OBJECTIVES: Provide an overview of the evolution of policies developed to foster local manufacturing and assess their impact on the local pharmaceutical industry.

METHODS: Secondary research identified historical international and national sales volume published by the World Trade Organization between 2013 – 2017, local macroeconomic data, and local policies that foster national manufacturing.

RESULTS: From 2013 to 2017, share of pharmaceutical sales coming from national manufacturers in Brazil grew from 44.7% to 47.6% and units sold increased from 58.5% to 65.2%. During that time, initiatives were developed to foster the national industry and reduce the public system’s expenditure and dependence on imported products. For example, the government developed public policies to support the growth of the local Economic-Industrial Health Complex (CEIS) and finance programs through the National Bank of Economic and Social Development (BNDES), such as the Support Program for the Development of the Pharmaceutical Production Chain (PROFARMA) as part of the larger Industrial, Technological and Foreign Trade Policy (PITCE).

Although share of sales by foreign companies decreased, absolute sales of pharmaceuticals also increased between 2013 and 2017, which could indicate the policies developed to target local pharmaceutical companies also created opportunity for international manufacturers to expand in the country. An example of a policy with such potential is the Partnership for Productive Development (PDP) program, where several multinational organizations form partnerships with local businesses to produce pharmaceuticals locally.

CONCLUSIONS: Recent growth in the Brazilian pharmaceutical industry may be driven by policies developed to incentivize local manufacturing. It is expected identified policies will continue to have an impact by promoting financial investments into local manufacturers, growing local biotechnology infrastructure and fostering partnerships with international manufacturers.