Pharmaceutical outlook in latin america

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  • Publicado : 16 de marzo de 2012
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The Outlook for Pharmaceuticals in Latin America
Description: Strong pharmaceutical market growth opportunities and regulatory developments are making Latin America more attractive The region needs to increase drug access, in spite of intensifying cost-containment measures. Therefore, attractive opportunitiesfor (bio)pharmaceutical producers exist in Latin America. Brazil has the largest pharmaceutical market. Strong economic performance will fuel pharmacy sales growth in the forecast period. Mexico is the second leading market. Recent regulatory developments will create further market opportunities in the country, particularly for generic producers in both the private and public sectors. In Argentina,the pharmaceutical industry is expected to perform well in the coming years, with strong growth in production, sales, exports and employment. Pharmaceutical companies, however, are encouraged to act in smaller Latin American markets to maximise their full regional sales potential. Generics consumption in Latin America is low, with the exception of Brazil which has a dynamic bioequivalent genericsector. In the last two years, foreign producers have penetrated what, until then, had been considered a tough sector due to local protectionism and low prices. Major developments include Pfizer’s purchase of 40.0% of Teuto in November 2010, Valeant’s acquisitions of two generic producers in the first half of 2010, and sanofi-aventis’ acquisition of the largest local generic company Medley in 2009.As a result, multinationals represented over 40.0% of the generic sector in 2010, compared to 12.0% in 2008. This wave of acquisitions is a blow for the government, which aims to create a leading local pharmaceutical group able to compete internationally. In Mexico, the number of people accessing public healthcare will increase as the country is implementing universal health coverage, which meansthat some private pharmacy consumption will be transferred to the increasingly attractive public sector. Growth in the private pharmacy sector, therefore, is expected to be more moderate in the forecast period. Fuelled by the current economic slowdown and new regulatory measures, generics penetration in the pharmacy sector will increase and contain the private pharmacy sector by value.Strategically, sanofi-aventis already acquired the local generic producer Kendrick in 2009, whilst Valeant acquired Tecnofarma. The amount of opportunities will be squeezed but the pharmaceutical market is large enough to be attractive in the long-term. Highlights from the region... ARGENTINA The Argentine pharmaceutical market is much smaller than Mexico and Brazil, but similar to Venezuela. The market hasrecovered in US dollar terms since it plummeted in 2002, and Espicom projects a high CAGR between 2011 and 2016. The pharmacy sector, traditionally dominated by branded products, has showed an impressive double-digit growth rate in recent years. The leading company is Roemmers, followed by Bagó. Both have strong manufacturing capabilities and are entering new export destinations in order todiminish their reliance on the local market. Foreign competition is not as strong as in other Latin American pharmaceutical markets, but GlaxoSmithKline’s acquisition of Phoenix in June 2010 shows that Argentina is an attractive emerging market that cannot be ignored in the region. BRAZIL Foreign producers acknowledge the importance of Brazil in their emerging market portfolio. Following thepublication of new regulatory measures for biologic products in Brazil in December 2010, Amgen acquired a small local producer with manufacturing facilities in April 2011. DaiichiSankyo re-inaugurated its manufacturing unit, located in Barueri, in February 2011. GlaxoSmithKline expanded its infectious disease alliance with Fiocruz in November 2010, following a multibillion vaccine alliance. Novartis...