Albany NY, United States: The presence of multiple players has fragmented the Latin American pharmaceutical products and CMO market. In 2015, the top five companies collectively held a 23% share in the overall market. These companies were Bayer AG, BASF SE, Pfizer, Inc., Merck & Co., Inc., and Novartis AG. Tope leading companies are involved in research and development activities and aim to produce innovative products. Producing advanced products will help in meeting changing customer needs. These companies are investing in mergers and acquisitions to expand their geographical reach. For example, Boehringer Ingelheim GmbH has expanded its business in China in the past three years. The company invested EUR 22 mn in the construction of a new clinical research center.
Transparency Market Research provides a complete insight in its recent report on the Latin American pharmaceutical products and CMO market. According to the report, the market is projected to rise at a healthy growth rate of 9.3% from 2016 to 2024. Growing at this rate might help the market to attain a valuation of US$286.2 bn by the end of 2024 progressing from US127.9 bn earned in 2015.
On the basis of product type, the finished dosage form segment 86% share in 2015. Over the forecast period, this segment is likely the market and may reach US$ 244.4 bn by the end of 2024. However, the API and ingredients segment is also expected to rise significantly in the coming years. On the regional front, Brazil held a significant share in the LATAM pharmaceutical products and CMO market in 2015. Its growth is attributed to the development of innovative products, excellent geographical location, and better regulatory scenarios.
Improved Regulatory Frameworks to Impel Market Performance
Changing regulatory frameworks that are in favor of pharmaceuticals products and CMO in several LATAM countries including Peru, Mexico, Brazil, and Colombia has benefited the market growth. Traditional inclination towards free trade and fast drug approvals has benefited the pharmaceutical products and CMO market in LATAM. Moreover, the convenient scope for investment has attracted various international pharmaceutical companies to invest in this region. The open business environment has further pushed drug makers to invest in the Latin American pharmaceuticals products and CMO market. In addition, rising free trade agreements with developed countries in North America and Europe are also expected to provide lucrative growth opportunities in this market.
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Source: Biospace
