New Market Study Published: Brazil Pharmaceuticals & Healthcare Report Q3 2011

July 14, 2011 - PRLog -- BMI View: Brazil is Latin America's most attractive emerging pharmaceutical market. Driven by a booming economy and underpinned by political stability, demand for medicines, both generic and patented, will continue to increase. Indicating a long-term commitment to the region, pharmaceutical companies are increasingly investing in manufacturing facilities and, to a lesser extent, research and development (R&D) plants. Competition in the domestic arena is set to intensify due to Brazil's current industrial policy, which has a strong focus on developing domestically-owned pharmaceutical manufacturers in the private sector. However, BMI's prediction that pharmaceutical sales growth will decrease slightly in 2011 due to inflationary pressures - leading to higher drug prices, decreased access to credit and resulting in lower levels of consumer spending - is looking increasingly likely.

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Full Report Details at
- http://www.fastmr.com/prod/206745_brazil_pharmaceuticals_healthcare_report_q3_2011.aspx
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Headline Expenditure Projections

* Pharmaceuticals: BRL36.85bn (US$20.95bn) in 2010 to BRL39.94bn (US$25.60bn) in 2011; +8.4% in local currency terms and +22.2% in US dollar terms. Forecast up moderately from Q211 due to macroeconomic factors.
 * Healthcare: BRL303.24bn (US$172.43bn) in 2010 to BRL334.70bn (US$214.55bn) in 2011; +10.4% in local currency terms and +24.4% in US dollar terms. Forecast up moderately from Q211 due to macroeconomic factors.
 * Medical devices: BRL6.62bn (US$3.76bn) in 2010 to BRL7.43bn (US$4.77bn) in 2011; +10.6% in local currency terms and +12.8% in US dollar terms. Forecast unchanged from Q211.


Business Environment Rating: BMI's average Business Environment Rating (BER) for the 17 Americas markets has increased from 48.8 out of 100 in Q211 to 49 in Q311. Brazil's composite pharmaceutical rating is 61.8, remaining fourth in the Americas rank matrix. On a global basis, Brazil has risen through the ranks to 15th position, overtaking China, which previously had equal score but has now dropped to 17th position among the top-scoring emerging markets. As a region, the Americas rank second only behind Western Europe in terms of attractiveness to multinational drugmakers.

Key Trends & Developments

* In April 2011, it was revealed that Roche has struck an agreement with the Oswaldo Cruz Foundation (Fiocruz), a research organisation linked to the Brazilian health ministry, which will see the firm cut the price of its immunosuppressant Cellcept (mycophenolate mofetil) and transfer technology for the production of the drug. According to the health ministry, Roche will reduce the price per tablet from BRL1.87 (US$1.17) to BRL1.67 (US$1.05) until the technology transfer is complete.
 * In April 2011 it was revealed that Novartis is to provide the Brazilian government with a discount on its oncology therapeutic Glivec (imatinib), indicated for gastrointestinal stromal tumours and chronic myeloid leukaemia - from BRL42.50 (US$26.61) to BRL20.60 (US$12.90) per 100mg and from BRL170.00 (US$106.45) to BRL82.40 (US$51.60) per 400mg. In 2009, the Brazilian Ministry of Health spent around BRL260mn (US$162mn) on Glivec, accounting for 4.15% of the drug's global sales.


BMI Economic View: While Brazil's growth rates continue to impress - and lay the foundations for real GDP growth to match our 4.5% 2011 target - the shape of growth is presenting major dilemmas for the country's policymakers, particularly in terms of controlling inflation and supporting domestic industry. That said, we expect strong private consumption and surging investment levels to drive robust growth over the medium term.

BMI Political View: As President Dilma Rousseff takes office, her administration faces myriad policy challenges over the coming decade. The impressive economic performance under President Luiz Inacio Lula da Silva has significantly raised the bar for any future administration, leaving a delicate combination of policy objectives from continuing to improve living standards and addressing a widening fiscal shortfall to meeting the security and infrastructural challenges ahead of the FIFA World Cup in 2014 and the Rio de Janeiro Olympic Games in 2016. About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.