Brazil targets 70% domestic pharmaceutical production by 2033

Brazil's Vice President and Minister of Development, Industry, Commerce, and Services, Geraldo Alckmin, announced a government goal to increase domestic production of medicines and pharmaceutical active ingredients (IFAs) to 70% of the needs of the Unified Health System (SUS) by 2033.

Speaking at the Health Forum in Brasília, Alckmin noted that health is currently the second-largest deficit in Brazil's trade balance, following Information Technology. He highlighted that national production has already reached 50%, citing the critical shortage of resources like respirators during the COVID-19 pandemic as a driver for increasing strategic sovereignty.

To support the local industry, Alckmin pointed to tax reforms that establish tax parity and provide exemptions for pharmaceutical inputs that lack domestic production. Additionally, he mentioned that the BNDES (National Bank for Economic and Social Development) has been authorized to support companies in accessing international markets as part of the 'Plano Brasil Soberano'.