The pharmaceutical industry in Latin America is vibrant and growing steadily. Altogether, three countries with the strongest presence in the sector include Brazil, Argentina and Mexico. These countries have witnessed a rapid proliferation of robust players. However, although the emerging region lags behind other more developed regions in terms of patent registrations, the subcontinent possesses a rich market for the production of generic prescription drugs, over-the-counter medications or OTCs, pharmaceutical ingredients, veterinary drugs, vaccine development and biotechnology operations. In fact, one case worth mentioning after being a notorious one is the acquisition of the American generic prescription drugs champion known as Ivax Corporation a few years ago by the Israeli multinational known as Teva Pharmaceutical Industries Limited for a price tag of $ 7.4 billion while adding in the process the local operations the former had in Colombia, Venezuela, Peru, Chile, Brazil, Argentina, Uruguay, Mexico and the Dominican Republic. Moreover, another acquisition the Israeli multinational made was the purchase of a thriving generic precription drugs maker in Mexico known as Representaciones e Investigaciones Médicas S.A. for $ 2.3 billion in cash and a couple of smaller acquisitions in Peru. As a consequence, Teva Pharmaceutical Industries is the undisputed leader of generic prescription drugs production in Latin America and globally as well after reporting sales reaching close $ 20 billion a year. On the other hand, the total pharmaceutical industry worldwide amounted to $ 1.12 trillion of combined sales in 2019 according to published data from Statista with the US accounting for a hefty 45% share of the pie or roughly $ 500 billion in sales. Similarly, combined pharmaceutical sales in Latin America amounted to around $ 60 billion in 2019 with Brazil accounting for nearly half of the pie regionwide. Overall, Americans are the ones spending the most every year standing at more than $ 1,200 in expenditures per capita on patented drugs as well as generics annually. Furthermore, for the purpose of this study, I chose to briefly go over the pharmaceutical industry in Brazil, Argentina, Mexico, Venezuela, El Salvador, Colombia and Peru as follows:
Brazil: the country possesses the most robust pharmaceutical industry in the region. Mayor players include Hypera Pharma S.A., EMS S.A., Eurofarma Laboratórios S.A., Cristália Produtos Químicos Farmacêuticos S.A. and Aché Laboratórios Farmacêuticos S.A. These companies trade in Brazil and are controlled respectively by billionaire João Alves de Queiroz Filho, billionaire Carlos Sánchez, billionaire Maurizio Billi, businessman Ogari Pacheco and entrepreneur Adalmiro Dellape Baptista. Likewise, these entities are currently the most prominent pharmaceutical operations in Brazil. Accordingly, Hypera Pharma has a heavy presence in OTCs and wholly owns Brainfarma Industria Química e Farmacêutica S.A. specializing in pharmaceutical ingredients. Similarly, the American pharmaceutical titan known as Pfizer Corporation wholly owns on Brazilian soil another prominent pharmaceutical ingredients maker known as Laboratório Teuto Brasileiro S.A. On the other hand, Aché Laboratórios Farmacêuticos S.A. is probably the pharmaceutical concern in Brazil with the widest reach in the market there. In fact, its tentacles include participation in two biotechnology outfits known as Melcon Industria Farmacêutica Limitada and Bionovis S.A. as well as participation in a joint venture with Canadian Scythian Biosciences Corporation known as Green Farma Brasil Limitada producing medicinal and recreational cannabis. In addition, Aché also owns in its entirety a very promising pharmaceutical and grocery distribution business known as Arbros Pharma e Alimenticia Limitada. Nevertheless, the biggest pharmaceutical distribution company in Brazil is Astellas Farma Brasil Importação e Distribuição de Medicamentos Limitada, an affiliate of a prominent Japanese pharmaceutical multinational known as Astellas Pharma Corporation. Moreover, other pharmaceutical players worth mentioning in Brazil are Blau Farmacêutica S.A., Momenta Farmacêutica Limitada, Libbs Farmacêutica Limitada, Cimed Industria de Medicamentos Limitada, Biolab Sanus Farmacêutica Limitada, Geolab S.A., Marjan Farma Limitada, União Química Farmacêutica Nacional S.A. and Apsen Farmacêutica S.A.
