US, Japan and India

India and Brazil to triple the sales and Argentina to double

US stagnant with 1-4% growth
Shift towards generics
The 17 pharmerging countries are China, Brazil, Russia, India, Mexico, Turkey, Poland,
Venezuela, Argentina, Indonesia, South Africa, Thailand, Romania, Egypt, Ukraine,
Pakistan, and Vietnam.
Emerging markets attractive due to economic growth.. demographics.. state and private
funding
Lupins distribution agreement with LG life sciences for Basugine
Look at grins profile to see the type of companies you would want to acquire
Look at what Cipla is doing in Mexico and latin America
One among Brazil, Mexico, Venezuela, Chile and Argentina
Mexico.. Brazil and Argentina
Organic or Organic
Choice of the Market

Target Market Size

Latin American pharmaceutical market is pegged at $ 60 Billion USD.
Considering the market size of individual countries and various socio-economic factors, it is suggested that
two markets, Brazil ($16 Billion) and Mexico ($13 Billion) are aggressively pursued in the short term
Growth Opportunities
Latin America is 2nd fastest growing pharmaceutical market in the world at 119% YoY and more than double
its size by 2020
One of the more stable countries both politically and economy wise
Latin American countries are starting to change their disease patterns due to economic development. The
rapid economic growth brings an increase in prosperity, general health and longevity but it also brings an
increase in diseases like diabetes and cardiovascular diseases. These changes in disease patterns open a
new market for existing products3. Lupin can directly launch its drugs which have been highly in India into
this market
Branded generics account for 60%
Challenges and Risks
One of the challenges is that each country is a world on its own and multinationals need to adjust to the
different regulations regarding sales, clinical research, market access and GMP amongst other.
evolution of Latin American generics. Since medical prescriptions in the region have the generic name it is
easy for pharmacists to recommend generic brands. In Argentina, by law, the prescription can only have the
generic name so the patient has the option to buy generics.
There are two ways to handle it. One, agreements between the health authorities in the countries allowing
certifications in one to be valid in another country e.g. GMP certification agreement between Argentina,
Brazil, Colombia and Cuba. Good relations of multinational with governments e.g. Brazil and India are a part
of BRICS countries.
Industry Dynamics
Local manufacturing/ regulatory environment distribution system.. high growth segments
Regulatory environment- bio-equivalent drugs have been mandated in Brazil and Mexico and Indian drugs
fall of this catefory while brazils local firms like EMS and Hypermarcas sell non-bioequivalent drugs

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.