Brazil’s largest pharmacy chain, RD Saúde-parent company of Droga Raia and Drogasil-is moving into pharmaceutical manufacturing, a strategic shift announced Monday that will see the company produce and sell over 20 over-the-counter medications beginning in 2026. This expansion into private-label drug production comes as RD Saúde navigates a changing regulatory surroundings allowing supermarkets to sell non-prescription drugs, and positions the company to potentially supply both its own retail outlets and competitors [[1]]. the move underscores the growing potential of the Brazilian pharmaceutical market, currently valued at an estimated $77 billion [[2]].
RD Saúde, the parent company of leading Brazilian drugstore chains Raia and Drogasil, has received regulatory approval to manufacture and sell over 20 over-the-counter (OTC) medications, with sales expected to begin in 2026. The move marks a significant expansion for the pharmaceutical retail leader into private-label drug production.
The announcement was made on Monday, December 1, during the RD Day investor event in São Paulo. RD Saúde also revealed plans to introduce beauty sections within its pharmacies, with the first location slated to open in Barueri, a city in the São Paulo metropolitan area, during the second quarter of next year.
The new medications will be launched under the company’s Bwell brand, which currently focuses on vitamin supplements and features actress Ana Paula Arosio in its advertising campaigns. Bwell was introduced to the market in 2023.
RD Saúde began developing its in-house pharmaceutical production capabilities in 2023, securing suppliers and obtaining approval from Anvisa, the Brazilian Health Regulatory Agency. Initial testing focused on paracetamol, a common analgesic and antipyretic.
According to RD Saúde, its Bwell-branded paracetamol has already captured 12% of the market share in that category. The company estimates that the more than 20 molecules it plans to produce under the Bwell label represent approximately 16% of its total OTC sales.
Planned formulations include dipyrone monohydrate 500 mg/ml for pain and fever relief, a combination of dipyrone monohydrate, caffeine, and orphenadrine citrate as a muscle relaxant, a formulation for headache relief combining dipyrone, isometheptene mucate, and caffeine, and a combination of scopolamine butylbromide and dipyrone for abdominal pain and cramps.
FROM COMPETITOR TO PARTNER WITH SUPERMARKETS
RD Saúde’s expansion into manufacturing comes as competition intensifies between pharmacies and supermarkets over the sale of OTC medications. A recent legislative change, approved in September, allows supermarkets to sell non-prescription drugs within dedicated pharmacy sections staffed by qualified pharmacists.
The move had been championed by Abras, the Brazilian Supermarket Association, and opposed by Abrafarma, the Brazilian Association of Pharmacy Networks, which represents the country’s 29 largest drugstore chains.
By producing its own OTC medications, RD Saúde is positioning itself to become a supplier to supermarkets, capitalizing on the evolving retail landscape. The total market for both prescription and over-the-counter drugs in Brazil is estimated at approximately R$200 billion annually.
