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Distribution- with customers giving increasing importance to in-store experiences and top 5 chains
contributing 25% of the total sales, big pharma retail chains form an important part of the healthcare
system. Lupin can tie up with Pague Menos which has stores in all the states and the partnership can
leverage the growth of e-commerce, growing at 40%, to completely change the way medicines are sold in
the country
Brazil has also both current importance and growth potential in its pharmaceutical industry, as is it a key
manufacturing, packaging and distributing hub for the region, and is gaining global relevance as an R&D
center, especially in the area of clinical trials
Agreement for Innovation, introduced in the second half of 2012. The Agreement for Innovation allows
novel drug products to enter the local market in an expedited way by recognizing registration in other
countries and prioritizing drugs manufactured locally or clinically tested in Mexican patients.
Strategy for each market
Tailored business strategies are needed for each different country in the region. Local
partners are a must to overcome price pressures. Latin American generics market is very
strong so you need to acquire/ partner with local players to gain acceptance and keep
your costs low
Since all the countries in Latin America also vary in size, healthcare infrastructure and affordability, the
pharma companies need to tailor their strategies for approaching each countrys market. Tailored strategies
will assure success if they are conscientiously planned.
Inorganic Growth
In branded generics market, having an established local brand on your side can really
help. By manufacturing popular indian drugs locally, the production costs would be lower
and margins would be higher.. e.g. Sanofi Aventis purchased Medley
Domestic laboratories cover about half the market and most of them are family owned.
So, a a lot of them have been either been acquired by big local and international players
or planning to go public to raise capital. So acquiring a strategically chosen local player
can provide both the access and credibility in the new market
Localization through partnerships with local companies can be a solution for many of the challenges in the
region so it should be thoroughly explored by companies wanting to make the most of these emerging
markets.