Brazil: Pharmacies Battle In Sao Paulo

28 July 1996

Intense, hostile competition among pharmacies in Sao Paulo, Brazil, is leading the largest chains to exploit gaps in zoning legislation to continue expansion. The law bars new pharmacies within 200 meters of existing establishments, but chains such as Drogaria Sao Paulo, Droga Raia and Droga Verde are registering as homeopathic enterprises.

The State Pharmacy Council says there are 2,880 pharmacies in metropolitan Sao Paulo, with 30% in the central area. The ratio of pharmacies to people is higher than the one per 6,000 inhabitations recommended by the World Health Organization. Council president Direceu Bras Barbano says the danger of such a high concentration is a reduction in a range of drugs for sale. This is is not a "trade sector like any other," he says, and pharmacies should be spread through all areas.

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