What 23 C-Level Executives Reveal About the Future of the Pharmaceutical Industry in Brazil

Between September and November 2025, EloGroup and Adriano Prado conducted a qualitative research study with 23 C-level executives from the Brazilian pharmaceutical sector, representing industry players (both multinationals and domestic companies), distribution, retail, and trade associations. The objective was to map the key challenges, innovation opportunities, and the role of Artificial Intelligence as a catalyst for transformation.

The outcome is an unprecedented portrait of a value chain that operates under misaligned incentives, fragmented data, and business models that have shown clear signs of exhaustion. In this insight report, we consolidate the main positive and negative findings for those seeking to understand what is at stake and where the real value levers lie.

Core Diagnosis: Portrait of a Misaligned Value Chain

The most striking finding of the research is structural. The Brazilian pharmaceutical value chain suffers from a systemic misalignment that manifests across three simultaneous dimensions: (1) a product portfolio disconnected from actual demand, (2) a supply chain fragmented by the lack of data sharing across chain links, and (3) the underutilization of relationships with physicians and patients.

In practice, each link in the chain optimizes its own results without an integrated end-to-end perspective. For example, the industry produces based on historical sell-in data, distribution operates on 2–3% margins with no visibility into what happens at the point of sale, and retail defines its assortment based on available credit rather than consumer needs. The result is recurring stockouts, misallocated inventory, and—over the past four years—the closure of approximately 8,800 independent pharmacies in Brazil.

The Uneven Speeds of Innovation

One of the most revealing findings of the study concerns the uneven pace of innovation across the chain links. The structure of margins and regulation creates entirely distinct speeds of transformation.

The industry, with robust margins and consolidated channels, has low incentive to innovate beyond product and molecule R&D. Rigid regulation and lengthy approval cycles reinforce conservatism, especially among multinationals, which are currently undergoing portfolio consolidation and an increasing focus on specialty care. For these companies, the 12- to 18-month horizon is centered on operational efficiency, not disruption.

In contrast, distribution and retail players face compressed margins and intense competitive pressure. For them, automation and digital transformation are more than a strategic choice—they are a matter of survival. This asymmetry prevents strategic alignment between the chain links and perpetuates outdated models.

Domestic companies, in turn, demonstrate a greater appetite for experimentation. The rapid decision-making observed has enabled accelerated growth, but without a proportional evolution in processes and governance. The challenge now is to scale innovation without losing speed.

The Exhaustion of Traditional Medical Propaganda

Another high-impact finding is that the traditional medical detailing model is exhausted. Conceived for blockbusters and based on high-intensity in-person visits to physical touchpoints (pharmacies, clinics, and hospitals, for example), it has become expensive, difficult to scale, and offers low visibility into its real impact on demand generation.

The executives interviewed are unequivocal about the cost of the sales force, which continues to rise while delivering diminishing marginal returns per visit. The digitalization initiatives undertaken so far have not corrected this distortion; they have merely replicated the logic of traditional medical detailing on new channels, without meaningful gains in efficiency or measurability. The discussion, therefore, is not about eliminating medical detailing, but about reinventing it based on data, segmentation, and real ROI measurement.

Digital That Does Not Transform

E-commerce and digital platforms are growing, but digital in the pharmaceutical sector remains predominantly transactional. It replicates the logic of the physical world—price and promotion—without building relationship intelligence.

Most concerning is that marketplaces are capturing consumer data outside the traditional value chain, thereby shifting the balance of power. Without integrated CRM and true omnichannel capability, digital drives short-term sales while eroding relationships, margins, and strategic leverage over the long term.

AI as an Untapped Catalyst 

Artificial Intelligence is recognized by all interviewees as the technology with the greatest transformational potential—capable of aligning incentives across links with distinct margins, integrating fragmented data, and automating decisions along the entire chain. Yet the reality is that AI remains at an experimental stage in the sector.

Most companies operate with isolated pilots, without structured governance and without a unified corporate strategy. The barriers are not technological but organizational, cultural, and data-related. There is a lack of common prioritization criteria, standardized success metrics, consistent executive sponsorship, and professionals qualified in AI and ML (machine learning). In other words, the technology and data exist, but focus, coordination, and strategic direction are missing.

The Three Value Axes That Emerge

Despite the challenges, the research identifies three strategic axes with concrete value-generation potential:

• Structural Chain Efficiency — Data integration across chain links for real-time visibility, transition from “push” to “pull” models based on actual demand, and implementation of collaborative planning and replenishment practices.
• Intelligent Relationships and Sustainable Growth — Reinvention of relationship models with physicians and patients, evolution of digital from a transactional channel to a relational one, and development of assortment intelligence based on consumer profiles.
• Applied Technology and Data — Pragmatic use of AI for predictive demand forecasting, automation of repetitive administrative processes, analytics centered on actual patient behavior, and personalized CRM. The priority is to move AI from experimental pilots to institutional strategies.

Moving the Needle from Inertia to Opportunity

The Brazilian pharmaceutical value chain is at an inflection point. Structural inertia is real, but so are the opportunities. Companies that manage to integrate data across chain links, reinvent their relationship models, and institutionalize AI as an organizational capability—not merely an IT experiment—will hold a significant competitive advantage in the coming years.
The full report, with detailed analysis of each axis, executive insights, and segment-level diagnostics (industry, distribution, and retail), is available for download. If you operate in the pharmaceutical sector or lead innovation and digital transformation initiatives within this value chain, this is essential reading.