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COUNTRY REPORT              BRAZIL




                                         Produced in association with
                                       McCann Health - AMK Healthcare



COUNTRY REPORT

OVERVIEW                                                EXECUTIVE SUMMARY
Population: 205,716,890*
Life expectancy: 70 years (men); 77 years (women)
GDP: $2.1trn
GDP per capita: $11,127
Percentage of GDP spent on health: 9
GNI per capita: $9,390
Capital: Brasilia
President: Dilma Rousseff
Health Minister: Alexandre Padilha
Language: Portuguese
Currency: Real (BRL). Exchange rate: US$1 = R$1.72341

(Source: World Bank, 2010-11), *est. July CIA


                           June 2012                                        47
COUNTRY REPORT                    BRAZIL


     MACRO OPERATING ENVIRONMENT                                                        HEALTHCARE POLICY & EXPENDITURE




     HEALTHCARE SERVICES




                                                                                        HEALTHCARE REFORM




     PHARMACEUTICAL EXPENDITURE

                                 BRL 36.85bn
       BRL29.10bn                                                   BRL7.75bn
        $16.55bn                                                     $4.41bn            PRICING AND REIMBURSEMENT

                             21%


                                                          79%




                            Over the                    Prescription
                            counter
     Sources: Adapted from Brazilian Pharmaceutical Industry Federation (Febrafarma),
     Group of Executives of the Pharmaceutical Market (Grupemef), IMS Health, BMI



48                                                                                                                  June 2012
COUNTRY REPORT   BRAZIL


                                    PHARMACEUTICAL MARKET



                                                                                    -




                                     regional hub

                                     erode growth of patented




DISEASE BURDEN




             PHARMACEUTICAL MARKET FORECAST (2007-2021)




                 June 2012                                                              49
COUNTRY REPORT                  BRAZIL



     MARKETING                                                          RESEARCH & DEVELOPMENT




     “Brazil’s central government
     remains a primary sponsor of
     research, seeking to enlarge the
     country’s drug development and
     medical research capacity”




       TOP 15 PHARMACEUTICAL AND HEALTHCARE COMPANIES IN BRAZIL BY REVENUE (2010)
                                        Headquarters       2008 sales ($m)        2009 sales ($m)       2010 sales ($m)
      Pfizer                                         US                 666.1                 1,932.2              2,160.7
      Novartis                             Switzerland                  1,115.5               1,603.7              1,949.7
      Sanofi                                     France                1,228.9                1,583.9              1,900.0
      Roche                                Switzerland                  734.8                 1,174.2              1,884.3
      Medley                                      Brazil                243.1                  918.8               1,607.7
      AstraZeneca                       UK-Switzerland                  584.4                  899.5               1,088.9
      EMS Sigma                                   Brazil                445.0                  727.2                903.6
      Eurofarma                                   Brazil                423.6                  696.3                839.8
      Aché                                        Brazil                455.8                  683.7                823.9
      Merck                                     Germany                 332.3                  501.7                576.9
      Eli Lilly                                      US                 545.2                  819.0                560.6
      Tortuga                                     Brazil                      -                391.9                522.8
      Laboratório Cristália                       Brazil                254.9                   347.1               396.6
      Biolab Sanus Farmacéutica                   Brazil                  211.1                313.2                380.9
      Bristol-Myers Squibb                           US                 253.1                  365.3                333.4
     Source: Melhores & Maiores, BMI



50                                                                                                                 June 2012
COUNTRY REPORT    BRAZIL




                                                                              COUNTERFEITING



GENERICS




                                                                              MEDICAL DEVICES




PHARMACEUTICAL MARKET BY SUB-SECTOR


                                $bn (2010)
                                                                                                  In vitro



                                                                                                 in vitro




                                                                              HEALTHCARE COMMUNICATIONS
             Generic                OTC                Patented
Source: Brazilian Pharmaceutical Industry Federation (Febrafarma), Group of
Executives of the Pharmaceutical Market (Grupemef), IMS Health, BMI



                                     June 2012                                                                        51
COUNTRY REPORT   BRAZIL




                                           OUTLOOK




     “If pharma companies want to
     improve their return on investment,
     they have to adopt an aggressive
     medical education approach and new
     communication technologies”


                                           “The potential for more expensive
                                           patented products remains high,
                                           given the country’s underdeveloped
                                           R&D sector and reliance on imports”




