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Boost to Brazil Government Drug Manufacturing

May 17, 2005

Fiocruz, a government drug manufacturer linked to Brazil's health ministry, is to boost its annual output from 1.7bn units per year to 4.5bn with the opening of a new production facility. The 40,000 square metre unit, acquired from UK drug major GlaxoSmithKline last year, has reportedly cost some BRL18mn (US$7.27mn).

Fiocruz already produces more basic items such as topical creams and asthma aerosol therapies, although the government hopes that the new plant will support its programme to provide free diabetes and hypertension treatments. Roughly 1.4bn units of the antihypertensive hidroclorotiazide are set to enter production this year. However, the plant's amoxicillin output is awaiting tests for bioequivalence with branded equivalents.

Brazil invested roughly US$80mn last year to upgrade its government-owned drugmakers, which have expanded in the wake of ambitious government plans to expand drug provision and improve production standards for basic medicines. Farmanguinhos, the manufacturing affiliate of Fiocruz, has also captured the lion's share of controversial government contracts to manufacture antiretrovirals for the country's HIV/AIDS programmes.