| The
Latin American pharmaceutical market experienced renewed
growth in 2000, helped in no small measure by a strong
dose of Viagra. According to IMS HEALTH World
Review 2001, Latin America was one of the fastest
growing regions in the world in 2000, with retail
pharmaceutical sales increasing by 9% compared to
1999.
This firm growth in the retail market is confirmed
in IMS HEALTH's recently published Pharma
Prognosis Latin America 2001-2005 (PPLA), which
covers both the retail and hospital markets of the
seven major Latin American markets: Brazil, Mexico,
Argentina, Venezuela, Colombia, Chile and Peru.
According
to PPLA, the fastest growing product in Latin America
in 2000 was the erectile dysfunction drug Viagra (sildenafil),
marketed by Pfizer,
which was the second fastest growing pharmaceutical
company.
With organic sales growth of 6% allied to the acquisition
of Warner-Lambert, Pfizer sprinted from 10th place
to become the fifth largest pharma company in the
region. Pfizer's growth was driven not only by the
acquisition, but especially by Viagra
and the cholesterol-lowering drug, Lipitor (atorvastatin).
Latin American sales of Viagra, which wasn't even
in the top ten in 1999, grew by over 57% in 2000 to
make it the third-highest selling drug in the region.
Worldwide, Pfizer reported Viagra sales growth of
just 27%. In fact, Latin America is the only region
in the world in which Viagra even figures in the list
of top ten drugs. The drug is most popular in Brazil,
Mexico and Colombia. In Brazil, Viagra accounts for
almost a quarter of Pfizer's overall pharmaceutical
sales.
Market
Share and Sales Growth of Top Ten Pharma Companies
in Latin America, 1999 - 2000
|
Source:
IMS HEALTH Pharma Prognosis Latin America, 2001-2005
The figure above illustrates the market shares and
sales growths of the top ten pharmaceutical companies
in Latin America, and indicates the relatively strong
growth posted by Pfizer in 2000. However, Pharmacia
recorded the fastest growth of the top ten companies,
with sales increasing by over 14%.
Aventis is still some way ahead as the largest pharma
company in Latin America, a position it took in 2000
by increasing sales by a very strong 15% to overtake
Roche, which saw sales increase by just 2.6%. Despite
its leading position, Aventis has only one product,
the pain drug Novalgin (metamizole), in the top ten
products in Latin America, compared to two each for
Pfizer, Roche and Novartis.
The figure also indicates the domination of the Latin
American market by multinational companies from the
US and Europe. Just one regional player, Ache Laboratories
of Brazil, figures in the top ten. According to PPLA
data, however, this is not always reflected in the
individual country markets, where local firms often
figure strongly in the top ten. This is partly due
to weak patent protection in many Latin American countries,
allowing local companies to dominate their domestic
markets with locally produced copy products.
On a regional level, nevertheless, PPLA predicts that
"most of the market leading companies will post improved
sales performances as conditions in Brazil and Argentina
improve. Strongest sales growth is likely in Mexico
and Venezuela, reflecting anticipated rates of market
expansion in those countries."
Total
Market Growth Rate, 2000-2005 (US $)
|
Source:
IMS HEALTH Pharma Prognosis Latin America, 2001-2005
Indeed, PPLA predicts that the vibrant
pharmaceutical markets of Mexico and Venezuela will
drive growth in Latin America as a whole in the period
2000-2005, although not at the rates seen in the last
five years.
According to PPLA, Mexico and Venezuela recorded average
annual increases of 20% and 18%, respectively, in
their pharmaceutical markets in the period 1995-2000,
while the combined pharmaceutical market of the seven
PPLA countries grew at a compound annual growth rate
(CAGR) of 5.6%.
The CAGR of the combined market is forecast to accelerate
to almost 8% between 2000 and 2005, while the Mexican
market will increase in value by a robust 13% per
annum to reach $11 billion by 2005, pushing it above
Brazil to become the largest pharmaceutical market
in Latin America.
Brazil, with the largest population and economy in
Latin America, has seen its share of the seven-country
pharmaceutical market decline rapidly, from over 44%
in 1995 to just 33% in 2000, due to economic difficulties
experienced since the currency devaluation in 1998.
Although the Brazilian market is forecast to grow
in value between 2000-2005, its share of the Latin
American market as a whole will continue to decline
because of the strong growth of Mexico and Venezuela.
In fact, PPLA predicts that by 2005 Brazil will account
for 28% of the market, while Mexico will account for
over 37%.
Forecast
Breakdown of the Latin American Market by Country
(2005)
 |
Source:
IMS HEALTH Pharma Prognosis Latin America, 2001-2005
Find a comprehensive and independent guide to the
Latin America markets at: Pharma
Prognosis |
