LATAM Pharmaceutical Products and CMO Market Expected to Be Biggest Emerging Market by 2024

The highly fragmented competitive landscape of the Latin America pharmaceutical and contract manufacturing organizations (CMO) market features a large number of small and large vendors operating amidst immense competition in terms of cost and variety of services delivered, observes a recent report by Transparency Market Research. While at one point pharmaceutical companies are struggling to gain sustainable returns owing to rising cost pressures, the increased inclination towards outsourcing a number of processes is leading to vast growth opportunities for CMOs.

With the top five vendors in the market, namely Bayer AG, BASF SE, Novartis AG, Pfizer, Inc., and Merck & Co., Inc., collectively accounting for a mere 23% of overall market in 2015, it is obvious that domestic vendors, chiefly producing generics, account for a massive chunk of the overall market. In the next few years as well, pharmaceutical companies producing generics are expected to hold prominent positions in the market and in a bid to focus more on core competencies and internal R&D activities, international companies will create high demand for CMOs.

This 156 page report gives readers a comprehensive overview of the pharmaceutical products and CMO market. Browse through 14 data tables and 43 figures to unlock the hidden opportunities in this market: http://www.transparencymarketresearch.com/latin-america-pharmaceutical-products-cmo-market.html

Transparency Market Research states that the LATAM pharmaceutical products and CMO market will exhibit a healthy 9.3% CAGR over the period between 2016 and 2024, rising from a valuation of US$127.9 bn in 2015 to US$286.2 bn 2024.

Finished Dosage Form to Retain Dominance in terms of Pharmaceutical Products

On the basis of product variety, the segment of finished dosage form presently leads the LATAM pharmaceutical products. The segment accounted for over 85% of the overall market in 2015 and is expected to retain its dominant position in the market over the report’s forecast period. However, the API and ingredients segment will emerge as the segment with the most promising rate of growth in the LATAM pharmaceutical products market, registering a nearly 10% CAGR over the report’s forecast period. The Latin America CMO market, on the other hand, was dominated by the API and ingredients segments. The segment of finished dosage form is also expected to gain high traction in the Latin America CMO market over the next few years.

Geographically, Brazil led the LATAM market for pharmaceutical products as well as CMO, chiefly owing to the rising number CMOs in the country and an increased focus of pharmaceutical companies on research activities. On the other hand, the pharmaceutical products and CMO market in Argentina is expected to exhibit a remarkable CAGR of 11.6% over the forecast period.

Improving Regulatory Framework to Encourage Foreign Investment

In the past few years, the regulatory framework of countries in Latin America such as Mexico, Brazil, Colombia, and Peru has significantly improved, leading to the creation of a more open business environment. This has attracted several multinational pharmaceutical companies to the region, which continue to invest in research and development activities in the region. Swift drug approvals, a relatively naïve pharmaceutical industry, and an inclination to free good in the region also make it a prime investment destination for many pharmaceutical companies wanting to expand their geographical expanse.

For CMOs, Latin America is increasingly becoming a highly lucrative region owing to patent expiries of several blockbuster drugs. The rise in the number of generic drug manufacturers in this scenario is highly conducive for contract manufacturers. Moreover, international pharmaceutical vendors approach CMOs to achieve the benefits of low-cost drug production while being able to concentrate on research and development of novel drug compounds with the help of in-house resources.

Request a sample of this report to know what opportunities will emerge in the rapidly evolving pharmaceutical products and CMO market during 2016 – 2024: http://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=14009

Limited Reimbursement Policies to Hamper Growth

The pharmaceutical industry in most Latin America countries lacks a well-established reimbursement structure and very limited reimbursement is offered outside hospital settings. Reimbursement is also highly restricted and is provided mostly to the poor, is based on health technology assessment (HTA), and to generic drugs. The scenario is expected to have a notable negative impact on the overall development of the LATAM pharmaceutical products and CMO market in the next few years.

This review of the Latin America pharmaceutical products and CMO market is based on a recent report published by Transparency Market Research, titled “Pharmaceutical Products and CMO Market – LATAM Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 – 2024.”

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: