Pfizer Sees Long-term Growth Opportunities


BMI View: Colombia's strong economic outlook and the improving universal healthcare coverage underpin the significant long-term opportunities for multinational pharmaceutical companies. However, price erosion mechanisms and the promotion of generic drugs will constrain innovative drugmakers' revenue in the South American country.

Pfizer Colombia has stated that Colombia's pharmaceutical market is one of the fastest growing markets for the company in Latin America. Country Manager Rodrigo Puga said that the country presents significant long-term opportunities for the company due to its strong economic outlook and the universal healthcare coverage. He estimated that the company will generate around 6% growth for 2014 and it will launch two new treatments for arthritis and cardiovascular diseases this year. Puga noted that the company has no plan to establish its own manufacture site, but it has been looking for acquisition targets in Colombia. He also mentioned that drug pricing controls in Colombia have had a limited impact on the company's revenue growth, as only four medicines have been affected. However, if the drug pricing pressure increases, sales of other medicines will also be constrained.

We note that drug consumption in Colombia has grown rapidly in recent years - primarily in volume terms - as a result of a series of healthcare reforms and an increase in the use of generic products. One of the key drivers of Colombia's pharmaceutical market growth is the country's growing population and the increasing burden of non-communicable diseases, highlighting a greater need for access to medicines for the treatment of chronic diseases such as cancer and cardiovascular diseases. Other positive drivers will include the improving operating environment for research-based pharmaceutical companies, which bodes well for the performance of the patented drug market, although cost-containment pressures will remain in play.

Healthy Growth
Colombian Pharmaceutical Market Outlook

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Related sectors of this article: Pharmaceuticals & Healthcare
Geography: Colombia

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