Ecuador will regulate prices of certain drugs

The Government of Ecuador is about to present the first draft of a project tending to regulate certain prices of drugs in the local market, reported the local media. The different criteria which will be incorporated were agreed between governmental authorities and representatives of the pharmaceutical industry the past February 18th. According to the governmental authorities, the new mechanisms will make it easier for the Ministry to regulate prices of certain products, taking into consideration competitive conditions of the market. He used the example of high-demand drugs which does not have competition or generic versions, where the government will attempt to reduce the price and increase access to the population.

According to the preliminary information disclosed by the authorities and pharmaceutical representatives, the new system will not mean the establishment of a internal reference price system like countries such Spain does. Price caps would be imposed in just few products , being the main component of the strategy the so called Libertad Vigilada (Free Pricing and Surveillance ), which in practical terms means that the government will monitor prices and margins in high demand drugs. That fact could leave open the door for further changes in the regulation in the future, in terms of price regulation. Further details will be disclosed once the project is presented, however, it is likely that this policy would have a negative impact in the international pharmaceutical companies, which might see their margins reduced in the future.