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Who are the top 10 small to mid-sized pharma companies in Brazil, who have good growth prospects, a proven business model, and could benefit from investment to help expand?
Hello there! Thank you for asking Wonder to research the top 10 small to mid-sized pharma companies in Brazil. You have requested those with good growth prospects, a proven business model, and potential expansion through funding.
After searching extensively using your criteria, I found a 7-item list of local Brazilian pharma companies, followed by a resource of top pharma companies in Brazil by revenue - the latter source includes some multinational companies which I have excluded from my results. The last five of the top companies could be expected to need funds for expansion. I here include data about my results, with an overview, revenue, and number of employees for each company. For some I was able to locate annual sales and growth rate. I have also included information about growth potential in Brazil's pharma market in general. The results are listed in no particular order, beginning with the overall market report.
According to this report, Brazil’s pharma market is the sixth largest in the world in terms of sales revenue. Sales are broken down as follows:
The generic drug segment has been the main driver behind the decade-long growth of the pharma industry in Brazil, with its market sales tripling between 2009 and 2013. Brazil's pharma exports increased by around 41 percent between 2009 and 2013, touching a high of $1.516 billion. Market valuations have shown double digit growth in the past decade. Between 2012 and 2015, they have increased from $25.2 billion to $35.3 billion.
Drivers for potential market growth include:
**Demographic changes - Brazil’s retired, aging population is increasing, and it is estimated to overtake the working population by the year 2030. This continuous rise in the elderly population "will result in greater medication demand, which will act as a boost for the pharma industry," according to the report.
**Government priority - In accounting for expected demographic changes, Brazil's policymakers have acknowledged the need to advance the healthcare sector. Measures aimed at improving prevention and cure will spur growth in the pharma industry.
**Balanced approach for local and foreign players - Foreign investments have been welcome in improving technology, services and products across the healthcare sector; yet the government continues to be supportive of domestic pharma manufacturers. Incentives help local players increase product base, market penetration, operations, and technical advancement. Domestic pharma companies have been favored, resulting in "widespread benefits to the Brazilian pharma market by making it more competitive, technologically advanced, more diversified and on a rapid growth trajectory," the report states. These policies are expected to "assist the sustainable growth of the overall pharma sector in future."
**Untapped market potential - The pharma industry in Brazil has grown tremendously in the last decade, yet mid-sized cities with population ranges of 20,000 to 500,000 are still underutilized.
"[T]hese cities will be the major markets for pharma companies in the next decade, with more than 52% of the share of growth coming from these cities," according to the report.
**Steady expenditure - Government expenditure on healthcare in Brazil is generally an average 4.5 percent of the gross domestic product (GDP). Brazil's economy is expected to improve in the coming years, leading to "higher proportionate spending on healthcare, which will get translated to better propositions for the pharma industry," the report continues. An additional 5 percent of the GDP is projected to be spent in the private healthcare segment of Brazil.
EMS was founded more than 40 years ago with all-Brazilian capital, according to the company's website. It has two industrial complexes in São Bernardo do Campo and in Hortolândia, in the State of São Paulo. "EMS was the first Brazilian laboratory to export drugs to Europe, and to produce generic drugs in Brazil," the website states. "The brand’s strength is in the constant investment in technology, infrastructure, research and development, for a continued spread of its line of products and pioneering."
Founded in 2001, Hypermarcas had about 14 percent market share in units by the end of 2015, and its OTC drugs include those for "flu symptoms, pain relief, antacids, among others." Brands include Benegrip, Engov, Rinosoro, Epocler, Estomazil, Atroveran, Alivium, and Tamarine, the website states. "In prescription drugs, the company has leadership in several therapeutic classes, under the Mantecorp-Farmasa umbrella brand. It has a portfolio of well-established product brands such as Predsim, Celestamine, Maxsulid, Diprospan, Mioflex-A, Addera D3. This segment is supported by broad-range sales force and medical visit team."
The company's strengths are "large-scale, low-cost operations, with one of the biggest drug manufacturing plants in the world," according to the website, with robust distribution in drugstore chains and traditional stores. The company makes large marketing investments and has an aggressive innovation policy, the website continues.
Aché Laboratórios Farmacêuticos S.A. was organized more than 40 years ago, and it "has been consolidated as a dynamic company when it comes to the establishment of strategic business partnerships, in the country and abroad, based on its expertise on the development of similar drugs, management of a strong portfolio, knowledge of the Brazilian market, and the continuous development of products and services in a way to meet the healthcare professionals’ and customers’ needs, promoting health and well-being to the population," according to the company's LinkedIn profile (Aché's website contains errors in the About section).
Eurofarma was founded in 1972, It operates in all major pharmaceutical segments, "occupying the 2nd position in the most prescribed laboratories ranking by the Brazilian medical community and is among the Top 4 generic drug laboratories in the country," according to its LinkedIn profile. "The company keeps its own operations in 15 countries, has over 10 manufacturing plants strategically located and an ambitious internationalization plan with growing investment in the R&D area."
GROWTH: not immediately available
"With 100% national capital, Cristália is a chemical-pharmaceutical laboratory founded in 1972 in Itapira, in the interior of São Paulo," according to the company's Linked-In profile. It manufactures and sells anesthetics and anesthesia adjuvants, and "its market positioning prioritizes innovation and quality in the production of medicines that improve people's health at a fair price." The company invests in open innovation with "cooperation and partnership with major research centers of the country, uniting the academy to the corporate world," the profile continues.
GROWTH: not immediately available
This private "100% Brazilian" company prides itself on innovation, according to its website, which states: "[W]e are all innovation agents. We are restless people, who challenge the common sense, take responsibilities and gather the richness of team work to overcome barriers, transform, innovate and build the future. Why do all these things make us a motivated team?...To be the most admired Brazilian pharmaceutical company in the world."
SALES: not immediately available
GROWTH: not immediately available
Founded in 1936, this company has "always focused on the future," according to its LinkedIn profile, and its "100% national capital" is structured in two divisions: Human Health and Animal Health.
Human Health's three lines of business are Hospital, Genom (Genom Ophthalmology and Genom General Medicine), and Pharma (Andromed OTC, Marks and Generics), the profile continues. The company is committed to innovation.
SALES: not immediately available
GROWTH: not immediately available
PLEASE NOTE: After significant, exhaustive research, and with no pre-compiled list of your requested data, I have included a curated list of seven results with as much publicly-available data as I could find without a deeper dive.
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Thank you for the opportunity to research these pharma companies in Brazil. I hope the data, summaries, and links will prove useful to you in your presentation. We appreciate you choosing Wonder for your research needs. Please feel free to submit an additional request if you seek further data.