Brazil’s fast economic growth is driving two parallel trends in the pharmaceutical industry. First, western companies – whose traditional markets are stagnating – are returning to the country. And second, their Brazilian counterparts, buoyed by the wave of domestic growth, are looking for foreign acquisitions.
Yet, amid all this, there’s further humiliation for Portugal, Brazil’s former colonial master. The shared history, language and business days – Lisbon is currently two hours ahead of Rio de Janeiro – seem to mean little to Brazilian companies as they search for improved economies of scale.
Aché, a generic drugs company based in São Paulo that is Brazil’s third-biggest pharmaceutical company, is one example: it is looking to Europe in efforts to expand markets, build scale and move into more innovative products.
But it says its acquisitions targets are elsewhere – in Italy and Spain. Portugal’s own healthcare industry is just not in good enough shape.
Meanwhile, Aché’s competitors are focused on other emerging markets. Eurofarma bought Uruguay’s Laboratorios Gautier, while state-owned Farmaguinhos is investing in Mozambique (see article).
If Portuguese drugmakers want to benefit from Brazilian growth, they might have to make the first move – rather than waiting for ambitious, cash-rich Brazilian companies to arrive.
Related reading:
Aché poised for R$1bn listing, FT
Stricter rules lure western companies to Brazil, FT
Stefan Wagstyl
Josh Noble
Rob Minto
Pan Kwan Yuk
Jonathan Wheatley
Heba Saleh