Korean pharmaceutical and biotech companies are increasingly focusing on Latin America as a new battleground. Moving beyond traditional export strategies centered on the U.S. and Europe, these companies are accelerating their efforts to penetrate local markets in Mexico and Brazil. Recently, Mexico recognized its food and drug safety agency as a reference regulatory body for pharmaceuticals, lowering the entry barriers for domestically approved drugs and boosting the prospects for K-pharma and biotech expansion in the region.
According to global market research firm Market Data Forecast, the Latin American pharmaceutical market is projected to grow at an average annual rate of 7.03%, reaching $234.17 billion by 2033.
The demand for pharmaceuticals in Latin America is steadily increasing due to the rising prevalence of chronic diseases and an aging population. The World Health Organization (WHO) reports that over 70% of all deaths are caused by chronic diseases, and it is estimated that the population aged 60 and older will exceed 100 million by 2030. In response, governments across the region are working to improve access to medications and expand collaboration with pharmaceutical companies.
Domestic pharmaceutical and biotech firms are also ramping up their activities. SK Biopharm has signed a strategic memorandum of understanding with Brazilian pharmaceutical company Eurofarma to promote its epilepsy treatment, Cenobamate, in Latin America. The company plans to expand its sales footprint to Brazil, following its entry into Peru and Chile.
This collaboration goes beyond a simple licensing agreement. SK Biopharm and Eurofarma are broadening their partnership to include maximizing the product value of Cenobamate, collaborating on central nervous system (CNS) pipelines, joint research and development for rare epilepsy, expanding into the Latin American market, and extending digital healthcare through their joint venture, Mentis Care.
Yuhan Corporation is also targeting the Latin American market, using Mexico as a launchpad. The company has introduced its blood sugar management probiotic, Danguclac, in Mexico. In 2024, it plans to sign a five-year supply contract worth approximately 13 billion won with a local partner and has already completed the product registration process. Yuhan aims to expand its business throughout Latin America, starting from Mexico.
Dongkook Pharmaceutical is expanding its reach in Mexico as well. The company received approval for its type 2 diabetes treatment, Enblo 0.3mg, in May. It has secured supply contracts in 12 Latin American countries, accelerating its market expansion efforts.
A positive signal has emerged for domestic pharmaceutical and biotech companies looking to enter the Latin American market. Mexico's recent recognition of its food and drug safety agency as a reference regulatory body allows domestically approved drugs to apply for approval using Mexico's abbreviated regulatory pathway, streamlining the quality, safety, and efficacy review process. Approval decisions can now be made within a maximum of 45 business days, which is expected to speed up the entry of domestic companies into the local market.
Mexico is considered the second-largest pharmaceutical market in Latin America, following Brazil. Industry experts anticipate that this move will enhance the competitiveness of domestic pharmaceutical and biotech companies in expanding their presence in the Latin American market.
Yoon Yeon-hong, president of the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, stated, "Korean pharmaceutical companies have faced challenges in the approval process for entering Mexico, but this new measure will enable quicker approvals."
According to global market research firm Market Data Forecast, the Latin American pharmaceutical market is projected to grow at an average annual rate of 7.03%, reaching $234.17 billion by 2033.
The demand for pharmaceuticals in Latin America is steadily increasing due to the rising prevalence of chronic diseases and an aging population. The World Health Organization (WHO) reports that over 70% of all deaths are caused by chronic diseases, and it is estimated that the population aged 60 and older will exceed 100 million by 2030. In response, governments across the region are working to improve access to medications and expand collaboration with pharmaceutical companies.
Domestic pharmaceutical and biotech firms are also ramping up their activities. SK Biopharm has signed a strategic memorandum of understanding with Brazilian pharmaceutical company Eurofarma to promote its epilepsy treatment, Cenobamate, in Latin America. The company plans to expand its sales footprint to Brazil, following its entry into Peru and Chile.
This collaboration goes beyond a simple licensing agreement. SK Biopharm and Eurofarma are broadening their partnership to include maximizing the product value of Cenobamate, collaborating on central nervous system (CNS) pipelines, joint research and development for rare epilepsy, expanding into the Latin American market, and extending digital healthcare through their joint venture, Mentis Care.
Yuhan Corporation is also targeting the Latin American market, using Mexico as a launchpad. The company has introduced its blood sugar management probiotic, Danguclac, in Mexico. In 2024, it plans to sign a five-year supply contract worth approximately 13 billion won with a local partner and has already completed the product registration process. Yuhan aims to expand its business throughout Latin America, starting from Mexico.
Dongkook Pharmaceutical is expanding its reach in Mexico as well. The company received approval for its type 2 diabetes treatment, Enblo 0.3mg, in May. It has secured supply contracts in 12 Latin American countries, accelerating its market expansion efforts.
A positive signal has emerged for domestic pharmaceutical and biotech companies looking to enter the Latin American market. Mexico's recent recognition of its food and drug safety agency as a reference regulatory body allows domestically approved drugs to apply for approval using Mexico's abbreviated regulatory pathway, streamlining the quality, safety, and efficacy review process. Approval decisions can now be made within a maximum of 45 business days, which is expected to speed up the entry of domestic companies into the local market.
Mexico is considered the second-largest pharmaceutical market in Latin America, following Brazil. Industry experts anticipate that this move will enhance the competitiveness of domestic pharmaceutical and biotech companies in expanding their presence in the Latin American market.
Yoon Yeon-hong, president of the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, stated, "Korean pharmaceutical companies have faced challenges in the approval process for entering Mexico, but this new measure will enable quicker approvals."
* This article has been translated by AI.
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