A ROADMAP TO BRAZIL deciphering a growing

marketplace to gain acess to

commercial success

COUNTRY

market

momentum

opportunities

Brazilian personalities

“jeitinho”

“jeitinho”

Nonverbal

communication

Nonverbal

communication

Nonverbal

communication

regionalism

regionalism

regionalism

largest fresh water reserve in the world

12%

GREEN AREA AND FOREST RESERVES

Brazil

576 mi ha

Peru

69 mi ha

USA

303 mi ha

Canada

310 mi ha

Democratic

Republic of

Congo

134 mi ha

India

68 mi ha

Australia

164 mi ha

Russia

809 mi ha

China

197 mi ha

Indonesia

88 mi ha

diverse energy matrix

diverse energy matrix sugarcane17.8%

hydro14.0%

other biomass 9.7%

other renewables 4.0% ___________________________________________________________________________

45.5%

democracy

independent powers Legislative Judiciary

Executive ‘Public’ Ministry

multiparty political system

transparency

stable and permanently improved rules

after the ballot

FEW HOURS

138,500,000

electorate in 2012:

results a

participation of civil society

government programs

(PAC 1 & 2)

infrastructure investments

U$ 23,5 bi

high-speed train (SP, RJ)

U$ 25 bi

Petrobras platforms (RJ, RS, SP)

U$ 13,3 bi

metro (SP)

U$ 3,8 bi

highway (SP)

U$ 2,9 bi

port of Santos expansion (SP)

transposition of Sao Francisco River (PE)

U$ 4 bi

U$ 10 bi

San Antonio water plant (RO)

U$ 6,3 bi

nuclear plant (RJ)

U$ 9,3 bi

Belo Monte water plant (PA)

