From the perspective of international pharmaceuticals developers, Latin America can be considered a region of exceptional potential owing to solid market fundamentals and significant untapped opportunities. “I am convinced that we are poised to become among the most dynamic regions for growth momentum globally driven by multiple factors: among them existing large populations with significant unmet medical needs, ageing demographics, and increased opportunities for innovation and access,” confides Constanza Losada, VP and general manager for LatAm at BMS.
“The latent opportunity is unequivocal,” agrees Rolf Hoenger, area head for Latin America at Roche, who notes that many multinational drug developers are managing to sustain double digit growth rates year on year for their regional portfolios. “This growth propensity rests fundamentally upon patient pool penetration dynamics. Even within our most successful therapeutic areas, we treat approximately 60 percent of potential patients. Across numerous other disease categories, when examining the complete patient journey, penetration rates decline to approximately 30 percent. This reality underscores substantial untapped opportunity – growth that remains entirely non-cyclical, as it correlates directly with our effectiveness in governmental negotiations and our capability to expand patient access systematically,” he reasons.
“The demographic trends also make a compelling case for greater engagement,” believes Sarah Aiosa, president for Latin America at MSD. “We forecast the regional population will approach about 730 million by 2050, with a median age of approximately 40 years. This demographic trajectory indicates an ageing population whose healthcare needs align precisely with our therapeutic capabilities,” she explains.
Meanwhile, consumer purchasing power in that part of the world is on the rise with the World Bank now classifying numerous South American countries as upper-middle income for the first time. “This economic maturity creates fresh possibilities for industry investment in both insured and private market segments,” reckons Aiosa. Little wonder, then, that IQVIA is now projecting Latin America as one of the fastest-expanding market clusters in the world, with anticipated compound annual growth rates of 22 percent through 2027, compared to the global compound annual growth rate of 7.8 percent.
Heterogeneity
Getting their market entry strategies right and fully capitalising upon these possibilities, can however, be rather trickier than first appearances might suggest. Gianclaudio Broggi, CEO of Megalabs, a German-owned entity widely acclaimed for having cracked Latin American markets, has some important advice. “For anyone aspiring to make a success out of this region, it’s imperative to first understand that Latin America constitutes a vast, heterogeneous continent. From Mexico through Central America, the Caribbean, South America, you encounter completely different cultures. Similarities exist superficially, but these are genuinely distinct countries requiring differentiated market approaches and a heightened sense of cultural awareness. This means investing serious time, resources and energy in understanding each country’s specifics characteristics and nuances.” he counsels
“For me, employing local leadership to run country operations has proven essential to our ability to attain peak performance. It requires individuals who can comprehend the local cultural dynamics, understand how to motivate local teams, and navigate local business practices,” he confides. “Megalabs unique selling point is that we provide comprehensive regulatory and commercial infrastructure to facilitate product launches under our platform – offering turnkey market access capabilities that would take years for outsider organisations to develop independently.”
Patricio Rodriguez, CEO of Adium, another outfit that presents itself as the local partner of choice to multinational drug developers looking to deepen their foothold across the region, very much agrees. “Our extensive accumulated experience over more than 50 years in Latin America has taught us that success nearly always requires boots on the ground with authentic local expertise and relationships constituting a significant competitive advantage.”
“When international observers hear ‘Latin America,’ many erroneously conceptualise a unified and cohesive market analogous to the European Union. However, the reality on the ground is starkly different and trying to deploy a copy-and-paste approach can swiftly result in serious missteps,” warns Rodriguez. “Adium successfully operates across 18 distinct regulatory agencies, 18 separate currencies, and 18 different regulatory frameworks and we achieve this by an operational approach that emphasises robust local teams, enabling us to function as indigenous companies whilst maintaining corporate oversight and a uniform level of standards,” he explains.
Others are similarly optimistic of a greater role for leading local players in the coming years. At Elea, Argentina’s largest pharma company by sales volume, CEO Gustavo Pelizzari is confident that a strategy honed domestically can be successfully replicated across LatAm. “The structural challenges facing healthcare financing – limited budgets, rising therapeutic costs, dependence on imported products – are consistent across the region,” he says. “When we demonstrate the outcomes for our high-value specialty portfolio achieved in Argentina, regulatory authorities in Chile, Peru, Ecuador, Colombia, and others are increasingly receptive. They understand that our approach can meaningfully increase access, reduce foreign-currency pressures, and support local industrial development.”
Local Adaptation
Indeed, almost all the top-performing multinationals present in the region have embraced high levels of local adaptation and differentiation across their operating models. AstraZeneca serves as a case in point. “Our go-to-market approach for advanced technologies in Brazil differs fundamentally from our commercialisation strategy in Mexico, or Argentina. We recognise that Latin America constitutes a heterogeneous region characterised by divergent healthcare systems, variable capacity for technology absorption, and disparate reimbursement frameworks, with healthcare delivery setups ranging from fully public systems to hybrid public-private architectures,” recounts Alexandre Gibim, VP for Latin America at the iconic Anglo-Swedish drug developer.
