Pharmaceuticals.

July 31, 2007 research published by The Espicom Group (Chichester, UK) says that the value of the Latin American pharmaceutical market is us$41-billion, "and growing fast." By 2012 the market will have grown to us$63-billion.

According to the Miami based market research firm InfoAmericas, Mexico is the biggest pharmaceutical market in the region. InfoAmericas estimates the value of the Mexican market at us$15.2-billion. Espicom agrees that Mexico is the market leader but estimates the Mexican market at us$14.1-billion. Mexico has a 37 percent share of the region's pharmaceutical sales.

The Mexican market's robust market position, says InfoAmericas, is due to the government's efforts directed at expanding healthcare services for its growing and aging population. Mexico is also taking steps to protect the integrity of intellectual property rights--a controversial issue elsewhere in the region, especially in regard to pharmaceuticals.

In a separate 2006 presentation, Espicom says regional "Market growth is heavily dependent on economic performance." And the firm says, too, that the main thrust of healthcare reform in the region has mostly to do with providing access to healthcare services for the region's consumers.

Generic pharmaceuticals are a major market factor.

Another conclusion from the Espicom July 31, 2007 report relates to the global pharmaceutical marketplace. The firm says that the Latin American region is attempting to position itself favorably against other emerging markets, particularly China and India. One problem: Regional differences between Mercosur and Andean markets. A united front appears to be difficult to achieve.

Brazil is the second biggest pharm aceutical market in Latin America. The market is estimated at us$13.6-billion. It is "the leading market for bioequivalent generic pharmaceuticals in Latin America, mainly dominated by local companies," says Espicom.

Argentina ranks third in the region in pharmaceutical sales with an estimated 2007 value of us$4.7-billion. "The government has promoted generic prescribing and signed agreements with the industry to contain drug prices, but drugs are still very expensive for an economy in recovery," says the firm.

Venezuela is fourth in market size at us$4.0-billion. Intellectual property rights are not well protected. Exports suffer from lack of quality control.

CONSUMER MARKET INSIGHTS:

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