LATIN AMERICAN RETAIL DRUG SALES PRESENT MIXED PICTURE

Recently-released IMS Health data for retail sales in Latin America's leading pharmaceuticals markets indicates that performance is uneven. Nevertheless, the data confirms that Latin America remains the world's fastest-growing drug market -- although it is expanding from a low base compared to developed markets.

In the 12 months to June 2005, drug sales in private pharmacies totalled US$6.90bn in Mexico, US$5.80bn in Brazil and US$1.88bn in Argentina. In the three countries, sales in US dollar terms were 11%, 24% and 10% higher, respectively.

While double-digit growth in all three markets is encouraging, progress has not been even. After months of flat growth, Mexico's drug market has at last revived in 2005, while in real terms Brazil's drug consumption has only risen in line with GDP growth this year -- with currency appreciation largely responsible for flattering the outlook.

Argentina presents a more disappointing scenario, with growth cooling from the spectacular growth rate of roughly 45% recorded in 2004. Consumption has recovered from the economic meltdown of recent years, but in US dollar terms, the market is still valued at only half its 2002 levels.

The relative performance of therapeutic classes in the 12-month period also highlights differences and similarities in all three markets. In Mexico and Brazil, alimentary and metabolism therapies continued to lead sales rankings -- respectively totalling US$1.29bn and US$0.96bn -- largely in line with higher incidences of disorders such as diabetes.

Meanwhile, reflecting Argentina's more developed status, central nervous system drugs continued to lead the sales data. Nevertheless, the category was second and third in Brazil and Mexico -- indicating that the epidemiological profiles of Argentina's Latin American peers are maturing, while Argentina begins to more closely resemble them.