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Brazilian PPPs in the Pharma Industry

The Brazilian Health Minister announced last week that it has entered into nine Public-Private Partnerships (PPP) with national laboratories and pharmaceutical companies. Such ventures take place by allowing selected public laboratories to execute Research and Development Agreements with local private companies with proven activities in the drug development. Further, the partnership comprises the technology transfer and the development of 24 drugs no longer protected by patents.

The government’s intention is to distribute freely such drugs to the Brazilian population following the existing public National Health System (SUS). Among the illnesses targeted by the Brazilian Government with the local manufacture of medicines are HIV/AIDS, tuberculosis, asthma and hemophilia. Cholesterol lowering drugs are also to be distributed

According to the Health Minister, the PPPs aim to (i) rebuild the national pharmaceutical industry, destroyed in the nineties by the market liberalization, (ii) lower the rate of imported medicines, today representing approximately 80% of national consumption and (iii) cut public expenses of approximately US$ 80 million per year with a relevant impact to the SUS. One of the medicines highlighted by the Health Minister during the press release as an example of the costs associated with the importation of medicines was FACTOR VII, manufactured by the Danish company NovoNordisk for the treatment of hemophilia, which had cost to the public treasury last year almost US$ 20 million.

For now, the laboratories and pharmaceutical companies have a 30 day period to submit the respective proposal to the Health Ministry in order to be considered for this public-private partnership.

[This post was written by José Carlos Vaz e Dias, a member of the IP Tango team]

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