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BRAZIL DEFENDS KEY DRUG SUBSIDY PLANS

June 27, 2005

Brazil's health minister, Humberto Costa, has defended the government's plans to offer subsidies of up to 90% on hypertension and diabetes drugs. According to a recent market survey, the two therapeutic classes account for nearly a third of all pharmaceutical purchases in the country. Health Ministry data indicate that around 35% of Brazilians over 40 years old suffer from some form of hypertension.

The discount will be available to consumers who are not covered by the country's cumbersome public reimbursement system, the SUS. Defending the scheme against charges that it is unconstitutional, Costa added that the subsidy will also not apply for Brazilians currently covered by private health insurance, and that pharmacy prices will remain unaffected by the measure.

Meanwhile, scientists at a Rio de Janeiro university expect a safrole-based candidate drug for hypertension known as LASSBio-785 to enter production in 2010.