2023-06-11 12:18:00
Pharmaceutical laboratories in the are facing difficulties due to thedelays in drug prices and do not rule out the possibility of implementing new increases in the near future. In May, inflation in the City of Buenos Aires was 7.5%, while that of medicines reached a worrying 10.9%, thus exceeding the general trend for the first time in the year. This situation reflects a recomposition of margins that, according to private companies, is far from over.
Argentines are increasingly dependent on financing to purchase medicines, but they try to avoid relegating them due to their importance in health care. Pharmacists pointed to this trend, while the laboratories claimed to have a delay in their prices due to a “word” agreement with the Government and They assure that they will seek to recover their margins while high inflation persists.
The official surveys showed that this recovery of margins is already beginning to be evident. The report of the Consumer Price Index (INDEC) will be released in a few days, and in the IPCBA (Buenos Aires City Consumer Price Index) It was recorded how in May the prices of medicines took off from the general trend for the first time in the year.
According to the IPCBA, general inflation in January was 7.3%, while that for medicines was 4.1%. In February, headline inflation was 6%, compared to 4.9% for medicines. In March, inflation was 7.1% compared to 5.4% for medicines. In April, medicines experienced a 7.8% increase compared to 7.4% for headline inflation.
In May, however, Inflation in the City of Buenos Aires was 7.5%, while that of medicines reached a worrying 10.9%. Despite this, in the first five months of the year, medicines accumulated an increase below the general index, with 37.1% compared to 41.1%. At the national level, until April, something similar occurs, although the INDEC (National Institute of Statistics and Censuses) does not only measure this item, but also includes health artifacts and equipment. The cumulative increase was 25.4% compared to 32% overall.
Pharmaceutical laboratories will seek to “recover margin” in this situation. They pointed out that “The sector has experienced a significant deterioration in its margins because costs follow the general trend of inflation, unlike its income.”
In tune, they warn that, if inflation continues in close to double digits, it will inevitably accelerate the recovery of the price lag. They also highlighted the difficulties they face in sustaining the health sector chain due to persistent payment arrears and the enormous financial losses that this implies.
Adams, laboratories report difficulties in the supply of supplies and inputs due to the delay in the approval of import permits and the difficulties to get freight.
On the other hand, pharmacists have a different perspective on the situation. According to Rubén Sajem, director of the Center for Argentine Pharmaceutical Professionals (Ceprofar), in the most used drugs an increase above general inflation has already begun to be observed. The Ceprofar representative said that this increase was around 8 percentage points (16.7% vs. 8.4%). However, this cut applies only to products that are sold in the largest quantity, not to all drugs.
In May, according to Sajem, the category of most used medicines saw an increase of 11.2%, and headline inflation is likely to be below that figure. He pointed out that laboratories increase the prices of the most used drugs and possibly increase less those that are not used as much.
He concluded with criticism of the lack of discrimination between essential basic medicines and argued that a kind of “Fair Prices” would be needed for a list of products, instead of regulating the 14,000 medicinal specialties in a comprehensive way, which is not proving effective.
With information from TN
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