Report from Brazil - Pharmaceutical Technology

Latest Issue

Latest Issue
PharmTech Europe

Report from Brazil
Brazil offers opportunities and challenges for global pharmaceutical companies.

Pharmaceutical Technology
Volume 37, Issue 7, pp. 38-39

Opportunities revealed
As the country's economy becomes more stable, Brazilians now face "wealth-related" health issues including obesity, diabetes, and cancer. Consequently, the best opportunities found within the local industry will be from common illnesses as well as complex diseases, says Antônio Britto.

Another opportunity cited by most pharma analysts is related to the local generic-drug market, which currently accounts for more than 20.5% of generic-drug sales. Analysts agree that the expansion of the generic-drug market in Brazil and the expiry of various blockbuster drugs have attracted international manufacturers overseas. Moreover, the government of Brazil supports local generic-drug manufacturers, and production figures have growing quickly as a result.

Of the 540 pharmaceutical companies in the country, 90 produce generic drugs. International manufacturers including Roche, Pfizer, and Sanofi-Aventis for example, have developed facilities in Brazil to compete with local companies despite the strong government support towards the domestic players. Nevertheless, the need for research and innovation continues as the region presents many growth opportunities for access and consumption of pharmaceutical drugs and products, according to Interfarma.

Facing the challenges
"Brazil shows important advantages [compared with other countries]; however, there are also issues to be faced," says Britto. For example, the local taxes are an issue to be dealt with when entering the market as well as well-recognized infrastructure problems, which have always been a concern to companies because the transportation infrastructure has not been able to keep up with demands.

While the local government has in the past invested in this area and is set to invest further to cater for upcoming international sports events that will be staged in Brazil, goods, including pharmaceutical products, still continue to pile up at airports and ports. According to Britto, new players must be prepared to bear the high costs of regulatory delays and taxes, of which Brazil is among the highest in the world, as well as put up with infrastructure challenges that pose difficulties in ports and airports. He also mentions challenges in recruiting highly technical employees for specific jobs due to the country's education deficiencies, mainly in the areas of science, chemistry, and engineering.

International press reports have stated that the regulations in Brazil tend to be confusing; hence, partnering with a knowledgeable supply-chain provider would be best for new companies entering the local market. In fact, the government has suggested that new companies partner with a local firm to enter the Brazilian market. However, Britto does not believe in a formula that applies to all companies. "It all depends on the type of company and product to be developed in Brazil and it depends on the market it will be competing in," he says.

Britto considers Brazil to be well regulated and states that the system is rigorous. "Brazilian regulation is as good as the best global regulations on average. The problem is not the lack of regulation, but the lack of professionals capable of putting the existing regulation in practice."

It is clear that to succeed in this complex market, pharmaceutical companies will need to rethink their strategies carefully. Roland Berger Strategy Consultants agree that there is no such thing as a generally valid strategy but a multi-dimensional plan to thrive in such an unknown environment.

Hellen Berger is a business writer based in São Paulo, Brazil.


blog comments powered by Disqus
LCGC E-mail Newsletters

Subscribe: Click to learn more about the newsletter
| Weekly
| Monthly
| Weekly

What role should the US government play in the current Ebola outbreak?
Finance development of drugs to treat/prevent disease.
Oversee medical treatment of patients in the US.
Provide treatment for patients globally.
All of the above.
No government involvement in patient treatment or drug development.
Finance development of drugs to treat/prevent disease.
Oversee medical treatment of patients in the US.
Provide treatment for patients globally.
All of the above.
No government involvement in patient treatment or drug development.
Jim Miller Outsourcing Outlook Jim MillerOutside Looking In
Cynthia Challener, PhD Ingredients Insider Cynthia ChallenerAdvances in Large-Scale Heterocyclic Synthesis
Jill Wechsler Regulatory Watch Jill Wechsler New Era for Generic Drugs
Sean Milmo European Regulatory WatchSean MilmoTackling Drug Shortages
New Congress to Tackle Health Reform, Biomedical Innovation, Tax Policy
Combination Products Challenge Biopharma Manufacturers
Seven Steps to Solving Tabletting and Tooling ProblemsStep 1: Clean
Legislators Urge Added Incentives for Ebola Drug Development
FDA Reorganization to Promote Drug Quality
Source: Pharmaceutical Technology,
Click here