Executive Summary

[TOP]

BMI has updated its 2006 Chilean pharmaceutical market figure to US$989mn in final consumer prices, based on several market sources. This is somewhat higher than the previous estimate and translates into 8.75% local currency growth and 10.5% US dollar growth. BMI has also upgraded its five-year market forecast somewhat, seeing a five-year 2006 to 2011 average annual growth rate of 6.4% per annum, compared to an earlier 5.5% annual growth estimate. In 2007, the market is now expected to reach a market value of US$1.05bn, representing 7.7% year-on-year growth and a value of US$1.35bn by 2011.

The government of President Michelle Bachelet has increased social spending, including a major expansion of the AUGE plan this year. Still, the government has become the focus of street protests by the country's largest union representing both public and private-sector workers and strikes by health workers, including the key doctor's organisation, the Medical College. Bachelet's government is arguably at a low point since taking office in March 2006. With record copper prices, she is under pressure from the left to further increase social spending while trying to keep a lid on inflation and spending. In the last months of 2007, the government will be looking for some concrete results and to announce new initiatives to calm social tensions.

Increased spending also means continued wrangling over stronger regulation and market protections for makers of patented drugs. Despite its liberal economic credentials, Chile's intellectual property (IP) environment remains problematic, although there are continued signs of forward progress. In May 2007, the government announced that it was making substantial progress on a tougher anti-piracy law, due to be ready at the end of the year. Measures reportedly include modifications to the country's patent law to close loopholes. Crucially, the government is said to be planning to launch an independent patent office, INAPI, to replace the current Intellectual Property Department.

For local players, the seeming inevitability that tougher rules will eventually prevail presents the challenge of meeting GMP requirements by next year. It also means finding new markets. In September, Laboratorios Andrómaco reportedly signed a deal to acquire three smaller Colombian producers, California, Memphis Products and Psipharma, further boosting its regional penetration. Closer to home, market leading retailer Farmacias Ahumada (FASA) launched a discount generics programme and vowed to capture 32% of the market by the end of 2007. Along with a US$100mn tie-up with developer Grupo Euroamérica to develop new locations, FASA's aggressive moves could spark a renewed pricing war as rivals Salcobrand – now under new ownership – and Cruz Verde look to defend their market positions. Intriguingly, Congress is reportedly looking at legislation that would liberalise over-the-counter drug sales, a move that could significantly open the market.

Contents

[TOP]

Chapter 1 - Executive Summary

Chile Pharmaceuticals & Healthcare Industry SWOT

Chapter 2 - Chile: Business Environment Ranking

Business Environment Ranking

Economics – Long-term Risk

Politics – Long-term Risk

Regulatory Barriers

Domestic Sector Threat

Market Growth Potential

Market Size Ranking

Chapter 3 - Chile: Market Summary

Chapter 4 - Regulatory Regime

Intellectual Property

National Formulary

Pricing & Reimbursement Issues

Chapter 5 - Industry Developments

Healthcare Sector

Recent Legislative Initiatives

Pharmaceutical Sector

Table - Latin American Regulations on Bioequivalence and GMP

Chapter 6 - Industry Forecast Scenario

Overall Market Forecast

Table: Chile Drug Market Expenditure Forecasts 2005-2009

Key Growth Factors – Industry

Table: Chile Health Expenditure Forecasts 2005-2010

Key Growth Factors – Macroeconomic

Table: Economic Activity – Historical Data And Forecasts

Prescription Market Forecast

Table: Chile Prescription Market Forecasts 2004-2010

OTC Market Forecast

Table: Chile OTC Market Forecasts 2004-2010

Generics Market Forecast

Table: Generics And Branded Market Indicators

Export/Import Forecast

Table: Chile Pharmaceuticals Exports & Imports Forecasts 2005-2009

Key Risks To BMI’s Forecast Scenario

Chapter 7 - Competitive Landscape

Manufacturing Sector

Retail Sector

Chapter 8 - Company Monitor

Profiles

LabChile

Laboratorios Andrómaco

Laboratorios Maver

Chapter 9 - Latin America: Regional Market Overview

Chapter 10 - BMI Forecast Modelling

How We Generate Our Industry Forecasts

Technical Process

Pharmaceutical Industry

Chapter 11 - Appendix: Regional Demographic Data

Wages (ave per annum), US$

Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, GDP, US$bn

Section 1: Population

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare: Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption and Stratification

Table: Wages per year

Competitive Landscape for Latin America Pharmaceuticals and Healthcare: Sample of Companies Ranked

[TOP]

Cross-border analysis of regulatory systems comparing the patenting environment, summarising regional pricing and reimbursement factors and monitoring the growth of the Pharmaceuticals sector across the region. Company SWOTs cover leading multinational and national drug companies operating in each market.

Network of Latin American Pharmaceuticals & Healthcare Sources

[TOP]

BMI's Latin American Pharmaceuticals & Healthcare Reports are based on an extensive network of multilateral organisations, government departments, pharmaceuticals industry associations, chambers of commerce and company reports. Information sources include: