The pharmaceutical industry is also feeling the effects of the crisis that has affected the Brazilian economy during the first six months of 2015. The 11.2% growth in drug sales in units was sustained almost entirely by the generic drug market.
The information is contained in the drug sales balance sheet produced by the Brazilian Association of Generic Drug Manufacturers, PróGenéricos, based on data from IMS Health, an institute that audits sales in the sector in Brazil and worldwide.
In Brazil, ranked sixth among the world's largest pharmaceutical markets, drug sales totaled R$36 billion between January and June 2015, representing a 16.6% increase over the R$30.9 billion recorded during the same period last year.
Generic drugs, on the other hand, grew above the market average. Sales in this category rose 23%. R$9.1 billion was generated in the first half of 2015, compared to R$7.3 billion in the same period last year.
In terms of volume, generics reached 467.3 million units sold (boxes of medicine), representing a 12.3% increase compared to 2014, when 415.9 million units were sold.
However, the growth of the total market was also lower than that of generics in terms of volume. 1.6 billion units of medicines were sold, compared to 1.4 billion in the same period last year, an increase of 11.2%.
Weight of generics
When we exclude the generic category from the industry results, sales growth in units is around 10%. "This shows that consumers are in the process of replacing branded products with generics, which are mandatory 35% cheaper than other products and in some cases can cost up to 65% less," says Telma Salles, executive president of PróGenéricos.
“The negative signs in the economy have slowed household consumption, with many families already affected by a decrease in income. In such periods, generics have historically fulfilled their most important social role, which is to guarantee access to medicines, an essential item in anyone’s life,” says Salles.
According to the survey, generics currently hold a 28.6% market share. PróGenéricos points out, however, that the figure may exceed 35%, given that public purchases and products subsidized by the federal and state governments are not included in this survey.
"This is an excellent deal for companies, as consumers who start buying generics out of necessity are unlikely to return to branded products," explains the executive. Looking at the ranking of the 10 largest pharmaceutical companies operating in Brazil, including both domestic and multinational companies, nine manufacture generics, with this category accounting for more than 50% of these companies' results.
Since they arrived on the market in 2011, generics have generated direct savings of R$62 billion for consumers. Data from the Ministry of Health also show that generics account for 85% of the medicines dispensed by the Popular Pharmacy Program.
Outlook
PróGenéricos expects to maintain the growth indicators of the first half of the year throughout the year. "Although the pharmaceutical industry has shown encouraging results compared to the rest of the economy, we cannot forget the exchange rate pressures and the country's strict tax policy, which sacrifices the sector's gains," says the executive.
About ProGenerics
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 sale 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 16 members of PróGenéricos account for approximately 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