The pharmaceutical industry has been identified by the Federal Government as one of the country's strategic sectors for economic and industrial development under Plan Mexico, an initiative aimed at strengthening domestic production, reducing dependence on imported inputs, and consolidating supply chains with greater technological content and added value within Mexico.

The significance of this strategy extends beyond economic considerations. From a legal and regulatory perspective, Plan Mexico is supported by various legislative and policy instruments designed to encourage local manufacturing, scientific research, and the development of strategic infrastructure for the healthcare sector.

The Pharmaceutical Investment Promotion Decree.

A key component of this strategy is the Decree published in the Official Gazette of the Federation (Diario Oficial de la Federación) on June 2, 2025, which seeks to promote investment within Mexico to strengthen the pharmaceutical industry, the production of healthcare related inputs, and domestic scientific research.

The Decree reflects an evolution in public policy for the healthcare sector. The State seeks to ensure that a greater proportion of the medicines, medical devices, and strategic healthcare supplies consumed in Mexico are manufactured domestically, thereby strengthening national industrial capabilities and reducing risks associated with global supply chains.

For companies operating in the sector, this means that investments in manufacturing, research, and technological development may become increasingly significant factors within Mexico’s regulatory and public procurement landscape.

The Role of the New Technology and Innovation Law. 

The pharmaceutical sector’s industrial strategy is closely linked to the General Law on Humanities, Sciences, Technologies and Innovation (LGMHCTI) commonly referred to as Mexico’s new technology law which establishes the framework for strengthening national scientific research and promoting the generation and transfer of knowledge.

In practical terms, this legal framework encourages:

• Collaboration among pharmaceutical companies, universities, and public research institutions.
• The development of clinical research and biotechnology projects.
• Technology transfers into domestic manufacturing processes.
• The training and development of specialized talent for science-driven industries.

These measures are particularly relevant for companies engaged in research and development, biotechnology, biopharmaceuticals, or pharmaceutical innovation activities.

Strategic Infrastructure: The New Infrastructure Investment Promotion Law and Public-Private Partnerships Law.

Another matter of interest for investors is the interaction between the Law for the Promotion of Investment in Strategic Infrastructure for Development and Well-Being (LFIIEDB), published in the Official Gazette of the Federation (DOF) on April 9, 2026, and the Public-Private Partnerships Law (LAPP) of 2012, most recently amended on November 14, 2025, under which several public-private partnerships for infrastructure development have been implemented.

Although both statutes coexist within the Mexican legal system, they serve different purposes:

• The LAPP continues to regulate projects structured under long-term collaboration schemes between the public and private sectors.
• The LFIIEDB focuses on the development of infrastructure deemed strategic to the State’s priority objectives.

In this regard, it is possible to speak of the coexistence of different legal regimes, the applicability of which will depend on the specific nature of each project. Proper identification of the applicable legal framework will be a key factor in the legal and financial structuring of these projects.

Conclusion:

Plan Mexico represents a significant shift in the way the State approaches, among others strategic industries, the development of the pharmaceutical sector. Domestic manufacturing, scientific research, technology transfer, and strategic infrastructure are increasingly being integrated into a single public policy framework. The principal legal instruments currently available for the contractual, corporate, and commercial structuring of projects in this sector include the LFIIEDB, the LAPP, and the LGMHCTI.

In this context, both domestic and international pharmaceutical companies that successfully align their investment, innovation, and regulatory compliance strategies with the objectives of this new industrial policy will be better positioned to capitalize on the opportunities offered by the Mexican market in the years ahead.

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Alejandro Luna Fandiño

Partner

Alejandro Luna joined OLIVARES in 1996 and being made partner in 2005, he has been instrumental to the firm´s IP Litigation, Regulatory and Administrative Litigation practices. He co-chairs the Life Sciences & Pharmaceutical Law industry group and coordinates the Litigation Department.

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Armando Arenas

Partner

Armando Arenas joined OLIVARES in 2000 and became a partner in January 2017. He has experience working on a range of IP matters, including consulting and litigation on trademark, patent, unfair competition, trade dress protection, and misleading advertising cases before the Mexican Institute of Industrial Property (IMPI), Federal Court of Tax and Administrative Affairs (FCTA), Federal Circuit Courts (FCC) and the Supreme Court of Justice (SCJ) Regulatory Affairs and Public Acquisitions.

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Gustavo A. Alcocer

Partner

Gustavo Alcocer manages the Corporate and Commercial Law Group at OLIVARES, advising domestic and foreign businesses and the owners of those businesses on Mexican and cross-border corporate and commercial transactions.

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