SOURCE: MarketResearch.com

MarketResearch.com

November 14, 2011 11:08 ET

Low Generic Drugs Consumption in Latin America Presents Strong Growth Opportunities

ROCKVILLE, MD--(Marketwire - Nov 14, 2011) - MarketResearch.com has announced the addition of the new report "The Outlook for Pharmaceuticals in Latin America" to their collection of Biopharmaceuticals market reports. For more information, visit http://www.marketresearch.com/Espicom-Healthcare-Intelligence-v1129/Outlook-Pharmaceuticals-Latin-America-6666031/

The region needs to increase drug access, in spite of intensifying cost-containment measures. Therefore, attractive opportunities for (bio) pharmaceutical producers exist in Latin America. Brazil has the largest pharmaceutical market. Strong economic performance will fuel pharmacy sales growth in the forecast period. Mexico is the second leading market. Recent regulatory developments will create further market opportunities in the country, particularly for generic producers in both the private and public sectors. In Argentina, the pharmaceutical industry is expected to perform well in the coming years, with strong growth in production, sales, exports and employment. Pharmaceutical companies, however, are encouraged to act in smaller Latin American markets to maximize their full regional sales potential.

Generics consumption in Latin America is low, with the exception of Brazil which has a dynamic bioequivalent generic sector. In the last two years, foreign producers have penetrated what, until then, had been considered a tough sector due to local protectionism and low prices. Major developments include Pfizer's purchase of 40.0% of Teuto in November 2010, Valeant's acquisitions of two generic producers in the first half of 2010, and Sanofi's acquisition of the largest local generic company Medley in 2009. As a result, multinationals represented over 40.0% of the generic sector in 2010, compared to 12.0% in 2008. This wave of acquisitions is a blow for the government, which aims to create a leading local pharmaceutical group able to compete internationally.

In Mexico, the number of people accessing public healthcare will increase as the country is implementing universal health coverage, which means that some private pharmacy consumption will be transferred to the increasingly attractive public sector. Growth in the private pharmacy sector, therefore, is expected to be more moderate in the forecast period. Fuelled by the current economic slowdown and new regulatory measures, generics penetration in the pharmacy sector will increase and contain the private pharmacy sector by value. Strategically, Sanofi already acquired the local generic producer Kendrick in 2009, whilst Valeant acquired Tecnofarma. The amount of opportunities will be squeezed but the pharmaceutical market is large enough to be attractive in the long-term.

For more information, visit http://www.marketresearch.com/Espicom-Healthcare-Intelligence-v1129/Outlook-Pharmaceuticals-Latin-America-6666031/

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