Growth Remains Positive For Multinationals In Q413
BMI View: The Brazilian pharmaceutical market is essential for multinationals seeking to generate significant revenue growth in Latin America. Collaboration with the Brazilian government has become an integral part of many major drugmakers' strategic outlook. Drug pricing pressure, generic competition, protectionist policies, weaker economic growth, currency devaluations and rising political risks will continue to put downward pressure on regional pharmaceutical market growth. Nevertheless, demand for advanced medicines from the steadily expanding middle class and increasing healthcare coverage by public sectors in the region will continue to provide revenue-generating opportunities for innovative pharmaceutical companies.
In Q413, Sanofi generated sales revenue of EUR825mn (US$1.135bn) in Latin America, up by 10.1% from Q412. In Brazil, sales grew by 6.8% to EUR337mn (464mn), driven by the performance of the generic segment (+23.6%) and its subsidiary Genzyme (+66.7%), despite lower vaccine sales. Full-year sales in Brazil reached EUR1.111bn (US$1.528bn), down by 18.2%. The company believes that the fourth quarter results show that Sanofi has significantly improved sales in Brazil and addressed issues in the country. Sanofi also registered losses of EUR54mn (US$74.3mn) and EUR35mn (US$48.1mn) due to negative currency impacts from the Brazilian real and Venezuelan bolivar respectively.
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|Sanofi's Latin American Performance (EURmn)|