BRAZIL'S ERECTILE DYSFUNCTION MARKET INCREASES AMID PENT-UP DEMAND

Despite slow growth in the global erectile dysfunction drug market, Brazil's sales in the segment grew significantly in 2004. According to industry studies and the local unit of US drug major Eli Lilly, growth was some 8% in January through November last year, totalling some US$106mn. Sales of individual pills rose from 13.6mn in 2003 to 14.5mn in the period.

Although Eli Lilly's Cialis and Bayer's Levitra are marketed in Brazil, Pfizer's Viagra continued its clear lead over rival products in the segment. The drug, which was the only branded erectile dysfunction treatment on the local market until April 2003, had sales of some US$67mn in the 12 months to November 2004, in line with the product's global market share, but representing an increase of some 10% on the previous year.

Nevertheless, the comparatively small size of the segment indicates that the country has considerable pent-up demand for erectile dysfunction products. Only an estimated 500,000 of the 11mn Brazilian men reporting the symptoms currently take a treatment for the condition. Although this low penetration rate may be a result of the country's demand for more essential drugs, the entry of cheaper alternatives, combined with an improving economic outlook, could eventually deliver faster market growth.