                                           Written by AMK Healthcare Communications – McCann Health. Contacts:
                                           JD Puentes (left), President & CEO, AMK Healthcare Communications
                                           Latin America and John Cahill, CEO, McCann Health. Emails: jdpuentes@
                                           amkhealthcare.com and John.Cahill@Mccann.com




                                            For comprehensive reports on other countries,
                                            go to www.pmlive.com/countryreports

52                                                                                                        June 2012

Brazil report v.final (jd puentes)

  • 1.
    HEALTH mccannhealth.com LET’S GET CONNECTED
  • 2.
    COUNTRY REPORT BRAZIL Produced in association with McCann Health - AMK Healthcare COUNTRY REPORT OVERVIEW EXECUTIVE SUMMARY Population: 205,716,890* Life expectancy: 70 years (men); 77 years (women) GDP: $2.1trn GDP per capita: $11,127 Percentage of GDP spent on health: 9 GNI per capita: $9,390 Capital: Brasilia President: Dilma Rousseff Health Minister: Alexandre Padilha Language: Portuguese Currency: Real (BRL). Exchange rate: US$1 = R$1.72341 (Source: World Bank, 2010-11), *est. July CIA June 2012 47
  • 3.
    COUNTRY REPORT BRAZIL MACRO OPERATING ENVIRONMENT HEALTHCARE POLICY & EXPENDITURE HEALTHCARE SERVICES HEALTHCARE REFORM PHARMACEUTICAL EXPENDITURE BRL 36.85bn BRL29.10bn BRL7.75bn $16.55bn $4.41bn PRICING AND REIMBURSEMENT 21% 79% Over the Prescription counter Sources: Adapted from Brazilian Pharmaceutical Industry Federation (Febrafarma), Group of Executives of the Pharmaceutical Market (Grupemef), IMS Health, BMI 48 June 2012
  • 4.
    COUNTRY REPORT BRAZIL PHARMACEUTICAL MARKET - regional hub erode growth of patented DISEASE BURDEN PHARMACEUTICAL MARKET FORECAST (2007-2021) June 2012 49
  • 5.
    COUNTRY REPORT BRAZIL MARKETING RESEARCH & DEVELOPMENT “Brazil’s central government remains a primary sponsor of research, seeking to enlarge the country’s drug development and medical research capacity” TOP 15 PHARMACEUTICAL AND HEALTHCARE COMPANIES IN BRAZIL BY REVENUE (2010) Headquarters 2008 sales ($m) 2009 sales ($m) 2010 sales ($m) Pfizer US 666.1 1,932.2 2,160.7 Novartis Switzerland 1,115.5 1,603.7 1,949.7 Sanofi France 1,228.9 1,583.9 1,900.0 Roche Switzerland 734.8 1,174.2 1,884.3 Medley Brazil 243.1 918.8 1,607.7 AstraZeneca UK-Switzerland 584.4 899.5 1,088.9 EMS Sigma Brazil 445.0 727.2 903.6 Eurofarma Brazil 423.6 696.3 839.8 Aché Brazil 455.8 683.7 823.9 Merck Germany 332.3 501.7 576.9 Eli Lilly US 545.2 819.0 560.6 Tortuga Brazil - 391.9 522.8 Laboratório Cristália Brazil 254.9 347.1 396.6 Biolab Sanus Farmacéutica Brazil 211.1 313.2 380.9 Bristol-Myers Squibb US 253.1 365.3 333.4 Source: Melhores & Maiores, BMI 50 June 2012
  • 6.
    COUNTRY REPORT BRAZIL COUNTERFEITING GENERICS MEDICAL DEVICES PHARMACEUTICAL MARKET BY SUB-SECTOR $bn (2010) In vitro in vitro HEALTHCARE COMMUNICATIONS Generic OTC Patented Source: Brazilian Pharmaceutical Industry Federation (Febrafarma), Group of Executives of the Pharmaceutical Market (Grupemef), IMS Health, BMI June 2012 51
  • 7.
    COUNTRY REPORT BRAZIL OUTLOOK “If pharma companies want to improve their return on investment, they have to adopt an aggressive medical education approach and new communication technologies” “The potential for more expensive patented products remains high, given the country’s underdeveloped R&D sector and reliance on imports” Written by AMK Healthcare Communications – McCann Health. Contacts: JD Puentes (left), President & CEO, AMK Healthcare Communications Latin America and John Cahill, CEO, McCann Health. Emails: jdpuentes@ amkhealthcare.com and John.Cahill@Mccann.com For comprehensive reports on other countries, go to www.pmlive.com/countryreports 52 June 2012