title: The production and R&D structure of the Brazilian pharmaceutical industry: the role of public procurement and public drug production.
abstract: This article examines the use of governmental purchasing power and public laboratories to stimulate domestic production and research and development (R&D) activities in the Brazilian pharmaceutical industry. Three main areas in which public laboratories can play an important role are identified: (1) large-scale production of essential medications; (2) production of strategic drugs to reduce the trade deficit in the health sector; and (3) in-house research efforts and stimulation of R&D in the private sector through public-private partnerships (PPPs). The analysis of the production and R&D structure of the Brazilian pharmaceutical industry tends to show that the Ministry of Health (MOH) purchasing power can be used to nurture the growth of public laboratories and generate positive externalities for the private sector. Nonetheless, fieldwork data reveal that the lack of alignment between health policies and public laboratories' production are resulting in idle production capacity. In order for the current governmental strategy to promote industrial growth, there should be a division of tasks among public laboratories within a long-term framework, based on a stable set of priorities from the MOH.
authors.affiliation: International Policy Center for Inclusive Growth, United Nations Development Programme, Development Innovations Team, Brasilia, Brazil. wald_russo@yahoo.com
authors.forename: Waldemiro Francisco
authors.initials: WF
authors.lastname: Sorte Junior
mesh_terms: D001938:Brazil; D004345:Drug Industry; D005380:Financing, Government; D007753:Laboratories; D010067:Ownership; D055818:Public-Private Sector Partnerships; D036301:Qualitative Research; D012106:Research / Q000458:organization & administration*