In the public sector, institutes such as the Oswaldo Cruz Foundation (Fiocruz), in Rio de Janeiro, and the Butantan Institute, in São Paulo, have become well-established producers of immunobiologicals and pharmaceuticals, meeting the requirements of Brazil's Ministry of Health. In addition, the number of graduates and graduate programmes in disciplines relevant to the pharmaceutical industry, particularly chemistry, is increasing. And, in the private sector, companies such as Aché Laboratories, Cristália and Nortec Química are developing and launching new drugs, and manufacturing synthetic components of pharmaceuticals. A welcome move in this direction was made this year. Fiocruz and its Centre for Technological Development in Health signed a collaborative agreement with the biotechnology company Genzyme, through its Humanitarian Assistance for Neglected Disease project, to work on the research and development of drugs for 17 neglected diseases. Such strengthening of international collaborations and public–private partnerships, as well as improvements in industrial and educational policies, is crucial for Brazil to forge an effective national innovation system and continue on the road to recovery.