Brazil – Indian Pharma’s potential growth engine for next decade!
Can the enriched brand image of Indian Pharma after COVID-19 enable seamless value creation in the Latin American giant?
Recently, ET Healthworld covered Sameer’s thoughts on Indian Pharma’s improved Brand equity after COVID 19 crisis and the opportunity it has presented to Midsize Pharmaceutical companies to enter Brazil.
Below is the article followed by the link –
Indian Pharmaceutical manufacturers are recognized as the leading force playing a decisive role in positive change witnessed by Healthcare industry globally. With years of focus and favourable policies, Indian generics form almost 60% of the medicinal products consumed in the USA and Europe. India boasts largest concentration of USFDA and EUGMP approved facilities across the globe. This stellar performance in last couple of decades has led to a massive value creation by leading Pharmaceutical companies and it is apparent if we track stock markets.
The Covid 19 crisis has crippled life across the world and has affected most a lot of countries severely. Undoubtedly, India has stepped up during these times cementing its position as ‘Pharmacy of the world’. Undoubtedly vaccines are in limelight due to detailed discussion carried out about them on every possible platform, but India is playing a key role in maintaining supply of life saving medicines silently. Lot of countries having shortages of key hospital products during the pandemic have turned to India as a trusted supplier to fulfil the demand.
One of the regions facing unprecedented challenge due to the pandemic is Latin America and Brazil happens to be the worst affected. Responding appropriately to the situation, Brazilian authorities have taken some unprecedented measures to tackle the drug shortages. Fast track approvals to COVID related drugs, desktop GMP clearance to manufacturing facilities, special import authorization to products manufactured outside Brazil (including India) are some of the notable initiatives. The local government has made sincere efforts to welcome Indian manufacturers willing to serve the human lives affected.
Can we turn this once in a lifetime event into an opportunity having potential to drive the next decade of growth? We all know that Brazil is 5th largest Pharmaceutical market in the world supported by steady growth. It has always been a challenging territory for foreign companies to venture and grow. Multiple factors like strong local industry, stringent regulations, unique legislative set up, long gestation period, language barrier, cultural diversity etc. have kept the value out of reach for a lot of midsize companies.
Is it an opening for Indian Pharma? Riding high on the improved brand value, can the industry create its own space in the Brazilian market dominated by local companies? As rightly said by James Penny, growth is never by mere chance; it is the result of forces working together. It is indeed an opportunity to unlock next phase of growth by identifying the forces which will allow an entry to the Latin American giant.