Piribo Brazil Pharmaceuticals Healthcare Report Q3 2006 New Publication Announcement



Piribo, the online destination for business intelligence for the biotech and pharmaceutical industry, has now added a new report called 's8220;Brazil Pharmaceuticals & Healthcare Report Q3 2006's8221;. http://www.piribo.com/publications/country/latin_america/brazil/brazil_pharmaceuticals_healthcare_report_q3_2006.html

The Brazilian pharmaceuticals market is the largest in South America, and was valued at US$9.2bn in 2005. In recent months, growth in US dollar terms has been strong, largely due to favourable currency effects and rising consumer demand. IMS Health retail market data places year-on-year growth rates in May 2006 at around 42%, although in local currency terms, local industry sources estimate the current rate of expansion at only 10.8%.

The market is dominated by branded products, which despite the strenuous efforts of government policymakers continues to account for 88.7% of sales in value terms. However, the share of the prescription sector is lower, at nearly 73%, due to the large over-the-counter market

- which is in turn distorted by the traditional prevalence of illicit sales of prescription-only products without the need to present a doctor script. Although the advertising environment for non-OTC products is strict, the lack of a clear division between the two markets makes valuations problematic. For example, IMS Health valued the market for genuine OTC products at just BRL265mn (US$122.6mn) in 2005.

Despite the traditional consumer preference for branded products, and the key role played by doctors as gatekeepers to the market, the generics sector remains the market'ss fastest-growing segment. The legitimate generics sector'ss share of the Brazilian market reached 10.26% in the 12 months to May 2006, with annually adjusted growth estimated at 31.3% in the month. The government has launched a number of high-profile initiatives to promote off-patent, bioequivalent medicines in recent years
- not all of which have been successful. This is largely attributable to the continued presence of so-called 'ssimilar's medicines, or non-equivalent copies of local origin.

Although operational conditions remain challenging, foreign direct investment is increasing. Brazil is becoming an attractive regional base for multinationals including, most recently, the US manufacturer Bristol-Myers Squibb. Such investments are aimed at minimising exposure to smaller, less well-regulated markets in the region, while also developing the country'ss potential as an export base. The indigenous industry, meanwhile, is consolidating with the encouragement of official economic development agencies, and heavy private sector investment in marketing and product development is reported.

Nevertheless, there remain risks for research-based firms in Brazil. Although the sector is clearly a priority for foreign investment, the direction of healthcare sector reform is focused on providing affordable medicines to low-income citizens. A direct system of price controls is applied to all prescription drugs and some OTC products. Meanwhile, foreign R&D-based firms continue to complain that government'ss rhetoric on pharmaceutical patents is taking an increasingly aggressive tone.

Contents
Executive Summary
Brazil: Business Environment Ranking
Industry Developments
Industry Forecast Scenario
Competitive Landscape
Competitive Landscape
Company Monitor
Latin America: Regional Market Overview
BMI Forecast Modelling

's8220;Brazil Pharmaceuticals & Healthcare Report Q3 2006's8221; is available from Piribo. For more information go to: http://www.piribo.com/publications/country/latin_america/brazil/brazil_pharmaceuticals_healthcare_report_q3_2006.html

Piribo Product ID: BMI080

About Piribo.
Piribo (http://www.piribo.com) is a UK-based independent online store supplying business information on the pharmaceutical and biotechnology industries. The website now carries over 3,800 English language titles including, market reports, studies and books and is the UK's8217;s largest online biopharma information store. Subscribers receive a free monthly newsletter and email alerts on new titles in their areas of interest. The company was established in 2004.





Piribo Brazil Pharmaceuticals Healthcare Report Q3 2006 New Publication Announcement