Pharmacy giant Pfizer announced on Thursday that it will be upgrading its supply chain from the U.S. to Mexico.
The $2.9 billion deal will make the drugmaker’s supply chain more efficient and more efficient to manufacture and distribute its medication in Mexico.
Pfizer also will be moving its entire workforce to Mexico, which will save more than 7,500 jobs in the process.
In order to make the deal happen, Pfizer needs to secure a certain number of manufacturing and distribution licenses from Mexico.
This means that the company must have a minimum of six factories producing the drug and a minimum number of distribution centers.
To achieve this, Pfizers is going to have to sign a series of contracts with local partners that include: the creation of a new distribution center in Mexico City; the provision of up to 1,000 additional workers in Mexico; and the provisioning of a supply chain management system to manage the drug.
According to Pfizer, the system will provide for better distribution, and better product quality.
To qualify for the deal, Pfitzers will need to sign more than 3,500 agreements and to invest $1.9 trillion.
This deal will help the company increase its investment in the country by at least $500 million per year.
The Pfizer deal comes after Pfizer had already secured a $1 billion deal from the Mexican government last year to improve drug manufacturing.
In the past, the drug company has been forced to import some of its medications, including in the United States.
The Mexican government has also tried to restrict the use of certain drugs.