Brazil Claims State-Run Pharmacies to Offer Cheaper Generics

The Brazilian government's new initiative to develop state-operated drug distribution will offer generic medicines at prices up to 90% lower than in privately-held outlets, according to the project's coordinator. About 89 active principles are involved in the generics distribution scheme, implying about 2,000 individual drug brands.

Nevertheless, the extent of the government's pharmacy network remains limited, with only 27 outlets now in operation, against a target of 300 by the end of the year. The few that exist are popular, as consumers reportedly need only a prescription from any medical practitioner, even including dentists, to obtain drugs. Although the chain does not yet represent a threat to the multinational sector, in light of the government's decision to re-examine patents on essential drugs, a subsidised network of retail outlets selling generics will be an unwelcome development for producers of innovator drugs.