Branded vs Generics Drugs in Latin America
On every border, across every frontier of Latin America, a revolution is underway.
Prefaced by the ground-breaking Hatch-Waxman Act of 1984, the war for market share between generic and branded pharmaceuticals is rapidly unfolding in Latin American countries from Brazil and Mexico to Ecuador and Cuba.
The battle lines have long been drawn. Since expanding the definition, scope and marketability of generics, Latin American governments have embraced them, and to assert their dominance over branded products, have established aggressive policies, including heavily fining physicians who prescribe brand drugs. At the forefront is Brazilian president Luiz Inacio Lula da Silva, who has vowed that Brazilian pharma would be one of four pillars upon which he would build industrial policy. “Between our trade and our health,” he recently said, “we have chosen to look after our health.”
And so far, it’s a strategy that is working. Sales of generics in Brazil are growing at a higher rate than the entire pharma industry, and according to a 2009 report by Ernst & Young, are expected to hit 20 per cent of the industry’s volume this year. It’s not surprising. Along with much of Latin America, Brazil is attracting significant international investment; currently, it is the second largest pharma market in the region, with projected sales of $8 billion.
Politically, the debate over generics and their accessibility in limited income countries has also drawn international attention and won backing from the World Health Organization, the World Bank and Médecins Sans Frontières.
Generics have established their support. Where does Big Pharma stand?
Key insights and strategies from Latin America
FirstWord’s decisive investigation into the politics, terrain and economics of the battle between branded and generic drugs takes you across five countries and behind the scenes, to offer concise insights into the current market environment. Based on clear-sighted historical analysis and building on the current political landscape, the report examines how pro-generic policy has given rise to increased market share, international investment and local development. Containing definitions, sales and price charts drawn from several sources and policy sketches of the five dominant countries in the region, the report goes beyond a battlefield to offer marketing and development strategies by generics and Big Pharma, as well as an “Outlook” section defining prospects for the future.
The report investigates the generics versus branded drugs market to establish:
The report
Key comments
“Governments need to examine access to affordable essential medicines in their country and give it the priority it deserves. The first step is understanding the medicine price, availability and affordability situation, for example through undertaking a medicine price and availability survey, then identifying the causes of high prices and poor availability, developing and implementing policies and strategies, and monitoring their impact to ensure patients benefit from lower prices and improved availability.” Health Action international, Nov 2009
“Strategies on the part of Big Pharma to combat the rise of generics are becoming more sophisticated, more realistic, more direct than hitherto; and, some would say, less ethical and less transparent, reflective of a growing desperation.” Page 28, Branded vs Generic Drugs in Latin America
“In response, the industry appears to be looking at the world through a new lens: all the signs are that it is beginning to devote significant R&D expenditures to formulating drugs for infectious diseases in the developing world.” Page 31, Branded vs Generic Drugs in Latin America
Prefaced by the ground-breaking Hatch-Waxman Act of 1984, the war for market share between generic and branded pharmaceuticals is rapidly unfolding in Latin American countries from Brazil and Mexico to Ecuador and Cuba.
The battle lines have long been drawn. Since expanding the definition, scope and marketability of generics, Latin American governments have embraced them, and to assert their dominance over branded products, have established aggressive policies, including heavily fining physicians who prescribe brand drugs. At the forefront is Brazilian president Luiz Inacio Lula da Silva, who has vowed that Brazilian pharma would be one of four pillars upon which he would build industrial policy. “Between our trade and our health,” he recently said, “we have chosen to look after our health.”
And so far, it’s a strategy that is working. Sales of generics in Brazil are growing at a higher rate than the entire pharma industry, and according to a 2009 report by Ernst & Young, are expected to hit 20 per cent of the industry’s volume this year. It’s not surprising. Along with much of Latin America, Brazil is attracting significant international investment; currently, it is the second largest pharma market in the region, with projected sales of $8 billion.
Politically, the debate over generics and their accessibility in limited income countries has also drawn international attention and won backing from the World Health Organization, the World Bank and Médecins Sans Frontières.
Generics have established their support. Where does Big Pharma stand?
