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.
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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.
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.
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.
