthcare policy and public budget concerns, the task of analysing competition in this industry is difficult for academic purposes and even more for public policy. During the past years, competition law enforcement has proven to be an essential tool to increase access to pharmaceutical products and technologies around the world. Its importance arises especially from the fact that it allows authorities to impose broader remedies than IP law does. Additionally, the paper shows how advocacy efforts can be very successful in removing regulatory barriers to entry that may be impeding new entrants and market efficiencies. Consumers and the industry as a whole can benefit from more competition in these markets but it is not easy to strike a correct balance. The paper analyses the case of Mexico in relation to many other jurisdictions around the world, especially developing countries, to understand the main issues related to competition policy in this industry.