URUGUAY TO REFORM DRUG PURCHASING SYSTEM

Uruguay, one of Latin America's smaller drug markets, is to unify its government drug purchasing structures in an effort to boost the state's bargaining power and drive down costs. Generics and copies already account for 40% of sales -- in contrast to neighbouring Argentina -- and greater official intervention could depress market value still further.

The government now intends to move to a public-private purchasing model, which could lead to a less fragmented system. The country has something of a reputation for egalitarianism and state intervention within Latin America, but bureaucratic obstacles have hindered meaningful regulatory reform in the past. The new organisation, UCAMAE, will purchase on behalf of all government agencies.

The process is likely to be conducted through multimillion-dollar public tenders, but drugmakers' associations have long been opposed to such initiatives. Local groups have previously refused to guarantee drug supplies to the government at the same prices as in the retail sector. Meanwhile, the government is conducting round-table talks with industry players on an overhaul of the entire healthcare sector.