The 10 largest pharmaceutical companies operating in Brazil earned US$5.9248 billion from generic drug sales between August 2013 and July 2014, representing a 12.30% increase over the US$5.274 billion recorded between August 2012 and July 2013. Together, these companies account for 90% of the segment's total revenue, which was US$ 6.6 billion.
In terms of volume, these companies were responsible for the production of 740.4 million units of generic drugs during the period, exceeding by 10.7% the production recorded between August 2012 and July 2013, which was 668.8 million. The production of generic drugs by the 10 largest Brazilian pharmaceutical companies accounts for 88.2% of the segment's total production, which was 838.8 million.
An unprecedented study by the Brazilian Association of Generic Drug Manufacturers, PróGenéricos, analyzed the importance of this segment in the Brazilian pharmaceutical industry, based on data from IMS Health.
“Generic drugs have become a key part of these companies’ portfolios. Most of them, especially the national ones, were not even among the top 10 pharmaceutical companies in the country before generics. The segment was crucial for strengthening these industries and, consequently, the entire Brazilian pharmaceutical market,” says Telma Salles, executive president of PróGenéricos.
The analysis considered the performance of generics in sales between August 2013 and July 2014, compared to August 2012 and July 2013, among the top 10 in the ranking that considers the 10 largest laboratories in the country in terms of units (production). The exception is Bayer. The German company is the only one among the top 10 that does not have a production line for this type of medication.
Weight of Generics
Generic drugs account for 24.5% of production in units of the 10 largest pharmaceutical companies operating in the country. This category of drugs also accounts for 21.55% of these companies' revenues.
However, in four of the ten largest companies in the pharmaceutical sector, generics account for more than 30% of the volume of drugs produced by these companies. These are: EMS (39.13%), Teuto (38%), Sanofi-Medley (32.45%), and Eurofarma (31.93%). At Aché, Hypermarcas, and Novartis-Sandoz laboratories, generics account for 24.71%, 23.36%, and 21.46%, respectively. At Merck Serono, generics account for 18.05% of the drugs produced by the company in Brazil, and at Takeda, they account for 4.72%.
In terms of revenue, the scenario is repeated. Among the 10 companies, generics account for more than 30% of revenue in four of them: EMS (38.43%), Teuto (36.28%), Sanofi-Medley (33.02%), and Eurofarma (31.49%). At Novartis-Sandoz, generics account for 23.63% of the company's revenues in Brazil, at Hypermarcas 22.11%, Aché 21.54%, Merck Serono 12.96% and Takeda 3.85%.
“We account for a quarter of these companies’ production and revenue, and in some cases, this percentage exceeds 30%. The generics market also offers interesting prospects for the future, given that the segment is growing at double-digit rates and performing significantly better than the overall pharmaceutical market,” explains the executive.
The average cumulative growth in revenue from generic drug sales at these companies was 20.55%, also exceeding the total revenue growth of the overall generic drug market, including all companies that manufacture and sell this type of medicine in Brazil, which was 7.8%.
The average cumulative growth in generic sales during the period, in units, was 25.80% among the 10 largest companies, surpassing the growth of the total generic market, which was 12.9%.
| Top 10 pharmaceutical companies in Brazil (Total Market) | Share Units Generic drug market | Share US$ Generic drug market |
|---|---|---|
| EMS Group | 8,34% | 7,44% |
| Hypermarkets | 3,76% | 2,62% |
| Sanofi-Medley | 4,37% | 4,10% |
| Aché | 1,80% | 1,45% |
| Teuto | 2,70% | 1,48% |
| Eurofarma | 1,85% | 2,09% |
| Novartis Sandoz | 1,04% | 1,96% |
| Bayer | 0 | 0 |
| Takeda | 0,15% | 0,13% |
| Merck Serono | 0,47% | 0,27% |
About PróGenéricos
Founded in January 2001, the Brazilian Association of Generic Drug Manufacturers (Pró Genéricos) is an entity that brings together the main laboratories involved in the production and marketing of generic drugs in the country.
A non-profit organization, its main mission is to contribute to improving access to medicines in Brazil by consolidating and expanding the generic drug market.
Together, the 14 members of PróGenéricos account for more than 90% of sales in the generic drug segment in Brazil. Working with various sectors of society and public and private institutions, Pró Genéricos channels the actions of its members, adding weight to the public debate on issues relevant to the health sector and the development of the pharmaceutical industry in Brazil. Visit the website: www.progenericos.org.br