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Peru Pharmaceuticals and Healthcare Report Q1 2008Published by: Business Monitor International Published: Feb. 25, 2008 - 53 Pages Table of Contents
AbstractPeru’s pharmaceutical market remains small in relative terms - standing at an estimated US$666mn in2007. Per capita drug expenditure is just US$23.1 due to a preference for cheap, non-equivalent brandedgenerics called ‘similares’. The market is forecast to reach US$850mn by 2012, representing a CAGR ofjust 5%. We expect the generics market in particular to exhibit strong growth as the implementation of afree trade agreement (FTA) with the US leads to a tougher stance on similares that should push patientstowards legitimate generics.In December 2007, the Peru-US free trade agreement was finally signed by US President George Bushand Peruvian President Alan García following its ratification by the US Congress in the previous month.Although the wording of the intellectual property (IP) right provisions in the bill were watered-downunder pressure from the Democrat-controlled US Congress, the agreement should still allow the vastmajority of US exports duty-free access to Peru. Consequently, it is the US generics industry that hasmade the most positive noises concerning the bill. Overall trade between the two countries reachedUS$9bn in 2006. For Q108, BMI has overhauled its Business Environment Ratings methodology. Under the new system,Peru is ranked last in the Americas regions on 39 points, just one point behind Venezuela. The small sizeof the drug market and unspectacular growth forecast serve to limit the potential returns. However, interms of risk, the market is mid-ranking in the region due to an improving regulatory environment andstable political and economic environment. The government’s 2008 budget, published in August, pledges a 28% increase in overall investment, withsocial services seeing steep rises. Higher tax revenues and a booming economy should allow continuingrecord budget surpluses. This should help García push forward increased coverage under the unified andstrengthened Seguro Integral de Salud (SIS) health insurance system. The key will be ensuring thosenewly enrolled in the scheme can actually access health services and obtain basic medicine. Oppositionparties are questioning the view that García handled the August 2007 earthquake and resulting healthcrisis admirably, citing HIV-infected blood transfusions and irregular health purchases that could seecitizens returning to street protests. Get Full Details About This Report >> |
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