Torrent Pharma turns around Brazilian ops; targets 5-10 products per year

The company's Brazil business recorded a growth of 35% on an annual basis to Rs 159 cr

After registering a de-growth of 17 per cent during 2015-16 to Rs 506 crore, Ahmedabad-headquartered drug major Torrent Pharma has managed to turn around its Brazilian business, where it is the largest Indian generics player. This year in the first nine months it has grown by 25 per cent, recording revenues of Rs 484 crore.

During the third quarter, the company's Brazil business recorded a growth of 35 per cent on a year on year (yoy) basis to Rs 159 crore. A company spokesperson explained that the devaluation of the Brazilian currency (Real) owing to political and economic turmoil in the country had overshadowed the growth in the market. He added that in 2015-16 while there was a de-growth of 17 per cent in reporting currency (US dollar), the company had grown by 12 per cent in local currency. In 2016-17 year-till-date (YTD), the growth in reporting currency is 25 per cent, while that in local currency is actually 18 per cent. The company expects to end FY17 on strong double digit growth for the Brazil market.

In its 2015-16 annual report, Torrent had noted that branded generics remains a sustainable model for semi-regulated markets like India, Brazil, Russia, Mexico, Philippines wherein the physician-field force model is prevalent.

In terms of continuation of the same strategy, the spokesperson noted, "Torrent's roots are in the branded generics business in our home country of India. Our strategy is to continue to strengthen our branded generics business in the relevant markets. It provides a sustainable revenue stream and we try to continuously work on building large brands, developing our credibility with specialist physicians as well as improving our field force productivity."

Torrent at present has 220 medical representatives in Brazil plus their managers, and the company claims that it has no plans of changing that in the next few years at least.

During the fiscal, Torrent has launched two products in Brazil, Olmecor (Olmesartan, a hyper tension drug) in September 2016 and an anti-depressant drug Loredon (brand name) in February this year.

A company spokesperson informed that it has six products already submitted and would be launched till 2020."Going forward, our aim is to submit between five to ten products per year," he said.

The Brazilian pharma market is forecasted to grow at 7-10 per cent, year on year till 2020 despite the deceleration seen in the macroeconomic landscape. With things improving now,"the growth forecast have not been revised so far, however, the market sentiments are reviving and we expect that there might be an upward revision in six month from now," said the spokesperson.

Brazil is the largest pharmaceutical market in Latin America and the sixth largest market in the world. Brazilian total market is R$ 64.1 billion while ethical market (prescription driven) is R$ 37.7 billion. Torrent has 0.8 per cent market share in ethical market.