Torrent Pharma turns around Brazil business with 25% revenue jump

In 2015-16, the company's revenue in Brazil had declined 17% to Rs 506 crore

Ahmedabad-headquartered drug major Torrent Pharma has managed to turn around its business in Brazil, where it is the largest Indian generics player, with revenue growing by 25 per cent in April-December to Rs 484 crore.

During the third quarter, the company's Brazil business posted revenue growth of 35 per cent, year on year, to Rs 159 crore. In 2015-16, Torrent’s revenue in Brazil declined 17 per cent to Rs 506 crore.

A company spokesperson said the devaluation of the Brazilian real had overshadowed market growth. In 2015-16, revenue declined 17 per cent in dollar terms but grew 12 per cent in the local currency. In 2016-17, revenue growth in dollar terms is 25 per cent and 18 per cent in local currency.

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

"Torrent's roots are in the branded generics business in India. Our strategy is to continue to strengthen our branded generics business in 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," the company spokesperson said.

Torrent has 220 medical representatives in Brazil plus their managers.

Torrent launched Olmecor (Olmesartan), a hypertension drug, in  Brazil in September and an anti-depressant drug Loredon in February. A company spokesperson said it would launch six drugs in the country by 2020.

The Brazilian pharmaceuticals market is forecast to grow 7-10 per cent a year till 2020. "Market sentiments are reviving and we expect there could be an upward revision in six months," the spokesperson said.

Brazil is the largest pharmaceutical market in Latin America and the sixth largest in the world.