Pharmaceuticals Issues in Brazil

As per one report published by Goldman Sachs among the Latin American countries Brazil 's pharmaceutical market has moved down to second place As per estimates of FEBRAFARMA , the size of Brazilian pharmaceutical market in 2005 was approximately US 8 billion . Brazil is a highly populous country and the market potential is makes it an attractive destination

Inflation is high resulting in higher interest rates . More than 85 of the raw materials for pharmaceuticals are imported and the prices keep swinging . This creates extra pressure on the Brazilian pharmaceutical manufacturers to make

adjustments in their profits . Leasing out of production facilities is one of the options is one of the options before them . Another problem is that taxes in Brazil are among the highest in the world . The cascading tax system applied on manufacturers affects many industries . In spite of that According to FEBRAFARMA , in spite of the tax on the circulation of goods and services , which is nearly 16 on drugs , Brazil is one of the cheapest countries for drugs in terms of dollars . The generic market share is approximately 65 of the is due to competition from copy products and generics have contributed to price erosion of original brands . Manufacturers are looking for various options to secure market share . Government has offered incentives on setting up manufacturing units in Brazil and attracted by financial incentives , major international generics companies are setting up local production facilities in Brazil to reduce their imports . The government , through regulatory bodies such as ANVISA and CMED , hopes to control the prices . There have also been threats from government to companies of revoking of their patents unless they reduced price . Thus Brazilian market is good for generic manufacturers but they have to watch out for their costs and fight for market share

References

Generics take off in Brazil : 2003 : accessed on April 16 ,2007

http /open .imshealth .com /webshop2 /IMSinclude /i_article_a .asp

Regional Round up :Brazil Oct .2005 : accessed on April 16 ,2007 from

http /www .contractpharma .com /articles /2005 /10 /regional-roundup-brazil .p hp

Strategic Analysis of the Brazilian Pharmaceutical Markets :2004 accessed on April 16 ,2007 from

http /www .the-infoshop .com /study /fs25625_strategic_analysis .html...