committed to multilateralism

non-intervention

and the peaceful resolution of disputes

Racism does not deny

Afro-Brazilians the opportunity

for upward mobility

music television

television television

arts

music

sports

television news presenter

senator

actress

business

politics

NGO religion sports

sports

judge of Suprem Court

Sao Paulo

the largest Japanese

population of any city

outside Japan

strong ethnic ties to

immigrant ancestry

Salvador

largest number of

African descendants

outside Africa

strong ethnic ties to

immigrant ancestry

lack of 340,000 professionals

in 20 critical areas

encouraging

immigration of skilled labor

over 100,000 scholarships at major

universities in the world by 2015

Embraer is a good example of what

privatization can achieve

www.exame.com

Embraer: the world’s biggest manufacturer

of mid-range passenger jets, after the

privatization

www.exame.com

privatization effects Embraer Before privatization After privatization

Gain (in million) -160 294

Number of aircrafts delivered 4 148

www.exame.com

best example of privatization

one of the world’s 4 biggest mining companies

more than 1,000 Km under the

responsibility of private enterprises

concession for expansion

and operation

passenger numbers in Brazil have doubled in a

decade and hectic growth is expected to continue

Rio de Janeiro Airport - RJ

concession for expansion and operation

country

MARKET

momentum

opportunities

Borders LARGEST economy

in Latin America

PORTUGAL

SPAIN FRANCE

GERMANY

twice that of Japan

demographics

3 times the

population of France

more than 198

million inhabitants

PORTUGAL

SPAIN FRANCE

GERMANY

twice that of Japan

demographics more than 198

million inhabitants

PORTUGAL

SPAIN FRANCE GERMANY

demographics more than 198

million inhabitants

2,5 times the

population of Germany

PORTUGAL

SPAIN

FRANCE

demographics more than 198

million inhabitants

3 times the

population of France

PORTUGAL SPAIN

demographics more than 198

million inhabitants

4,5 times of Spain

PORTUGAL

demographics more than 198

million inhabitants

10 times the one of

Portugal

PORTUGAL

SPAIN FRANCE

GERMANY

demographics

the southeast is the

most populated

41%

life expectancy

76 years

69 years

dem

og

rap

hic

s

infant mortality

decreased

changes that alter

the population

age structure

demographic bonus

population of

working age group

What should GROW more

Private pension

229 1,383

ANNUAL GROWTH

19.7%

Education

160 399

ANNUAL GROWTH

9.56%

Pharmaceutical

products

200 80

ANNUAL GROWTH

9.5%

Hospital

services

246 99

ANNUAL GROWTH

9.5%

2010 2020

215 million cell phones in Brazil

to 198 million people

middle class: almost half of the

passengers travelling by plane

- record high average wages

- record low unemployment

- declining Gini coefficient

- social Programs

consumer with more access

social mobility

middle class: the main driving

force in the pharmaceutical market

40 million joined the middle class

between 2003 to 2011

20 million more are expected to

be included by 2014

2003 2009 2014

Classes AB

Class C

Classes DE

13 20 31

66 94,9

113

96 73,3 59

PRODUCTIVE CAPITAL

3rd most

attractive country

foreign investment

5 diverse regions , especially regarding economic development

local investment

recent discoveries

Petroleum

natural gas

the most important economies

Sao Paulo

Rio de Janeiro

country

market

MOMENTUM

opportunities

impact of

Summer Olympics

Summer Olympics

the 1º edition held in South

America

will help sustain Brazil's economic

growth by injecting $51.1 billion into

Latin America's largest economy until 2027

and add 120,000 jobs

annually until 2016

all venues of the Olympic and Paralympic Games

will be constructed in 4 zones

(Brazilian Constitution)

Ministry of Health

twice candidate in the presidential

elections

mostly due to his performance as

health minister in past governments

José Serra Health Minister

Alexandre Padilha

responsible for establishing regulations

• drug pricing

• drug registration

• licenses to pharmaceutical laboratories…

National Industrial Property

Institute in partnership with

Anvisa is in charge of

analyzing patent requests

related to pharmaceutical

processes and products

3rd largest pharmaceutical market in the

America’s region

in revenue in number of companies

2011 2010 Companies UF 2011 2010 Companies UF

THE LARGEST RETAIL

PHARMACY

pharmacies deliver

medicines on request

pharmacies and drugstores – 82,204

pharmacies with manipulation – 7,351

pharmacies and drugstores in the state capitals – 18,598

pharmacies and drugstores in other cities – 63,606

homeopathic pharmacies – 1,053

additional information

additional information

pharmacies owned by pharmacists – 21,743

pharmacies owned by non-pharmacists – 46,451

pharmacies registered in the Regional Councils – 8,379

hospital pharmacies – 5,631

drug distributors – 3,821

pharmaceutical industries – 532

clinical laboratories owned by pharmacists – 5,993

additional information

country

market

momentum

OPPORTUNITIES

5th in the list of world

drug consumption

1st in

consumption in

Latin America

8th in the world

market in financial

volume

consumption

of drugs 15% of the

population still

account for 50% of

consumption

15%

34%

51% 16%

36%

48%

population segment by income

total medicine consumption

consumption

of drugs approximately 50% of the

population has little or no

access to any type of

drugs

15%

34%

51% 16%

36%

48%

population segment by income

total medicine consumption

Classes A - B

Classes C – D - E

MONTHLY EXPENSE PER GROUP

CONSUMPTION POTENTIAL

OF BRAZILIANS IN 2011

Total in 2011

$ 1,2 trillion

Classes A and B

$ 465 billion

Classes A and B represent

nearly 10% of the population

but they spend almost 2/3 of the

remaining 90%

Classes A - B

Classes C – D - E

MONTHLY EXPENSE PER GROUP

CONSUMPTION POTENTIAL

OF BRAZILIANS IN 2011

Total in 2011

$ 1,2 trillion

Classes A and B

$ 465 billion

Physicians per 10,000 (global average): 16.9 (23.4)

Statistics

Brazil GDP per person: $10,800

Public spending as a share of GDP: 3.62%

Health care spending as a share of GDP: 8%

Share of health care spending that is privately funded: 60%

Number of beds per 1,000 (global average): 2.4 (4.3)

Nurses per 1,000 (global average): 29.1 (60.3)

6,000 jobs created in 2011

employing more than 150,000

industry grew 19% in 2011,

achieving U$ 6.7 bi

healthcare industry has

generated more than U$ 4 bi in business

more than 300 labs

cheap X-rays and blood tests

therapeutic drugs

Black Stripe Medicines

considered high risk medication

sold with medical prescription

valid for 30 days

Red Stripe Medicines

Psychoactive Medicines

sold only with

medical prescription

considered of lower risk

sold only with a "Special Control"

valid for 30 days

Yellow Stripe Medicines

the generic drugs

the doctor (87%) is the primary

means Brazilians demand when

need guidance on health problems

even though, about 80 million self-medicate

Self-medication

THE ATTENDANT

most commonly prescribed drugs by attendants

flu (26%) contraceptives (11%) allergy (5%)

anti-inflammatory (95%) painkillers (89%) antibiotics (53%)

