Chile Pharmaceuticals and Healthcare Report Q2 2009

Summary

Chile remains seventh overall in BMI's Q209 Business Environment Rankings for the 10 markets of the Americas. In the next five years, we expect that the country's pharmaceutical market will experience a compound annual growth rate (CAGR) of 7.38% in US dollar terms (or 4.81% in local currency terms, as the peso appreciates against the US dollar), reaching CLP802.81bn (US$1.73bn) at consumer prices in 2013. The main drivers of this trend will be economic growth (despite an expected blip of a slowdown in 2009), higher government spending, expansion of universal insurance and epidemiological concerns, as well as the expected introduction of tougher bioequivalence standards.

On the negative side, a key drawback to investing in the market comes from the government's minimal provision of or reimbursement for medicines, despite the expansion of government spending in recent years, particularly under the flagship Universal Access and Explicit Guarantees (AUGE) healthcare plan.

Similarly, future value growth will depend on the speed at which Chile aligns its intellectual property (IP) regulations with its international obligations. In this field, much depends on the government's success in balancing its healthcare reforms and the need to restrain cost growth with the desire to placate its international trading partners. Additionally, private sector retail drug prices remain low, primarily owing to intense retail sector competition, although formal pricing restrictions are relatively limited.

In the meantime, individuals in Latin America continue to succumb to generally preventable diseases such as gastric and cervical cancers. For example, BMI's Burden of Disease Database (BoDD) reveals that, in 2008, Chile lost 147,495 disability-adjusted life years (DALYs) to cancer. The growing cancer burden has recently led to launch of a new Office of Latin American Cancer Program Development (OLACPD) by the National Cancer Institute (NIC), the National Institutes of Health (NIH). The programme, which will initially focus on Mexico, Brazil, Chile, Argentina and Uruguay, aims to gain a better understanding of the status of the cancer burden, research and treatment infrastructures in those countries.

On an economic front, a stable political outlook and sound economic fundamentals position Chile for steady economic progress, and underpin our view that Chile's economy will head towards developed state status by 2018. While obstacles such as high reliance on copper exports and oil imports continue to limit the scope for economic progress, we see encouraging developments in both areas over the next ten years.

However, an economic recovery among Latin American economies will be vital for Chile, as regional trade will provide an important platform for growth in the next decade.

Contents

• Executive Summary
• Chile Pharmaceuticals And Healthcare Industry SWOT
• Chile Political SWOT
• Chile Economic SWOT
• Chile Business Environment SWOT
• Pharmaceutical Business Environment Ratings
• Limits Of Potential Returns
• Risks To Realisation Of Returns
• Chile - Market Summary
• Regulatory Regime
• Recent Regulatory Developments
• Intellectual Property
• IP Deficiencies
• Recent IP Developments
• Trade Agreements
• Pricing Regime
• Reimbursement Regime
• Industry Developments
• Epidemiology
• DALYs Lost To All Diseases And Injuries Per 100,00 Population In Select South American Countries
• Healthcare Sector
• Healthcare Insurance
• Pharmaceutical Sector
• Domestic Industry
• Foreign Industry
• Recent Pharmaceutical Industry Developments
• OTC Medicines
• Pharmaceutical Retail Sector
• Clinical Trials
• Medical Devices
• Industry Forecast Scenario
• Overall Market Forecast
• Key Growth Factors - Industry
• Key Growth Factors - Macroeconomic
• Prescription Market Forecast
• Patented Market Forecast
• Generics Market Forecast
• OTC Market Forecast
• Pharmaceutical Trade Forecast
• Medical Devices Forecasts
• Other Healthcare Data
• Key Risks To BMI's Forecast Scenario
• Competitive Landscape
• Company Monitor
• Leading Multinationals
• Pfizer
• Novartis
• GlaxoSmithKline (GSK)
• Sanofi-Aventis
• Merck & Co
• Indigenous Companies
• Laboratorios Chile (LabChile)
• Laboratorios Andrmaco
• Laboratorios Maver
• Country Snapshot: Chile Demographic Data
• Section 1: Population
• Section 2: Education And Healthcare
• Section 3: Labour Market And Spending Power
• BMI Forecast Modelling
• How We Generate Our Pharmaceutical Industry Forecasts
• Pharmaceutical Business Environment Ratings Methodology
• Ratings Overview
• Weighting
• Sources
• List of Tables
  • Table: Americas Pharmaceutical Business Environment Ratings for Q209
  • Table: Latin American Regulations On Bioequivalence And GMP
  • Table: Chile - Drug Market Expenditure Indicators, Historical Data and Forecasts
  • Table: Chile - Health Expenditure Indicators, Historical Data and Forecasts
  • Table: Chile - Economic Activity
  • Table: Chile - Prescription Market Indicators, Historical Data and Forecasts (CLPmn unless otherwise stated)
  • Table: Chile - Patented Drug Market Indicators, Historical Data and Forecasts ...................................................Error! Bookmark not defined.
  • Table: Chile - Generics Drug Market Indicators, Historical Data and Forecasts...................................................Error! Bookmark not defined.
  • Table: Chile - OTC Market Indicators, Historical Data and Forecasts (CLPmn unless otherwise stated)
  • Table: Chile - Pharmaceutical Trade Indicators, Historical Data and Forecasts (US$mn)
  • Table: Chile - Medical Device Indicators, Historical Data And Forecasts (US$mn unless otherwise stated)
  • Table: Chile - Other Healthcare Indicators, Historical Data and Forecasts
  • Table: Demographic Indicators, 2005-2030
  • Table: Rural/Urban Breakdown, 2005-2030
  • Table: Education, 2002-2005
  • Table: Vital Statistics, 2005-2030
  • Table: Employment Indicators, 2001-2006
  • Table: Consumer Expenditure, 2000-2012 (US$)
  • Table: Average Annual Wages, 2000-2012
  • Table: Pharmaceutical Business Environment Indicators
  • Table: Weighting Of Components