Good Pharma Sales Growth In Brazil

1995 was a good year for the pharmaceutical industry in Brazil, with the industry's turnover rising 28.2% to 8.23 billion real ($8.46 billion), according to South American Business News. Drug and pharmaceutical sales volume increased 16% over the previous year. Employment was up 2.5% to 46,800 jobs.

Moreover, foreign pharmaceutical companies, many of which had pulled out of some South American operations during past difficult conditions, are moving back in. Jose de Melo, chairman of the foreign-owned drugmakers body Abifarma, noted that at least five foreign companies are planning to set up operations in the country. Local companies invested $250 million during 1995, and Glaxo Wellcome alone is expected to invest $120 million in Brazil over the next three years.

However, despite the good sales performance of the industry, it is reported that domestic drugstores are facing problems in keeping up their profitability. And Mr de Melo warned that of the 45,000 stores now existing in Brazil, 12,000 might be phased out over the next three years.