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[BUSINESS] · Mexico · 2 sources

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Birmex faces vaccine production and budget challenges

The budget for Laboratorios de Biológicos y Reactivos de México (Birmex) has seen a nearly tenfold increase, rising from 2.5 billion pesos in 2018 to over 23 billion pesos projected for 2026. Under the administrations of Andrés Manuel López Obrador and Claudia Sheinbaum, the state-owned company has been allocated more than 80 billion pesos.

Despite the increased funding, Birmex has struggled to meet its core objectives of vaccine production and optimal medicine supply. Much of the resources were diverted to managing COVID-19 and preparing the Megafarmacia. The Megafarmacia warehouse in Huehuetoca reportedly operated at only 0.5% capacity as of December 2024.

Financial reports indicate a significant underspending of 13.784 billion pesos, including 10.553 billion pesos that were not used for purchasing chemicals, pharmaceuticals, or laboratory supplies. In 2019, the company's spending exceeded the Chamber of Deputies' approved budget by 27.7% due to high operating expenses.

Entities

Andrés Manuel López Obrador · Birmex · Claudia Sheinbaum · Laboratorios de Biológicos y Reactivos de México · Megafarmacia