Generic drugs saw a 10.7% increase in sales volume in the third quarter of 2015. A total of 254.3 million units of drugs were sold, compared to 229.6 million in the same period last year. This represents modest growth.
The data comes from a survey conducted by the Brazilian Association of Generic Drug Manufacturers, PróGenéricos, based on indicators from IMS Health, a specialized institute that audits the pharmaceutical retail sector in Brazil and worldwide.
“We expected to achieve average growth of 15% over the year in units, but we understand that the economic scenario is quite difficult, with families’ purchasing power penalized by inflation.
Given this reality, the numbers have not met our expectations," says Telma Salles, executive president of PróGenéricos.
In terms of value, sales in the segment grew by 21%, generating R$5.2 billion between July and September.
The market share of generics in retail reached 29.6%. In the third quarter of last year, it was 27.8%, while in the third quarter of 2013 it was 27.6%, remaining virtually stagnant. "This shows that generics continue to be able to win new consumers in crisis scenarios, as they are cheaper and more reliable products," says Telma Salles.
In terms of value, sales in the segment between July and September totaled R$5.2 billion, compared to R$4.3 billion in the third quarter of 2014.
The growth rate of 21% was lower than that recorded in the third quarter of 2014, when compared to 2013, which was 22%. "Although positive and still bucking the trend of the rest of the economy, which has been deteriorating significantly in recent months due to the crisis, the result is directly impacted by the rise in the dollar and the substantial increase in production costs, including imports of inputs, energy, distribution, among others," analyzes Salles.
Given this scenario, according to the executive, industries are already preparing to try to balance their accounts in 2016. Among the main measures expected are a review of discount policies at points of sale and adjustments to production capacity.
"If growth does not happen as expected, if there is a reduction in profitability combined with the possibility of reductions in income and purchasing power for families, there is no other way out," he explains.
Total drug market sales in the third quarter rose 6.2% in units, with 872.6 million drugs sold, compared to 821.2 million last year.
However, when generics are excluded from the total pharmaceutical retail result, growth in units falls to 4.5%. In the third quarter of 2014, industry performance in units, not counting generic sales, was 6.2% compared to the previous year. In relation to the third quarter of 2013 versus the same period in 2013, retail growth was 11%.
"This shows that generics remain essential for the largest retail players and that in times of crisis, the market becomes more dependent on generics," concludes Salles.
In terms of value, the total market recorded sales of R$19.7 billion between July and September, while in the same period in 2014, sales totaled R$17.3 billion, representing growth of 13.7%.
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 14 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
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