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Brazilian Pharmacies Oppose Modernising Moves

May 13, 2005

Brazilian pharmacy groups have criticised new regulations issued by national drug regulator Anvisa, aiming to tighten rules on dispensing and the availability of essential generic medicines.

A principal target of the changes is the so-called manipulation pharmacy sector, where outlets provide their on own on-the-spot formulations of pharmaceutical products to consumers. The industry's 6,500 stores now account for roughly 8% of the country's drug market, or approximately US$700mn per year. While the trade has been linked to a number of fatalities, practitioners fear that the new modernising law's introduction next month could close down many outlets.

Pharmacy associations have also protested a new draft law that would compel retailers to stock all generic medicines on the country's essential drugs list. While the groups oppose the measure on grounds of freedom of choice, approved generics' low margins are a significant disincentive for retailers.

Local generics lobby Pró Genéricos estimates that generics already account for roughly 8.37% of Brazil's drug market. Meanwhile, pharmacy groups put this figure at more than 21% of annual sales.