How To Enter Latin American Markets

Licensing agreements are the safest and most effective strategy for entering latin American drug markets, according to companies questioned for a new Datamonitor study. Such deals avoid the risk of buying a distributor, but they do reduce the company's profits.

Companies also rate the setting up of joint ventures as "excellent to good" for new arrivals, says the study, entitled Opportunities in latin American Pharmaceutical markets, and finally, after some time on the market, the setting-up of a manufacturing facility is recommended. The companies' least-favored entry strategies were buying a distributor, cutting brand prices and forming R&D alliances.