Key insights and strategies from Latin America
FirstWord’s decisive investigation into the politics, terrain and economics of the battle between branded and generic drugs takes you across five countries and behind the scenes, to offer concise insights into the current market environment. Based on clear-sighted historical analysis and building on the current political landscape, the report examines how pro-generic policy has given rise to increased market share, international investment and local development. Containing definitions, sales and price charts drawn from several sources and policy sketches of the five dominant countries in the region, the report goes beyond a battlefield to offer marketing and development strategies by generics and Big Pharma, as well as an “Outlook” section defining prospects for the future.
The report investigates the generics versus branded drugs market to establish:
- How aggressive pro-generic policy is impacting all aspects of the pharmaceutical industry
- What strategies work, and which new opportunities will arise
The report
- Analyzes the historical context for current pro-generic policies across Latin America
- Establishes current government sentiment and industry-building platforms
- Offers multiple tables charting industry-sensitive sales and price information
- Outlines strategies by both generic and brand companies to stay relevant in the fast-growing region
- Contains political and industry profiles of the five leading countries in the region
- Examines Latin America’s emerging generic export industry, and profiles Indian generics producer, Ranbaxy, which has moved aggressively to establish a Latin American market share
- Details the opportunities on offer for branded and generic companies in a region logging market growth rates of in excess of 10 per cent per annum
Key comments
“Governments need to examine access to affordable essential medicines in their country and give it the priority it deserves. The first step is understanding the medicine price, availability and affordability situation, for example through undertaking a medicine price and availability survey, then identifying the causes of high prices and poor availability, developing and implementing policies and strategies, and monitoring their impact to ensure patients benefit from lower prices and improved availability.” Health Action international, Nov 2009
“Strategies on the part of Big Pharma to combat the rise of generics are becoming more sophisticated, more realistic, more direct than hitherto; and, some would say, less ethical and less transparent, reflective of a growing desperation.” Page 28, Branded vs Generic Drugs in Latin America
“In response, the industry appears to be looking at the world through a new lens: all the signs are that it is beginning to devote significant R&D expenditures to formulating drugs for infectious diseases in the developing world.” Page 31, Branded vs Generic Drugs in Latin America
EXECUTIVE SUMMARY
INTRODUCTION
DEFINITIONS
HISTORY OF THE STRUGGLE
THE POLITICS OF GENERICS IN LATIN AMERICA16
PRICES, SALES AND PRESCRIPTIONS
STRATEGIES EMPLOYED BY GENERICS COMPANIES TO MAKE FURTHER INROADS
STRATEGIES EMPLOYED BY BRAND-NAME/LARGE PHARMACEUTICAL COMPANIES TO STAY RELEVANT
COUNTRY PROFILES
BRAZIL: POTENTIALLY THE LARGEST PHARMACEUTICAL MARKET IN LATIN AMERICA
MEXICO: THE LARGEST PHARMACEUTICAL MARKET IN LATIN AMERICA
CUBA, VENEZUELA AND ECUADOR: BUILDING OFFICIAL PHARMACEUTICAL SECTORS
Cuba
Venezuela
Ecuador
FOREIGN COMPANIES IN LATIN AMERICA: PROFILE OF RANBAXY, INDIA
OUTLOOK
INDEX
INTRODUCTION
DEFINITIONS
HISTORY OF THE STRUGGLE
THE POLITICS OF GENERICS IN LATIN AMERICA16
PRICES, SALES AND PRESCRIPTIONS
STRATEGIES EMPLOYED BY GENERICS COMPANIES TO MAKE FURTHER INROADS
STRATEGIES EMPLOYED BY BRAND-NAME/LARGE PHARMACEUTICAL COMPANIES TO STAY RELEVANT
COUNTRY PROFILES
BRAZIL: POTENTIALLY THE LARGEST PHARMACEUTICAL MARKET IN LATIN AMERICA
MEXICO: THE LARGEST PHARMACEUTICAL MARKET IN LATIN AMERICA
CUBA, VENEZUELA AND ECUADOR: BUILDING OFFICIAL PHARMACEUTICAL SECTORS
Cuba
Venezuela
Ecuador
FOREIGN COMPANIES IN LATIN AMERICA: PROFILE OF RANBAXY, INDIA
OUTLOOK
INDEX
