Sale of generics in Brazil grows 12.3% in volume in the first half

Generic drug sales boosted the Brazilian pharmaceutical industry's revenue in the first half of this year. According to a survey of the Brazilian Association of generic medicines, the PróGenéricos, based on data from IMS Health, the sales volume of generics in the first six months of the year grew 12.3 percent to 467.3 million units (boxes), while the drug market in General has moved less, staying at 11.2%.
According to the Executive President of the entity, Telma Salles, the combination of organic growth, arrival of new products to the market and the accession of a new class of consumers to medications in this category explains the performance in the first half. "The country is experiencing a complicated moment, but generics continue pulling the industry sales also because this scenario stimulates the replacement of medicines," he said. In billing, the detachment between generics and the market of medicines in general becomes even more evident. In all Brazil, which is the sixth largest pharmaceutical market in the world, the industry's sales in the first half totaled $ 36 billion, with a high of 16.6% compared to the previous year. Generics already showed high of 24.6 percent, to $ 9.1 billion.
According to PróGenéricos, with the deletion of this category of medications of the result of the industry in General, the growth of sales in units would have been approximately 10%. According to Telma, the data show that there is a process of replacement of the product by generic brand, that are at least 35% cheaper, especially in this time of crisis.
According to the Executive President of the PróGenéricos, there is an official projection for the performance of sales in this category of drugs in the second half, but it is expected to maintain the growth indicators recorded in the first half of the year. During this period, 25 new products reached market, a milestone for the industry.
For the Association, it is true that the impact of the devaluation of the real against the dollar has compressed the edges of Brazilian pharmaceutical industry, which imports more than 80 percent of their inputs. "To regain margins in this environment, the industry can reduce discounts", indicated.
Another effect of falling profitability is the reduction of investments, which is already occurring, as the Executive. Although the sector is one of the last to feel the effects of the economic downturn, the perception is that the crisis has come to the pharmaceutical market. "The warning light is on," he said.
According to the Association, generics holds market share of 28.6%, slice that can surpass the 35% if they are included in account the buying public and subsidized products by federal and State Governments. Among the ten largest pharmaceutical companies in the country, nine are manufacturers of generic drugs.