Brazil Pharmaceuticals and Healthcare Report Q3 2010

Published : July 2010
No. of Pages : 104

Price:

Since the last quarter, we have revised our forecast slightly downward for Brazil as a result of concerns over the
persisting fiscal slippage and the increasing role of politics in the economy in the run-up to October’s elections.
However, perhaps the most significant risk for Brazil’s impressive sovereign rating credentials is the economy’s high
reliance on Chinese demand. BMI’s Asia team have been highlighting the possibility of China’s asset bubble bursting
in the near term, which would significantly affect Brazil’s pharmaceutical market.
However, the sector’s resilience in light of the worst economic performance realised since 1998 means that we
maintain our pharmaceutical sales forecast of double digit growth whilst monitoring closely the Chinese economy.
We are currently projecting a compound annual growth rate (CAGR) of 14.37% through to 2014 in US dollar terms
reaching a value of US$34.64bn.
In BMI’s new Q310 Business Environment Ratings (BERs), Brazil is ranked fourth after the US, Canada and Puerto
Rico in the Americas region, which has been expanded with the addition of countries such as Nicaragua and
Honduras to cover 17 markets. Globally, it has slipped down two places from 15th to 17th, equal with China.
While we maintain healthy optimism for the patented drug sector, we have noted that the generic drugs sub-sector is
the fastest growing in Brazil. The market grew by 24% in local currency terms during 2009, marking yet another year
of rapid market share gains for the industry. The result was within 1.4% of BMI projections, which stood at 22.6%. A
study by the Foundation for Consumer Defence and Protection (Fundação Procon) show price variations as high as
1,415% between reference drugs and their generic equivalents, as well as wide differences within their respective
groups. Such disparity should continue to drive greater use and competition in the sector.
In our view a similar market dynamic, if not slightly more accelerated, will prevail going forward. BMI forecasts that
the generic market will reach a value of BRL13.73bn (US$8.22bn) at a CAGR of 25.31% in US dollar terms over the
next 5 years. In two separate transactions in Q110, US-based Valeant Pharmaceuticals acquired two Brazilian
pharmaceutical companies for BRL97mn (US$55mn) and approximately BRL51mn (US$28mn). The companies,
which specialise in branded generics and over-the-counter (OTC) medicines, had recorded annual sales of
approximately US$28mn and US$19mn respectively, in 2009. Similarly, both companies posted revenue growth at a
CAGR of nearly 15% over the past five years.
The Brazilian government’s commitment to supporting its domestic pharmaceutical industry was one of the major
factors to be put in the spotlight over the previous quarter. BMI expects this mentality to continue as long as it is not
to the detriment of lowering drug prices. The government is also tackling the growing problem of counterfeit drugs
by introducing serialisation for all medicinal packs. BMI notes that if foreign companies manage to penetrate the
Brazilian pharmaceutical market now, they will benefit from significant commercial advantages.