“Certain countries prioritise localisation as a fundamental policy. Brazil and Mexico, for example, seek to enable access whilst simultaneously creating conditions for long-term pharmaceutical self-sufficiency. Other markets emphasise regulatory frameworks. Colombia exemplifies this approach, where products achieving regulatory approval essentially receive automatic reimbursement consideration, though their regulatory timelines prove considerably more protracted, “ he elaborates.
Tailoring one’s go-to-market strategy becomes even more necessary when endeavouring to introduce state-of-the-art originator therapies and advanced biologics at higher price points. “Oncology requires highly tailored, country-specific strategies due to vastly different market realities. Brazil’s private market offers decent access levels, whilst the public sector faces significant gaps compared to private healthcare. Colombia generally provides broader access, though financing innovation remains challenging, necessitating affordable solutions for widespread adoption, while Mexico features a limited private market, that usually acts as an essential first step toward broader public market penetration,” details Arturo de la Rosa, VP for Latin America at Gilead.
“We find it necessary to thoroughly assess each healthcare system’s developmental stage, financial capacity, and structural requirements, subsequently customising our commercial offering accordingly. This adaptive approach ensures optimal alignment between therapeutic innovation and healthcare system capabilities,” he explains.
Meanwhile, others draw attention to the uniqueness of South America’s most lucrative and influential market, Brazil. “All too often professionals arriving from other Latin American countries assume that strategies effective in Mexico, Peru, or Argentina will translate seamlessly to Brazil. They do not. Likewise, Brazilian approaches rarely apply successfully in other markets,” opines Haig Yeghiaian, general manager of LEO Pharma in Brazil.
“Local insight is essential to grasp the intricate economic landscape and peculiar market dynamics grounded in protectionist measures, profitability thresholds, and local content rules. Moreover, the country is home to numerous large, highly competitive domestic companies, so operating effectively here requires a sophisticated understanding of both government markets and the interplay between public and private sectors,” he insists.
“Success in the region requires patience, cultural sensitivity, and a genuine willingness to learn,” adds Marco Billi, international CEO of Eurofarma, which has evolved from a Brazilian contract manufacturing organisation into one of Latin America’s most internationally active pharmaceutical groups. “Executives need to respect local dynamics, invest in strong local teams, and recognise that there is no single “Latin American market.” Companies that take a long-term perspective and focus on building trust locally are far more likely to succeed than those pursuing short-term or purely transactional strategies.”
Unique Challenges
Then there is also the region’s specific constellation of political, economic, and logistical challenges to factor in. “Latin America confronts persistent political volatility, economic instability, cycles of growth and contraction, and currency devaluations followed by revaluations. Without deep reserves of resilience – both organisationally and personally as an executive – sustainable success becomes exceptionally difficult,” muses Gianclaudio Broggi.
“One of our biggest obstacles in this part of the world is political instability with a tendency towards wild swings in the ideologies of governing administrations with each electoral cycle,” laments Ruben Abete of ALIFAR, which brings together the chambers of national pharmaceutical producers in 14 countries, representing hundreds of laboratories and thousands of employees.
“Policies shift with every government change, and this discourages investment because there is insufficient visibility to plan business strategies. What we need are public policy frameworks with a 20- or 30-year horizon, that can be relied upon to remain in place regardless of who is in power. Only that kind of continuity can guarantee stability and sustained growth,” he affirms.
Sylvester Feddes, country president of Novartis in Brazil concurs. “Introducing advanced technologies demands a long-term perspective. If one focuses exclusively on quarterly performance metrics, such initiatives become untenable. Our medicine development timelines span 12 to 15 years, affording us the capacity and the obligation to adopt extended partnership horizons with government entities. Whilst we remain a publicly traded company requiring demonstrable results, long-term thinking enables substantive dialogue with government stakeholders regarding durable partnership structures. The principal risk often involves dramatic policy discontinuities,” he confirms.
Meanwhile, even the logistical challenges can sometimes seem daunting. “Considering that the entire landmass of Europe fits within Brazil alone, managing a country like that brings its own unique set of complications. For example, we frequently have to close monthly accounts up to ten days early to ensure product invoicing falls within the correct reporting period. Deliveries to northern and north-eastern regions from our south-eastern base add further operational strain. And, as a consequence, securing sustainable volume growth with healthy profitability through a well thought out pricing strategy remains important,” observes LEO’s Yeghiaian.
Logistics: Bridging the Gaps to Meet Demand
The geographic vastness and variety of Latin America makes trusted logistics partners particularly crucial for pharma companies operating in the region. Transporting lifesaving medicines and vaccines – an increasing proportion of which require highly specialised temperature-sensitive storage – across LatAm is no mean feat, and some of the industry’s biggest players have been ramping up their footprints over recent years.
