Brazil Retail: Takeaways from meeting with Brazilian Association of Pharmacy and Drugstore Chains Abrafarma

Research evidence excerpt

Brazil Retail: Takeaways from meeting with Brazilian Association of Pharmacy and Drugstore Chains Abrafarma

Equity Research

8 July 2026 | 6:16PM EDT

Brazil Retail: Takeaways from meeting with Brazilian Association of

Pharmacy and Drugstore Chains Abrafarma

We hosted an investor meeting with Mr. Sergio Mena Barreto, President of Irma Sgarz

+1(212)357-3770 | irma.sgarz@gs.com

Abrafarma, the Brazilian Association of Pharmacy and Drugstore Chains. The Goldman Sachs & Co. LLC

association currently represents 26 drugstore chains in Brazil, totaling c.11,000 Felipe Rached

pharmacies that together account for roughly half of Brazil’s pharmacy market. +55(11)3371-4587felipe.rached@gs.com|

Goldman Sachs do Brasil CTVM S.A.

Below we summarize the main highlights from the discussion. Gabriela Leme

+55(11)3372-3512 |

gabriela.leme@gs.com

Commercial conditions for branded generics (‘Similares’) of GLP-1 drugs should Goldman Sachs do Brasil CTVM S.A.

offer potential for expansion over time. While patented reference drugs typically

come with narrowly-defined (global) margins with limited room for negotiation, Mr.

Mena Barreto noted that national pharma labs are actively looking to expand their

share, creating potentially more favorable commercial terms for drugstore chains. In

this context, he highlighted that Abrafarma drugstores account for c.83% of Novo

Nordisk revenues in Brazil and c.89% for Eli Lilly’s portfolio. He sees a high

probability of achieving favorable commercial negotiations in this category, given the

significant volumes involved. Moreover, Abrafarma members are, in his view,

well-positioned to capture this market given their structural advantages, such as: (i)

sufficient balance sheet flexibility to fund working capital needed to build