GLOBAL GENERICS MAKERS SIGNAL LATIN AMERICA EXPANSION MOVES

A recent statement by Brazil's Trade Minister, Pedro Furlan, has highlighted major international generics makers' growing interest in Latin American markets. The minister claimed that the government was in negotiations with Israel's Teva, possibly implying a major boost to the generics firm's local presence.

Teva's operations in Brazil are described as "discreet," with the company recently partnering with leading Brazilian firm Biosintética as well as Argentina's BioSidus. However, as its new acquisition IVAX controls leading Venezuelan firm Laboratorios Elmor, the near term could see the Israeli major reassess its position in view of regional governments' enthusiasm for generics as a cheap, accessible form of healthcare.

However, Teva's would-be rivals have also expanded in Latin America in recent years, with a number of Indian firms such as Ranbaxy and Strides Arcolab entering the major markets. Significantly, the market share of generics in Mexico -- set to be Latin America's star performer over the next four years -- is still under 5%. The country has recently passed a law obliging mandatory bioequivalence tests, a measure likely to favourably impact major generics firms' prospects in the country.