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Jun 20, 2013 - Jun 21, 2013, Miami, USA

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Argentine Pharma Market “Will Nearly Triple Within a Decade”

Argentina’s pharma market is set to almost triple in value over the next ten years, going from $5.6 billion in 2012 to $15 billion by 2020, according to new research.



The prediction comes from a report published by research and consulting firm GlobalData, which forecasts that high levels of growth will be driven by the increasing strength of domestic manufacturers, improving production capabilities and a favourable atmosphere for clinical trials.

Due to the state’s protectionist policies, domestic firms have been able to capture around 57% of Argentina’s market, and over 70% of medicines consumed in the country are currently manufactured domestically. One policy that has fuelled the growth of domestic companies is favourable tariff protection, where the price of importing raw materials is kept lower than the transfer pricing applying to multinationals. This gives domestics a competitive edge over foreign companies.

However, large multinationals such as Bayer, Novartis, Roche, Abbott and GlaxoSmithKline have recently been making inroads into the country, often through licensing deals and the acquisition of small manufacturers.  

Argentina’s generics sector has also received a boost from legislation included in the Health Emergency Act, which requires physicians to indicate the generic form of any branded medicine they prescribe, giving patients the choice of switching to a cheaper option. Domestic generic firms had previously benefitted from the Argentine government’s lack of protection of intellectual property (IP) rights, meaning Argentinian firms were free to manufacture their own versions of patented drugs. Recently, the country signed up to the World Trade Organisation (WTO)’s Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement and its General Agreement on Tariffs and Trade (GATT), which should result in a stricter government policy towards patent infringement. This should come as a relief to foreign firms who are looking to invest in this fast-growing market, yet are worried about the safety of their patents.

GlobalData also reports that the country is a favourable destination for cost-effective clinical trials within Latin America. Clinical trial standards in the country are on a level with those set by the International Conference on Harmonisation - Good Clinical Practice (ICH-GCP). Latin America as a whole has become an increasingly popular destination for clinical trials due to several factors, including a high number of patients per location, the eagerness of patients to gain access to novel treatments, and lower operating costs for pharma companies.

Lastly, the report identifies some factors that are hindering the growth of the domestic pharma industry. Domestic firms lack the large-scale production capacities seen in China and India, and are facing stiff competition from the strengthening pharmaceutical industries of its Latin American competitors, Mexico and Brazil. R&D in Argentina has so far failed to get off the starting blocks, as no New Chemical Entities (NCEs) have been discovered domestically despite rising investment in recent years.



Sales & Marketing Excellence Latam

Jun 20, 2013 - Jun 21, 2013, Miami, USA

Master new commercial models and drive efficiency in a changing stakeholder marketplace