Just Released: "Venezuela Pharmaceuticals & Healthcare Report Q3 2012"

New Healthcare research report from Business Monitor International is now available from Fast Market Research

by Bill Thompson

(WireNews+Co) - Boston, MA - 17 October 2012

BMI View: Multinational pharmaceutical companies will benefit from Venezuela's increasing reliance on imported medicines to meet local demand due to the government's attempts to regulate the country's pharmaceutical sector and foreign currency control, which have undermined the profits and capacity of the domestic pharmaceutical industry. Basic medicines in the country are mainly imported from emerging market-based suppliers, while innovative drugs are from developed states.

Headline Expenditure Projections

- Pharmaceuticals: VEF33.26bn (US$5.46bn) in 2011 to VEF41.15bn (US$6.06bn) in 2012; +23.7% in local currency terms and +11% in US dollar terms. US forecast up due to new macro data.
- Healthcare: VEF64.44bn (US$10.57bn) in 2011 to VEF77.90bn (US$11.47bn) in 2012; +20.9% in local currency terms and +8.4% in US dollar terms. US forecast up due to new macro data.
- Medical devices: VEF9.62bn (US$1.58bn) in 2011 to VEF11.66bn (US$1.72bn) in 2012; +21.2% in local currency terms and 8.8% in US dollar terms. US forecast up due to new macro data.

View Full Report Details and Table of Contents (http://www.fastmr.com/prod/451414_venezuela_pharmaceuticals_healthcare_report_q3.aspx) (http://www.fastmr.com/prod/451414_venezuela_pharmaceuticals_healthcare_report_q3.aspx)

Risk/Reward Rating: BMI's average Business Environment Rating for the Americas markets has been reduced from 50.1 out of the maximum 100 points to 49.6 in Q312. Venezuela is ranked as the 15th most attractive market, scoring 38 out of 100, below the regional average score of 49.6 and above only Nicaragua and Honduras.

Key Trends & Developments:

- In May 2012, the Venezuelan Association of Distributors of Medical, Dental and Laboratory Equipment (AVEDEM) said imports of medical device were frozen for three weeks because local importers cannot purchase US dollars at the right time and foreign suppliers have discontinued credit to Venezuela. Since the authorisation of US dollars for the companies affiliated to AVEDEM stopped in early 2012, the debts accumulated are estimated to be US$150mn. This has affected 97 companies in the sector and caused a significant shortage of products in the market.
- In May 2012, Venezuela's National Institute of Statistics reported that in the first quarter of 2012 medicine imports rose by 25% year-on-year to US$548mn. The majority of imported drugs were from Cuba, Mexico, France, Brazil and the US. The government has imported the most medicines from Cuba to cover the shortage of products for diabetes, thyroid conditions and other basic therapeutic areas. The total value of drugs imported from Cuba was US$80.7mn, among which were antibiotics, vitamins, penicillin and medicines for hypertension, thyroid, diabetes, cancer and HIV. Mexico, ranking second, supplied US$61mn worth of medicines to Venezuela in Q112. It was followed by France (US$44mn), Brazil (US$39.8mn) and the US (US$38.8mn). Anti-cancer drugs and anti-retroviral medicines with a value of US$19.8mn were imported by Venezuela in Q112, mainly from the US, India and Germany.
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