Uruguay is quickly gaining recognition as one of the region’s most active players in the pharmaceutical sector in Latin America. Starting out as a nation dependent on its agricultural exports, the country has developed over time to become a significant manufacturing hub in the region.
Thanks to high-value-added manufacturing, an efficient supply chain, a skilled workforce, and favorable trade regimes, Uruguay is quickly becoming a preferred destination for companies seeking to serve regional and global markets in the pharmaceutical sector of Latin America.
A High-Growth Rate Industry
The total amount of production in the pharmaceutical sector in Latin America, including Uruguay’s human and veterinary pharmaceuticals and medical devices, is USD 928 million. This indicates how relevant the sector is for the national economy, representing 11% of the industrial GDP and 1% of the total GDP of the country.
According to Uruguay XXI, the country’s export and investment promotion agency, the pharmaceutical sector employs some 7,800 people in more than 175 companies across the value chain, from research and development to final distribution.
135 companies produce human pharmaceuticals and medical devices, while 40 companies develop veterinary health products. Uruguay thus has a diversified industry, with abilities that go from the creation of finished goods to providing value-added services such as logistics and back-office support.
Companies within the pharmaceutical and veterinary sectors operate under different business models. These include models such as drug development, production, commercialization, and more sophisticated services like customer support, regional logistics, and back-office operations. This layered approach has helped foreign direct investment (FDI) in the sector create a solid industrial cluster that continues to evolve in size and sophistication.
Because Uruguay sits between Argentina and Brazil, two of the largest economies in South America, companies operating in the pharmaceutical sector in Latin America benefit from a competitive advantage in regional distribution. Political stability, a transparent legal framework, and world-class logistics infrastructure have made the country an attractive entry point to the wider Latin American market.
A Logistic Gateway
One of the unique characteristics of Uruguay’s pharmaceutical ecosystem is its ability to serve as a logistics and trade gateway. According to Uruguay XXI, the amount of pharmaceutical products that transit through the country has been on a steady increase since 2010, which is a defining characteristic of the country’s role in the pharmaceutical sector in Latin America.
Recent years have seen the value of pharmaceutical products that transited through the country rise from USD 500 million to more than USD 900 million, indicating a steep growth in Uruguay’s role as a re-export platform. Products originating in the United States and Europe (Italy, Germany, Switzerland, Ireland, and France) are reprocessed and sent to other countries in Latin America.
This logistic model—driven by the existence of free trade zones (FTZs) and Uruguay’s state-of-the-art port and airport infrastructure—has allowed global companies to operate more efficiently while reducing import/export taxes and transit time.
Strong Production and Export Performance
Uruguay has also become a serious contender in pharmaceutical production. Uruguay’s Gross Production Value (GPV) of the sector amounts to USD 884 million in 2024, underscoring the country’s role in the pharmaceutical sector in Latin America. Human pharmaceutical exports, which had experienced a three-year declining trend, have rebounded since 2021 and are showing solid performance in 2024, largely driven by FTZ operations, which account for 55% of all human pharmaceutical exports.
A total of 32 companies participated in Uruguay’s pharmaceutical exports in 2024, amounting to USD 226 million. This represents 1.7% of the country’s total exports and highlights the sector’s strong contribution to foreign trade.
Growth in Medical Devices and Veterinary Products
Uruguay’s pharmaceutical industry also includes medical devices and veterinary health products. Medical devices—particularly implantable technologies—have shown consistent growth in recent years. In the past year alone, exports of medical devices grew by 11%, reaching USD 44 million. This highlights Uruguay’s increasing role in the pharmaceutical sector in Latin America, not just in medication production but also in the development of high-tech medical products.
Uruguay’s veterinary pharmaceutical segment is particularly important, given its large livestock industry. Products for cattle, horses, sheep, and companion animals account for 22% of total pharmaceutical output. This diversification enhances Uruguay’s commercial viability and export strength.
The pharmaceutical sector in Uruguay employs 7,800 people. Of these, 6,470 work in the human pharmaceutical segment, and around 3,500 are employed by export-focused companies, many of which are foreign-owned or part of international groups. These companies not only generate employment but also help transfer global best practices and expertise to the local industry.
An additional 1,600 people are involved in logistics, distribution, and customer support, mostly concentrated in the Montevideo metropolitan area. These roles require specialized knowledge in supply chain management and regulatory compliance.
Another 580 individuals work with companies supplying foreign pharmaceutical brands to the local market, while the veterinary segment generates 1,300 direct jobs.
Uruguay is also nurturing a biotech startup ecosystem, which employs roughly 250 highly skilled professionals in fields such as bioengineering, diagnostics, and molecular research. This growth signals Uruguay’s ambitions to become a center for innovation within the pharmaceutical sector in Latin America.
Advantages Driving Uruguay’s Pharmaceutical Growth
The reasons behind Uruguay’s emergence as a leader in the pharmaceutical sector in Latin America include the following:
- Strategic Location: Situated between Argentina and Brazil, Uruguay is a natural hub for regional distribution. This location offers logistical advantages for serving the Southern Cone markets with efficient road, air, and maritime connectivity.
- Free Trade Zones: Uruguay boasts several FTZs such as Zonamerica and Parque de las Ciencias, which provide tax exemptions, modern infrastructure, and streamlined customs processes—ideal conditions for pharmaceutical companies.
- Strong Institutions and Regulatory Transparency: Uruguay’s predictable regulatory framework, adherence to international quality standards, and investor-friendly environment foster confidence among global stakeholders.
- Skilled Workforce: The education system provides a steady stream of engineers, technicians, and scientists. Collaboration between academic institutions and private enterprises helps align training with industry needs.
- World-Class Infrastructure: Facilities such as Carrasco International Airport, deep-water ports, and a robust digital infrastructure enable Uruguay to manage complex supply chains, including cold chain logistics for sensitive pharmaceuticals.
Going Forward
With rising demand for pharmaceutical products across Latin America, Uruguay is well-positioned to expand its role as a hub for innovation, manufacturing, and distribution. Its combination of strong production capabilities, logistics infrastructure, and a reliable business environment sets it apart from regional competitors.
Supported by public policy, private investment, and international partnerships, Uruguay is poised to strengthen its leadership in the pharmaceutical sector in Latin America, reaffirming its place as a top-tier destination for life sciences and healthcare innovation in the years ahead.