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Sunday, January 9, 2022

Pharmaceutical: Industry | South America

Overview of the Drug Industry in Latin America

The drug business in Latin America is lively and developing consistently. Three nations with the strongest presence in the area include Brazil, Argentina, and Mexico. These nations have seen a rapid increase in powerful players. Although the emerging region lags behind other more developed regions in terms of patent registrations, the subcontinent has a rich market for the production of generic prescription drugs, over-the-counter medications, pharmaceutical ingredients, veterinary drugs, and biotechnology ventures.

One notable example is the acquisition of American generic drug champion Ivax Corporation by Israeli multinational Teva Pharmaceutical Industries Limited a few years ago, at a cost of $7.4 billion. This acquisition included the local operations Ivax had in Colombia, Venezuela, Peru, Chile, Brazil, Argentina, Uruguay, Mexico, and the Dominican Republic. Teva Pharmaceutical Industries also acquired a thriving generic drug producer in Mexico, Representaciones e Investigaciones Médicas S.A., for $2.3 billion in cash, along with several smaller acquisitions in Peru. As a result, Teva Pharmaceutical Industries is the undisputed leader in generic prescription drug manufacturing in Latin America and globally, with annual sales reaching close to $20 billion. In contrast, the global pharmaceutical industry totaled $1.12 trillion in combined sales in 2019, with the US accounting for a significant 45% share, approximately $500 billion in sales. Additionally, combined pharmaceutical sales in Latin America amounted to nearly $60 billion in 2019, with Brazil representing about half of the region-wide share.

Brazil

Brazil has the most significant pharmaceutical industry in the region. Major players include Hypera Pharma S.A., EMS S.A., Eurofarma Laboratórios S.A., Cristália Produtos Químicos Farmacêuticos S.A., and Aché Laboratórios Farmacêuticos S.A. These organizations operate in Brazil and are controlled by prominent figures such as João Alves de Queiroz Filho, Carlos Sánchez, Maurizio Billi, Adalmiro Dellape Baptista, and Ogari Pacheco.

Hypera Pharma has a strong presence in OTCs and wholly owns Brainfarma Industria Química e Farmacêutica S.A., specializing in pharmaceutical ingredients. Pfizer Corporation fully owns another notable pharmaceutical ingredients producer in Brazil, Laboratório Teuto Brasileiro S.A. Aché Laboratórios Farmacêuticos S.A. is a significant player in Brazil with the largest market reach, including interests in biotechnology through Melcon Industria Farmacêutica Limitada and Bionovis S.A., and a joint venture with Canadian Scythian Biosciences Corporation, Green Farma Brasil Limitada, for therapeutic and sporting cannabis. Aché also wholly owns Arbros Pharma e Alimenticia Limitada, a prominent drug and food distribution business.

The largest pharmaceutical distribution company in Brazil is Astellas Farma Brasil Importação e Distribuição de Medicamentos Limitada, a subsidiary of Japanese pharmaceutical giant Astellas Pharma Corporation. Other noteworthy players in Brazil include Blau Farmacêutica S.A., Momenta Farmacêutica Limitada, Libbs Farmacêutica Limitada, Cimed Industria de Medicamentos Limitada, Biolab Sanus Farmacêutica Limitada, Geolab S.A., Marjan Farma Limitada, União Química Farmacêutica Nacional S.A., and Apsen Farmacêutica S.A.

Argentina

Argentina has the second most prominent pharmaceutical industry in Latin America. Major players include Laboratorios Roemmers S.A.I.C.F., Insud Pharma S.A., Laboratorios Bagó S.A., Laboratorio Elea Phoenix S.A., and Baliarda S.A. Laboratorios Roemmers, privately held by billionaire Alberto Roemmers, is a significant player in Argentina, with vertical integration and a pharmaceutical ingredients producer, Maprimed S.A. It also participates in biotechnology and vaccine development through Mega Pharma Holding Uruguay S.A.

Insud Pharma is a large operation with activities ranging from pharmaceutical ingredients to biotechnology, veterinary drugs, and generics. It wholly owns three pharmaceutical ingredient producers—Exelties S.A., mAbxience S.A., and Chemo S.A.—and controls four biotechnology and drug concerns—Sinergium Biotech S.A., Chemotécnica S.A., Inmunova S.A., and Biogénesis Bagó S.A. The latter is a joint venture specializing in veterinary vaccines, with Laboratorios Bagó. Insud Pharma also has a notable joint venture with Lilia Neumann de Sielecki in creating generics, known as Laboratorio Elea Phoenix S.A. Additionally, Disprofarma S.A. is the leading pharmaceutical distribution company in Argentina.

Mexico

Mexico has a robust and growing pharmaceutical industry. Major players include Laboratorios Pisa S.A. and Genomma Lab Internacional S.A., which focuses on OTC medications and generics. Genomma Lab is controlled by rising Mexican businessman Rodrigo Alonso Herrera Aspra and has significant growth potential.

Teva Pharmaceutical Industries also has a strong presence in Mexico following its acquisition of Representaciones e Investigaciones Médicas. The largest pharmaceutical distribution company in Mexico is Grupo Casa Saba S.A. De C.V., led by siblings Alberto and Manuel Saba Ades.

Venezuela

Venezuela has a significant pharmaceutical industry. Major players include Laboratorio Behrens C.A. and OTC leader SM Pharma C.A., which has largely moved its operations to the US due to the adverse business climate in Venezuela. The largest pharmaceutical distribution company in Venezuela is Droguería Farvenca C.A., a subsidiary of Grupo Mistral C.A. owned by French-Venezuelan businessman Jorge Massa Dustou.

El Salvador

The small Central American nation has a developing and sizable pharmaceutical industry. Key players include Laboratorios López S.A. De C.V. and Laboratorios Suizos S.A. De C.V. Additionally, Droguería Sinquimia S.A. De C.V., operated by the family of President Nayib Bukele, represents foreign drug multinationals.

Colombia

Colombia has a prosperous pharmaceutical industry with major players including Laboratorios Junín Limitada, Laboratorios Lafrancol S.A., and Laboratorio Incobra S.A.

Peru

Peru has a light and dynamic pharmaceutical industry. Besides acquiring local operations of Ivax Corporation, Teva Pharmaceutical Industries has added two supporting organizations specializing in generics, Corporación Medco S.A.C. and Corporación Infarmasa S.A. Another notable player in Peru is Laboratorios Lansier S.A.C.

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