In the near term, the substandard regulatory and market access environment will continue to tarnish Argentina ' s appeal to drugmakers. However, in the long term, Argentina stands among the most promising pharmaceutical markets in Latin America in terms of growth. In fact, r ising demand and improvements in the business environment are expected to translate in significant commercial and investment opportunities for drugmakers in the country over a multi-year horizon.
Headline Expenditure Projections
Pharmaceuticals: ARS64.02bn (USD6.91bn) in 2015 to ARS79.31bn (USD5.18bn) in 2016; +23.9% in local currency terms and -25.0% in US dollar terms. Forecast revised slightly upwards in local currency terms and slightly downwards in US dollar term s from last quarter .
Healthcare: ARS243.93bn (USD26.33bn) in 2015 to ARS302.47bn (USD19.76bn) in 2016; +24.0% in local currency terms and -25.0% in US dollar terms. Forecast revised downwards from last quarter.
Full Report Details at
In Q316, we have revised upwards Argentina's Risk/Reward Index (RRI) score to 57.5 (out of 100) from 55.4 previously. This is above the regional average of 50.1. The score revision was driven by improved industry risks indices. Argentina remains in seventh place out of 19 countries in the Americas region in BMI's proprietary RRI matrix. Argentina's overall score is driven by a large pharmaceutical market and significant urbanization leading to better access to healthcare, but dragged down by poor policy enforcement and lax intellectual property protection.
On occasion of a short-term agreement established between the public health coverage system for the elderly (PAMI) and associations representing stakeholders across the health system, PAMI authorities stressed their broader goal to achieve a 20% to 25% reduction in spending on medicines by the end of 2016.
Recent measures in the PAMI system include the reduction of the reimbursement level for 160 medicines to a 50-80% range from 100% previously, and a drug price mechanism that will make prices paid by PAMI to be not higher than the lowest price agreed with other health coverage providers. Additionally, under the recent agreement the pharmaceutical industry will offer a discount on price to grant ARS1.6bn (USD113mn) in savings to PAMI.
A recent report by Endeavour, a foundation focusing on high impact entrepreneurship, highlighted that in the last decade the number of biotech firms in Argentina has duplicated to a total of 178 firms, with this figure expected to increase by 15-25% in the next five years as the sector is showing significant entrepreneurial dynamism.
US biopharmaceutical Kite Pharma started the process of registration and licensing required to operate and commercialize a range of cancer products and inmunotherapies in the Argentinean market.
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