Generic drug sales grow 11.75% in 2015
In terms of volume, growth was 12.3%. Market share is growing at a slower pace, indicating a decline in access and the arrival of new consumers to the market.
Sales of generic drugs totaled R$5.9 billion in 2015, up 11.75% from 2014, when the result was R$5.3 billion. Although significant, this is the sector's worst financial performance in the last three years.
The information comes from the Brazilian Association of Generic Drug Manufacturers, PróGenéricos, based on IMS PPP (Pharmacy Purchase Price) indicators, which consider the purchase price of medicines by consumers in pharmacies, including all discounts offered by the chain (manufacturers, distributors, and retailers).
Using this model, it is possible to check the actual price of products, already including discounts offered by manufacturers and pharmacies, which in some cases can reach 60% of the original (factory) price.
Above average
Although below segment expectations, generics performed above the pharmaceutical market average (including all product categories), which stood at 10.65%, accumulating total sales of R$46.4 billion, compared to R$41.9 billion in 2014.
Generic drugs also outperformed similar products, which since 2014 have been considered equivalent to reference products from a health perspective. Sales of similar products grew 9.14% between 2014 and 2015, totaling accumulated sales of R$3.6 billion last year compared to R$3.3 billion in 2014. The same dynamic can be seen with reference products, which are products with patent protection. Sales in this segment totaled R$17.8 billion in 2015, compared to R$16.3 billion in 2014, representing growth of 9.29%.
“As we can see, generics continue to drive growth in the pharmaceutical sector in Brazil. Because they account for a significant share of the revenue of the largest companies operating in Brazil, the slowdown in sales growth in this category is a cause for concern among business leaders in general,” explains Telma Salles, executive president of PróGenéricos.
Volume: slower access may impact public health
In terms of units, generics showed a 12.19% growth in sales volume compared to the past. A total of 978.333 million units were sold, compared to 872.044 million in 2014. In terms of volume, generic sales in 2015 exceeded the results achieved in 2014 compared to 2013, but were lower than the expansion recorded in 2013 compared to 2012, which was 15.71%.
For Telma Salles, executive president of PróGenéricos, the poor performance of the Brazilian economy in 2015 was a determining factor in lower-than-expected growth. “We expected growth of at least 15% in volume. With the rise in production costs, affected by factors such as the high dollar and increased energy costs, the sector's profitability has been affected, which may discourage investment in innovation and even in the launch of new generics," says the executive.
The market share of generics reached 28.88% in units at the end of 2015, compared to 27.64% in December 2014. In terms of value, generics reached a market share of 12.91%.
“Over the last three years, we have not advanced more than 2% in market share in terms of volume, which means that access has been slower. This means that fewer people have been able to buy their medicines in Brazil at a time when we are seeing an aging population. In the long term, this reality could wreak havoc on the country's public health system. Chronically ill patients who do not receive therapeutic follow-up for their conditions are at risk of more serious complications, which will certainly burden the healthcare system, whether public or private," he says.
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