Reportlinker Adds the Market for Medical Devices in BRIC

PR Newswire | 29 Nov, 2010

NEW YORK: Reportlinker.com announces that a new market research report is available in its catalogue:

The Market for Medical Devices in Brazil, Russia, India & China

http://www.reportlinker.com/p0192644/The-Market-forMedical-Devices-in-Brazil-Russia-India--China.html

Evaluate the status, opportunities and threats for medical device companies in Brazil, Russia, India and China now and in the future. Includes market forecasts to 2014, plus free quarterly-updated market outlook reports on each country, keeping you up to date with developments for a full year.

These insightful reports provide:

Five-year projections for economic, demographic, health expenditure, health workforce and pharmaceutical market indicators.

Specialised intelligence on OTCs, generics, biologics and biosimilars.

Exclusive economic and demographic data from the Economist Intelligence Unit (EIU) for each market in the series.

A separate statistical health file, comprising health expenditure, health infrastructure, health services and health personnel.

Putting things in perspective

The BRIC pharmaceutical markets, including pharmacy and hospital sales, are currently valued at US $103.3 billion at retail prices. This is a large sum of money, but is collectively lower than that found in leading markets such as the USA and Japan. Growth rates vary but, overall, they are impressive.

Opportunities do exist

There are wide regional differences in expenditure levels within the BRIC markets, far more so than in developed countries where health systems have evolved to provide a more uniform level of coverage. All four countries have a relatively wealthy urban population with a far greater spending power than their respective national average. In the case of China and India, these urban populations have grown rapidly, and number hundreds of millions. The challenge for these countries is to extend this level of wealth to the rest of the population, in order that better levels of healthcare become affordable.

A long haul

This is evolution not revolution, and change will be incremental. Short-term opportunities exist in meeting the health demands of the burgeoning middle classes, and future prospects are bright, where steady growth in BRIC markets will erode commercial differences with the established markets in North America, Japan and Europe.

HIGHLIGHTS FROM THE REPORTS

BRAZIL

Brazil is the second most attractive BRIC market for pharmaceutical producers. Controlled drug prices have increased below inflation levels but price controls are not directly linked to consumption levels. In fact, between 1997 and 2008, the pharmaceutical market by volume increased significantly only in 2004. Demand should increase as the country is emerging from the economic downturn much quicker than anticipated, therefore the outlook is positive compared to other Latin American markets. The exchange rate of the real against the US dollar fell in early 2009, but it has now recovered. This is good news for producers as imports are now cheaper; Brazil, contrary to what happens in other BRIC countries such as India, still relies on raw material imports, which diminishes its market strength. Recent regulatory developments include the implementation of the National Drug Control System, published in November 2009; registration requirements for APIs, published in November 2009; and a new labelling & packaging regulation, published in September 2009. ANVISA is also working on a draft for the regulation of biologic copies; the aim is to encourage local production of these medicines.

RUSSIA

The country has a sizeable generic industry, but the local production of innovative drugs is negligible. Foreign companies such as Stada Arzneimittel are starting to enter the market through the acquisition of domestic companies. Around 75% of the market is supplied by imports. Germany and France are the leading suppliers, accounting for over 30% of imports. Many importers are CEE generic companies such as Gedeon Richter, KRKA and Lek. The market environment remains challenging for overseas companies. Major problems reported include corruption, bureaucracy, counterfeiting and poor data confidentiality. Government officials and politicians often discriminate in favour of the domestic industry, and enforcement of existing rules is often weak. Funding reform is on the cards with the current system being replaced by compulsory health insurance. Currently, free medicines are provided to people receiving state benefits or who are hospitalised; the new system will provide free or low-cost prescription drugs to all Russians. However, it has been reported that only Russian produced drugs will be subsidised under the new arrangements.

INDIA

The pharmaceutical market is highly competitive and remains dominated by low priced, domestically-produced generics. The domestic industry is, however, export-oriented and larger companies are competing in the global market for both generics and original products. A number of companies are collaborating with international pharmaceutical companies. In March 2010, it was announced that AstraZeneca had signed a licence and supply agreement with Torrent for a portfolio of generic medicines for which Torrent already has licences in a range of countries. Working in partnership with Torrent, AstraZeneca intends to brand and market these products in many of its emerging markets, where it already has a strong commercial footprint. AstraZeneca will initially purchase from Torrent the licences and market authorisations for 18 products in nine countries and has the flexibility to add further products and new countries where the company sees opportunities for growth. Pfizer has also announced collaborative agreements with Indian companies, most recently with Strides Arcolab in January 2010. The Strides deal will provide Pfizer with around 40 off-patent products, mainly cancer therapies, which the firm will commercialise in the US.

CHINA

The increased presence of multinational firms in China, the requirements of the WTO, and current excess capacity all mean that increasing pressure is on the domestic industry to do more than just duplicate existing products. As a result, pharmaceutical R&D is increasingly being encouraged by the Chinese government. Around one third of China's provinces have highlighted the pharmaceutical industry as a target for development, and universities and manufacturers often collaborate closely on research projects. The SFDA has laid out a number of exemptions from import duties and other custom taxes that foreign companies can benefit from if they undertake R&D in the country. Foreign companies involved in joint-ventures are likely to benefit from the exemptions to a much greater extent than those which are not. The SFDA's longer term objective is to produce proprietary medicines which are able to compete on the international market.

More Information...

EXECUTIVE SUMMARY

Including Espicom's at a glance strategic analysis and key data projections

MACROENVIRONMENT

Political, economic, legal and demographic analysis

EPIDEMIOLOGY

Disease burden and prevalence

HEALTHCARE

Organisation, expenditure, infrastructure, services and workforce

REGULATORY AFFAIRS

Regulatory developments and marketing registration/authorisation

PRICING & REIMBURSEMENT

DISTRIBUTION CHANNELS

MARKET ANALYSIS

Projections, product development, manufacturing and trade

COMPETITION

Trade associations, trade fairs, company intelligence and competitive strategies

OTC PHARMACEUTICALS

GENERIC PHARMACEUTICALS

BIOLOGICS & BIOSIMILARS

OPPORTUNITIES & CHALLENGES

Espicom's unique strategic analysis