Rising Trade Agreements with Other Nations to Bode Well for Growth of LATAM Pharmaceutical Products and CMO Market
Latin America (LATAM) comprises a swiftly developing healthcare sector and the industry for pharmaceutical in this region is predicted to experience consistent development in the coming years. Numerous pharmaceutical companies within LATAM are slowly outsourcing manufacturing activities in order to contract manufacturers for achieving capacity, quality, time to market, and cost efficiency.
Transparency Market Research (TMR), a market research company, studies the market based on different attributes such as product types and geography. The pharmaceutical products and CMO market within Latin America is predicted to touch US$286.2 bn by 2024 from a value of US$127.9 bn in 2015, expanding at a healthy 9.30% CAGR between 2015 and 2024.
Q. Which factors will work in favor of the growth of the market and why?
The increasing foreign investments and the rising trade agreements with other nations such as Japan, Canada, the U.S., and numerous nations in Europe will provide impetus to the development of the pharmaceutical products and CMO market. In addition, the improvement in the regulatory scenario and the increasing aging population in Latin America will stimulate the growth of the pharmaceutical products and CMO market here. Furthermore, numerous multinational pharmaceutical companies and drug makers have been investing in LATAM owing to the open business environment in this region, thus positively impacting the development of the market.
The swift approvals of drugs have also augmented the healthcare sector in numerous LATAM nations, thus driving the market for pharmaceutical products within this region. Additionally, various blockbuster drugs will become off patent in the coming years in this region, thus working in favor of the development of this market. Furthermore, developments in the pharmaceutical industry have seen a downfall due to the increasing cuts on research and development by federal banks. These cuts along with patent expirations are forcing industry giants to attain synergies with CMOs via mergers and acquisitions, thus boosting the growth of the market in Latin America.
Browse Full Press Release on Pharmaceutical Products and CMO Market: http://www.transparencymarketresearch.com/pressrelease/latin-america-pharmaceutical-products-cmo-market.htm
Q. Which product segment will witness the most exponential growth in the coming years?
There are three main product types in the pharmaceutical products and CMO market within Latin America, namely finished dosage form (FDF), API and ingredients, and pharmaceutical packaging. Of these, in 2015, the segment of finished dosage form held a significant share of around 85%. This is owing to the fact that is product form is a key part of clinical pharmacodynamics, formulation and analytical research, and pharmacokinetics. On the other hand, the segment of API and ingredients is predicted to rise at the most exponential growth rate and accounted for a share of 60% in 2015. This is owing to the increasing demand for APIs within this region and penetration of top multinational organizations.
Q. Which are the top players in the Latin America pharmaceutical products and CMO market and what are the strategies being adopted by them to gain a strong foothold in the market?
This market is largely fragmented in nature and numerous large as well as small players are dominant in this region. The companies such as BASF SE, Pfizer, Inc., Bayer AG, Merck & Co., Inc, and Novartis AG, collectively held a share of 23% in the market in 2015. The players in this market can only sustain with the introduction of cutting-edge products that are able to address the unmet and changing requirements of customers. In addition, penetration within regions having a huge growth potential is also a top strategy adopted by players for strengthening their foothold in this market.