Fiocruz To Produce Insulin Locally
BMI View: Technology transfer partnerships between the Brazilian government and multinational drugmakers will accelerate Brazil's incorporation of advanced technologies to its domestic production capacity and increase the availability of a local medicine supply. The increasingly competitive domestic pharmaceutical industry will reduce Brazil's reliance on imported drugs and decrease public drug expenditure. Additionally, partnerships will facilitate the entrance of foreign drugmakers into the growing Brazilian pharmaceutical market.
Brazil's Ministry of Health and Ukrainian insulin producer, Indar, have launched a third-stage practical implementation of the agreement on the supply of insulin to Brazil. The contract was agreed by the presidents of Ukraine and Brazil in October 2011 as part of bilateral economic co-operation projects. In 2012, Indar supplied 3.5mn vials of insulin to Brazil and trained a team of experts from research organisation Oswaldo Cruz Foundation (Fiocruz) to produce insulin in Brazil. In 2013, the Ministry of Health will order up to 10mn vials of insulin from Indar and start to produce insulin crystals in Brazil through Fiocruz. By 2017, Brazil is expected to be producing insulin on an industrial scale locally.
Studies show that 7.6mn Brazilians have diabetes and about 900,000 depend exclusively on the Health System to obtain insulin. It is estimated that the partnership between Fiocruz and Indar will save the government BRL800mn (US$394mn) in total. BMI notes that the Brazilian government has a long-term commitment to support the domestic pharmaceutical industry through tax incentives, low-cost loans and technology transfer arrangements. It has exercised its single payer power and negotiated several deals with multinational pharmaceutical companies. Currently there are about 55 productive development partnership deals (PDPs) in place, covering 47 drugs and 5 vaccines. As a result, it is estimated that the Ministry of Health could save approximately BRL940mn (US$463mn) annually.