THE ATTENDANT

people store unused drugs in ‘domestic pharmacies’

use homemade ‘recipes’

39% of people

Union

States

Municipalities

1.07%

0.97%

1.62%

3.62% of GDP

Government expenditure on health

pharmaceutical industry in Brazil

Retail

71%

State

21%

Hospitals & Clinics

8%

non-retail sales represents U$ 6,5 billion

pharmaceutical total market sales

vaccination campaigns Brazil is launching a campaign

to vaccinate about 30

million people against

influenza

vaccination campaigns

organ donors campaign

is one of the largest in the world

the national public program of

organ and tissue transplants

human milk bank the largest network of

breast milk banks in

the world

208 milk banks

these banks

receive,

distribute and

pasteurize the

milk

human milk bank the largest network of

breast milk banks in

the world

208 milk banks

these banks

receive,

distribute and

pasteurize the

milk

the government is providing free

medicine for treating

diabetes and hypertension

covering 90% of the expense of the medicine

HYPERTENSION

Active Ingredient and Concentration

Captopril - 25mg

Enalapril maleate - 10mg

Propranolol hydrochloride - 40mg

Atenolol - 25mg

Hydrochlorothiazide - 25mg

Losartan - 50mg

DIABETES

Active Ingredient and Concentration

Glibenclamide - 5mg

Metformin hydrochloride - 500mg

Metformin hydrochloride - 850mg

Human Insulin NPH - 100ui/mL

DEVELOPMENT OF THE

GENERIC DRUG MARKET MARKET SEGMENT WITH DYNAMIC DEVELOPMENT

AND INTENSE COMPETITION

MANUFACTURES

NUMBER OF PRODUCTS

%

growth

rate

2,904

registration and production of generic

drugs sold in the market

90% made locally

GE

NE

RIC

S

Brazilian generic market

is worth around

80% is concentrated

on the top 6

57% of the local market is

concentrated on 2 big companies

basic pharmaceutical assistance 16%

strategic pharmaceutical

assistance 21% (neglected diseases and sexually

transmitted diseases)

exceptional acquisition of

medicines 41% (higher technology drugs)

SUS acquisitions categories:

vaccines and blood derived products 22%

30,300 Family Health Teams

45,000 primary care units

6,100 hospitals accredited

most recognized SUS actions

mass vaccination programs

Mobile Emergency Service (SAMU)

transplants

there are about 5,000 surgeons

and 242,000 dentists in the country

plastic surgeons perform about

140 surgeries per month

there are about 5,000 surgeons

and 242,000 dentists in the country

plastic surgeons perform about

140 surgeries per month

cosmetic69%

surgical procedures

31%

21 YEARS OF EXPERIENCE

ISO 20.252 WITH INTERNATIONAL ACCREDITATION

21 YEARS OF EXPERIENCE

ISO 20.252 WITH INTERNATIONAL ACCREDITATION

MEMBER OF IUTP (International Usability Testing Partners)

21 YEARS OF EXPERIENCE

ISO 20.252 WITH INTERNATIONAL ACCREDITATION

MEMBER OF IUTP (International Usability Testing Partners)

INNOVATION

21 YEARS OF EXPERIENCE

ISO 20.252 WITH INTERNATIONAL ACCREDITATION

MEMBER OF IUTP (International Usability Testing Partners)

INNOVATION

EYE TRACKING

COMMUNICATION AREA EXPERTISE

LINGUISTIC TEXT ANALYSIS

21 YEARS OF EXPERIENCE

ISO 20.252 WITH INTERNATIONAL ACCREDITATION

MEMBER OF IUTP (International Usability Testing Partners)

INNOVATION

EYE TRACKING

COMMUNICATION AREA EXPERTISE

21 YEARS OF EXPERIENCE

ISO 20.252 WITH INTERNATIONAL ACCREDITATION

MEMBER OF IUTP (International Usability Testing Partners)

INNOVATION

EYE TRACKING

COMMUNICATION AREA EXPERTISE

LINGUISTIC TEXT ANALYSIS

THANK YOU! Rosangela Checchia

www.checonpesquisa.com.br