DHL, for its part, announced a EUR two billion global investment into its ‘DHL Health Logistics’ brand in 2025, a full ten percent of which is being directed towards Latin America. “It has been an exceptionally busy year!” laughs Raphaël Chin-Fo-Sieeuw, DHL Group’s VP for Life Sciences and Healthcare across the Americas. “The investment focuses specifically on constructing genuinely high-quality infrastructure throughout the region, with emphasis on advanced technology to support the complete pharmaceutical life sciences cycle – from raw materials and APIs through clinical trials, R&D, product launches, and commercial distribution.”
He adds, “We are developing targeted cold chain transportation hubs across the region, with substantial focus on specialised warehouses in key growth markets such as the US, Brazil, Mexico, and Colombia. We are building capabilities spanning standard temperature ranges of 15 to 25 degrees, extending through ultra-low temperatures down to minus 80 degrees, which is required for some of the advanced therapies and biologics now coming through.”
It is a similar story at FEDEX, where VP of Operations Basil Khalil, has been leading a regional investment wave from his base in Miami. “We have made significant recent investments in Miami, Puerto Rico, Costa Rica, the Dominican Republic, Panama and several other South American markets,” says Khalil.
“We have also made investments in vehicles, because it is not just about getting products on the plane and to the ramps – you have to deliver them. We have invested in our own temperature-controlled reefers and partnered with key players to make sure we can maintain temperature all the way to customer delivery.”
Khalil continues, “Pharmaceutical products require very specialised temperatures, so we have also invested in active and passive temperature packaging solutions such as temperature-controlled containers already well-integrated into the cold chain journey, temperature-controlled trailers, and thermal blankets for pallets of freight that help to maintain a constant temperature range of 15°C to 25°C (+/- 5°C) and provide protection against direct sunlight, rain, humidity and tarmac heat.”
He concludes, “Managing logistics across Latin America is certainly challenging, but also exciting. As new products come to market with increasingly sensitive requirements, having the right end-to-end infrastructure is critical. That is what we continue to build, improving day by day in line with our customers’ needs.”
Deeper Engagement
The rewards to be gained from getting one’s market engagement right, extend beyond sales, however. Many pharma multinationals are now beginning to see merit in leveraging the region for clinical research. “I would assert that Latin America possesses all the necessary foundational elements to function as a premier global hub for clinical research. We maintain access to talented investigators, respected research institutions, and critically important diverse patient populations essential for contemporary clinical trial design,” argues Alexandre Gibim, noting that, in 2024, AstraZeneca invested more than USD 87.2 million across South America.
“We are currently conducting 134 active clinical trials across key therapeutic areas region-wide, a substantial research portfolio by any measure. Moreover, we observe outstanding research capabilities across numerous locations – notably Argentina which exemplifies a favourable regulatory framework and established research infrastructure – as well as decent levels of data portability within the continent,” he reports.
MSD has likewise been ramping up its clinical research footprint. “I’m proud to reveal that we’ve been considerably expanding our regional R&D activities with thousands of patients presently enrolled in trials throughout Latin America, which now hosts no less than three of our six Global Pharmacovigilance and Clinical Trials Operations Data Management Centers, located in Argentina, Colombia and Costa Rica respectively,” enthuses Sarah Aiosa.
It is a similar story at Bausch Health, which in 2024 carried out its first LatAm study for one of its long-standing vitamin formulations in the context of diabetes. “Building on this foundation, we are now developing a series of clinical projects to support the new products within our cardiometabolic business,” says LATAM VP Fernando Zarate.
“The real appeal lies in the fact that Latin America and the Caribbean encompass over 650 million people with diverse genetics,” reasons Gilead’s Arturo de la Rosa. “We are not homogeneous — Brazil’s population is half white and half mixed-race, Argentina is predominantly white, and Mexico is highly mixed-race. We offer not only substantial population size but also genetic representativeness, excellent investigators, superior clinical trial centres, and competitive costs,”
Meanwhile, Roche’s Rolf Hoenger identifies the speed in being able to recruit as another component of the growing appeal factor. “We rank among the fastest recruiters globally, occasionally achieving first-in-world recruitment for specific trials. We have functioned as “rescuers” – when trials experience delays elsewhere, characteristic Latin American pragmatism and flexibility enable rapid adaptation and execution. This constitutes a considerable strength, garnering global recognition within our organisation. When Latin American teams commit to delivery, they execute reliably and this reputation has been fuelling our expanding clinical trial infrastructure,” he posits.
Yet considerable scope to accomplish even more in this domain remains with the region presently accounting for only a mere six to ten percent of global clinical trial investment. “This is another area where I perceive Latin America as being primed for take-off,” perceives Sinan Atlig, president of the LatAm Cluster and emerging markets chief commercial officer at the American biopharma, Pfizer. “The regulatory frameworks could be enhanced to better incentivize investment in trials, but it’s clear that the region already possesses impressive clinics, clinicians and sites delivering high quality data. I conceptualise this analogously to highway infrastructure investment. Superior highways facilitate greater transportation flow—a self-reinforcing cycle. More accessible regulations and faster study registration will attract additional sites wanting to participate. I foresee these elements progressing interdependently in Latin America to great effect,” he confidently predicts.
