Market Insight by Swathi Allada; Research Service NAB2 by Willian Fujioka
In today's global economic world, the BRIC countries (Brazil, Russia, India and China) are setting up new horizons, promising strong potential for future growth in the healthcare market. According to Frost & Sullivan's research, it is estimated that Brazil will continue to maintain the second position among the BRIC countries after China.
The Brazilian healthcare market is poised for rapid growth by $19.80 billion from 2011-2015, constituting a Compound Annual Growth Rate (CAGR) of 12.6 percent. The major revenue will come from the pharmaceutical/biotech sector, followed by medical devices, medical imaging, clinical diagnostics and healthcare IT. Overall, the distribution of healthcare sectors will be maintained over the next five years.
With a Complex Set of Drivers Comes a Diversified Set of Opportunities
Over the past few years, private contributions in healthcare have risen with the increased interest of the investors and rising private equity investments and mergers & acquisition activity. Further, the healthcare industry in Brazil has also progressed through huge investments in R&D and the implementation of innovative healthcare delivery models.
Foreign Direct Investment (FDI) and Private Equity Investment Starting to Play the Game
Given the attractiveness of the Brazilian market, many multinational companies are making a foray into the market through joint ventures with local healthcare companies. For example, the American multinational MSD (Merck & Co.) made its first foray into the Brazilian market, which is a joint venture with Supera, a company created in 2011 by the national laboratories Eurofarma and Cristalia. The expectation is that sales revenues of the new company, Supera RX, will reach $500 million by 2017 with a portfolio of innovative medications and drugs.
