Price Controls

Pharmaceutical companies permitted to raise prices by 8.63%

On 1 March 2003, Brazilian pharmaceutical companies were permitted to increase the prices of their medicines by a weighted average of 8.63% in accordance with an agreement reached with the Brazilian government in December 2002¹. According to Febrafarma, the industry federation representing various interests of the pharmaceutical industry, 222 companies accounting for 98% of the market agreed to temporarily freeze their prices from 1 January 2003 in exchange for the March 2003 price increase, after which prices will remain frozen again until 30 June 2003. On that date, the government intends to implement a new scheme to improve medicines access for Brazilian citizens. The last price increase was authorised in November 2002. Phyto-medicines and homeopathic medicines have never been subject to price controls.

Certain non-prescription therapies no longer subject to price controls

Also under the agreement, 260 non-prescription therapies were released from the price freeze on 21 February 2003, creating more competition in the market. The MoH emphasised that although prices for these products are now free from strict control, the action was not tantamount to a price increase and the products will continue to be monitored by the government^2,3. The National Health Monitoring Agency, ANVISA, published a list of the companies and their non-prescription products affected, which fall under the therapeutic classes listed in Table 1.

Table 1. Therapeutic classes of non-prescription products no longer subject to price controls, Brazil

appetite control products vitamin and mineral supplements single vitamins (except vitamin K) multivitamins not containing minerals multivitamins containing minerals iron-based products for anaemia anti-inflammatory products

antiseptics, topical antiseptics skin emollients/skin protection products transcutaneous ointments and inhalants other skincare products analgesics not containing narcotics balsamic and mucolytic expectorants simple expectorants

References

1. Febrafarma press release, 1 April 2003

2. ANVISA press release with lists of affected companies and their non-prescription products, 21 Feb 2003

3. Ministry of Health press release, 20 February 2003