In the late 2000s, the Brazilian Development Bank established Profarma, a program with a line of credit intended to create a Brazilian national super-pharma company. But Profarma did not deliver.
Many of the pharma company mergers and acquisitions that have happened over the past 15 years have been possible because of two landmark events that happened in 1999, well before Profarma existed: the establishment of the National Health Surveillance Agency of Brazil (ANVISA) and the passage of the Generic Drug Act. These events enabled the market to create new, big-league national winners, including NC Farma (EMS), Eurofarma and Hypermarcas. Companies such as Pfizer (through its acquisition of Laboratório Teuto) and Sanofi-Aventis (through its acquisition of Medley) also joined the party.
The many mergers and acquisitions created not only a group of commoditized, stressed companies but also an entire industry in need of reform. This Executive Insights will examine how economic recovery, new regulations and competition will drive the future of Brazil’s pharmaceutical market.