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Have you ever considered entering the government OTC and pharma business?

When thinking about expanding your OTC and pharma business, do not overlook the government sector. Tenders and offers may seem difficult to win, but with the right insights, it will be possible.

Most times when thinking about expanding a business, OTC and pharma companies only target the retail segment. Indeed, it is easier to understand and quicker to enter. However, the government market may present a unique environment to target and access. 

Especially in countries with an excellent social security system, the government sector tends to be fully developed and worth giving a try:

  • Most emerging market countries have been building up the capacity of their procurement systems. 
  • Most of their population is usually covered by some kind of insurance. 
  • This is also the case for Colombia, which now insures 95% of its population rising from a meager 29% share in 1993.

    Digitalisation has also helped in the process of making the government sector easier to enter. In fact, many countries are now adopting different forms of e-procurement of medicinal products, making it simpler for OTC and Rx companies to access the tenders from abroad. 

    Several emerging markets, such as Mexico, Colombia and Brazil, allow foreign companies to participate in the procurement of medicines, with or without the support of local OTC or pharma companies. In Mexico, specifically after the intervention of UNOPS, the government started a long process to make tenders more transparent and accessible. The main requirement is to be registered in the UNOPS database in order to participate.

    Tenders may seem scary to deal with, especially from abroad. However, the transparency and open data policies around the world are making the process accessible to the OTC and pharma companies that would like to expand their businesses and add more international markets to their own focus. 

    Moreover, in terms of market size, for specific and reimbursed products, the government market maintains a sizable share of the total market of a country. 

    In Colombia for instance, the public segment accounts for more than 70% of the market; while in Chile – with an impressive record of 99% of the population being insured –  the government sector accounts for more than 80% of the total market. 

    Furthermore, OTC companies may take over Rx products’ market share when they are able to switch Antibiotics Turnover to an OTC segment. For example, introducing an alternative product for UTI treatments.

    The government sector could be an additional strategic point of entry into a new market for your company. Chameleon Pharma can offer you business support to overcome the challenges posed by tenders and  other regulations. Just contact us and we can start from there!

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