Pharmaceutical Pricing, Reimbursement, and Market Access in Argentina

Argentina, the fourth-largest pharmaceutical market in Latin America and one of the fastest-growing markets in the world, may appear very attractive to multinationals, but achieving success in this country is by no means easy for outsiders. Foreign companies need to understand the structure of the Argentine healthcare system, the limitations of intellectual property protection, pricing trends, and coverage policies for prescription drugs. In addition, multinationals must be prepared for a general legal and commercial environment that presents formidable challenges.

Questions Answered

• The population of Argentina is projected to reach 46.8 million in 2030, a 15.7% increase over 2010. How does this growth rate compare with that of other leading pharmaceutical markets? How are life expectancy and the ranks of senior citizens expected to change? What economic pressures has Argentina experienced in recent years? To what extent does inflation remain a problem in Argentina?
• Argentina spends much more on healthcare than most other emerging markets. How does Argentina's spending on healthcare as a percentage of gross domestic product (GDP) compare with investment in other countries? How extensive are health benefits, and which are the leading sources of coverage?
• In common with most other emerging markets, Argentina historically offered much weaker intellectual property rights (IPR) than did mature pharmaceutical markets. What reforms have been introduced in recent years? How does Argentina compare with other Latin American countries in terms of IPR? What criticisms has the international pharmaceutical industry expressed with regard to Argentina's intellectual property protection?
• The Argentine pharmaceutical market accounts for 9% of the Latin American pharmaceutical market. How does the Argentine market compare with other markets in the region? How fast has the Argentine market grown in recent years? What challenges do multinationals face in this market?
• The Argentine pharmaceutical market is unusual in allowing manufacturers a free hand in setting the launch prices of new drugs. How does the government exercise control over prices? What have been the pricing trends in recent years? How do Argentine prices compare with prices in other Latin American markets?
• The government sets minimum standards for the benefits packages of social funds and private insurers. How extensive is the therapeutic formulary and how are reference prices calculated for drugs included in the formulary? What are the reimbursement rates for major drug categories? How does the public sector compare in terms of reimbursement?