Venezuela one of the most challenging pharma markets in the Americas

Venezuela's pharmaceutical market is one of the most challenging in the Americas with the country placed last, out of the 10 nations surveyed regionally, as well as globally, according to Business Monitor International's first-quarter 2010 Business Environment Rating report.

The operating environment for drugmakers in Venezuela remains challenging, due to weak intellectual property (IP) laws and a political regime that regularly speaks out against private enterprise, even though theoretically potential for strong development of its pharmaceutical market is considerably, given the country's fast-growing urban population and superior distribution networks.

By 2019, the BMI report forecasts the Venezuelan pharmaceutical market will be worth 63 billion Venezuelan bolivar ($14.67 billion), increasing at a compound annual growth rate (CAGR) of 33% in local currency terms. However, the authors note that, as a result of the weakening bolivar and double-digit inflation levels in 2009 as well as 2010, drug market expenditure in US dollars will experience a decline over the five-year forecast period, falling to a value of $4.06 billion at consumer prices. This equates to a negative CAGR of -2.29%, although US dollar growth is expected to re-enter positive territory through to 2019 (albeit in single digits), the report notes.