Opportunities in Emerging Markets - Latin America, Brazil, and Mexico
Decision Resources, Inc, June 2011
The countries of Latin America and the Caribbean are all categorized as emerging and developing economies. Pharmaceutical companies mostly prioritize Brazil, Russia, India, China, Mexico, and Turkey (BRIC-MT) for their emerging market strategies, but two of these markets are in Latin America. In addition, other small and midsize Latin American markets offer significant opportunities to pharma companies looking to expand in emerging markets. In this report, we investigate the emerging markets of Latin America and compare these markets with the advanced economies of Japan and the United States and the other emerging BRIC-MT economies. We explore the differences and similarities among these diverse markets and discuss strategies and opportunities for pharmaceutical companies in Latin America.
Questions answered:
- The International Monetary Fund forecasts significant growth in many Latin American economies for 2011. Which Latin America economies will have the fastest growth in 2011 over 2010? How does that compare with expected growth in other BRIC-MT economies and advanced economies?
- The World Economic Forum (WEF) assesses the strengths and weaknesses of countries around the world and issues an annual global competitiveness index (GCI) that ranks country economies. How do the emerging markets of Latin America compare with those of the other BRIC-MT countries? How do they compare with the advanced economies of Japan and the United States?
- In April 2011, the Brazilian government announced a program to provide free drugs for certain diseases, and the Mexican government reported that the proportion of the population paying out of pocket for healthcare had fallen 10% in ten years. What is the Health Has No Price program in Brazil? Who pays for health expenditures in Latin American countries? What percentage of privately paid health expenditures is paid by private health insurance in Latin American countries?
- AstraZeneca’s position is that there is a lot more to emerging markets than just BRIC-MT. What approach is this company espousing? Which countries is it targeting? What level of operating margins has AstraZeneca obtained in emerging markets?
- Sanofi CEO Christopher Viehbacher says it is dangerous to talk about emerging markets in a generic way. Why? What competitive advantages does Sanofi have in emerging markets? What key strategies does Viehbacher promote for operating in these markets?
- Teva Americas CEO William Marth says his company still needs to work on growing its international business. How does Teva view Latin American acquisition targets? Why is Teva taking a measured approach to new acquisitions?
- In an analysis of 15 parameters tracked by the World Economic Forum (WEF), certain Latin American countries often rank among the bottom five countries. Which countries rank low on which parameters? What are the top problems for doing business in those countries? Which countries consistently rank high on the WEF parameters?
Scope:
Geographies: Latin America; Mexico; Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama; South American countries of Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Uruguay, and Venezuela; advanced economies of Japan and the United States; emerging markets of Brazil, Russia, India, China, Mexico, Turkey (BRIC-MT).
Emerging versus advanced market comparisons: Global competitive index, population, gross domestic product (GDP), GDP per capita, health expenditures, infant mortality, life expectancy, correlation of worker productivity to pay, labor force female-to-male ratio, quality of math and science education, prevalence of trade barriers, number of clinical trials, intellectual property protection, foreign ownership of companies, favoritism in decisions by government officials, utility patents, intensity of local competition, extent of market dominance, financial services, local equity markets, venture capital, size of pharmaceutical market.
Pharmaceutical industry: Recent deals, clinical trials, multinational corporations (MNCs), domestic companies, contract research organizations (CROs), outsourcing, offshoring, density of physicians and pharmaceutical personnel, healthcare, market size, similares, generics, bolt-on acquisitions, patent protection, mergers and acquisitions (M&As), market portfolios, innovative brands, market share, branded generics, operating margins, local management, manufacturing, investment priorities, human resources machine, production network, tail products.
Expert insight: Peter Wittner, principal, Interpharm Consultancy, provides insight on recent news and events relating to the healthcare and pharmaceutical industries in Brazil and Mexico. Mr. Wittner specializes in generics strategies. Previously, he worked at Ranbaxy (U.K.), H.N. Norton (subsequently part of Ivax), Evans Medical, A.H. Robins, and Koppel & Co. in general management, business development, and sales and marketing.
Exhibits: 27 data-rich tables and figures.
