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Brazil Pharmaceuticals and Healthcare Report Q3 2008Published by: Business Monitor International Published: Sep. 15, 2008 - 89 Pages Table of Contents
AbstractBrazil continues to be one of the most dynamic large pharmaceutical markets in the world. It deliveredalbeit one whose strong dollar growth performance in 2007, which saw the total market grow by 17.0%year-on-year. BMI’s latest forecast sees expansion of 21.5% this year. This reflects the strength of theBrazilian real - local currency growth rates were a more mundane 4.6% and a forecast 7.7% respectively- but we see a steady five-year annual average growth moving forward for the period 2008 to 2012 of7.4% in dollar terms and 5.6% in real terms. Continued dynamic growth in the generics sector,government investment in healthcare and steady economic growth create strongly positive momentum forthe market, which, with a forecast total value of US$15.7bn by the end of 2008, is the largest in LatinAmerica.An increase in healthcare provision has been a major achievement of the administration of President LuizInácio Lula da Silva to date. Brazilian lawmakers recently passed a law obligating the government toincrease healthcare spending to a minimum of 10% of GDP. In mid-May, the government was reportedlyseeking to increase tobacco taxes and introduce a new tax on financial transactions in order to increaseoverall healthcare funding. Still, conflict with the research-based pharmaceutical industry remains aconcern, although there are some clearly positive trends. Brazil’s heavy investment in its own state-run pharmaceutical industry and support for the local privatesector has inclined it to cooperate with global players, particularly in developing vaccines, as it seeks towean itself from export dependency over the longer term. Also, Brazil has sought to develop a legitimategenerics industry with export potential, which has led to adopting the toughest bioequivalence regime inLatin America. Nonetheless, tensions over patents continue. The government declared Gilead's AIDSdrug Tenofovir (disoproxil fumarate) ‘in the public interest’ in April, indicating it could reject a patentrequest and seek to import a generic version. After the compulsory licensing of Merck’s efavirenz in May2007, and Brazil’s sabre-rattling over the wider international patent regime, such moves makedrugmakers decidedly nervous Brazil’s US$6bn healthcare deficit in 2007, up by around 36% y-o-y, reflects the long-term challenge ofcreating a regional export leader in the pharmaceutical sector. But while the growing market saw the tradedeficit in finished pharmaceuticals rise to around US$2.7bn, exports are rising rapidly too, rangingbetween US$800mn and US$1.02bn, depending on the source. The strong domestic market andreasonably strong IP protections continue to draw international players. The country is a safe export basefor the wider region. Bayer-Schering saw its exports increase 283% in 2007, while generics giantRanbaxy saw sales growth of 75% in Brazil in Q108. Novo Nordisk and Boehringer Ingelheim havebecome other major exporters. Brazil’s route to a more favourable trade balance remains openness andstability, rather than ugly public spats over patent rights. Get Full Details About This Report >> |
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