New Studies Claim Brazil Pharmaceutical Sector Recovery
A new survey in the key industrial region of São Paulo indicates that Brazil's pharmaceutical sector continues to recover, outperforming the overall rate of economic growth. According to local drugmakers' association Febrafarma, while the value of sales increased by 15% nationwide last year, São Paulo-based drug producers increased sales by up to 34%.
The data indicates that the region's pharmaceutical firms have continued to recover from a period of stagnation and industrial decline, which has negatively affected all sectors of the regional economy. An improvement took hold in the late 1990s, when local firms began to win back market share after tax incentives offered by rival states in Brazil had tempted many to relocate. A number of São Paulo drugmakers now report significant new investments and expansions last year, ahead of an expected expansion in the sector this year of approximately 10%.
Meanwhile, drug retailing in the region has also recovered, with pharmacy sales rising 17% in 2004. São Paulo's 15,000 pharmacies currently account for 36.6% of Brazil's overall drug retail sales of BRL22.16bn (US$8.08bn).