Venezuela Allows 60% Drug Price Hike

Venezuela's National Executive has authorized a 60% increase in the price of drugs and medicines. The rise was due to go into immediate effect as the decree was published in the official gazette, which occurred as the Marketletter was going to press. The increase is understood to apply to some 5,000 products but the authorization makes clear that the drugs and medicines sector will continue to be subject to state control.

Rafael Pena, Public Works Minister, on a visit to Brazil, said that if any liberalization of prices were to take place "in a future scenario in which the economy was to recover positively," the government would start with those groups of drugs that demonstrated market strength. Mr Pena indicated that the basis of any liberalization would be the establishment of a core of essential drugs probably based on some 50 active agents and whose prices would be subject to adjustment and revision in discussion with the manufacturers.

Industry Talks Planned Mr Pena's ministry and the Health Ministry are to organize a meeting in the next few weeks with the drug industry to discuss these 50 or so active principles which would be produced in Venezuela with the possible assistance of the universities.