Increasing Government Investment In Local Biotechnology Sector
BMI View: The Brazilian government is determined to encourage the country's capacity to develop and produce innovative products and services. The domestic production of biosimilars is of great interest to the government, as it can expand local patients' access to many essential medicines and strengthen the domestic industry. However, multinationals - even biosimilar manufacturers, who had been hoping to cash in on blockbusters - will suffer from the accelerated market share loss to local manufacturers.
Brazil's Health Minister, Alexandre Padilha, has announced that the government will allocate more resources to stimulate innovation in local companies producing biological drugs. This is especially for drugs treating cancer and arthritis, as well as biotechnology firms. The National Bank of Economic and Social Development (Banco Nacional Desenvolvimento Econômico e Social - BNDES) will provide a total BRL5bn (US$2.53bn) worth of credits and the Ministry of Health will add another BRL2bn (US$1.02bn) to the fund. The Ministry of Health estimated that this will save the public health service BRL354mn (US$180mn) over the next five years.
We previously highlighted that the Brazilian government has a long-term commitment to reduce its reliance on imported medicines and cut down public pharmaceutical spending by supporting its domestic pharmaceutical industry. Technology transfer partnerships are an important way the government can accelerate its incorporation of advanced technology in domestic production and guarantee local medicine supply for essential medicines within a short space of time. Currently, Brazil has 63 agreements with 15 public companies and 35 private drugmakers to produce 61 medicines, saving the country BRL2.5bn (US$1.27bn) in public medicine expenditure.
|Reduced Spending On High-Value Strategic Medicines|
|Spending On Medicines By Brazilian Ministry Of Health (BRLbn)|