By 2012, Legitimate Generics Will Account For 20% Of Brazil's Pharmaceuticals And Healthcare Market

Main Category: Pharma Industry / Biotech Industry
Article Date: 19 Jul 2008 - 1:00 PDT

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Research and Markets has announced the addition of the "Brazil Pharmaceuticals and Healthcare Report Q2 2008" report to their offering. The "Brazil Pharmaceuticals and Healthcare Report" provides independent forecasts and competitive intelligence on Brazils pharmaceuticals and healthcare industry.

Brazil's pharmaceutical market remains one of the bright spots globally, having posted 17.0% growth in 2007 and reaching an estimated value of US$12.9bn in final consumer prices. Despite the highly publicised break of Merck's efavirenz patent in mid-2007 - which the government pledges is an isolated instance - the overall regulatory environment is one of the strongest in Latin America. Key drivers include generics as local industry retools to meet stronger bioequivalence standards and foreign players enter, along with vaccines and broader infusions of spending from the government. BMI is forecasting 12% market growth in 2008 and an average five-year growth rate of 7.2% between 2007 and 2012, when the market is expected to reach a total value of US$18.3bn.

The forecast expects a relatively steady decline in market growth rates through 2012. Primarily, this is because we believe that the main drivers will be oriented to cost-savings and import substitution and indeed this is the explicit policy of the government, which has the most active industrial policy in the sector of any Latin American government. In January, the Brazilian Ministry of Health said it wanted 80% of medicines used in its national immunisation programme to be produced domestically, primarily by its Farmaguinhos state manufacturing group. And worries about Brazil's willingness to issue compulsory licences in the future reportedly influenced the decision by Boehringer Ingelheim not to launch its tipranavir HIV/AIDS drug in the market for the time being.

We expect the main drivers of market growth through 2012 to be the generics market, which grew at a 46% clip in 2007. This rate of growth is unsustainable over the longer run, but growth will be nearly double the market average for the forecast period, with an average rate of 13.5% annually. By 2012, legitimate generics will account for 20% of the market, the highest proportion of any large Latin American market and a reflection of Brazil's progress in developing bioequivalence rules and testing.

Another key area for investment by multinational companies will be biotechnology and the wider R&D sector, given the country's relatively low costs and heavy recent investments by the government. In the last few years, biotech players such as Genzyme, Shire, Biogen and a host of smaller players have established or expanded operations in Brazil, while clinical research organisations (CROs) are using Brazil as a hub for growing Latin American operations.

Medical devices represent a third area of growth and investment that is expected to outpace the overall growth rate of the pharmaceutical market. Beginning this quarter, BMI is expanding its coverage to Brazil's medical device market, which, valued at US$2.47bn in 2007, is the largest in Latin America. The largely liberalised market should see growth well ahead of the overall pharmaceutical market trend, averaging 19% year-on-year (y-o-y) to 2012 and driven by increases in healthcare expenditure and the government's drive to modernise healthcare. A key development to watch will be consolidation in the presently fragmented distribution sector and growing demand for medical devices and equipment for the home.

Key Topics Covered:

Executive Summary
Brazil Pharmaceuticals And H
ealthcare Industry SWOT
Brazil Political SWOT Brazil Economic SWOT
Brazil Business Environment SWOT
Pharmaceutical Business Environment Ratings

Table: Americas Pharmaceutical Business Environment Ratings
Limits Of Potential Returns
Risks To Realisation Of Returns
Brazil - Market Summary
Regulatory Regime
Intellectual Property
Regulator Interference
Data Protection
Compulsory Licensing
Intellectual Property Environment
Other Regulatory Issues
Subsidies On Generics
Tax Burden On Pharmaceuticals
Industry Developments
Healthcare Sector
Domestic Pharmaceutical Industry
State-Owned Manufacturing Sector
PROFARMA Initiative
Generics Sector
Multinational Research-Based Sector
Industry Forecast Scenario
Overall Market Forecast
Table: Brazilian Drug Market Trends
Key Growth Factors - Industry
Table: Brazilian Health Expenditure Trends
Key Growth Factors - Macroeconomic
Table: Economic Activity
Prescription Market Forecast
Table: Brazil's Prescription Drug Market Trends (US$mn unless otherwise stated)
OTC Market Forecast
Regulatory Overview
Advertising
OTC Sector: Competitive Landscape
Key Growth Factors
Table: Brazil's OTC Market Trends (US$mn unless otherwise stated)
Generics Market Forecast
Recent Developments
Table: Brazil - Retail Price Differentials On Key Off-Patent Compounds
Competitive Landscape
Outlook
Table: Brazil's Generics And Patented Market Forecasts
Medical Device Market Forecast
Table: Brazil Medical Device Forecasts
Table: Pharmaceutical Trade Data And Forecasts (US$mn)
Other Healthcare Data Forecasts
Table: Socio-Demographic Forecasts
Key Risks To our Forecast Scenario
Competitive Landscape
Leading Products
Manufacturers
Distribution
Retail Market
Recent Market Performance
Company Monitor

Leading Multinational Companies

-- Sanofi-Aventis
-- Pfizer
-- Merck & Co
-- Novartis
-- GlaxoSmithKline (GSK)
-- Roche
-- Nycomed (Altana Pharma)
-- Merck KGaA
-- Novo Nordisk

Indigenous Manufacturing Sector

-- Aché / Biosintética
-- EMS Sigma
-- Eurofarma
-- Medley

BMI Forecast Modelling
How We Generate Our Industry Forecasts
Pharmaceutical Industry
Pharmaceutical Business Environment Ratings Methodology
Ratings Overview
Table: Pharmaceutical Business Environment Indicators
Weighting
Table: Weighting Of Components
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