BRAZIL PHARMACEUTICAL SECTOR BODIES CLAIM RECOVERY

Following several years of decline, in which unit sales were estimated to have contracted by some 20% between 1997 and 2003, Brazilian drugmakers are claiming a significant recovery in 2004. According to the country's national development bank, the BNDES, sector revenue increased by some 10% last year, and growth could exceed 7% this year. Industry sources have welcomed estimates that sales of drug packets totalled some 1.6bn in 2004, compared to 1.5bn in 2003.

Much of the improvement has been attributed to a growth in real earnings prompted by the country's economic recovery, as well as the appreciating currency's favourable effect on raw materials imports. Meanwhile, investment appears to be increasing, with drug majors such as Switzeland's Novartis recently announcing new spending, and the BNDES has outlined plans to invest some BRL700mn (US$259.34mn) on 15 new projects in the sector. Assuming the recovery proves sustainable, local observers expect Brazil's drug market to reach a total value of some US$8bn by 2008.