2013-08-25 09:11:04 - New Healthcare market report from Business Monitor International: "Central America Pharmaceuticals & Healthcare Report Q4 2013"
The pharmaceutical market in Central America - consisting of the seven markets of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Belize - is yet to fully develop its domestic manufacturing capabilities, and therefore depends on a large amount of pharmaceutical imports. Heavy reliance on imported medicine in the region provides revenue-generating opportunities for generic drugmakers from neighbouring Latin American countries and India. We highlight that Costa Rica and Panama are the premier countries in the region where foreign drugmakers can expand their presence.
Headline Expenditure Projections
* Pharmaceuticals: US$3.5bn in 2012 to US$3.6bn in 2013; +4.5% in US dollar terms. Our forecast has been revised slightly downwards since Q313 due to worsened macroecnomic data.
* Healthcare: US$15.4bn in 2012
to US$16.6bn in 2013; +7.7 % in US dollar terms. Our forecast has been revised upwards since Q313 due to new historical data.
Full Report Details at
- www.fastmr.com/prod/670548_central_america_pharmaceuticals_healt ..
Risk/Reward Ratings: In BMI's Q413 Pharmaceutical Risk/Reward Ratings (RRRs), we have re-weighted the RRR components to improve the tool, and the adjusted scores for all markets in the Pharmaceuticals & Healthcare reports. Based on our analysis and assessment of the market's appeal to pharmaceutical companies, the Americas region continues to rank second-lowest globally with a score of 51 out of 100, compared to Western Europe (67), Central and Eastern Europe (52) Middle East and Africa (42) and Asia Pacific (53). Of the seven Central American countries surveyed, Panama's RRR score ranks top, followed by Costa Rica (40.8), Guatemala (37.6), Honduras (33.8), El Salvador (35.8), Belize (36.9) and Nicaragua (32.3).
Key Trends And Developments
* In June 2013, Colombia-based pharmaceutical company Tecnoquimicas planned to buy a laboratory worth US$25mn in Guatemala. The company considers Central America a region with interesting opportunities, according to Emilio Sardi, the vice president of the company. Sardi added that given its knowledge in product handling and their marketing, the company can compete successfully in these regions. The move follows the company's acquisition of Wasser Hidraplus Chemical and the Baxter brand.
* In June 2013, Mexico was to start exporting generic drugs to El Salvador after the Mexican Federal Commission for the Protection of Sanitary Risks (Cofepris) set specific goals to enforce a stricter national regulatory environment in Mexico. The first shipment will include 38 Mexican generic drugs that are in high demand in El Salvador.
* In May 2013, Costa Rican company Chemo Central Laboratories made a US$220,000 investment in Q113 to improve manufacturing procedures of drugs and purchase technology. The investment was also directed towards improving the company's physical facilities.
* In May 2013, German pharmaceutical company Bayer reported total sales of EUR350mn (US$460.5mn) in Central America and the Caribbean for FY2012. Of this revenue, 20% was generated in Costa Rica, and online sales of women's healthcare products were particularly strong. Bayer stated that strong Costa Rican consumer demand and its relatively favourable regulatory regime and stable political and economic environment have encouraged the company to locate its regional headquarter in the country..
BMI Economic View: BMI's Country Risk team believes the region's economic trajectory remains highly divergent and expects its growth to begin to moderate in the coming years. Panama is still set to experience one of the fastest real GDP growth rates in the region, whereas El Salvador and Guatemala will struggle.
BMI Political View: Political stability will remain elusive for much of Central America over the next decade. Indeed, given the limited resources of most Central American economies, the elevated violence, corruption and social unrest that currently define the region's political risk profile are likely to remain continued obstacles to growth.
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