LATAM: Mercado de prescripción crecerá 10% anual hasta 2013...(I)

The eight leading pharmaceutical markets in Latin America will grow by an average of 9.9% each year to 2014, by which time they will be worth a combined $80 billion at retail prices, says a new report.

The eight markets - Argentina, Brazil, Chile, Colombia, Cuba, Mexico, Peru and Venezuela - together have a population of 474 million people and their combined Gross Domestic Product (GDP) totaled $3.4 trillion last year, says the report, from Espicom.


The region’s economic growth is expected to slow down this year and next after a recent period of remarkable growth, it notes. Domestic pharmaceutical production represents about half of the region’s market and imports are worth over $10 billion, but low exports contribute to a deficit in the pharmaceutical balance of trade of $7 billion.


Public-sector access to medicines has increased, particularly among the least well-off, with initiatives such as Remediar in Argentina, PAC Saude in Brazil, Auge in Chile, Seguro Popular in Mexico and Barrio Adentro in Venezuela. Governments are using their bargaining power to negotiate and centralise drug purchases in order to contain costs, and overall public drug expenditure in the region is expected to continue growing, as there is a considerable level of unfulfilled demand.

However, the report also notes that private pharmacy sales are also surging, due to higher disposable incomes in countries such as Brazil, Mexico and Venezuela. Prices of innovative drugs have risen, but governments are taking steps to control them, either directly or indirectly.


Moreover, in contrast to developed markets, consumption of generic drugs is very low in Latin America, apart from in Brazil, which is the region’s biggest market and where local protectionism, very low prices and high production capabilities have combined to develop a sizeable bioequivalent generics market which has proved problematic for foreign generics makers.