Ecuador Reports Solid Drug Market Growth

According to local media reports in Ecuador, the South American nation's drug market expanded nearly 8% to US$394.8mn in January through November 2004. However, the local representative of Switzerland's Novartis has commented that drug sales have slowed in the last three years.

Ecuador's drug market is roughly half the size of that in neighbouring Peru, and approximately 12,000 products are available locally. Although roughly a third of these products are unregistered, multinationals including US-based Pfizer have estimated that operating conditions are currently more favourable than in nearby Andean states. An expected Free Trade Agreement with the US is also set to improve the outlook for the local sector.

There remain risks, however. Local trade associations highlight the fact that while branded imports dominate the market, the real market share of the domestic sector is unclear. Many small-scale producers operate clandestinely as much of their output is composed of illicit copy drugs. These products are estimated to account for up to 15% of the market, although sales are likely to be higher in unit terms.