Pharmaceutical Laboratory of Rio Grande do Sul

DOING BUSINESS IN RIO GRANDE DO SUL – BRAZIL

London, 8th May 2012

Pharmaceutical Industry

Challenges and Opportunities on the Public Sector

Paulo Mayorga

LAFERGS

Operários – Tarsila do Amaral

LAFERGS

Pharmaceutical Laboratory of Rio Grande do Sul

Public Laboratory

Industrial area of FEPPS

(Public Institution related to Research and Production in Health)

Able to produce solid, liquids and semi-solid medicines

Near future: Diagnostic products

FEPPS Organization Chart

1- NUPLAM/RN

2- LAFEPE/PE

3- HEMOBRÁS/PE

4- LIFAL/AL

5- BAHIAFARMA/BA

6- IQUEGO/GO

7- FUNED/MG

8- FAP/RJ

9- BIO-MANGUINHOS/RJ

10- FAR-MANGUINHOS/RJ

11- LFM/RJ

12- IVB/RJ

13- LQFEX/RJ

14- LQFA/RJ

15- BUTANTAN/SP

16- FURP/SP

17- TECPAR/PR

18 – LAFERGS/RS

Market regulation and Priority Programmes

(E.g. PA, AIDS, neglected diseases)

PUBLIC PHARMACEUTICAL LABS IN BRAZIL

18

17

15,16

8,9,10,11,12,13,14

7

6

2, 3

4

5

1

Our system in 2011

145 million assisted users

2 million professionals

3.2 billion ambulatory procedures

495 million medical consultations

23 thousand transplant procedures

11 million hospital admissions

425 million laboratory tests

216 thousand establishments

public medicines distribution

THE BRAZILIAN UNIVERSAL HEALTH CARE SYSTEM

General informations

PRESSURE IN HEALTH SYSTEM

Population aging and the epidemiological profile change

IBGE

Other diseases

Cardiovascular

External causes

Neoplasia

Infectious and

parasitic diseases

Proportional mortality in Brazil: 1930-2010

(PESS/NEPP/UNICAMP)

47,5 54,3

66,4 77,1

87,3 96,7

112

125,1

138,3

0

20

40

60

80

100

120

140

160

2002 2003 2004 2005 2006 2007 2008 2009 2010

Billion R$

INVESTMENT IN PUBLIC HEALTH SERVICES

2010

£ 43 billion

4% of GDP (Gross Domestic Product)

MS/FNS

Expenses in public health services (R$), 2002 - 2010

IMS Health, Market Prognosis (2009)

Contributions to global market growth (2009 – 2013)

PHARMACEUTICAL MARKET PROGNOSIS

“Pharmerging” markets contribution

DECIIS/SCTIE/MS

Expenses in Medicines by the Brazilian Government (R$), 2003 - 2011

PHARMACEUTICAL DEMANDS

Evolution of the public medicines market

2,81

4,02 4,40

5,10

6,37 7,01

8,96

10,79 11,37

0

2

4

6

8

10

12

2003 2004 2005 2006 2007 2008 2009 2010 2011

Billi

on

R$

£ 3,5 billion

U$ 6,3 billion)

DECIIS/SCTIE/MS

Purchases 2011

PHARMACEUTICAL DEMANDS

Public purchases of medicines

PHARMACEUTICAL DEMANDS

Specialized medicines – The highest cost group

GIS/ENSP/FIOCRUZ (2011)

1,47 1,80 1,86 2,31 2,43

7,18

9,00 9,00

11,66 11,85

- 5,70 - 7,21 - 7,14

- 9,35 - 9,42

- 15,00

- 10,00

- 5,00

0,00

5,00

10,00

15,00

2007 2008 2009 2010 2011 2012

Billi

on

US

$

Foreign Trade of Health Sector (2007 – 2011)

EXPORT IMPORT FOREIGN TRADE BALANCE

CURRENT ECONOMIC SCENARIO

Foreign trade deficit of the health sector

£ 5,3 billion

3 4

5 6

Production of equipment

and materials for use

in health

Reagents and devices

for Diagnostics by using

biotechnology

Production of medicines

and chemical synthesis

of drugs

Biotechnological

products for health

R&D and Inovation Challenges

1 Local blood production

(8 - 9 factors, albumine

and globulines) 2 Vaccine development

to National Program

of immunization 1

2

3

6

5

4

HEALTH SECTOR CHALLENGES

MDIC/MF/ABDI

GOALS:

Stimulate the local production of high cost or high social impact products

Stimulate the development of new medicines

Expand the population access to the medicines

IMPROVE THE CURRENT MEDICINES PRODUCTION

PHARMACEUTICAL CHALLENGE

THE OPORTUNITIES

Development strategies

Strengthening industrial policy

Consolidation of public pharmaceutical labs

Use the purchase power of the government

Industrial Policy Purchase Power Public Production Development Strategies

DECIIS/SCTIE/MS

Strategic actions in order to build competitiveness

Available resources for all stages of the innovation cycle

Shared goals with the private sector

Health industrial

complex

Nanotechnology

Information and

communication

technologies

Biotechnology

Nuclear energy

Defense industrial

complex

THE OPORTUNITIES

Industrial Policy and Strategic Sectors

Industrial Policy Purchase Power Public Production Development Strategies

MDIC/MF/ABDI

2000 - 2011 2012 2012 - 2015

R$ 512 million

(£ 160 million)

R$ 250 million

(£ 78,1 million)

R$ 1 billion

(£ 312,5 million)

0

50

100

150

200

250

300

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

THE OPORTUNITIES

Investment in Public Labs (2000 – 2015)

Industrial Policy Purchase Power Public Production Development Strategies

Bill

ion

R$

DECIIS/SCTIE/MS

Partnerships for production

(With technology transfer)

Technological orders

(Linked to specific demands)

Legal support

(Resolutions of the Ministry of Health)

THE OPORTUNITIES

Optimization of the public purchases

Industrial Policy Purchase Power Public Production Development Strategies

PARTNERSHIPS OPORTUNITIES FOR PRODUCTION

Industrial Policy Purchase Power Public Production Development Strategies

Government

Private

Lab

Public

Lab

Executive project

Local development

5-years of partnership

Government ensures purchase

Technology transfer to the public lab

After technology transfer: provision of the active ingredient

HOW DOES IT WORK?

DECIIS/SCTIE/MS

IN CONCLUSION

Why is LAFERGS here?

WE ARE LOOKING FOR:

Potential partners

Specific products of interest:

Neglected diseases

Specialized medicines

Oncology

Transdermal systems

Aerosols

MAB

Peptides

Diagnostic products

CONTACT

THANK YOU VERY MUCH

AND YOU ARE WELCOME

TO JOIN US IN PORTO ALEGRE!

paulo-mayorga@fepps.rs.gov.br