GLOBAL VIEW
Anna Jagger is a journalist specialising in Latin American chemicals
Brazil
Pharma promise L
Brazil’s pharma- ceuticals market is estimated to be the eighth largest in the world. Over the period 2016-2021, it is forecast to grow by an average of 3.5%/year to close to $30bn’
Global Data
ong-standing problems with Brazil’s healthcare system have been exacerbated by the country’s economic downturn and political crises. Unemployment rates are high and cuts in public health funding have limited growth in Brazil’s market for medical services and pharmaceuticals. But the economy is now starting to recover, and life expectancies are continuing to rise, providing optimism for the country’s pharmaceutical companies. Brazil became one of the first countries in Latin America to make access to healthcare a constitutional right, but since it was created in 1989, the Unified Health System, known as SUS, has struggled to meet demand. Patients regularly have to wait several months to see a doctor and the coverage and availability of medicines is often limited or non-existent, says Nuno Antunes of healthcare analytics company, Decision Resources Group (DRG). ‘The capacity of SUS is currently being
challenged by the influx of millions of Brazilians who lost enrollment to private health plans, many of them undergoing treatments,’ he adds. Brazil’s private insurance sector is estimated to cover about 23% of the population – generally the most affluent. Despite its many problems, SUS has brought
healthcare to millions of poorer inhabitants who were previously denied even basic care. Mainly because of the rising life expectancies and declining birth rates, Brazil’s population has risen from 191m in 2009 to 202m in 2016. And the country has been praised for its efforts to tackle HIV/AIDS, tuberculosis, the Zika virus and, most recently, yellow fever. Brazil’s Ministry of Health confirmed in
September 2017 that the country’s yellow fever outbreak, which began in December 2016, had ended. A total of 777 cases of yellow fever were confirmed during the outbreak, including 261 deaths. Throughout the outbreak, health officials conducted a massive vaccination programme, and no new cases have been detected since June 2017. Yellow fever virus is transmitted by Aedes aegypti - the same mosquito that spreads the Zika virus. Keeping up the fight against A. aegypti is a major challenge, commented Brazilian Health Minister Ricardo Barros during a visit to the Pan American Health Organization (PAHO) earlier this year. Brazil was the centre of an outbreak of Zika virus starting in 2015, with more than 200,000 cases confirmed cases throughout the Americas.
Despite recent financial turmoil and political scandals, Brazil remains a promising pharmaceutical market Brazil’s pharmaceuticals market is
estimated to be the eighth largest in the world. Over the period 2016-2021, it is forecast to grow by an average of 3.5%/year to close to $30bn, according to market research group GlobalData. Growth factors include the changing demographics, a booming generic drugs market and an increased incidence of chronic diseases. The pharmaceuticals sector will benefit
from the country’s economic recovery this year, and particularly in 2018, when the recovery is expected to be realised more fully. Brazil’s recession is technically over, although economic recovery is still fragile. Real GDP rose on a quarterly basis in Q1 and Q2 this year, and GDP is estimated at around 0.7% for the full year 2017. Growth is then expected to accelerate in 2018. According to another market research
company, Visiongain, there are opportunities for pharmaceuticals companies in the oncology and diabetes segments. ‘Brazil has the fifth highest number of diabetes patients in the world, while cancer has historically gone unaddressed by the healthcare system,’ it says. ‘SUS is now facilitating easier access to oncology drugs, thus there is an opportunity for growth.’ Technology transfers deals with multinational
companies are also expected to help drive growth in Brazil’s pharmaceuticals sector. While Brazil hosts manufacturing plants of many global pharmaceutical players, local companies tend to focus on the production of generic and similar brand medicines. ‘Technology transfer is likely to galvanise the nation’s domestic pharmaceutical industry as well as saving SUS money, but it remains to be seen whether indigenous Brazilian companies will fulfil the government’s ambitions by becoming significant originators of pharmaceutical products and technology platforms,’ Visiongain says. Increased accessibility to healthcare
professionals in remote areas will also contribute to growth of Brazil’s pharmaceuticals sector. The government wants to increase the number of Brazilian doctors via its mais medicos – more doctors – programme. Currently the programme has 18,000 doctors
working in 4000 municipalities providing primary health care to some 63m Brazilians, according to Barros. He estimates that about 70% of Brazil’s population receives care through the public health system.
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