Argentina's pharma sales in 2009 rose 21.2% in local currency but dipped 0.6% in dollar terms; slowdown forecast

The Argentine pharmacy sector, traditionally dominated by branded products, has showed an impressive double-digit growth in recent years, but the growth rate is expected to slow down in the years to come; a formal price-cut regulation was introduced in November 2009, according to new research from Espicom Business Intelligence.

The slowdown of the Argentinean pharmaceutical market was also forecast by Business Monitor International earlier this year, which expected it to have declined in 2009, with the market shrinking almost 10% in US dollar terms to reach 12.47 billion Argentinean pesos ($3.16 billion) for the year (The Pharma Letter March 26). Through to 2014, BMI forecast compound annual growth rate (CAGR) of 15.4% in local currency terms, with the market value topping 25.52 billion pesos. A slower growth in US dollars is precluded by the weak peso, which is expected to continue depreciating in the coming years from its high of below three to a dollar prior to 2006.

Strong capabilities of local drugmakers