Government support will see Brazil's generic drugs market expand at 19% CAGR

With strong investments and good government support, the Brazilian generics market will increase at a compound annual growth rate (CAGR) of 19% during 2010-2012, according to market intelligence firm RNCOS.

According to its report, titled Brazil Generics Market Forecast to 2012, factors like increasing prevalence of diseases and expanding proportion of old people in the total population - not to mention patent expiries - have significantly contributed to the development of generic drugs market in Brazil. In 2009, the market reached a value of 4.5 billion real ($2.69 billion) and is likely to reach 7.5 billion real by 2012. The share of generic drugs in total pharmaceutical industry has been rising at a fast pace and the attractive investment heading towards the region is further likely to strengthen market share.

The report finds that the Brazilian government continues to provide immense support to the generics market in the form of liberal policies and better regulatory system. The policies have been aimed at providing cheaper drugs to poor social strata and for this the government has been negotiating with market players for providing cost effective products. Moreover, the policies for commercialization and a better distribution of generic drugs are being pursued. The Brazilian generics market is expected to witness a significant rise in revenue and consumption in future as good quality products, untapped space for growth, and the government support will back the industry.