BRAZILIAN CONSUMERS RETREAT FROM BRANDED DRUGS

Following reports that the Brazilian generic drug industry's sales surged 57% in 2005 to US$692.5mn, there is growing anecdotal evidence that consumer preferences are changing in favour of the low-cost sector. Typically, generic discounts on branded equivalents are roughly 45% in Brazil.

Changing consumer perceptions with regard to generics has been at the heart of Brazilian regulators' efforts to promote the sector in recent years. Mainly due to a history of inferior local copies and poor regulation, foreign branded drugs still account for a dominant share of market value in most Latin American markets. INN-only prescribing is mandatory in Brazil's public sector.

Brazil's drug regulator, Anvisa, claims that some 63 drugmakers have registered around 1,800 generics in the country. However, roughly 40% of all generics registered in Brazil are reportedly not commercialised, as firms await suitable launch opportunities. Hypertensiion treatments, cardiovascular drugs and antibiotics remain Brazil's top-selling generics, in line with global trends.