Date: February 3, 2017
Journalist: Ivan Ryngelblum
Source: Isto é Dinheiro
At his inauguration ceremony as Minister of Foreign Affairs in May last year, José Serra waved the trade flag by emphasizing the importance of negotiations with other countries to open markets to Brazilian products. This is a vision he has held since he headed the Health Ministry during Fernando Henrique Cardoso's administration between 1998 and 2002. At that time, Serra became known for his defense of generic drugs in Brazil and around the world.
From now on, the foreign minister will be able to combine the two issues thanks to the approval of an amendment by the World Trade Organization (WTO) that authorizes poor countries to request the breaking of drug patents from those with advanced industrial facilities. In practice, this means a green light for the drug to be produced in Brazil and exported to markets that file the request. With 110 manufacturers and a generic drug market worth R$ 6.3 billion, Brazil is identified by the entity itself as a potential beneficiary of the decision.
The clause authorizing the external supply of generic drugs had been demanded by emerging countries for 20 years. It was voted on in 2005, but only came into force on January 23 because it needed to be ratified by two-thirds of WTO members. Brazil was one of the main advocates of the reform, led by Minister Serra, while still in the FHC administration. The debate continued in the Lula administration, which won the necessary votes to amend the patent law in the middle of the last decade through the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
For Telma Salles, executive president of the Brazilian Association of Generic Drug Manufacturers (PróGenéricos), the sector has the capacity to meet the new demands. She points out, however, that the change depends on an effort by the Brazilian government, which will need to authorize the patent breach. The decision is social in nature, as it is aimed at poorer economies and involves lower sales prices. "The opportunity that the agreement represents is to show solidarity with these countries." According to Stephani Savério, director of innovation at the Aché laboratory, there is an opportunity to export a larger portfolio of medicines. "With the entry into force of this measure, there will be room for the export of products with higher added value."
Generic drugs were authorized in Brazil in 1999 and now account for around 30% of medicines sold in the country, with a portfolio covering 95% of known diseases. Last year, the sector recorded a 12% increase in unit sales compared to 2015, reaching 1.1 billion units. Revenues totaled R$ 6.3 billion, up 13%. Worldwide, they are estimated to generate US$ 421 billion (about R$ 1.3 trillion). It is a piece of this market that the domestic industry could grab.