RETAIL DRUG SALES IN LATIN AMERICA CONTINUING TO GROW

Retail drug sales in the leading three markets in Latin America reached US$15.22bn -- an increase of 18% -- in the 12 months to August 2005, according to recently-released IMS Health data.

The Brazilian market was the top performer, growing 29% to US$6.18bn, due to currency appreciation and a recent government-authorised price rise. However, industry observers indicate that falling drug consumption and an increase in the up-take of generics could impact market value in the near future.

Argentina's drug sales grew 12% to US$1.94bn as the market continues to recover from the 2002 economic crisis. Although the volume of drugs sold in the country is now higher than it was in 2000, market value in dollar terms remains at around half the level it was prior to the collapse of the peso. Sales have also cooled compared to dynamic growth of around 45% in 2004, caused in part by a recent drop in exports.

Meanwhile, Mexico's drug market grew 11% in the period to US$7.09bn as it recovered from a weak performance in 2004. Favourable economic conditions in the country, and an increase in spending power, plus continuing sector modernisation, have underpinned this performance. Increasing demand for expensive foreign imports has also helped drive up market value. However, industry observers claim that the prevalence of copy drugs in the country will continue to restrain market expansion.