With the crisis, sales of generic drugs grow less than expected

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 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 an 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 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 the revision of discount policies at points of sale and the adjustment of 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 of families, there is no other way out," she 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, the industry's 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 continue to be fundamental 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 of 2014, R$17.3 billion was recorded, a growth of 13.7%.