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The $28.8bn Latin American market delivered 15.3% y-o-y growth in 2008 as per IMS Health data. The market is expected to grow to $51.3bn in 2014 at a CAGR of 10.1%. Inconsistency in regulatory protocol in the seven major Latin American countries – Brazil, Mexico, Venezuela, Argentina, Colombia, Chile and Peru - has been the greatest concern to research based pharmaceutical companies. Several companies faced severe sales erosion due to launch of unauthorized generic versions of their leading brands. However, situation has improved considerably ever since these countries became signatories to TRIPS and other international trade treaties. The improved regulatory environment is beckoning pharmaceutical companies of all types including research driven firms as well as generic players to Latin America. Companies that already have registered their presence in the region have raised investments in their local production facilities. They have also increased the number of clinical trials conducted in the region due to progress in regional healthcare standards and resources. Historically, multinational players have held a majority share of the Latin American market. However, the market share held by domestic companies have continued to grow, while that held by multinational companies is steadily declining. The volume based business model of domestic companies, focused on generics, has proven to be the growth formula for success in Latin America. Considering the domination of generics in the region, multinational drug firms have accelerated their entry into generic business by raising investments in their local production facilities as well as acquiring local players.
Key features of this report
* Assessment of socioeconomic and demographic features of the seven major Latin American markets. Evaluation of healthcare delivery parameters and disease burden in the region.
* Insights into the government policy environment relating to pharmaceutical regulation, pricing and reimbursement, and its impact on the industry.
* Comprehensive analysis of sales distribution in the Latin American market based on geography, therapeutic classes, brands and companies.
Scope of this report
* Quantify disease burden of various communicable and non-communicable pathophysiologic disorders.
* Gain a comprehensive understanding of the regulatory, pricing and reimbursement policies and their impact on the industry
* Explore therapy areas with the greatest franchise growth potential and understand the growth drivers.
* Compare the franchises of top marketers across major indications, and evaluate how market share of leading companies such as Sanofi-Aventis, Novartis, Bayer, Pfizer and Schering-Plough will evolve over the next five years.
Key Market Issues
* Compulsory licensing: Compulsory licensing has become a serious issue in the region since the controversial issue surrounding Merck's Sustiva. In 2006, the Brazilian government had issued compulsory licenses for the product, thereby bypassing the patent issued earlier. The main issue behind this compulsory licensing was the high market price of Sustiva, which prevented its procurement. The situation in Mexico was comparatively better, as several attempts to procure compulsory licenses in the last 15 years have failed to bear fruit.
* Lack of implementation of intellectual property: The seven major Latin American countries vary considerably in the implementation of IPR. All these countries are signatories to WTO and other individual trade organizations. However, despite ratification of the various requirements instated in these treaties, there is a serious lack of implementation. The Pharmaceutical Research and Manufacturers of America's (PhRMA) Special 301 submission to the United States Trade Representative (USTR) placed these countries under the Priority Watch List.
Key findings from this report
* The Latin American pharmaceutical market generated $28.8bn sales in 2008, an increase of 15.3% yoy according to IMS Health. Therapeutic indications that fuelled growth include included antihypertensives, dermatologicals and sex hormone preparations.
* Brazil was the largest market with $11.4bn sales amounting to 39.6% share of the Latin American market. Peru was the smallest accounting for only 1.9% share. Venezuela at 32.2% increase was the fastest growing regional market in 2008. Recession hit Mexico reported flat y-o-y growth of 0.1%.
* Eli Lilly's erectile dysfunction drug Cialis remained the top-selling drug in the region in 2008 delivering $208m in sales, while outperforming world's best-selling cholesterol drug Lipitor from Pfizer at $160m sales.
Key questions answered
* What will be the leading indications and the accompanying growth drivers in the Latin American market over 2008-14?
* How does government polices on pharmaceutical regulation, pricing and reimbursement impact the industry?
* What are the current market trends across major therapy segments in Latin America as well as individual countries?
* Which companies are best positioned to succeed in Latin America over the period 2008-14?
* What is the forecast market size and growth rate of the seven major Latin American countries over the period 2008-14?
Latin American Pharmaceutical Market Outlook To 2014: Policy environment, market analysis, forecasts and growth opportunities: http://www.companiesandmarkets.com/r.ashx?id=25157RBR1195914
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