Central America Pharmaceuticals and Healthcare Report Q1 2013
- ID: 2372995
- January 2013
- Region: America, Central America
- 55 pages
- Business Monitor International
BMI View: The political instability and underdeveloped economies in many Central American countries make the region less attractive to multinationals, compared with most neighbouring countries. However,
the heavy reliance on imported medicine in the region provides revenue-generating opportunities for generic drugmakers from neighbouring Latin American countries and India. We highlight that Costa Rica and Panama can be the premier countries in the region for foreign drugmakers to expand their presence.
Headline Expenditure Projections
- Pharmaceuticals: US$3.3bn in 2011 to US$3.5bn in 2012; +5.5% in US dollar terms. Our forecast has been revised slightly upwards since Q412 due to improved historical data.
- Healthcare: US$13.51bn in 2011 to US$14.68bn in 2012; +8.6% in US dollar terms. Our forecast has been revised upwards since Q412 due to improved macroeconomic factors.
In BMI's Q113 Pharmaceutical Risk/Reward Ratings (RRRs), based on our analysis and assessment of the market's appeal to pharmaceutical companies, the Americas region continues to rank second lowest globally with a score of 49.4 out of 100; behind Western Europe (66),
Asia Pacific (53) and Central and Eastern Europe (51), but ahead of the Middle East and Africa (44). Of the seven Central American countries surveyed, Costa Rica's RRR score has changed in Q113, up from 39.2 in Q412 to 40.7 this quarter, reflecting the country's increasing attractiveness to multinational drugmakers. Meanwhile Honduras' RRR score has reduced from 31.5 in Q412 to 28.5 in Q113.
Key Trends And Developments
- In October 2012, a proposal to amend biomedical research regulations in Costa Rica was submitted to the legislative assembly by the University of Costa Rica (UCR) and private sector representatives. The assembly is likely to approve changes to Draft Law No. 17,777 when it votes on the issue. The new text covers several areas, including the status of research participants and improving the management and control bodies of biomedical research. The main goal of the legislation is to monitor the fundamental rights of people involved in scientific research, UCR president Henning Jensen Pennington said.
- In October 2012, German multinational drugmaker Bayer warned that a batch of Claribac
(clarithromycin) antibiotics that did not meet quality standards has been leaked to El Salvador's unregulated pharmacies. The director of the National Drug Agency, Vicente Coto, said the medicines with lower active ingredient concentration than required should be destroyed according to the country's good manufacturing practice standards. Bayer said 47,320 units of medicine were stolen from its production plant in El Salvador and they were very unlikely to enter the country's authorised pharmacies.
- In October 2012, the National Drug Directorate planned to set maximum retail prices for more than 200 essential medicines and eventually to regulate prices for the 11,000 drugs registered in the country. Although drug price regulation could potentially reduce pharmaceutical companies'
profit margins, it will improve volume sales by pushing counterfeit drugs out of the market, as more patients will be able to afford regulated products
- In October 2012, The Social Security Society for Comprehensive Cancer Care in Costa Rica has reported that there are at least 9,000 patients diagnosed with cancer each year, and 4,244 people died as a result of stomach, lung, breast, cervical and prostate cancer in 2011 (the total population of Costa Rica is 4.7mn). Dr Bernardo Luis Saenz, the director of the society, told news agency EFE there was a growing trend in cancer mortality and the number of deaths has increased by 24% since 2000.
BMI Economic/Political/Social View:
Central America will remain heavily dependent on the performance of developed-state economies, particularly the US, which remains a major source of remittance flows and demand for exports. Drug-related violence and rising levels of insecurity will remain the major concern for most of the region's electorate, particularly elevated among the 'northern triangle' states of Guatemala, El Salvador and Honduras. The region's economic trajectory remains highly divergent, with Panama set to experience one of the fastest real GDP growth rates in the world over the next few years, whereas El Salvador and Honduras will struggle. SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 7
Central America Pharmaceuticals And Healthcare SWOT 7
Central America Political SWOT 8
Central America Economic SWOT 8
Pharmaceutical Risk/Reward Ratings 9
Table: Americas Pharmaceutical Risk/Reward Ratings, Q113 9
Regulatory Regime 10
Intellectual Property Regime 11
Costa Rica 11
El Salvador 12
Industry Developments 14
Regional Developments 14
Costa Rica 16
El Salvador 18
Industry Trends And Developments 24
Clinical Trials Sector 25
Costa Rica 26
El Salvador 26
Industry Forecast Scenario 28
Overall Market Forecast 28
Table: Pharmaceutical Sales Indicators 2008-2016 29
Costa Rica 29
Table: Incentives In The Free Trade Zone In Costa Rica 31
El Salvador 31
Key Growth Factors - Industry 34
Costa Rica 34
El Salvador 35
Key Growth Factors - Macroeconomic 37
Pharmaceutical Trade Forecast 42
Table: Exports And Imports Indicators 2008-2016 43
Costa Rica 43
El Salvador 44
Competitive Landscape 46
Company Profiles 47
Ancalmo Internacional 47
Donovan Werke 48
BMI Methodology 51
How We Generate Our Pharmaceutical Industry Forecasts 51
Pharmaceutical Risk/Reward Ratings Methodology 52
Ratings Overview 52
Table: Pharmaceutical Risk/Reward Indicators 53
Table: Weighting Of Components 54