Jan. 23, 2010 -
PRLog -- In BMI's Q309 Business Environment Ranking (BER) table for the 10 markets of the Americas, Colombia ranks sixth, down by one place from the previous quarter. The country's sizeable population, combined with rising per capita expenditure in recent years, are important draws for pharmaceutical investment. However, healthcare insurance and public provision have been focused on sustainability, rather than substantial expansion, despite the government's commitment to provide universal healthcare insurance coverage by 2010. Additionally, the country's regulatory and pricing and reimbursement environments are considered deficient, with Colombia recently featuring in the international 'Watch List' as judged by the 2009 Special 301 report prepared by the Pharmaceutical Research and Manufacturers of America (PhRMA). Concerns surround signs that intellectual property (IP) rights enforcement in Colombia is deteriorating, the denial of patents to innovative products, and the Colombian Patent Office's (CPO) failure to provide an adequate patent linkage mechanism. BMI has lowered its pharmaceutical market forecast to account for changing global and local economic conditions, as well as the persistent delays in the ratification of the US-Colombia free trade agreement (FTA), which will hamper access to patented products. The market should experience a CAGR of 7.77% in local currency terms through to 2013, when it is forecast to reach COP8,711bn (US$4.52bn) at consumer prices, up from COP5.992bn (US$3.05bn). After previously strong volume increases, the growth slowed in 2007, with the current economic slowdown expected to further hamper faster development of pharmaceutical volumes. In the meantime, the government of Colombia announced that it would increase its 2009 budget by COP2.5trillion (US$1.04bn), in the wake of falling tax revenues caused by the global economic crisis and the weakening of local currency. We see little chance of Colombia avoiding a recession in 2009, as the twin engines of growth in recent years - private consumption and fixed investment - feel the brunt of collapsing consumer confidence, the global downturn and ongoing risk aversion. Indications suggest Colombia will experience its first economic contraction this year since 1999, which is penned at 1.5% by BMI's latest forecasts, which will have a negative effect on the performance of both prescription and over-the-counter (OTC) segments of the Colombian pharmaceutical market. Around the same time, Health Action International (HIA) published results of its investigation into the availability of 42 branded medicines in 42 private and 34 public sector pharmacies in the four Andean nations (Colombia, Peru, Bolivia and Ecuador) and Venezuela. The findings revealed that generic drugs are more widely available than branded medicines across all five countries. In Colombia, the surveyed public sector pharmacies did not stock patented drugs at all, while around 50% of stock in private pharmacies is accounted for by generics, which will also influence future market development.
For more information or to purchase this report, go to:
-
http://www.fastmr.com/prod/43405_colombia_pharmaceuticals...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=1010About Fast Market Research
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.
For more information about these or related research reports, please visit our website at
http://www.fastmr.com or call us at 1.800.844.8156.
Account Phone Number