Economic and political turmoil in Venezuela is anticipated to affect the growth rate of the domestic pharmaceutical market, according to a report by GlobalData.

Titled ‘CountryFocus: Healthcare, Regulatory and Reimbursement Landscape – Venezuela’, the report provides an overview of Venezuela’s pharmaceutical market.

Venezuela is one of the biggest pharmaceutical markets in South America and is heavily dependent on imports. The pharmaceutical market registered a healthy growth rate between 2009 and 2015 increasing in value from $5.7bn to $12.6bn at a compound annual growth rate (CAGR) of 14.1%.

The robust growth rate, however, is expected to suffer a reversal due to the economic crisis, coupled with inefficient patent laws and drug pricing policies. Healthcare services are also expected to become more expensive in the country.

“Approximately 85% of the country’s drug demand is not being met as of May this year, despite the government’s efforts to maintain a supply.”

The average price of healthcare services in 2015, for example, increased by 38.5% from the previous year. Furthermore, out of pocket expenditure during the year was 67.3%. The average drug prices of $21.95 are also the highest in the entire Latin America region, where the average is $7.86.

The Venezuelan pharmaceutical market is heavily dependent on imports and has grown significantly from 2009 to 2012. Pharma imports, however, have plunged and pharmacies are facing a shortage of essential medicines.

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Approximately 85% of the country’s drug demand is not being met as of May this year, despite the government’s efforts to maintain a supply.

A high level of healthcare expenditure, shortage of drugs and an inefficient healthcare system are the main issues plaguing the healthcare system that need to be addressed.