Chris Kilbee, Group Director Pharma at CPhI, in an email interview with AD Pradeep Kumar, talks about the novel features and highlights of this year's CPhI South America expo and chances for major collaborations during the event. Chris is responsible for the strategic development and delivery of market leading event brands CPhI, ICSE, Inno-Pack and P-MEC, held in Europe, China, India, Japan, Russia, Turkey, South America, Korea and South-East Asia, the events' conference platforms and digital solutions including CPhI Online.
Please throw light on the pharma industry in Latin America?
The Latin American pharmaceutical industry is expanding as the local economies continue to grow and the demand for pharmaceuticals increases. In 2013, four Latin American countries, Brazil, Mexico, Venezuela, and Argentina, were in the top 25 for pharmaceutical sales and by 2022 their sales are expected to more than double. Brazil, the leading market in Latin America, is expected to become the fourth biggest market for pharmaceuticals by 2022 with its value estimated at US$ 61.05 billion (compared to US$ 26.56 billion in 2013). Pharmaceutical sales within Latin America are expected to increase by 119 per cent from 2008 to 2021. The generic market is also growing exponentially in Latin America as growing middle classes are seeking affordable versions of the best selling drugs. Five of the top 20 pharmaceutical companies in Latin America are local, generic firms.
What about the Brazilian pharmaceutical industry in particular?
Brazil is the leading pharmaceutical market in Latin America and is one of the top markets in the world. According to a report by McCann Health, its pharmaceutical market is expected to grow as government expenditure on health is expected to increase from 46.4 per cent of total health expenditure in 2010 to 50.27 per cent by 2015. This increase provides an even brighter outlook for pharmaceutical companies in Brazil, as sales will increase with the increase in healthcare spending. Also important to the Brazilian market are generic pharmaceutical sales. In 2010, Brazil was the largest generic market in Latin America, valued at US$ 3.25 billion.
As spending increases, the generic market will play an important role as the government looks for cost-effective ways to allow for the larger distribution of different medicines through its healthcare system. The pharmaceutical market for manufacturers also looks bright, as the Ministry of Health announced in 2011 that it would invest US$ 881 million by the end of 2014 in the research and development sector. The growing market has brought more multinational companies in Brazil, but it has also resulted in more domestic companies, with 10 of the top 21 companies stemming from Brazil itself.
What are your views on the current status of the API market of Latin America?
The Central and South American region has one of the fastest growing API markets in the world, particularly due to a growing demand for biologic and generic medications. Although Mexico has the largest API market in Latin America, Brazil is expected to overtake it by 2017. According to analysts at GBI Research, in 2011, the API market in Latin America was valued at US$ 5.4 billion but is expected to grow at an annual compound growth rate of almost 13 per cent, reaching US$ 11.1 billion by 2017. To help attendees make the most of this market we will also be running a seminar on ‘How to do Business in Brazil’, which will examine the dynamics of the region.
Could you brief us on the novel features and highlights this year ?
This year, CPhI South America and co-located events will host more than 13,000 guests from over 38 different countries, representing leading suppliers and manufacturers from both the food and pharmaceutical industry. The varied attractions present at the event include on-site laboratories and ‘Business with Brazil’, new to this year. This year, the CPhI + Fi international conference programs which will run alongside exhibitions, will give valuable insight to the generics and super generics and natural extract markets. In addition, there will be presentations by ABRIFAR to address ‘How do to Business in Brazil.’
How beneficial will be the co-located events for the attendees?
CPhI South America will be co-located with Food Ingredients South America (FiSA), ICSE, and BioPh. This event brings together two of the most important and dynamic industries, the pharmaceutical and food industry, by co-locating with FiSA. The events provide mutual benefits for attendees by offering exposure to all products and services that complement the collaborative industries.
Are there any chance for major collaborations during the event ?
With Latin America as one of the biggest emerging markets, more and more big pharmaceutical companies are looking to move into this region. For instance, Abbott Laboratories acquired the Chilean-based pharmaceutical company, CFR Pharmaceuticals SA for US$ 2.9 billion. This acquisition will more than double its branded generics pharmaceutical sales in Latin America while becoming the one of the 10 largest players there. We have also launched a matchmaking programme at this event to enhance the quality of meetings taking place- enabling exhibitors and attendees to strategically target the best contacts for their business free of charge ahead of the show.
What is the expected domestic as well as international participation?
The event will provide opportunities to meet with industry professionals and aid business development in one of pharma’s emerging markets. This year we expect a host of visitors from around the globe- with over 13,000 attendees from just under 40 countries.
What is the expected Indian participation in particular?
We have seen some of India’s largest and most innovative companies (5 in total) taking up space at the event, with prominent industry businesses including winner electronics, SRS Pharmaceuticals and LASA.
How according to you has the Indo-South American pharma trade progressed?
During the past decade, trade between India and South America has increased drastically. With this increase in overall trade has come an increase in pharmaceutical trade. Indian pharmaceutical companies have seen Latin America as a destination for their international pharmaceutical investment. One of India’s largest pharmaceutical companies, Dr. Reddy’s, has manufacturing plants in Venezuela and is a major player in the Latin American pharmaceutical market. As this market continues to grow, Indian pharmaceutical companies will continue to see Latin America as a place for investment and profit. Particularly of interest is the growing generics market, which represents a really large growth area for Indian exhibitors and companies.
Could you share the outcome of CPhI South America 2013 ?
Last year, CPhI South America was the sixth successful addition of the event, with over 13,000 attendees, many new interactions and collaborations were made and partnerships formed. This year’s event, following on the recent football world cup, means it is a very exciting time to be investing and doing business in Brazil.