Mexico’s contract development and manufacturing organization (CDMO) industry has quietly emerged as one of the most important in Latin America. The numbers don’t lie. In 2023, the market was valued at $4.6 billion and it is projected to reach $12.3 billion by 2033, with a CAGR of over 10%.
What’s behind this expansion? A couple of items. Mexico is really close to the U.S. and it’s really easy and cheap to move goods. Labor costs are competitive in the US and Europe. And the country boasts a well-trained workforce with years of experience in pharmaceutical and medical device manufacturing.
Another part is the regulatory environment. Mexico’s health regulatory body, COFEPRIS, has made moves to harmonize its standards with global requirements. Trade deals like the USMCA have made cross-border manufacturing more seamless than ever.
In Mexico, the CDMO industry offers pharmaceutical companies, biotech firms and medical device companies something of value: a reliable, cost-effective partner for development and manufacturing. Here are ten of the most important Mexican market players.
1. Laboratorios Dibar
And there’s one more thing that sets Laboratorios Dibar apart: they take products from concept to shelf. Their specialty is the development of new products from formula design to final packaging and labeling.
What’s interesting is their flexibility. They sell a variety of products, including dietary supplements and personal care products. They focus on high-quality raw materials and turnkey development, making them a strong partner for companies looking to launch new products in Mexico without building their own manufacturing infrastructure.
Official Website: https://laboratoriosdibar.com
2. CADERSO
Experience Counts in Pharmaceutical Manufacturing. CADERSO has over 50 years of experience and is a leading player in the Mexican market.
Their team focuses on regulatory affairs and project management. This expertise is important because Mexico’s pharmaceutical regulations are difficult to navigate. CADERSO has a profound understanding of this market, which is a benefit, particularly for companies entering the Mexican market for the first time.
They are located in Guadalajara, one of the main industrial and pharmaceutical cities of Mexico. They are a reliable partner for companies that want to outsource manufacturing or development, with their experience and regulatory knowledge.
Official Website: https://www.caderso.com
3. Lindy Pharma
Lindy Pharma has been in the pharmaceutical business for over 70 years. That kind of longevity doesn’t happen by accident.
What sets them apart is their specialization in soft gelatin capsules. It’s a niche, but an important one. Soft gelatin capsules are used for a wide range of pharmaceutical and nutraceutical products. Lindy Pharma has developed deep expertise in this specific manufacturing process .
They are based in Zapopan, near Guadalajara and focus on the transfer, development and commercialization of pharmaceutical technology. They are not just manufacturers but partners in bringing new formulations to market and scaling production efficiently.
Official Website: https://www.lindypharma.com
4. Biopharm S.A. de C.V.
Biopharm focuses on pharmaceutical manufacturing and packaging. Their emphasis is on compliance with high-quality standards and regulations for product export.
That’s quite a difference. Many CDMOs in Mexico are serving the domestic market. Biopharm is ready to do exports, so that makes them a good partner for companies wanting to manufacture in Mexico and ship to the US or other markets.
With 51-100 employees, they’re large enough to handle significant production volumes while maintaining the flexibility of a specialized manufacturer.
Official Website: https://www.biopharm.com.mx/
5. CM Partner
CM Partner has been operating in the contract manufacturing space for over 40 years. Based in Tijuana, they’re positioned to serve both Mexican and US customers.
They are innovative and flexible in project management. We are a reliable and well-qualified contract manufacturing organization. They are known for taking clients through the complexities of manufacturing in Mexico.
The Tijuana location is strategic. It’s close to the US border, making logistics and supply chain management efficient for companies operating on both sides of the border.
Official Website: https://www.cmpartner.com
6. CENEBA Bioprocess
CENEBA operates in the biotechnology space, providing analytical and validation support for the pharmaceutical and medical device industries.
Their expertise covers validation, microbiology and biochemistry. This is a crucial area for CDMO operations, especially for companies developing biologic drugs or novel medical devices.
Based in Mexico, CENEBA offers services that help pharmaceutical and medical device companies ensure their products meet regulatory requirements and quality standards. Their focus on analytical services makes them an important part of the Mexican CDMO ecosystem.
Official Website: https://ceneba.mx
7. Quasar Medical (Tecate Facility)
Quasar Medical has just expanded its global CDMO platform with the acquisition of Nordson Medical’s contract manufacturing facility in Tecate, Mexico. The acquisition brought in 200 employees and greatly expanded Quasar’s manufacturing capabilities.
What makes this facility special is its focus. Tecate is a high-volume, cost-effective manufacturing facility. This includes molding, coating, packaging and automated assembly. The facility is FDA-registered and ISO 13485-certified, which means it meets international quality standards.
Quasar Medical’s Tecate facility provides medical device companies with one very specific capability: the ability to efficiently scale from development to commercial production. The acquisition was part of a broader strategy to build a truly global CDMO platform with end-to-end capabilities.
Official Website: https://www.quasarmed.com
8. TAPI
TAPI is a pharmaceutical company, with a global presence and a major footprint in Mexico. Their manufacturing network spans North America, Europe, Asia and the Middle East, with Mexico as a key location.
