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Reportlinker Adds E7: The Outlook for Pharmaceuticals to 2012
Date:12/29/2010

as people live longer and have more sedentary lifestyles.

Highlights from the report

BRAZIL

Brazil is the second most attractive BRIC market for pharmaceutical producers. Controlled drug prices are growing at below inflational levels but price controls are not directly linked to consumption levels. In fact, between 1997 and 2008, the pharmaceutical market by volume increased significantly only in 2004. Demand should increase as the country is emerging from the economic downturn much quicker than anticipated, therefore the outlook is very positive compared to other Latin American markets. The exchange rate of the real against the US dollar fell in early 2009, but it has now recovered. This is good news for producers as imports are now cheaper; Brazil, in contrast with other BRIC countries such as India, still relies on raw material imports, which diminishes its market strength.

CHINA

China's pharmaceutical market looks set to grow even further in the short-term, with the establishment of an Essential Medicines System during the 2009-2011 period. The plan calls for an estimated 300-400 essential medicines to be made available at all public facilities, starting at the grassroots level. In October 2009, the NDRC reduced the prices of 2,349 drugs by an average 12%. These drugs represent around 45% of drugs on the Essential Medicines System. The prices of 49% of drugs on the list will not be reduced while the remaining 6% that are in short supply will see their prices increased moderately in order to encourage their manufacture.

INDIA

India has a huge population in excess of one billion people and a growing middle class with access to high quality healthcare. Conversely, in this geographically vast country plagued by natural disasters, the majority of the population is both rural and poor and western style pharmaceuticals are not even an issue for millions of people. India has an established domestic industry, responsible
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