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BRAZILIAN PHARMA MARKET OVERVIEW Part 2 - Institutional Market and Future Perspectives

BRAZILIAN PHARMA MARKET OVERVIEW Part 2 - Institutional Market and Future Perspectives : 작성자, 카테고리, 작성일, 조회수, 원문,출처, 정보 제공
작성자 임이슬 카테고리 전문가 인사이트
작성일 2017-11-15 조회수 4,203
원문
출처

BRAZILIAN PHARMA MARKET OVERVIEW
Part 2 – Institutional Market and Future Perspectives
Edson Luis de Brito, Pharm.D. – Executive Consultant in Korea Heath Industry Development Institute, KHIDI

전문가
Edson Luis De Brito
(에드손 브리토)
KHIDI 해외제약전문가
상임컨설턴트
세부 전문분야
  • 마케팅, 사업개발, 인허가
컨설팅 내용
  • 중남미지역 진출 전략 및 시장 개척
  • 중남미 시장 분석, 마케팅, 사업개발
  • 임상시험 모니터링, 코즈메틱 분야

INTRODUCTION

The institutional market in Brazil already presented an increasing, though modestly, in the middle of the 1990`s decade.

However, with the advent of many modern biological products, added to Brazilian Constitution that warrants the right to health to all, the growth of the institutional market in terms of values skyrocketed.

This is due the high prices attributed to the new treatments and the pressure of doctors and patients to get the novel and more effective products. It is important to mention that generic products also took part in this market, however with more volume than value in this particular case.

In an environment like this, a wide window of opportunities is open to Korean Pharma companies with capability to match with the regulatory authorities in Brazil for both, biopharmaceuticals and generics.

Based on it and in other situations, we can envisage some possible changes and improvements in the Brazilian market.

Institutional Market in Brazil

Brazil has a public health system that should obligatorily support the procedures aiming to recover and guarantee the healthy condition of the people, since those procedures are recognized as procedures effectives and safe for patients, and in case of use of pharmaceuticals, these are registered in the National Sanitary Surveillance Agency – ANVISA.

In very special cases, some equally special programs can be created by the Ministry of Health, to cover specific and high complexity treatment diseases.

It is very clear that a system like this, in a country with an increasing population and with a failing administration, can collapse if some important budget control does not take place, and this risk of collapsing happens consistently, it is important to mention.

A huge volume of the public incomes is directed to the Unified Health System (SUS), however it has been insufficient due to the immense demands for treatment, impacting in the families not only in terms of financial, but also emotional, because when the state fails, usually families are responsible to support for the treatment.

Related to programs where the expenditures of newer medications for the therapeutical classes which are supported by the Public Health System, we can point out some of the most significant such as:

  • Oncology
  • Growth Disorders and Inborn Metabolism Errors
  • Dyslipidemias
  • Diabetes
  • Blood-Iron disorders
  • Central Nervous System and Psychiatric disorders



The current expenditure in Brazil for pharmaceuticals, related to all treatments supported by Unified Health System, is about 4.7 billion dollars annually, and about 1.8 billion dollars are just related to special care in high complexity (high cost) treatments, with a very narrow number of patients in treatment when compared with the total number of patients in regular and low complexity treatment. This fact can lead the authorities to be more attentive with other less expensive therapeutical options, able to treat part of the patients, or create more regulatory barriers to avoid the impact in the future public health system budgets, even though this not to be a current tendency.

Beside the modern biological products (monoclonal antibodies, biological enzymes, hormones obtained by Recombinant DNA technology and others) and anticancer drugs, considered in the high complexity treatment also the greatest volumes of generic products offered for the treatment generate an impact in the expenditure, though the greater options in the generic or similar products make them more easily managed.

The best seller generic and/or similar drugs (in volume per molecule) are drugs for the treatment of commons symptoms and control of hypertension, diabetes (non-insulin) as such as follow:

  • Dipyrone
  • Metformin
  • Losartan
  • Enalapril



Actually, these products (API) are manufactured by more than 15 companies, and the competition in tenders are very aggressive, leading a strong price erosion. This price erosion, often impacts also in the private market.

Due to the complexity of the activities of relationship necessary to be performed inside the institutions, Brazilian Pharma companies are increasing in number, training and improve continuously the skills of their professionals which are inserted in context of institutional business.

Pharmacies and Drugstores Chains

When talk about pharmaceutical market, is known that Brazil has one prominent performance in the global market place, occupying the sixth position among the largest pharma markets in the world.

Even though, the economy facing ups and downs, the expectation is that, by 2018, Brazil (according to some sources familiar to the sector) will reach the fourth position, after United States, China and Japan.

Several events that happened simultaneously, allowed that the point to be reached. One of the factors of this situation is the aging of the Brazilian population, as mentioned in the Part I, which is advancing year by year. According to estimations issued by the Brazilian Institute of Geography and Statistics (IBGE), the population above 60 years of age should increase from 14.9 million (7.4% of the total) in 2013 to 58.4 million (26.7% of the total) by 2060 due to the continuous increase in life expectancy.

The more elderly people, the more growth in the consumption of medicines, since chronic diseases, such as hypertension and diabetes, tend to appear with the advancing age. Pharmacies and drugstores are the main channel for the dispensing of pharmaceuticals.