The Mexican facility processes early starting materials, intermediates and finished products. They are a major player in the active pharmaceutical ingredient (API) space, with capabilities in both small molecule and large molecule manufacturing.
For pharmaceutical companies, TAPI offers something important: geographic diversification. Their presence in Mexico provides access to cost-effective manufacturing while maintaining quality standards. Their global network also ensures supply chain resilience.
Official Website: https://www.tapi.com
9. Close-Up International México
Close-Up International has been providing global services to the pharmaceutical industry since 1968. Their Mexican operation is a full development and consulting operation.
They are experts in strengthening the strategic relationships between laboratories and physicians. With over 50 years of experience, they offer market insights and innovative techniques to help with informed decision-making.
They provide services that link pharmaceutical manufacturing with the medical community. This makes them a valuable partner for companies that want not only to manufacture products but also to bring them to market successfully.
Official Website: https://www.closeupinternational.com
10. Pro Pharma Research Organization SA de CV
Pro Pharma Research Organization operates as a Contract Research Organization (CRO) serving the pharmaceutical and medical device industries .
What sets them apart is their emphasis on safety and efficacy studies. They have over 20 years of experience in pharmacovigilance, the practice of ensuring that medical products are safe and effective.
This is a critical CDMO capability. But drug development and manufacturing are more than just production. Must be monitored on an ongoing basis for safety and regulatory compliance. Pro Pharma fills that gap with services that complement traditional CDMOs in manufacturing.
LinkedIn: Pro Pharma Research Organization SA de CV
The Bigger Picture
The ten companies are indicative of the diversity of the CDMO sector in Mexico. Some are about making pharmaceuticals. Others are working on medical devices. Others provide analytical services or regulatory support.
What connects them is a common dedication to quality and compliance. The Mexican CDMO market has matured to the point that it can compete with established manufacturing hubs around the world.
Also there is scope for the market to grow. The development segment is growing at 11.16% annually, which is more than the manufacturing segment’s growth of 9.81%. This means more companies are turning to Mexican partners for early-stage development, not just production.
Mexico makes a strong case for pharmaceutical, biotech and medical device makers. Affordable manufacturing. Proximity to the U.S. market. A skilled workforce. And a better regulatory framework.
Mexico is a viable CDMO destination It is for sure. The question is what partner makes sense for you and your particular needs. These ten companies are a good place to start looking.
FAQ
What exactly is a CDMO?
A CDMO, or Contract Development and Manufacturing Organization, offers drug development and manufacturing services to pharmaceutical and biotechnology companies. They handle everything from formulation development, clinical trial supply, commercial manufacturing, to packaging.
Why is Mexico becoming a hub for CDMOs?
Mexico offers several advantages. Proximity to the US market makes logistics efficient. Labor costs are competitive. The country has a skilled workforce with experience in pharmaceutical manufacturing. Trade agreements like USMCA also facilitate cross-border operations.
What types of products do Mexican CDMOs manufacture?
Mexican CDMOs have experience across a wide range of products, including pharmaceuticals, biopharmaceuticals, dietary supplements and medical devices. Some focus on particular areas such as soft gelatin capsules or sterile manufacturing.
Are Mexican CDMOs regulated?
Yes. In Mexico, pharmaceutical manufacturing is regulated by COFEPRIS (Federal Commission for the Protection against Sanitary Risk). Many facilities are also FDA registered, ISO certified and follow international GMP (Good Manufacturing Practice) standards.
Can Mexican CDMOs export products to the US?
Yes. Many Mexican CDMOs are FDA registered and maintain quality standards that meet US requirements. This makes them excellent partners for companies looking to manufacture in Mexico and ship to the US market.
What’s the difference between a CDMO and a CMO?
A CMO (Contract Manufacturing Organization) is mainly concerned with manufacturing. A CDMO offers development capabilities: they help with formulation, process development and scaling up from lab to commercial production.
Is Mexico’s CDMO market growing?
Yes. The market was valued at $4.6 billion in 2023 and is projected to reach $12.3 billion by 2033, representing a compound annual growth rate of 10.3%.
What industries use Mexican CDMOs?
The pharmaceutical industry is the primary user, but biotech firms, medical device companies and nutraceutical companies also rely on Mexican CDMOs for manufacturing and development.
Which Mexican cities have strong CDMO clusters?
CDMOs are well established in Mexico City, Guadalajara, Zapopan, Tijuana and Tecate. Pharmaceutical production is particularly important in Guadalajara and its surroundings.
Is intellectual property protection a concern in Mexico?
Mexico has intellectual property laws and is a signatory to international agreements. While concerns exist in some sectors, pharmaceutical IP protection has improved significantly in recent years. Many international companies manufacture in Mexico without issues.
Do Mexican CDMOs speak English?
Most of the professional staff in the Mexican CDMO speak English. Because the pharmaceutical industry is international in nature, language barriers are not usually a problem for overseas clients.
Is there capacity in Mexico for new projects?
Yes. The CDMO market in Mexico is still under development. Acquisitions like Quasar Medical’s purchase of Nordson’s Tecate, Mexico, facility are a sign that global companies are looking to Mexico as a place of opportunity for growth. New capacity is meeting the growing demand.