Executive Summary ........................................................................................................................................ 5
SWOT Analysis ................................................................................................................................................ 6
Brazil Pharmaceuticals And Healthcare Industry SWOT ..................................................................................................................................... 6
Brazil Political SWOT .......................................................................................................................................................................................... 7
Brazil Economic SWOT ........................................................................................................................................................................................ 8
Brazil Business Environment SWOT ..................................................................................................................................................................... 9
Pharmaceutical Business Environment Ratings ........................................................................................ 10
Table: Americas Pharmaceutical Business Environment Ratings, Q310 ............................................................................................................. 10
Limits Of Potential Returns................................................................................................................................................................................. 11
Risks to Realisation of Returns ........................................................................................................................................................................... 11
Brazil – Market Summary.............................................................................................................................. 12
Regulatory Regime ........................................................................................................................................ 13
Intellectual Property Environment ...................................................................................................................................................................... 14
Counterfeits ........................................................................................................................................................................................................ 16
Regulator Interference ........................................................................................................................................................................................ 17
Compulsory Licensing ........................................................................................................................................................................................ 18
Pricing and Reimbursement Issues ..................................................................................................................................................................... 21
Tax Burden on Pharmaceuticals ......................................................................................................................................................................... 24
OTC Regulations ................................................................................................................................................................................................ 25
Advertising .......................................................................................................................................................................................................... 26
Other Regulatory Developments ......................................................................................................................................................................... 27
Industry Developments................................................................................................................................. 29
Epidemiology ...................................................................................................................................................................................................... 29
Healthcare Sector ............................................................................................................................................................................................... 30
PROFARMA Initiative ........................................................................................................................................................................................ 31
Research and Development ................................................................................................................................................................................. 32
Industry Forecast Scenario ........................................................................................................................... 34
Overall Market Forecast..................................................................................................................................................................................... 34
Key Growth Factors – Industry........................................................................................................................................................................... 35
Key Growth Factors – Macroeconomic .............................................................................................................................................................. 36
Table: Brazil – Economic Activity, 2007-2014 ................................................................................................................................................... 40
Prescription Drug Market Forecast .................................................................................................................................................................... 40
Patented Drug Market Forecast ......................................................................................................................................................................... 42
Generic Drug Market Forecast ........................................................................................................................................................................... 43
OTC Medicine Market Forecast ......................................................................................................................................................................... 46
Pharmaceutical Trade Forecast ......................................................................................................................................................................... 48
Medical Device Market Forecast ........................................................................................................................................................................ 50
Key Risks to BMI’s Forecast Scenario ................................................................................................................................................................ 53
Competitive Landscape ................................................................................................................................ 54
Top 20 Pharmaceutical Companies In Brazil By Revenues 2008......................................................................................................................... 56
Innovative Drugmakers ....................................................................................................................................................................................... 56
Innovative Drugmakers – Quarterly Developments ............................................................................................................................................ 57
Generic Drugmakers........................................................................................................................................................................................... 59
Generic Drugmakers – Quarterly Developments ................................................................................................................................................ 61
OTC Sector ......................................................................................................................................................................................................... 65
Distribution Sector .............................................................................................................................................................................................. 65
Retail Market ...................................................................................................................................................................................................... 67
Company Monitor .......................................................................................................................................... 69
Indigenous Manufacturing Sector ............................................................................................................................................................................ 69
Aché / Biosintética .............................................................................................................................................................................................. 69
EMS Sigma ......................................................................................................................................................................................................... 72
Eurofarma........................................................................................................................................................................................................... 74
Medley ................................................................................................................................................................................................................ 77
Cristália .............................................................................................................................................................................................................. 79
Foreign Companies .................................................................................................................................................................................................. 81
Sanofi-Aventis ..................................................................................................................................................................................................... 81
Pfizer .................................................................................................................................................................................................................. 83
Merck & Co ........................................................................................................................................................................................................ 85
Novartis .............................................................................................................................................................................................................. 87
GlaxoSmithKline (GSK) ...................................................................................................................................................................................... 89
Roche .................................................................................................................................................................................................................. 91
Nycomed (Altana Pharma).................................................................................................................................................................................. 93
Merck KGaA ....................................................................................................................................................................................................... 94
Novo Nordisk ...................................................................................................................................................................................................... 95
BMI Methodology .......................................................................................................................................... 97
How We Generate Our Pharmaceutical Industry Forecasts ............................................................................................................................... 97
Pharmaceutical Business Environment Ratings Methodology ............................................................................................................................. 98
Ratings Overview ................................................................................................................................................................................................ 98
Table: Pharmaceutical Business Environment Indicators .................................................................................................................................. 99
Weighting ...........................................................................................................................................................................................................100
Table: Weighting Of Components ......................................................................................................................................................................100
Sources ..............................................................................................................................................................................................................100
Forecast Tables ........................................................................................................................................... 101

Brazil Pharmaceuticals and Healthcare Report Q3 2010

Published By: Business Monitor International

Price:

How to Purchase

Purchase products from our site in 5 easy steps. Please follow the description given below to complete your purchase process.

Step 1:

Select the report title of your interest, and Click on Buy Now button next to the Price option.

Step 2:

You will arrive at the Purchase page, where you will be requested to Signup (New User) or Login (Registered User). Please note that in-keeping with the security check on the website, you must submit your full details to avoid any inconvenience arising from incorrectly entered data or counterfeit information.

Step 3:

After SignUp/Login, you will arrive at the Online Invoice Page. Select a Payment option via various methods: Debit Card / Credit Card / by Invoice. MarketReportOnline accepts Visa, MasterCard, American Express and all major credit cards. MarketReportOnline uses ICICI, HDFC, Citibank, American Express & Paypal as our Online Payment Gateway Partners. Clicking on a payment option will take you to the corresponding Payment Gateway page.

Step 4:

Once at the Payment Gateway, please complete the Payment Process to purchase your desired report.

Step 5:

Once you have successfully completed the purchase process, you will receive a confirmation email. You will then either be able to download your report immediately (in PDF Format) from the Account Login button, or the report will be emailed to you directly, depending upon the agreement we have with the publisher. For Orders that are deliverable via email and placed after working hours, the delivery of the reports will be made on the next business day. Please note, if you select purchase by invoice, you will receive your report only once the payment has been received. If you have any queries about how to order, please Contact Us .

sales@marketreportsonline.com + 1 888 391 5441

Using our subscription option, you get access to market research reports and industry data of Industry Profiles market as per your needs. Get the best of Industry Profiles research reports by utilizing your research budgets in an optimum way.
More about our Subscription option

Get Email alerts about market research reports from industries and publishers of your interest: