The Brazil pharma market is valued at around USD 13.4 billion with a growth rate of 29 per cent, according to the IMS report on April 2008. The fast growing generic market and the economic reforms carried out by the government in the last few years have opened up more market opportunity for Indian companies in this country.
Brazil, one of the emerging markets for pharma industry in South America, is attracting the Indian pharma industry with a fast growing generic market. The Indian companies, which have established operations in Brazil, is looking up to expand their product portfolio to grab maximum market share in this Latin America's largest market for generic drugs in Latin America.
The Brazil pharma market is valued at around USD 13.4 billion with a growth rate of 29 per cent, according to the IMS report on April 2008. The fast growing generic market and the economic reforms carried out by the government in the last few years have opened up more market opportunity for Indian companies in this country. Apart, Brazil also offers the players the advantage to expand its geographical presence to the neighbouring Latin American nations.
Indian pharmaceutical companies like Ranbaxy, which was recently bought by Japan's Daiichi Sankyo, Glenmark and Sun Pharma are building up their operations in Brazil with a strategic focus. While Ranbaxy and Glenmark, which already have established as major players in the Brazilian pharmaceutical market, are planning to expand their product portfolio in this region, Sun Pharma is in the process of setting up its business in a slow and steady way to explore the emerging market opportunities.
Ranbaxy, which set up its presence in Brazil way back in the beginning of this millennium, is currently ranked as the sixth largest company in the generic market with a market share of 3.9 per cent at present. The company's market share in previous year was marked at 3.1 per cent. Ranbaxy, with its 60 products in the Brazil market is planning to expand the portfolio with another 20 products in the near future. In the first quarter of financial year 2008, Brazil recorded sales of USD 10 million, a growth of 75 per cent over the corresponding previous period.
"Brazil is among the key emerging markets, where Ranbaxy has a strategic focus. We will continue to consolidate our presence in the generics segment of the market and will also look at scaling up our presence in branded generics," said a Ranbaxy spokesperson about its operations in this market.
The company's entry into the Brazil market itself shows its strategy to explore the generics market. Ranbaxy entered into the Brazilian market in November 2000 through its majority-owned entity Ranbaxy SP Medicamentos Ltd. The Brazil government had introduced its national policy for generics medicine in 1999 and the first generic product was registered in Brazil in February 2000.
In fact, it is the first international company to support the Brazilian government initiative to guarantee and improve access to generic medicines, claims Ranbaxy management. The company also claims that it is the first Indian company to get its plants approved by the regulatory authorities of Brazil.
According to information available, the company has a strong product portfolio in the country with 110 registrations approved by ANVISA, the National Health Surveillance Agency of Brazil and has a presence in the top distributors and pharmacy chains all over the country. The company has its presence in therapeutic segments with anti-acne, anti-infective, anti-ulcer, anti-inflammatory and anti-diabetic products in the market. Though it had a plan to set up a manufacturing plant in the country in the beginning, the company stood back from the decision considering the strategy it follows for its international operations.
Similarly, the Mumbai-based Glenmark Pharmaceuticals Ltd, which recently hived off its active pharmaceutical ingredient (API) and branded generics business into a separate entity, also anticipates a major stake in the Brazilian generics market. The company is planning to introduce 22 more products within next year in Brazil.
Glenmark Pharma, one of the select Indian companies having a wholly owned subsidiary - GFL in Brazil, is currently marketing 28 of its products in therapeutic areas like derma, respiratory, gynaecology, endocrinology and oncology. The company will explore the potential of the region for strategic development in future.
"We plan to entrench ourselves further in derma, respiratory, gynaecology, endocrinology and oncology. New products with differentiation and increased presence at the clinicians are some of our principal focus areas," informed the company spokesperson.
According to the company official, the Brazilian pharmaceutical market is huge with excellent growth and tremendous learning, which will help the company to do business in any Latin American country. At present, the company is marketing its products to over 10 countries across Latin America and Caribbean.
The company, which acquired Laboratories Klinger in Brazil in 2004 through its wholly owned subsidiary Glenmark Farmaceuitca to strengthen its operations in the country, has also purchased a leading hormonal brand, Uno-Ciclo, in March 2005, from Instituto Biochimico Indústria Farmacêutica Ltda. [Biochimico] for USD 4.6 million. The company currently intends to file over 400 dossiers across Latin America and Caribbean in the years ahead, according to the sources.
The GFL has its own ANVISA approved manufacturing facility in Sao Bernardo do Campo in Greater Sao Paulo that manufactures solid orals including tablets, coated tablets, external semi solids like creams, gels, lotions and liquid orals.
While these companies were already established their operations firmly in the country, the Mumbai-based Sun Pharmaceuticals Ltd with its generic and research and development (R&D) strength, is building up its Brazil operations gradually. The company has identified a very good opportunity in the market, and is focusing the Brazilian market, as several other Indian companies have made inroads in this market, according to company spokesperson.
"We have registrations from the current product basket we sell in India in place and the portfolio will be built up in a slow and steady way. We are still at the initial stages with product registrations and roll out," commented the company official when asked about its Brazilian operations.
The recent declaration on the Intellectual Property rights of HIV/AIDS drugs by the Brazil government has also attracted the attention of Indian generic companies to this area. The government, recently declared the drug Tenofovir, used against HIV/AIDS, to be of public interest and the industry infers that the announcement signals the country's interest in using an option to avoid the patent on the drug and beginning the process of issuing a compulsory license for the life saving medicines.
According to industrial sources, India's pharmaceutical industry may be one of the beneficiaries of this decision. With the generic version of Tenofivir the treatment cost will shrink to USD 170 per patient per year and the Indian companies can provide a saving of USD 30 million to Brazil in a year through these medicines.
The Union Ministry of Commerce and Industry of India has also recently expressed its interest for mutual investments between Brazil and India in the field of biotechnology and pharmaceuticals. In an announcement in the beginning of 2008, the ministry said that the Indian pharmaceutical companies have made a success story of their entry in Brazil and almost all the major pharma players of India have established their presence in Brazil with supply of bulk drugs, finished formulations and establishment of manufacturing units and joint ventures. The government also assured support to the industries for enhancement of the bilateral operations with Brazil, considered by the global pharmaceutical industry as one of the emerging markets along with India, Russia and China.