Executive Summary
Strategic Considerations
Stakeholder Implications
Latin America—Emerging and Developing Economies
Economic Groupings
Projected Economic Growth
Latin America—Economic Strengths and Weaknesses
Gross Domestic Product
Gross Domestic Product per Capita
Health Expenditures per Capita
Private and Out-of-Pocket Health Expenditures
Pharmaceutical Markets
Population
Size and Growth
Clinical Trials
Density of Physicians and Pharmaceutical Personnel
Global Competitiveness Index
Brazil
Stage of Development and Problems for Doing Business
Local Competition
Healthcare
Pharmaceutical Market
Similares
Generics
Brazilian Pharmaceutical Companies
Multinational Pharmaceutical Corporations
Speeding Up Patent Protection
Competitiveness Parameters—Top-Ranking Latin American Countries
Chile
Stage of Development and Problems for Doing Business
Local Equity Markets
Workforce Productivity-to-Pay Correlation
Costa Rica
Stage of Development and Problems for Doing Business
Life Expectancy
Patents
Panama
Stage of Development and Problems for Doing Business
Availability of Financial Services
Availability of Venture Capital
Peru
Stage of Development and Problems for Doing Business
Uruguay
Stage of Development and Problems for Doing Business
Foreign Ownership of Companies
Mexico
Stage of Development and Problems for Doing Business
Infant Mortality
Healthcare
Pharmaceutical Market
Similares and Generics
Pharmaceutical Companies
Competitiveness Parameters—Five Low-Ranking Latin American Countries
Argentina
Stage of Development and Problems for Doing Business
Favoritism in Decisions by Government Officials
Bolivia
Stage of Development and Problems for Doing Business
Intellectual Property Protection
Ecuador
Stage of Development and Problems for Doing Business
Trade Barriers
Paraguay
Stage of Development and Problems for Doing Business
Female-to-Male Ratio in the Labor Force
Quality of Math and Science Education
Venezuela
Stage of Development and Problems for Doing Business
Market Dominance
Strategic Approaches in Emerging Markets
AstraZeneca’s Portfolio Approach
Sanofi’s Generics and Feet-on-the-Ground Approach
Teva Pharmaceutical Industries’ Bolt-On Acquisitions Approach
About the Author
About the Expert
- Abbott Laboratories de México
- Abel Santos
- Aché Laboratórios Farmacêuticos
- ACLIRES International
- Activa-Cro
- A.F. Laboratorios Aplicaciones Farmacéuticas
- Allergan
- Amgen
- AstraZeneca do Brasil
- Baxter
- Bayer de México
- Bergamo
- Bioclon Institute
- BioCryst Pharmaceuticals
- Biolab Merz Pharmaceuticals
- Biolab Sanus Farmaceutica
- Bio-Manguinhos
- Biosintética Farmacêutica
- Blanchard y Associados
- Brazilian Generics Industry Association (Pró Genéricos)
- Brazilian Health Surveillance Agency (Agência Nacional de Vigilância Sanitária, ANVISA)
- Brazilian Institute of Geography and Statistics (IBGE)
- Brazilian Ministry of Health
- Brazilian Patent and Trademark Office (PTO)
- Bristol-Myers Squibb de México
- Bunker Industria Farmacêutica
- Centre for Global Competitiveness and Performance
- Charles River Laboratories
- Chiltern
- ClinicalTrials.gov
- Corporación Infarmasa
- Corporación Medco
- Covance
- Cristália Produtos Químicos e Farmacêuticos
- Dr. Reddy’s Laboratories
- DS Consult
- DSM Nutritional Products México
- ECLA
- EGCP
- Eli Lilly y Compañia de México
- EMS
- Eurofarma Laboratórios
- Eurotrials
- Farmasa Laboratório Americano de Farmacoterapia
- Farmindustria
