Industry Trend Analysis - Government Support To Ensure Regional Biosimilar Leadership - MAY 2017

BMI View: The development of Brazil ' s nascent biotech nology industry goes hand-in-hand with political support of biosimilars ; engaging with the Brazilian government will be crucial for domestic and multinational drugmakers looking to maximise/limit the impact of biosimilar growth in the country. Brazil ' s cost-conscious government will continue to support the biosimilar market through proactive regulatory development s and investment in productive development partnerships . This action will ensure Brazil remains the lead market for biosimilars in Latin America.

We hold a positive view on the future of the Brazilian biosimilar industry. Brazil is the largest pharmaceutical market in Latin America by absolute size and the country's biosimilar segment is poised for significant growth over the next ten years to 2025. As a result, there will be opportunities for biosimilar manufacturers and risks for producers of patent-protected innovative medicines (both in terms of domestic and multinational pharmaceutical companies).

Underlying our constructive outlook is a number of structural drivers that will ensure the uptake of biosimilars in Brazil. The primary driver is cost, and the ongoing need for Brazil's public health system (Sistema Unico de Saude [SUS]) to limit expenditure. This is particularly relevant in regards to biologic medicines, which are high-end and high-priced products. According to data released by the Ministry of Health and Brazil's National Health Surveillance Agency (ANVISA), biologics represent just 4% of public drug consumption in volume terms but account for approximately 51% of public drug expenditure. The government will use biosimilars as a tool to limit expenditure while offering effective treatments.

Import Reliance: One Of Many Factors Driving Demand For Biosimilars
Brazil: Pharmaceutical Trade Data (BRLmn), 2011-2021
e/f = BMI estimate/forecast. Source: United Nations Comtrade Database/BMI

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