The Pharmaceutical Market: Venezuela (pdf/xls)

Additional Information

THE PHARMACEUTICAL MARKET: VENEZUELA - REVIEW

The macroenvironment will remain challenging for the Venezuelan pharmaceutical market. Politically, the president Hugo Chávez, who is battling cancer, is focusing his efforts on the next presidential election, which will take place in December 2012. Although the opposition is becoming stronger, the Economist Intelligence Unit (EIU) expects Hugo Chávez to win a new term, assuming that he recovers and the economy continues to grow. Economically, the government announced the devaluation of the official exchange rate for essential imports in December 2010, which will affect pharmaceutical imports. This adjustment started in January 2011. The EIU projects maxi-devaluations of the bolivar in the forecast period. Legally, the country has reinstated the 1955 National Industrial Property Law. Unsurprisingly, the Office of the United States Trade Representative (USTR) has urged Venezuela to strengthen its IPR regime, therefore it has kept the country on the Priority Watch List in 2011. Demographically, population growth is expected in the forecast period.

The Venezuelan health system remains financially fragmented and under-funded. The five major health agencies are in the public sector, including the Ministry of Popular Power for Health (MPPS), the Venezuelan Institute of Social Insurance (IVSS), the government of the Federal District (Caracas), the National Armed Forces (FAN) and the Ministry of Education’s Social Welfare Institute (IPASME). The private sector, both charitable and profit-making, is fragmented. The National Assembly approved the Social Security System Law (LOSSS) in December 2002. The health reform under this social security law is known as the Organic Health Bill (LOS). Different drafts have been presented, particularly in 2004, 2005 and 2007, but the National Assembly has not approved any draft yet. The latest drafts advocate a health model closer to centralisation and prohibit the participation of the private sector in the new National Public Health System (SPNS); the Barrio Adentro Mission has become a key element of the new SPNS. This bill would reform the current health system by establishing a unified and universal health system in the country.

Inflation rates are expected to remain extremely high in the forecast period, over-inflating the Venezuelan pharmaceutical market in local terms. GDP growth, particularly from 2012 onwards, and population growth are expected to encourage pharmaceutical sales, in spite of drug price controls and currency exchange controls. MPPS will continue to implement Barrio Adentro, but threats in the public sector include government drug imports from countries that co-operate with Venezuela and government pharmaceutical production. Espicom projects the Venezuelan market to rank as the fourth largest in the Latin American region and the sixth largest in the Americas region in 2016. OTC and generic sales are expected to increase in the forecast period. There are about 33 pharmaceutical producers, most of which are local. Foreign producers have consolidated their regional operations in other countries in the last ten years, but Bayer, Daiichi Sankyo, Pfizer, Sanofi, La Sante and Teva remain.

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Exclusive economic and demographic data from the Economist Intelligence Unit (EIU) for each market in the series.
A separate statistical health file, comprising health expenditure, health infrastructure, health services and health personnel.
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HEALTHCARE STATISTICS

A comprehensive tabula review, comprising demographics, epidemiology, health expenditure, hospital and primary care infrastructure & services and healthcare personnel, is additionally included.