# Birmex medical supply and budget management issues > Live situation record from CLSTR: https://clstr.news/situations/birmex-medical-supply-and-budget-management-issues > Updated: 2026-09-28T14:09:26.000Z. Sources: 6. Developments: 2. The Mexican state-owned company Birmex has faced significant operational and financial challenges regarding the management of medical supplies and vaccines. Logistical failures within the supply chain led to the redistribution of 168 million units of medicines and health supplies after products were sent to incorrect locations. To correct these imbalances, Birmex coordinated transfers between the warehouses of IMSS, ISSSTE, and IMSS-Bienestar. The company also reported difficulties in procurement, noting that some contracts could not be awarded due to a lack of providers with necessary technical capacity. Despite a substantial budget increase—rising from 2.5 billion pesos in 2018 to a projected 23 billion pesos for 2026—Birmex has struggled to meet objectives for vaccine production and medicine supply. Much of the funding was diverted to COVID-19 management and the Megafarmacia project, the latter of which reportedly operated at only 0.5% capacity as of late 2024. Financial reports also indicate significant underspending, including over 10 billion pesos that were not utilized for purchasing chemicals, pharmaceuticals, or laboratory supplies. ## Timeline ### 2026-09-28: Birmex faces vaccine production and budget challenges Birmex's budget has increased nearly tenfold to over 23 billion pesos by 2026, yet the company faces challenges in vaccine production and medicine supply, alongside significant underspending. 2 sources. https://clstr.news/cluster/birmex-faces-vaccine-production-and-budget-challenges ### 2026-09-27: Birmex redistributes 168 million medical supplies after distribution errors Birmex reported that 168 million medical supplies were sent to incorrect locations, requiring redistribution among IMSS, ISSSTE, and IMSS-Bienestar to address shortages and logistical failures. 5 sources. https://clstr.news/cluster/birmex-redistributes-168-million-medical-supplies-after-distribution-errors --- Cite as: Birmex medical supply and budget management issues. CLSTR, https://clstr.news/situations/birmex-medical-supply-and-budget-management-issues