The sector as a whole has power to increase and develop more, however, not in all models of pharmacies, once there are some different business models in course. Currently, Brazil has around 70,400 pharmacies, of which 72% are represented by the independents (standalone ownership) and 14% are occupied by large chains - conglomerates of drugstores, with an aggressive capacity of expansion and high investment power.

Revenues and incomes are very important for the pharmacies and drugstores, then to sell pharmaceuticals is the main target, however, the pharmacy as a point of sales is selling everything related to health and wellness.

For this reason, items considered as non-pharmaceuticals, which include personal hygiene products, cosmetics, perfumery, shampoos, intimate absorbents, sweeteners, hair dyes, condoms and sunscreens, among many others, have exceeded the market average and has shown that the strength of large networks is concentrated in differentiated products and not just in medicines.

Non-pharmaceuticals are responsible by a revenue amount around 1 billion dollars per quarter in the year (2016) exclusively at the drugstore chains, that means an increase of 12.9% compared to the same quarter of 2015 while the market grew 12%. Just for a reference, non-pharmaceuticals represent around 35% of total sales in the retail market, this value impacts one the positively, and signalize that the customer want to keep its health but also want to reach more wellness in the same place.

Perspectives for the years to come

Predict the future based on the past, sometimes can give us some insights, but definitely is an exercise of hope inside a sea of uncertainness, especially when factors such as economy and health are in the same context. In a country like Brazil, this analysis could more difficult, due to its well-known behavior that always bring us a surprise in each movement. Because many things and changes were made in the Brazilian regulatory field, and because an electoral period is close ahead (2018 is the presidential election year) the perspectives for a new positive wave could affect positively the economy and the volume of investments tends to increase.

Beside this, the Brazilian customers is becoming more attentive to their rights and their desires. This matter will affect the environment as whole, but the health sector, more sensitive to any movement from customers, doctors, payers and health industry sides should to be one of the most explored in the next months. This is due to the programs to support some diseases will remain in the radar of the current Brazilian administration, which one expect to continue in the administration after the presidential and legislative election at 2018.

In 2017, Brazil is facing a three years period of recession caused by a slowing down in the economy, and this slowing down is caused by the skepticism in the administration capability of the current group inserted in the head of the government, mostly of them involved in schemes supported by corruption.

Brazilian hope dwells in the next administration, which certainly will be different of the current moment, with different ideas and government programs for the future. Optimism of a new government always gives an economy warming, with consequences in short or long terms.

The tendency is that the with some problems being solved, a new moment of increasing in the consumption of health will take place, once the population will remain increasing reaching at 2022 the amount of 220.000.000 inhabitants. The more population the more healthcare issues to be resolved.

Infectious disease will demand more quantity and diversified antibiotics, then new drugs for treat diseases such as CAP (Community Acquired Pneumonia), COPD and mainly infections acquired in hospitalizations tends to be required.

Skin treatments also tends to be highly requested by Brazilian patients and customers, and those who could enter in the market with innovative compounds, products and forms how to use, can have the chance to be succeed in terms of market result, once people are more interested to preserve their good facial look for more and more time.

Cancer will remain a great challenge, especially for Public Health service, due to around 1.2 million cases of cancer that will occur in Brazil from 2018 to 2020. Because of cancer, post cancer surgery treatments that can increase the quality of life and give the better conditions to the patients recover their work power are welcome.

Smart drugs for cancer also will be the great opportunity to insert in the Brazilian Market, once the development of programs for prevention of diseases will be continuously demanded to avoid other diseases as consequence.

Obesity is a health condition that will be looked with very interest for more and more people, because if it is prevented or treated it will can avoid the raising of hypertension, diabetes, dyslipidemias and cancer.

Prophylaxis and prevention will also guide part of the health business, the vaccines are in the range of the myriad of opportunities in the Brazilian market.

Conclusions

In the current scenario, the level of attractiveness of Brazilian economy, as whole, is lower when compared with 2014 scenario.

However, the Pharma market in Brazil is keeping the capability to run well, even in a weaker economy environment With the increasing of the population, diseases related to elderly (cardiovascular, CNS, erectile dysfunction, cancer) and prevention (vaccines, wellness) are niches that tends to increase the numbers of patients for the next years.

After the elections, in 2018, and with a new administration at 2019, the expectation is that the economy’s recovery will reflect positively in the healthcare market, and then more business and investments in new therapies will take place. To be ready for that moment, who those are interested, should to move since now in that direction.

References :

  • Indústria Farmacêutica Brasileira: Reflexões sobre sua Estrutura e Potencial de Investimentos Luciana Xavier de Lemos Capanema; Pedro Lins Palmeira Filho
  • Balanço das Parcerias para o Desenvolvimento Produtivo Ministério da Saúde Brasília, 14 de julho de 2015
  • Angélica Teixeira. A Indústria Farmacêutica no Brasil: um estudo do impacto socioeconômico dos medicamentos genéricos.
  • HTTPS://WWW.NEXOJORNAL.COM.BR/GRAFICO
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  • ANÁLISE DA INDÚSTRIA FARMACÊUTICA – PERSPECTIVAS E DESAFIOS, Allan Coelho Duarte, Caio Cordeiro de Resende, Denis Murahovschi,Flávio Palhano de Jesus Vasconcelos
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