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The Outlook for Pharmaceuticals in Latin America
Date:12/13/2012

f the Polo Farmacéutico de Buenos Aires, signed by 13 local companies in October 2011; Roemmers' acquisition of 50.0% of a small local OTC company, reported in July 2011; and Roemmers' two-year agreement to distribute and sell 26 primary care products from a Swiss company, announced in January 2011. Mexico and Brazil offer more incentives for multinationals to set up their regional subsidiaries, but two foreign companies made recent strategic acquisitions in the Argentine oncology market in QIII 2011. Previously, GSK acquired Laboratorios Phoenix in June 2010.

BRAZIL

The Brazilian pharmaceutical market ranks first in the Latin American region. Pharmaceutical demand will continue to rise, fuelled by increasing disposable income, therefore the market outlook is positive for the 2011-2016 period. Generics are expected to have a pharmacy market share of 20.0% by value and 25.0% by volume in 2011. Competition among the five leading pharmacy chains is fierce, and the sector has been consolidated by a recent wave of mergers. In September 2011, Drogaria Sao Paulo, the leader in the state of Sao Paulo, and Drogarias Pacheco, the leader in Rio de Janeiro, announced a merger, creating what will be the largest pharmacy chain in Brazil, DPSP. This merger took place after the merger between Drogasil and Droga Raia, announced in August 2011, creating the second largest pharmacy chain, Raia Drogasil.

CHILEThe Chilean pharmaceutical market is expected to increase by a moderate CAGR in US dollar terms between 2011 and 2016. In July 2011, the Institute of Public Health in Chile (ISPCH – Instituto de Salud Pública de Chile) confirmed that it had sent the project to create a National Medicines Agency (ANAMED – Agencia Nacional de Medicamentos) to the Congress. The new agency is expected to update the regulation of medicines, strengthen ISPCH's regulatory functions and implement a number of measures to increase the competitiveness of the pharm
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