Increasing investment in Latin American pharma market

Around $12.7 billion has been invested in Latin America’s (LATAM’s) pharmaceutical market through mergers and acquisitions (M&As) in recent years, and with untapped potential identified in countries across the region, companies are expected to seize upon further opportunities to drive future growth.

According to a new report from research and consulting firm GlobalData, the number of M&As completed in the region increased by a massive 214% between 2008 and 2012, and accounted for the majority (about 70%) of the region’s total deals during this period, followed by licensing agreements. Combined, these two categories remain one of the most popular sources of investment in the LATAM sector.

Aparna Krishnan, GlobalData’s analyst covering Healthcare Industry Dynamics, says: “M&As in this region have mainly consisted of global pharma firms acquiring local companies, which represents a shift towards emerging markets that will help boost revenue growth, adding: “The largest deal that took place between 2008 and 2012 involved UnitedHealth’s acquisition of Brazil’s Amil Particapacoes in 2012, which cost the USA-based firm a massive $4.9 billion.”