Farmacias Similares Analysis Essay

Case | HBS Case Collection | January 2007 (Revised April 2011)

Farmacias Similares: Private and Public Health Care for the Base of the Pyramid in Mexico

by Michael Chu and Regina Garcia-Cuellar

Abstract

Farmacias Similares, serving Mexico's low-income sector, grew to $600 million sales and 3,400 drugstores while deep reforms to help the poor swept the public health system. Adjacent to each store, for $2 per visit, medical clinics provided access to doctors for 2.3 million people a month. Narrates the growth of the chain, examines the reasons for its success, and projects a pro forma of the company's financial returns. Places Farmacias Similares in the context of Mexico's public health system and the pharmaceutical industry.

Keywords: Private Sector; Public Sector; Health Care and Treatment; Growth and Development Strategy; Poverty; Pharmaceutical Industry; Retail Industry; Mexico;

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