HEALTHCARE & PHARMA
Risks and Crisis Issues for
International Corporations in the Healthcare
Sector – BRICS Countries
The healthcare and pharmaceutical sector in BRICS countries presents a compelling investment landscape, driven by large populations, rising middle classes, and increasing demand for medical innovation and access. However, the sector is fraught with regulatory complexity, pricing pressures, and state dominance in public health systems. International corporations face strict price controls, mandatory generic substitution policies, and difficulties protecting intellectual property. Additionally, localization mandates—such as local manufacturing requirements or technology transfer obligations—pose strategic challenges for multinationals.
Over the past five years, several high-profile cases illustrate the volatility of this sector. Pfizer and AstraZeneca gained footholds in markets like India and Brazil through COVID-19 vaccine rollouts, but faced reputational, regulatory, and liability risks amid shifting government narratives and emergency use authorizations. In China, despite its vast market size, international firms like GSK have struggled with compliance and pricing challenges under government procurement schemes that favor domestic producers. Meanwhile, South Africa has attracted investment in health infrastructure and vaccine production (e.g., Aspen Pharmacare), but long-standing issues like public-private disparities and supply chain fragility persist. In Russia, many Western pharmaceutical firms suspended operations or scaled back due to sanctions and payment difficulties post-2022.
Global firms in this sector must also grapple with public sector procurement inefficiencies, underdeveloped IP enforcement, and intense political and public scrutiny. The regulatory landscape is often opaque and highly bureaucratic, with frequent policy shifts around market access, clinical trials, and drug approval pathways. Additionally, growing demand for digital health solutions, coupled with evolving data protection laws, creates further complexity in markets like China and India. Strategic success in BRICS healthcare requires long-term positioning, policy engagement, and high adaptability to local institutional dynamics.
5 Key Risks
to Consider before Entering BRICS Healthcare Markets:
1. Regulatory and Pricing Risk – Government-imposed price controls, delayed drug approvals, and unpredictable policy changes.
2. Intellectual Property and Generic Substitution Risk – Weak IP protection and forced local production undermining proprietary advantage.
3. Geopolitical and Sanctions Exposure – Restricted access to markets or supply chains due to international political conflicts (e.g., Russia).
4. Public Procurement and Payment Risk – Inefficient government purchasing processes and delayed or non-transparent reimbursements.
5. Compliance and Reputational Risk – Exposure to corruption investigations, regulatory audits, or public backlash over affordability and access
TO GO FURTHER
CRISIS MANAGEMENT
Know-How, Tools & Resources for Crisis Resolution
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Crisis Assessment & Source Identification
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Crisis Management Coordination
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Crisis Containment & Damage Control
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Crisis Communication & Media Kit
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Crisis Cell Infrastructure
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Crisis Simulation Training [New]
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Business Recovery Plan & 361° Review