Foreigners grow and already withhold 40% of generics
Valor Econômico
The share of the multinationals in the Brazilian market of generics has tripled over the past two years, reaching 40% of the total revenue of the laboratories that operate in the segment in the country. Three years ago, that share amounted to 12%. "The entrance of the French Sanofi-Aventis in 2009, with the purchase of national Medley, the largest pharmaceutical the sector in the country, dramatically increased the share of foreign capital in the area. With the entrance of the American Pfizer [with the purchase of 40% of the laboratory Teuto, with the possibility of having its control], the weight of the international companies has increased", told Valor Odnir Finotti, President of ProGenéricos (Brazilian Association of Generic Drugs Industries).
The sale of generics completed ten years in Brazil this year. In the early 2000s, the national pharmaceuticals virtually dominated the market - since the multinationals were more concerned about protecting their patents. Two years ago, the share of the foreign companies in the country was at 12%, according to Finotti, represented only by Sandoz, generic arm of the Swiss Novartis, and other small-size companies. The consolidation movement of international groups in emerging countries, particularly in Brazil, began in the last three years, when many international companies reduced their product portfolio of innovation and had the patent of their blockbuster drugs expired.
The segment of generics generates 20% of the total volumes of drugs in Brazil and 17% in value, or US$ 3.253 billion of the US$ 19.61 billion sold until September this year (last 12 months), according to the IMS Health consulting. In the USA, the volumes of generic drugs reach 70% of the total and, in Germany, 65%. "In the developed countries, the share of the generics grows at slower rates. In Brazil there is much room to move forward", said Nilton Paletta, President of the IMS. Largest national laboratory, EMS, based in Hortolândia (SP), is investing heavily this year to grow in the segment, with the launching of similar and generic versions of the Viagra and Lipitor.
According to Nelson Mussolini, Executive Vice President of Association of the Industry of Pharmaceutical Products of the State of São Paulo (Sindusfarma), what will matter, from now on, in this market, will be the competitiveness of the industries of the sector. "The share of the generics in the total sales should grow and reach up to 50% in the volume in the coming years. Unless the large national companies decide to sell their control [EMS, Aché, Eurofarma], the multinationals, from now on, should grow in relation to the small and medium-sized laboratories in the country", he said. This year alone, the American Valeant bought two small laboratories to grow in the segment. Between April and May this year, the pharmaceutical company bought Bunker, in the city of São Paulo, and Delta, in Indaiatuba (SP).