BMI calculates Argentina’s pharmaceutical expenditure to have been ARS11.5bn (US$3.71bn) in 2008.By 2013, we expect the total amount spent on prescription and OTC medicines to have reached a value ofARS38.21bn (US$6.06bn) equating to a compound annual growth rate (CAGR) of 17.8%. In US dollarterms, however, as a result of the weakening peso, drug market expenditure will fall sharply fromUS$3.71bn in 2008 to US$3.69bn in 2009. This will affect all the subsequent forecasts in this report. InBMI’s Business Environment Rankings for Q309, Argentina has remained in 8th place in the America’s
region.

In March 2009, Sanofi Pasteur, the vaccines arm of Sanofi Aventis, provided the Pan American Healthand Education Foundation with US$1.2mn. These funds are to be used to reinforce surveillance andknowledge of meningococcal disease in Latin America and the Caribbean over the next three years. BMIbelieves that this pharmaceutical-health organisation partnership is a positive step towards preventing thecontagious bacterial disease in Latin America. The collaboration may enable the development of an
additional vaccine, and just as importantly will help to raise awareness in the region of both the disease and the possible methods of prevention in the region.

|In early April 2009, Argentina’s Health Minister Graciela Ocana declared that the dengue outbreak in the country had become an epidemic, as nearly 8,000 people were officially reported to be infected by the disease. The Health Ministry therefore launched a national campaign to educate people on dengue prevention, including wearing insect repellant and covering exposed body parts with thick clothing. Additionally, the national sanitary service was mobilised in order to combat the epidemic. Additionally, in April 2009, it was revealed that Argentina has created Latin America’s first ever clinical trials registry, which will be accessible from August 2009. The database will publish information regarding all clinical trials that are conducted in the country and will conform to the World Health Organization (WHO)’s clinical trials registry platform. Each trial will be assigned a unique identification number and the database will publish information on the type of clinical trial, its methodology, and the
principal investigator. It will also include information on the patient recruitment process, the trial’s sponsor, and its results. BMI welcomes the creation of the registry, as it reinforces our view that the country’s medicine authorities have recognised the necessity of such developments to promoting the region as an important site for clinical trials and research.

Executive Summary ...5
Argentina Pharmaceuticals And Healthcare Industry SWOT .... 6
Argentina Political SWOT ... 7
Argentina Economic SWOT . 8
Argentina Business Environment SWOT... 9
Pharmaceutical Business Environment Ratings 10
Table: Americas Pharmaceutical Business Environment Rankings .. 10
Limits Of Potential Returns 10
Risks To Realisation Of Returns ....11
Argentina – Market Summary ..12
Regulatory Regime...14
OTC Regulation.....15
Recent Regulatory Developments ... 16
Intellectual Property (IP) Environment .. 17
IP Disputes . 19
Table: Joint Declaration By Latin American Health Ministers, May 2006.... 20
Counterfeit Pharmaceuticals .... 21
Pricing Regime .... 21
Table Argentina - Pharmaceutical Price Build-Up.. 21
Table: Argentina’s Drug Price Freeze, 2005-2008..23
Reimbursement Regime...24
Industry Trends And Developments ....26
Epidemiology...26
Healthcare Insurance ....28
Recent Healthcare Insurance Developments.... 29
Domestic Pharmaceutical Sector... 30
Recent Developments in Domestic Pharmaceuticals Sector... 31
Multinational Sector Developments ....33
Vaccines Sector.... 35
Recent Developments in the Vaccines Sector... 36
Medicinal Plants.. 40
Table Argentina - Imports of Medicinal Plants by Country (US$’000). 40
Research and Development (R&D).... 41
Clinical Trials...... 41
Medical Devices... 42
Industry Forecast Scenario 44
Overall Market Forecast.... 44
Table: Argentina - Drug Market Indicators, Historical Data and Forecasts. 45
Key Growth Factors – Industry. 46
Table: Argentina – Health Expenditure Indicators, Historical Data and Forecasts .... 47
Key Growth Factors – Macroeconomic .. 48
Table: Argentina - Economic Activity ..... 50
Prescription Market Forecast ... 51
Table: Argentina - Prescription Drug Market Indicators, Historical Data and Forecasts (US$mn unless otherwise stated)..... 52
Patented Market Forecast.. 53
Table: Argentina – Patented Market Indicators, Historical Data and Forecasts.... 54
Generics Market Forecast . 55
Table: Argentina – Generics Market Indicators , Historical Data and Forecasts ... 56
OTC Market Forecasts .....57
Table: Argentina – OTC** Market Indicators, Historical Data and Forecasts (ARSmn unless otherwise stated) .. 58
Pharmaceutical Trade Forecasts.... 59
Table Argentina – Imports of Medicines Containing Vitamins by Country (US$’000)  60
Table: Argentina - Pharmaceutical Trade Indicators, Historical Data and Forecasts (US$mn) .... 61
Other Healthcare Data Forecasts.....62
Table: Argentina – Other Health Indicators, Historical Data and Forecasts  62
Key Risks To BMI’s Forecast Scenario... 62
Competitive Landscape...64
Company Monitor.....65
Leading Foreign Companies... 65
Pfizer ....65
Roche.... 67
Novartis ... 69
GlaxoSmithKline (GSK)... 71
Sanofi-Aventis.....73
Merck & Co  75
Boehringer Ingelheim ... 77
Indigenous Manufacturers .. 78
Laboratorios Roemmers....78
Laboratorios Bagó...80
Country Snapshot: Argentina Demographic Data ...83
Section 1: Population......83
Table: Demographic Indicators, 2005-2030.. 83
Table: Rural/Urban Breakdown, 2005-2030 ... 84
Section 2: Education And Healthcare..... 84
Table: Education . 84
Table: Life Expectancy, 2005-2030 .... 84
Section 3: Labour Market And Spending Power ..... 85
Table: Employment Indicators, 2001-2006...... 85
Table: Consumer Expenditure, 2000-2012 (US$) .... 85
Table: Average Annual Manufacturing Wages, 1995-2001 ... 86
BMI Forecast Modelling.....87
How We Generate Our Pharmaceutical Industry Forecasts ..... 87
Pharmaceutical Business Environment Ratings Methodology ... 88
Ratings Overview. 88
Table: Pharmaceutical Business Environment Indicators ...89
Weighting.... 90
Table: Weighting Of Components....90
Sources ......90