Sanofi-Aventis to launch into Brazilian generics market

Leading French drugmaker Sanofi-Aventis has started to recruit sales and other teams to operate in the expanding Brazilian generic drugs sector. Despite the country's pharmaceutical market potential, sales overall increased only 1% in volume in 2005 while generics rose by 23% in volume over 2004 and went up by over 50% in value terms to $692.5 million.

Some analysts have suggested that, without the impact of generics, the Brazilian drug market would have declined 1.3% in 2005. Generics accounted for 11.3% in volume last year compared with less than 10% in 2004. Most analysts say the quickest way to attack the market is through acquisitions.

Sanofi-Aventis has two plants in Brazil. Some production which was previously carried out in Colombia is to be switched to Brazil and investment of $200.0 million will be plowed into the operation in 2007. The marketing budget is being increased and the sales force expanded. In terms of Brazilian drug sales generally, the firm has about 6.7% of the market, with sales of 720.0 million euros ($884.2 million). A number of Brazilian pharmaceutical groups have said they are looking for partners, although one significant generics group Biosintetica, has been acquired by the domestic group Ache.