Venezuela: Price Rise, Imports Switch Call

Between 10 and 15 Venezuelan drug groups, including most of thecountry's multinationals, are reportedly reviewing their presence in the country because of the way the drug sector is run by the authorities.

Juan Manuel Dominguez, president of the drug industry body Cavefar, says that they are considering abandoning domestic production and switching entirely to an imports policy. He names Roche, Warner-Lambert, Parke-Davis, Pfizer, Searle, Merck and Schering-Plough as among those considering their next moves.

The main factor behind the dissatisfaction is clearly the government's health care policy and, in particular, the criteria used in determining drug prices. It is claimed that this is behind the closure of many drug distributors and, it is estimated, some 200 pharmacies in the last six months.