Latin America continues to be a region of promising opportunities for the pharmaceutical sector. Trade is booming, the population is growing and democracy is improving political stability. However, social inequality, weak patent enforcement, cost containment and a political drift to the left all threaten the long term prospects for the pharmaceutical industry.
After a decade of solid growth of over 9% per annum, 2009 saw growth drip to 4.6% due to patent expiries of major blockbusters and an increasing emphasis on cost containment in the US and European healthcare systems.
Many factors underlie decisions to enter the nascent biosimilars market
Although currently poorly developed, the biosimilars market segment but is widely expected to become a significant commercial segment over the next few years, capturing a healthy percentage share of the biologicals market, says Dr Peter Norman.
The US pharmaceutical wholesale and pharmacy sector has witnessed a rapid wave of consolidation to reach its current concentrated form meaning that 80% of all drugs sold are handled by three just companies. There has been terrific growth in online pharmacy driven by consumer demand for cheaper products notes a report from URCH Publishing.
A wave of major M&A deals has reshaped the pharmaceutical industry and may continue as other companies challenge Pfizer’s current dominance