Target Labs and aging regulation in the country

Sao Paulo-the increased life expectancy of Brazilians, the mixture of races, the health system and strict rules should maintain the attractiveness of the pharmaceutical market of Brazil, even after a first half heated to mergers and acquisitions in the industry.

In the view of the Director of the research-based pharmaceutical industry association (Interfarma), Pedro Bernardo, all these factors confirm the attractiveness of the country. "It''s a market that keeps an eye on what''s to come and work long term. A company that enters the Country carries out an investment of eye in the next 10, 20 or even 30 years, "he says.

The President of the syndicate of Pharmaceutical Industry in the State of São Paulo (Sindusfarma), Nelson Mussolini, see European markets saturated and a steady stream of interested by the Brazilian market. "They already have established industries and the products of those Labs fit well to Brazil, especially those geared to seniors," analyzes.

Mussolini observes that French and Americans would be among the main stakeholders in the brazilian pharmaceutical industry, due to the difficulty of expansion in the countries of origin by the trend of shrinking of the population.

KPMG data shows that only in the spring of 2016 were performed at least 24 merger and acquisition operations (chemical and pharmaceutical products). The amount is the same as recorded throughout last year, according to the consultancy.

According to one of the partners of KPMG, Leonardo Giusti, France, United States and India should continue in the lead of those here. "There is interest investors access to all these countries, an indication that these drives will continue even if the actual appreciates more against the dollar. The internal crisis contributes to firms in difficulty to seek external resources, "he adds.

Recently, news that the brazilian TheraSkin have hired Credit Suisse to advise it on potential buyers search circulated in the industry. So, as confirmation that the South African Aspen Pharma continues seeking business in Brazil, after acquiring the products Omcilon, already consolidated in the Brazilian market for the treatment of canker sores and relief of inflammation caused by skin diseases, which belonged to Bristol-Myers Squibb.

Regulation

Beyond the economic field, experts note a great interest of the pharmaceutical multinationals in Brazil according to the safety in regulatory processes. "The pharmaceutical industry need to have predictability," said Mussolini, adding that "our regulatory rigor and high standards have attracted many companies." They negotiate with the Brazil knowing that is long-term investment with long-term cash generation ".

Pedro Bernardo also highlights similarities of national industry parameters with the practiced in Europe and United States as another positive factor. "The foreign trust bring investments. Even in the adoption of new products and we obtained improved inspections in recent years, it collaborates for the scenario, "he says.

In this sense, the Director of Interfarma evaluates that acquisitions and mergers are a faster solution to foreign women entering the Brazilian market. "In many cases international companies make a merger or acquisition, start selling products out and, over time, are capable of producing here. Is a simpler path. "

SUS

Mussolini also believes that the momentum of sales of medicines for the unified health system (SUS) is another attractive potential. "The SUS is provided for in the Constitution, something that does not occur in other countries. For the industry is an important assurance contracts, a demand certain with significant values. At the current time, for example, there are many people losing health insurance and by using the SUS ", explains.

According to data from industry, public procurement of medicines represent more than half of the business. Last year, the laboratories moved about $ 21 billion, of which 57% were business with public agency.

Despite the figures attract attention, a survey of Interfarma points slowdown in purchases of Government and also late payments: in December 2015, the debt of federal, São Paulo, Rio de Janeiro, Paraná and Santa Catarina with was r $ 1 billion.

"Even with these economic difficulties, it is an important market," concludes Mussolini.