Tuesday, July 10, 2007

Latin American pharma market is worth 41 billion$ and growing

It is expected to grow to a market value of USD63 billion at retail prices by 2012.
Highlights of the leading markets:
ARGENTINA
The pharmaceutical market is valued at USD4.7 billion at retail prices in 2007. Pharmaceutical production, distribution and sales are dominated by the leading 20 pharmaceutical manufacturers. Loca accounts for 51% of the market. Foreign producers of branded pharmaceuticals are still recovering from the peso’s devaluation and some have sold their manufacturing plants. In 2005, generic prescribing represented 79% of the total in the federal capital and Gran Buenos Aires, and 71% in the rest of the country.
BRAZIL
The pharmaceutical market is rapidly recovering, with 18% growth in net dollar values in 2006. Including taxes, the market is estimated at USD13.6 billion in 2007, equivalent to USD72 per capita. Generics are expected to represent 20% of the pharmacy sector by 2009.
CHILE
The pharmaceutical market is valued at USD1.5 billion at retail prices in 2007. The pharmacy sector was estimated to be USD735 million at manufacturers’ prices by August 2005. By value, domestic manufacturers have 60% of the pharmacy sector and 90% of the hospital sector. Tough competition arises from the three pharmacy chains controlling 90% of the pharmacy sector. Most of the international producers are importers in Chile. The Ministry of Health and the Institute of Public Health are performing bioequivalence tests in selected active ingredients.
COLOMBIA
The pharmaceutical market is estimated at USD1.8 billion in 2007. At manufacturers’ prices, the pharmacy sector was valued at USD891 million and the institutional sector at USD410 million in 2004. The healthcare reform programme has been instrumental in boosting consumption of pharmaceuticals, but growth has been largely in volume terms. The majority of the market is supplied by the relatively well-developed domestic industry. If ratified, the Free Trade Agreement (FTA) between the USA and Colombia will result in further intellectual property enforcements which might affect the indigenous industry.
MEXICO
The pharmaceutical market is the leading Latin American market, valued at USD14.1 billion at retail prices in 2007. In 2005, the Senate approved the reform of Article 376 of the General Health Law, which means that product registrations are valid for a five-year period. Only a few products are registered as interchangeable generics, but there is a wave of generic producers looking for business opportunities in Mexico. As the market is becoming less competitive, distributors are demanding higher wholesale margins. The retail pharmacy sector, traditionally highly fragmented, is being consolidated by large pharmacy chains.
PERU
The pharmaceutical market is valued at USD1.0 billion at retail prices in 2007. At manufacturers' prices, the pharmacy sector accounts for 72% of the market in 2007, equal to USD562 million, and the hospital sector for 28%, equal to USD219 million. Preferential customs duties and product registration continue towards Latin American countries. The market is still dominated by imports of original drugs, almost exclusively consumed by the pharmacy sector, and locally produced branded generics and generics under International Common Denomination (ICD), consumed by the pharmacy and hospital sectors. The FTA with the USA will result in further intellectual property standards for the pharmaceutical industry.
VENEZUELA
Venezuela is the fourth largest market in the region, valued at USD4.0 billion at retail prices in 2007. In spite of price controls, the pharmacy sector grew by 18.8% in 2005, reaching USD2.1 billion at manufacturers’ prices. Future market expansion will depend heavily on imports, which are controlled. As a percentage of the pharmacy market, domestic production has decreased in recent years, from representing 95% in 1995 to 55% in 2004. In the hospital sector, domestic production accounts for 60% of the total. GMP standards, under WHO Technical Report Series No. 823, were expected to be enforced in February 2005, but the domestic industry has asked for a transition period of three to five years.

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