INDIAN FIRMS EYE LUCRATIVE BRAZILIAN GENERICS MARKET

Amid what appears to be a deteriorating outlook for patent and bioequivalence rules, Indian generics firms are looking to Brazil's drug market, largely in order to escape competitive pressures at home.

Reports in the Indian media note that the list of the country's leading drugmakers which are present in Brazil is growing ever longer. Indian companies with Brazilian subsidiaries now include Ranbaxy, Strides Arcolab, Dr. Reddy's, Cadila, Wockhardt, Orchid, Glenmark, and Unichem.

Ranbaxy reported sales of US$31mn in Brazil last year, launching its new Contiflo (Tamsulosin) and Cutison (Mometasone) products, bringing its local offering to five brands. The company has also started a new plant in Rio de Janeiro state. Meanwhile, rival Strides Arcolab is reportedly building a US$2.1mn facility in Vitoria state, although fellow generics maker Dr. Reddy's Brazilian subsidiary has reported a loss for 2004.

Meanwhile, smaller Indian firms are also becoming increasingly active in Brazil's key market niches. Orchid is targeting the local cephalosporins market, while Wockhardt hopes to market its biotech products and Glenmark recently acquired local hormonals producer Laboratorios Klinger. Brazilian regulators also approved Cadila's Indian manufacturing facility in 2004.

Despite the scramble to enter the Brazilian market, Indian companies face potentially strong competition from other leading generics makers. Novartis has expanded generics production rapidly in Brazil in recent months, and Teva's new acquisition Ivax is strong in key parts of Spanish-speaking Latin America. In the meantime, Brazil's homegrown companies can also expect favourable regulation as they pursue their own expansion drive.