Brazil’s overall health expenditure is expected to grow in future, supported by increased investments in the country’s universal and public healthcare system, says a report by Ken Research
1. Trends in Brazil Pharmaceuticals Market- Growing Number of Mergers and Acquisitions.
M&A in Brazil Pharmaceuticals Industry Market
The growing population of Brazil and increase in demand for generic and other medicines has led major players in the industry to expand their production capabilities. In order to capture the market potential, the industry has witnessed various mergers and acquisitions over the last few years. The companies largely focus on acquiring smaller companies or brands in order to expand their product portfolio or add a new business segment. Pressure has been rising to meet the regulations on manufacturing, research and development of medicines. In addition, the profit margins of the international pharmaceutical companies have been under threat by powerful domestic generic companies.
2. Currency Depreciation was a major challenge faced by the Brazil pharmaceuticals market
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The local currency of Brazil has been depreciating over the years. In 2018, the exchange rate with respect to US dollars was recorded to be BRL 3.6 and Brazil on the other hand relies heavily on the imports of raw materials for the manufacturing of medicine from countries such as Unites States of America, Germany and many other countries.
The domestic currency (BRL) depreciation resulted in high costs on imports of raw materials and it led to a downfall in the production outputs of generic and patented drugs in the country.
3. Growing ministry of health budget- The government is taking measures to support Brazil’s pharmaceutical industry
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Budget allocation of Ministry of Health is growing over the years in Brazil. Of the total Ministry of Health’s annual budget approximately 89% is effectively utilized as planned by the ministry. Budget execution of Pharmaceuticals Assistance on the other hand was comparatively lower and accounted for approximately 72% of the total pharmaceutical’s assistance budget. This has directly impacted the patients in the country who were dependent on the SUS for access to therapies these patients need.
