Argentina Pharmaceuticals and Healthcare Report Q4 2011
Business Monitor International, August 2011, Pages: 104
Business Monitor International's Argentina Pharmaceuticals and Healthcare Report provides industry professionals and strategists, corporate analysts, pharmaceutical associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Argentina's pharmaceuticals and healthcare industry.
BMI View:
Argentina's pharmaceutical market, driven by an ageing population and resurgent economic growth, has proven a lucrative stepping stone for pharmaceutical companies looking to penetrate Latin America. While Argentina's President Cristina Fernandez has made healthcare a key election issue, her political rhetoric has largely focused on strengthening the local pharmaceutical sector. BMI anticipate nationalist threats are likely to increase in the run-up to the 2011 elections, especially as the opposition now control congress. As it stands, government policies – heavily biased towards local companies, with the authorities keen to keep the national drugs bill low through price controls and state-run laboratories – do further damage to Argentina's already fragile reputation among international pharmaceutical firms.
Headline Expenditure Projections
- Pharmaceuticals: ARS29.17bn (US$7.46bn) in 2010 to ARS34.19bn (US$8.24bn) in 2011; +17.2% in local currency terms and +10.4% in US dollar terms. Forecast upwards from Q311 due to data overhaul and macroeconomic factors.
- Healthcare: ARS137.20bn (US$35.10bn) in 2010 to ARS157.85bn (US$38.04bn) in 2011; +15.1% in local currency terms and +8.4% in US dollar terms. Forecast up from Q311 due to macroeconomic factors.
- Medical devices: ARS2.74bn (US$698mn) in 2010 to ARS3.19bn (US$768mn) in 2011; +17.0% in local currency terms and +10% in US dollar terms. Forecast up from Q311 due to macroeconomic factors.
Business Environment Rating:
Argentina retains its fifth place rank in BMI’s Business Environment Ratings (BERs) for Q411, having moved to that spot from seventh at the end of 2010. However, its attractiveness on the Rewards side is considerably higher than on the Risk side, which is illustrative of the challenging intellectual property (IP) and pharmaceutical pricing and procurement environments. Nevertheless, the report expects Argentina to continue to be viewed with interest by multinational players, although it is unlikely to receive as much investment as its fast growing neighbour Brazil.
Key Trends & Developments
- In July 2011, the country's senate unanimously passed a bill to increase production at its state-run pharmaceutical companies. The law makes the provision of accessible and equitable healthcare a national interest and helps the country produce its own drugs, vaccines and medical supplies through 39 state-run manufacturers. The decision was billed as helping the country reduce its reliance on expensive medicine imports, coordinate public medicine production and ultimately meet rising public health demands in a way that is self-sufficient.
- The government has responded to a series of prescription drug scandals by clamping down on over-the-counter (OTC) pharmacy sales. A study by TNS Gallup found that around 60% of Argentines find it more convenient to purchase medicines at retailers other than pharmacies. However, the government is concerned about the increasing number of non-pharmacies illegally selling prescription medicines. In June 2010, Argentina's Drug, Food and Medical Technology Administration (Anmat) responded to the abuses by restricting the sale of OTC drugs.
BMI Economic View:
The Argentine economy has huge potential on account of its natural resource wealth and highly educated labour force. Over the long term, as the regional economy benefits from an expansion in Asian demand and the Brazilian growth story continues apace, Argentina is better positioned than most to benefit. However, the baseline forecasts see Argentine real GDP growth lagging the region, averaging just 3.6% over the 10-year forecast period, owing to continued government mismanagement of the economy. Indeed, in recent years, expansionary policies, have, in the report’s view, left the economy poised for a period of aneamic growth. Argentina's susceptibility to boom and bust cycles has been evident over the past two decades, with GDP per capita rising the most in the region from 2002 to 2008, but the least since 1993 owing to the 2001-2002 economic crisis and subsequent recession.
BMI Political View:
Argentina's President Cristina Fernández has selected incumbent Economy Minister Amado Boudou as her running partner for the forthcoming elections scheduled to be held in October. Fernandez selected Boudou after cutting ties with incumbent Vice President Julio Cobos in 2008 following his disapproval over a proposed rise in agricultural export taxes. Boudou advised the government on the takeover of private pension funds worth around US$24bn that helped boost expenditure in 2008 and managed the debt restructuring of approximately US$12.9bn in 2010.