- Federal Commission for Protection Against Health Risks (Comisión Federal para la Protección contra Riesgos Sanitarios, COFEPRIS)
- Federal University of São Paulo
- Fraunhofer USA Center for Molecular Biotechnology (FCMB)
- Fresenius Kabi México
- Gautier
- Genexion
- Genomma Lab Internacional
- Germed Pharmaceuticals
- GlaxoSmithKline
- GlaxoSmithKline Brasil
- Gonzalez Asociados Pharma Consulting
- Gotuzzo Asociados
- Grupo Jasovich
- Grupo Neolpharma
- Helixxa
- HMED
- HRPC
- Hypermarcas
- I3 Latin America (formerly Latin Trials)
- iBio
- ICON Clinical Research
- IMPACTA
- Importadora y Manufacturera Bruluart
- Industrias Químicas Falcón de México
- Ingenix, also known as I3 Research
- INMENSA
- Instituto Terapêutico Delta
- International Labour Organization
- International Monetary Fund (IMF)
- Interpharm Consultancy
- Intrials
- Investigación Clínica Asociada
- IPCSP
- Ipsen
- Kendle
- Klixar
- Laboratório Neo Química Comércio e Indústria
- Laboratorios Cryopharma
- Laboratorios de Biológicos y Reactivos de México (Birmex)
- Laboratorios Kendrick
- Laboratórios Pfizer
- Laboratorios Phoenix
- Laboratorios Pisa
- Laboratorios Silanes
- Laboratorios Sophia
- Laboratório Teuto Brasileiro
- Latinamerican Research
- Latin American Technology Center (LATC)
- LatinClin
- Legrand
- Libbs Farmacêutica
- Luper Indústria Farmacêutica
- Mantecorp Indústria Química e Farmacêutica
- MDS Pharma Services/INC Research
- Medley Indústria Farmacêutica
- MedPace
- Merck
- Merck Brasil
- Merck & Co.
- Merck KGaA
- Merck Millipore
- Merz
- Mexican Anti-Monopoly Agency (Comisión Federal de Competencia, CFC)
- Mexican Social Services Agency (Instituto Mexicano del Seguro Social, IMSS)
- M Matiss
- Moksha8 Pharmaceuticals
- MSD Brasil
- National Association of Pharmaceutical Manufacturers (La Asociación Nacional de Fabricantes de Medicamentos, ANAFAM)
- National Chamber of the Pharmaceutical Industry Mexican (Cámara Nacional de la Industria Farmacéutica, CANIFARMA)
- National Economic and Social Development Bank (Brazil, BNDES)
- Newco Trials
- Novartis
- Novartis Biociências
- Novartis Oncology
- Omnicare
- Oncopartners
- Oswaldo Cruz Foundation (Fundação Oswaldo Cruz, Fiocruz)
- Panamerican Medical Supply
- Parexel
- Peruvian Clinical Research
- Pfizer
- PGS Medical Statistics
- Pharmaceutical Product Development
- Pharmaceuticals Research Associates
- Pharmanet
- Pharm-Olam Serviços Clinicos
- PHC Pharma Consulting
- Pró Genéricos
- Probiomed
- Productos Químicos Naturales
- Produtos Roche Químicos e Farmacêuticos
- Progenitor
- Proquifín
- PSI
- Psicofarma
- Quesada
- QUID Consultora
- Quintiles
- RD Lantam
- Representaciones e Investigaciones Médicas (RIMSA)
- RIMSA Group
- Roche
- Roche Diagnostics Brazil
- Roche NimbleGen
- RPS
- Sandoz do Brasil Indústria Farmacêutica
- Sanofi-Aventis (now Sanofi)
- Sanofi-Aventis Farmacêutica
- Sanofi-Aventis México
- Sanofi Pasteur
- Schering-Plough Produtos Farmacêuticos
- Siegfried Rhein
- Siplas Research Organisation/Latam Clinical Trials
- TechSphere Group.
- Tecnofarma
- Teva Pharmaceutical Industries
- Texas Pacific Group (TPG)
- União Química Farmacêutica Nacional
- United Nations Population Fund
- U.S. Patent and Trademark Office
- Valeant Pharmaceutical International
- Vigium
- Volta
- Watson Pharmaceuticals
- World Economic Forum (WEF)
- World Health Organization (WHO)
- World Wide Clinical Research
- Wyeth Industria Farmacêutica
- ZeeCRO, previously AAIPharma
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