MINTS The Next Economic Frontier for Investment – A Financial Analysis of the Pharmaceutical Industry

Abstract

We have heard a great deal recently of the BRIC countries (Brazil, Russia, India, China), and the PIGS (Portugal, Italy, Greece, Spain) but now the focus seems to be on the MINT countries, (Malaysia, Indonesia, Nigeria, and Turkey) as the leading emerging economies in the world. Rising labor and other costs now have companies looking for new opportunities in rapid growth markets. But not without specific risks that companies must be willing to take. Corruption, rampant communicable disease, drug abuse and criminal activity, religious issues and disagreements are a few of the challenges companies must face in the new frontier. This paper will attempt to look at four pharmaceutical companies in each of the MINT countries to determine their potential profitability as an investment opportunity. This industry is especially unique since these countries have a growing population which will increase the labor force and also create a need for pharmaceutical products.
Each of these countries is located in an advantageous geographical location which will provide an advantage in growing their economies. Mexico is next to the U.S. and the rest of Latin America. Indonesia is located in the heart of Southeast Asia with strong ties to China. Turkey has positioned itself to have both Eastern and Western influences. Nigeria is in a prime spot as it ls located in the prime economic powerhouse of a continent, Africa. If they get their acts together, solve their problems of corruption, energy, and infrastructure, these four countries could potentially overtake China as a leading economy of the world.