Latin America shows untapped pharma potential, says report
Latin America shows considerable and untapped business potential for the pharmaceutical industry, according to a new report by PricewaterhouseCoopers (PWC).
Latin America shows considerable and untapped business potential for the pharmaceutical industry, according to a new report by PricewaterhouseCoopers (PWC).
'Latin America Prescription for Growth' identifies it as the region pharmaceutical industry leaders should be targeting, both as an area for research and development and as a market for innovative drugs.
The economic recovery of Argentina and Brazil and the strong manufacturing base developing in Mexico are making Latin America much more appealing as a place in which to conduct development and production. The region's pharmaceuticals market is a fraction of the size of the US market but the number of clinical trials conducted in the region rose tenfold between 1995 and 2000.
Furthermore, the market is showing strong growth potential. According to The United Nations the overall population of the region is projected to increase by about 23% over the next 20 years, from 504 million to 623 million. Brazil and Mexico are the two biggest markets and have stable economies, manufacturing experience and potential for growth so are good first targets, says PWC. The top 10 pharmaceutical companies account for only 42% of sales in Brazil and 47% of sales in Venezuela and Argentina. This compares with more than 50% in the UK and France and almost 60% in the US and Canada.
Mortality rates for cancer, heart disease and strokes and the incidence of diabetes are all increasing as a result of more sedentary lifestyles, smoking, drinking and obesity. Demand for prescription drugs is consequently increasing as are therapy classes for cardiovascular and central nervous system illnesses. Classes for treatment of asthma are also experiencing similar growth.
'The pharmaceutical industry's main markets are under serious pressure and experiencing sluggish growth so there is a real need to diversify,' said Simon Friend, global pharmaceutical leader, PricewaterhouseCoopers. 'China may be the popular target for other industries but in some parts of Latin America per capita expenditure on pharmaceuticals is more than double that of China. Any company that wants to be global will ultimately need to have a presence in Latin America.'