Argentina: the country has the second most prominent pharmaceutical industry in Latin America. Mayor players include Laboratorios Roemmers S.A.I.C.F., Insud Pharma S.A., Laboratorios Bagó S.A., Laboratorio Elea Phoenix S.A. and Baliarda S.A. Laboratorios Roemmers is a privately-held generic prescription drugs champion in Latin America controlled by billionaire Alberto Roemmers. The company is a big and vertically integrated operation in Argentina, founded by a German immigrant and late father of Alberto Roemmers while having under its umbrella a pharmaceutical ingredients maker known as Maprimed S.A. Similarly, Laboratorios Roemmers participates also in a very promising consortium of multinationals within the fields of biotechnology and vaccine development after operating a huge and modern laboratory in neighboring Uruguay known as Mega Pharma Holding Uruguay S.A. Insud Pharma, on the other hand, comprises a vast operation with activities of incursion ranging from pharmaceutical ingredients to biotechnology, veterinary drugs and generics. Altogether, Insud Pharma wholly owns three pharmaceutical ingredient makers known as Exelties S.A., mAbxience S.A. and Chemo S.A. as well as beneficial control of four biotechnology and pharmaceutical concerns known as Sinergium Biotech S.A., Chemotécnica S.A., Inmunova S.A. and Biogénesis Bagó S.A. The latter one mentioned is a booming joint venture specializing in veterinary drugs after being a local leader in vaccine production for animals owned jointly with Laboratorios Bagó. Likewise, the latter is itself a fully integrated pharmaceutical multinational with physical presence in 11 countries and owned in its entirety by the brothers Juan Carlos and Sebastián Bagó. In similar fashion, Insud pharma participates in another prominent joint venture with businesswoman Lilia Neumann de Sielecki fabricating generics known as Laboratorio Elea Phoenix S.A., a well-known generics maker in the Argentine republic. Moreover, Insud Pharma as a whole is a key division of an important conglomerate in Argentina known as Grupo Insud S.A. and belonging in its entirety to Hugo Sigman, a trained psychiatrist himself and local tycoon along with his wife Silvia Gold. The couple form a powerful duo in Argentina reputed by many to be billionaires in their own right and who took an active role in the government plan to deliver vaccines nationally after the outbreak of COVID-19. In addition, the leading pharmaceutical distribution business in Argentina is a well-established operation known as Disprofarma S.A.
Mexico: the country has a solid and growing pharmaceutical industry. Mayor players include Laboratorios Pisa S.A. and Genomma Lab Internacional S.A. The latter is a huge operation that trades in Mexico while focused on OTC medicines as well as generics and cosmetics on the side. Being controlled by rising Mexican businessman Rodrigo Alonso Herrera Aspra, the company has a very bright future with business plans anticipating excellent growth prospects. In addition, the Israeli multinational mentioned earlier and known as Teva Pharmaceutical Industries has a heavy presence on Mexican soil as well after buying at a steep valuation the local and prominent generics maker known as Representaciones e Investigaciones Médicas, also known by its abbreviation as RIMSA, from the brothers Fernando and Leopoldo Espinosa Abdalá. Likewise, the biggest pharmaceutical distribution company operating throughout the Mexican geography is known as Grupo Casa Saba S.A. de C.V., a prominent publicly-traded wholesaler controlled by the brothers Alberto and Manuel Saba Ades.
Venezuela: the country has an important pharmaceutical industry. Mayor players that stand out besides the local operations of Teva Pharmaceutical Industries include the prominent genetics maker known as Laboratorio Behrens C.A., Laboratorios Chemycal’s Soma C.A., Laboratorios Vincenti C.A., Calox International C.A. and OTC champion SM Pharma C.A. The last one mentioned discontinued most of its operations in Venezuela and relocated its presence to Broward County, Florida after investing an impressive $ 150 million building a state-of-the-art production facility constituting an opulent foreign direct investment while adding value to the economy of the South Florida Corridor. Accordingly, this operation belongs in its entirety to Spanish-Venezuelan entrepreneur Raimundo Santamarta and is a very promising business venture producing private-label OTCs to thriving American pharmacy chains such as CVS Health Corporation and Walgreens Boots Alliance Corporation. Moreover, it is worth noting that today’s business environment in distressed Venezuela is extremely hostile towards free enterprise and as a consequence, this is one aspect Mr. Santamarta had to endure forcing him to flee his home country and establish himself in America with a wholly-owned pharmaceutical operation known as Unipharma LLC. In addition, the biggest pharmaceutical distribution business in Venezuela is an old-established operation inside the republic known as Droguería Farvenca C.A. The latter is a wholly-owned subsidiary of a local conglomerate known as Grupo Mistral C.A. and belonging completely to French-Venezuelan entrepreneur Jorge Massa Dustou.
El Salvador: the small Central American country possesses a growing and sizable pharmaceutical industry. Pharmaceutical companies worth mentioning include Laboratorios López S.A. de C.V. and Laboratorios Suizos S.A. de C.V. In addition, the family of the incumbent President of El Salvador Nayib Bukele runs a lucrative venture representing foreign pharmaceutical multinationals known as Droguería Sinquimia S.A. de C.V.
Colombia: the country has a prosperous pharmaceutical industry. Mayor players that stand out besides the local operations of Teva Pharmaceutical Industries include Laboratorios Junín Limitada, Laboratorios Lafrancol S.A. and Laboratorio Incobra S.A. In addition, although initially specializing in vaccine development for animals and veterinary drugs, the local conglomerate known as Grupo Carval S.A. is also active in this sector in Colombia. The latter is fully owned by Colombian businessman Carlos Vallecilla Borrero.
Peru: the country possesses a buoyant and dynamic pharmaceutical industry. In fact, besides buying the local operations of Ivax Corporation, Teva Pharmaceutical Industries added to its portfolio in the Peruvian market two championing companies specialized in generics known as Corporación Medco S.A.C. and Corporación Infarmasa S.A. In addition, other prominent players in the sector worth mentioning in Peru include Laboratorios Lansier S.A.C., Hersil S.A. and Medifarma S.A.