GlobalData Release: Brazil's Pharmaceutical Market: Increase in Chronic and Lifestyle-Associated Diseases to Boost Sales
LONDON, UK (GlobalData), 10 October 2013 - Brazil has emerged as a manufacturing hub for pharmaceutical and biotechnology companies, with the pharma market forecast to grow from $12.4 billion in 2007 to $58.8 billion in 2020, at a Compound Annual Growth Rate (CAGR) of 12.7%, says research and consulting firm GlobalData.
The company’s latest report* states that the medical device market in Brazil will also see significant growth from $7.9 billion in 2012 to $13.1 billion by 2020, at a CAGR of 6.6%. In 2012, the main segments were ophthalmic devices ($1.5 billion), in vitro diagnostics devices ($0.9 billion), and diagnostic imaging devices ($0.8 billion).
Joshua Owide, Director of Healthcare Industry Dynamics, says: “The healthcare market in Brazil is primarily driven by an increase in disease burden, affordability, and access to primary care. However, healthcare does not cover the total population and therefore restricts further market growth.”
In fact, the Brazilian healthcare system comprises of two subsystems: public and private. The country’s private healthcare insurance system is the second largest in the world, covering approximately 23.7% of the population.
Owide says: “Brazilian hospitals still have inadequate resources and are therefore unable to provide access to healthcare provisions for every citizen, especially to those in weaker economic sections.
“However, government initiatives, such as the increased availability of generic drugs through programs including the People’s Pharmacy (Farmácia Popular), have contributed to the reduction of out-of-pocket expenditure and indirect price control, which stimulates competition from generics.”
Still, healthcare in Brazil carries the highest tax burden in comparison with other sectors of the economy, such as the education and financial system. Required taxes to the service provider can reach up to 28%, including federal and state taxes. This shows that the current tax system would require priority attention from the government, according to GlobalData.
*CountryFocus: Healthcare, Regulatory and Reimbursement Landscape – Brazil
This report provides information on the healthcare, regulatory, and reimbursement landscape in Brazil.
This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.
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