For drug makers, LatAm looks like Eldorado

The Indian pharma sector sees a major business opportunity coming from the Latin America and the Caribbean.

The region—called the LAC market—is growing at a rate of about 10-15% and is encouraging generics on the lines of other developed and emerging markets.

“LAC is already contributing some revenues to the Indian pharma sector. We are waiting for it to further open up and contribute significantly to India’s pharma exports,” PV Appaji, executive director of Pharmaceuticals Export Promotion Council (Pharmexcil), a an industry body promoted by the Union commerce ministry, said.

The key LAC markets include Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Jamaica, Mexico, Nicaragua, Peru, Trinidad & Tobago and Venezuela.

Of about Rs48,000 crore ($10.3 billion) exports registered by the pharma sector, about 7.5% ($800 million) is to the LAC markets. However, the exports so far have been of low value-high volume category.

The LAC markets import 30-40% generic drugs and about 60% branded generics and the Indian exports are in the form of generics so far.

“Indian pharma sector exports about 60% of its generics,” Appaji said.

Pharmexcil is working on doubling the overall exports, that too on an expanded base, by 2014.

“In dollar terms India’s pharma exports are about $10.3 billion. We are working on scaling them up to about $25 billion by March 2014. The LAC markets would contribute 15% ($3.75 billion) of these exports by March 2014,” he said.

Though there are several generics that are becoming available to the Indian pharma exporters to the LAC market, the focus is said to be on antibiotics, anti-retrovirals, cardio-vascular drugs and diabetes drugs. The ageing population in the LAC markets is also expected to throw up major opportunities in geriatrics space including demand for drugs to treat Alzheimer’s disease.

The Pharmexcil has currently invited about 76 buyers from the LAC markets to Hyderabad for holding business-to-business meetings with the Indian pharma majors.

“We are trying to hold meetings with about 250 Indian pharma exporters and arrive at certain key business decisions,” Appaji said.