2009-11-04 08:17:02 - Venezuela Pharmaceuticals and Healthcare Report Q4 2009 - a new market research report on companiesandmarkets.com

www.companiesandmarkets.com/Summary-Market-Report/venezuela-phar ..

BMI calculates that pharmaceutical sales in Venezuela reached VEB7.5bn (US$3.57bn) in 2008. By
2013, we forecast the Venezuelan pharmaceutical market will be worth VEB26.0bn, increasing at a
compound annual growth rate (CAGR) of 28.23%. BMI notes that as a result of the weakening
Venezuelan bolivar, drug market expenditure in US dollars will experience a decline over the forecast
period to US$2.74bn, equating to a negative CAGR of -5.18%. One part of the problem is that Venezuela
has very high inflation levels which are eroding any nominal growth in the drug market. In 2009 and 2010
the consumer price index is expected to average around 40%.
Our Q409 Business Environment Ratings continue to demonstrate that Venezuela’s pharmaceutical
market is one of the most challenging in the Americas, and Venezuela

 

 

finds itself with the lowest overall
rating once again. The structure of the country, with its fast-growing urban population, creates an
environment in which strong returns can be achieved, particularly for players with a strong hand in the
generics sector. However, the operating environment for drugmakers is challenging due to weak
intellectual property (IP) laws and a political regime that regularly speaks out against private enterprise.
Furthermore, in August 2009, in a move that further reduces Venezuela’s attractiveness to multinational
drugmakers, the country’s Minister of Trade announced that the government will restrict the import of
finished medicines into Venezuela in order to support local production. BMI welcomes the government’s
focus on increasing the local production of medicines; however, in the short term, we do not expect
Venezuela’s reliance upon imported drugs to decrease significantly. According to the International Trade
Centre (ITC) and the United Nations Commodity Trade Statistics Database (UN Comtrade), Venezuela is
heavily reliant on pharmaceutical imports. BMI expects this trend to continue through to 2013.
It has been revealed that an increasing number of Venezuelans are turning to the private sector for
treatment in order to gain access to better facilities and resources. The value of health insurance contracts
has risen by 60% since 2005 and private medical services can not keep up with the increased demand for
private care. According to our health expenditure forecast it is clear that the government only contributes
to just over half the health expenditure in Venezuela. We believe that low government investment in
healthcare has led to the deterioration in national healthcare facilities and has contributed to the rise in
patients opting to pay for private healthcare.