Argentina to Boost Generics Consumption, Exports

Argentina has traditionally been a difficult market for generics makers in view of a widespread preference for branded imports. However, as in many emerging economies, recent extreme economic shocks have generated more interest in generics, as the value of the currency and the level of prosperity has fallen drastically since the 1990s.

Although Argentina has a well-established manufacturing sector in which generic medicines are important, the entry of Indian drugmakers could add impetus and greater sophistication to the sector. According to official statistics, Indian companies already account for the segment's second largest share of revenue, followed closely by Brazilian producers.

It is also expected that the process of regional integration within the Mercosur trade bloc will also drive Argentine drug exports, with sales of generic antiretrovirals to Brazil's free HIV/AIDS treatment programme spearheading expansion in the country. Argentina's giant neighbour is a growing market, as Brazil's government continues to heavily promote the low-cost sector. Nevertheless, while prospects for Argentina's domestic drugmakers appear bright, a failure to curb copy products could undermine the local development of "legitimate" generics, in particular as drug spending continues to rise fastest among the poorest sections of the population.