Growth recorded in 2009 began to be built in the past, and boost the opportunities of the future.

The Brazilian consumer market has undergone important changes in recent years, with the general expansion of the customer base and significant growth of the middle class. Driven by rising incomes, credit availability, and increase in employment, about 116.5 million Brazilians – over one-half of the population – have gained access to products and services. These consumers have supported the Brazilian resistance to the financial crisis, and are helping raise the country’s level in the international community. Of these, about 27 million were added to the class C, in the period 2002-2009, with a real increase of wealth in all regions of the country, visible on the outskirts of the large cities and even in more remote locations.

In the pharmaceutical industry, the change in the profile of society was accompanied by a changing scenario with the approaching deadline for expiration of patents for a number of worldwide reference products – representing a potential market estimated at R$1.5 billion – and demand for quality products at competitive cost. While this new reality is a challenge for most companies, it serves as a new impetus to those that are able to understand and adapt.

Over more than four decades in business, Aché has been turning into knowledge its experience in working in such a complex and diverse society as Brazil’s, and endeavors to perfect its differentiating factors. In line with the development experienced by Brazil in recent years and with the new dynamics in the scenario of drug production, the company’s strategic planning is ahead of all activities.

In response to a changing consumer profile, Aché seeks to adapt its products and services to diversified market demands, to offer quality products at affordable prices, and to ensure its presence in the whole country.

In addition to reaching the entire country through its sales force, Aché invests in proximity to its public through activities turned to encourage adherence to treatment and connection with health professionals, breaking barriers and strengthening relationships.

Aché’s expertise in the development of branded generics and new associations, and the culture of investment in technology and knowledge, qualify the company to occupy the new spaces arising from the upcoming expiration of patents. The company operates in the field of scientific development and international partnerships, and seeks to contribute to the construction of a scenario of technological independence in Brazil.

In order to sustain this planned growth, the company increases production capacity, gains scale and reduces costs. It adopts methodologies to preserve the knowledge, stimulate innovation, and improve organizational processes.

Combined in strategic and well-planned fashion, these initiatives have been conducting the company so far. In 2009, the results are quite visible: growing faster than the market, dynamic and well-adjusted portfolio, modern industrial facilities, and increasing productivity. These very same characteristics make the company well positioned to soar to new heights of development and move forward into the future.

Perspectives

The future perspectives envisioned by the company, aligned with the exceptional scenario in which Brazil has entered, take into account a possible initial public offering, the requirements for which the company has been adapting for some years now, both in its shareholder structure and in reorganization. The proposal to expand the shareholder base has a broader target than raising funds to develop new businesses, make acquisitions, or boost its internationalization: it aims at raising Aché to a global performance level, and at strengthening the conditions for its perpetuation, in a movement in which the founding group remains committed to the business.

The decision to materialize the transaction will be taken at the right time, in peaceful and well-planned fashion. The company remains attentive and ready for the evolution of the scenario, recognizing its expertise in the development of branded generics, its adjustment to the Brazilian market, and its sound economic base, among other competitive advantages.

1 Total of classes A, B and C, according to a study prepared by FGV in 2009, based on figures from IBGE.

2 Source: study A Nova Classe Média [The New Middle Class] by Fundação Getulio Vargas (FGV), prepared with data from the National Household Sampling Survey (Pnad) 2007, conducted by the Brazilian Institute of Geography and Statistics (IBGE).