Brazil Warns Drug Firms Over Prices

The Brazilian Finance Ministry has threatened drug companies with sanctions if they impose "abusive" price rises, reports the Gazeta Mercantil. The Ministry stresses that the government does not intend to control drug prices but it does want to avoid such abuses.

The Ministry has recently finalized price increases of 20%-25% with 186 manufacturers, and has acknowledged that these increases are high. However, it says that from now on, low inflation will mean that such increases will no longer be possible.

It is also reported that in order to remain viable in Brazil's $12 billion, retail chain-dominated pharmacy market, small independent pharmacies are forming associations and franchises. In a single year, says the report, 18 associations have been set up, providing around 4,000 independent pharmacies with direct access to manufacturers and centralized buying and distribution, and enabling them to reduce prices by as much as 20%.