While the crushing defeat of the Kirchners in the mid-term elections in June 2009 suggested that the current Argentine president's all-out expansionary and interventionist policies were wearing thin with the electorate, Fernández has bounced back strongly on the back of the nation's strong economic growth trajectory, and the report does not expect a new and more business-friendly government to enter the frame in 2012.
Executive Summary
SWOT Analysis
Argentina Pharmaceuticals And Healthcare Industry SWOT
Argentina Political SWOT
Argentina Economic SWOT
Argentina Business Environment SWOT
Table: Americas – Regional Pharmaceutical Business Environment Ratings, Q411
Rewards
Risks
Argentina – Market Summary
Regulatory Regime
OTC Regulation
Recent Regulatory Developments
Intellectual Property (IP) Environment
IP Disputes
Counterfeit Pharmaceuticals
Pricing Regime
Table Argentina – Pharmaceutical Price Build-Up
Table: Argentina’s Drug Price Freeze, 2005-2008
Reimbursement Regime
Other Regulatory Issues
Industry Trends And Developments
Epidemiology
Communicable Disease
Healthcare System
Healthcare Insurance
Medical Tourism
Medicinal Plants
Table Argentina – Imports of Medicinal Plants by Country (US$’000)
Research and Development (R&D)
Clinical Trials
Medical Devices
Industry Forecast Scenario
Overall Market Forecast
Table: Pharmaceutical Sales Indicators 2007-2015
Key Growth Factors – Industry
Table: Healthcare Expenditure Indicators 2007-2015
Key Growth Factors – Macroeconomic
Table: Argentina – Economic Activity
Prescription Drug Market Forecast
Table: Argentina Prescription Drug Market, Historical Data and Forecasts
Patented Drug Market Forecast
Table: Argentina Patented Drug Market, Historical Data and Forecasts
Generic Drug Market Forecast
Table: Argentina Generic Drug Market, Historical Data and Forecasts
OTC Medicine Market Forecast
Table: Argentina OTC Market, Historical Data and Forecasts
Medical Device Market Forecast
Table: Argentina Medical Devices Market, Historical Data and Forecasts
Table: Argentina Pharmaceuticals Trade, Historical Data and Forecasts
Other Healthcare Forecasts
Key Risks To BMI’s Forecast Scenario
Competitive Landscape
Pharmaceutical Industry
Domestic Pharmaceutical Sector
Foreign Pharmaceutical Sector
Recent Company Developments
Vaccines Sector
Recent Developments in the Vaccines Sector
Pharmaceutical Wholesale Sector
Retail Pharmacy Sector
Company Monitor
Local Manufacturers
Laboratorios Roemmers
Laboratorios Bagó
Leading Foreign Companies
Pfizer
Roche
Novartis
GlaxoSmithKline (GSK)
Sanofi-Aventis
Merck & Co
Boehringer Ingelheim
Country Snapshot: Argentina Demographic Data
Section 1: Population
Table: Demographic Indicators, 2005-2030
Table: Rural/Urban Breakdown, 2005-2030
Section 2: Education And Healthcare
Table: Education
Table: Life Expectancy, 2005-2030
Section 3: Labour Market And Spending Power
Table: Employment Indicators, 2001-2006
Table: Consumer Expenditure, 2000-2012 (US$)
Table: Average Annual Manufacturing Wages, 1995-2001
Glossary
BMI Methodology
How We Generate Our Pharmaceutical Industry Forecasts
Pharmaceuticals Business Environment Ratings
Risk/Reward Ratings Methodology
Ratings Overview
Table: Pharmaceutical Business Environment Indicators
Weighting
Table: Weighting Of Components
Sources
- Boehringer Ingelheim
- GlaxoSmithKline (GSK)
- Laboratorios Bagó
- Laboratorios Roemmers
- Merck & Co
- Novartis
- Pfizer
- Roche
- Sanofi-Aventis
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