cphi-online.com

The Brazilian pharmaceutical market is growing at a compound annual growth rate (CAGR) of nine per cent, a new report suggests.

Healthcare experts GBI Research have published their latest report on the emerging market, which claims that the industry is benefiting from continued government support.

As a result, it is making a clear mark on the global industry and is becoming well-known for its high-quality clinical trials.

The country also has a large population of around 190 million, which makes it attractive to foreign pharmaceutical firms, alongside its own home-grown companies.

Partnering agreements between global pharma and local outfits - such as GlaxoSmithKline's co-development deal with Oswaldo Cruz Foundation - are becoming increasingly common.

However, GBI Research's report noted that generics pose a threat to future profits.

Sales of these drugs accounted for more than a fifth of Brazil's pharmaceutical market last year and the average number of generics registered per brand has increased almost four-fold over the past ten years.

"The generics market is expected to maintain growth at a CAGR of 19 per cent, but as generics are priced at around one-eighth of the price of branded drugs, their increasing market share may well dramatically alter the revenue made in the Brazilian pharmaceutical sector," GBI Research said.

The report coincides with a separate study by MarketResearch.com, which suggests that biologics industry growth in Brazil, Russia, India and China will outpace traditional markets over the coming years.