Rise of the dollar will lead to drug prices rise by up to 20% ECONOMY

Nor have the interventions of the Central Reserve Bank (BCR) curbed the upward trend in the exchange rate – generated by political uncertainty in the country – which does not seem to be contained.

With the US currency exceeding S / 4.10 and at risk of continuing to rise, it is inevitable that the pharmaceutical industry will shift this impact, to which is added the higher cost of freight.

The result? An increase in the price of medicines of between 16% and 20% in the coming months.

“Before the pandemic we had an exchange rate of S / 3.5 and today it has risen to 20%, many have tried to withstand the transfer of this increase due to the pandemic, but it is already unsustainable,” says Sandro Stapleton. president of the Health Guild (Comsalud) of the Chamber of Commerce of Lima (CCL).

Meanwhile, of the medicines consumed in the country, 50% are imported and the other 50% are produced locally, however, 90% of them import the raw material.

“Before the pandemic, a freight was paid for containers of US $ 1,800, today the figure reaches US $ 13,000 or US $ 14,000, the highest being what is paid for products that come from China,” he added. executive.

Almost similar is what happens with shipments from India, a major trading partner in medicines.

“And if you opt for air shipping, the increase is 300%,” Stapleton says.

To this are added the times. The executive explains that the shipping companies are charging additional “priority” rates depending on the time in which the product is to arrive.

“The impact on drug prices has not yet been seen because many had stock before the pandemic and had been manufacturing but it has been a year three months. In addition, the high demand for medicines was for covid treatment. 19, and the number of surgeries decreased, ”he argues.

Under this scenario, he says, there is no way to contain an increase that will be moved in the coming months.

Prices are still maintained

Indeed, the rise in prices has occurred, but it has been almost imperceptible. According to data from the National Institute of Statistics and Informatics (INEI) in August, the increase in drug prices in Lima has been 0.1% (see table).

If we talk about types of drugs, the ones that have had the highest increase in the eighth month of the year in Lima, have been the hypoglycemic drugs (due to a decrease in blood glucose) with a rise of 0.5%; it is followed by vasodilators with 0.4% and in the same proportion by rehydrating rooms. A smaller increase was presented by family first-aid medicines (0.3%).

But now, says Stapleton, companies in the sector have gone out to make purchases and recently you can see the real prices, in general, on all kinds of drugs.

This increase not only covers medicines. Medical devices (35% of imports of containers of medical equipment) such as molecular tests, antigens, tomographs, among others, will also come with an increase. Therefore, testing or another type of diagnosis will also impact the final price.

• Margins. While for some years it is believed that drugs can have a margin of 300% to 400%, according to the CCL, for most drugs these do not exceed 20%, which is what has increased the exchange rate in recent months.

The options of Peruvians in the face of rising prices

The situation of rising drug prices is presented on two fronts, the public and private sectors. In the case of the former, the state makes mostly annual purchases, however, the rise here could be 10% as it would not accept large rises, based on a market study.

However, the one who buys on the street, that is, who goes to a chain of pharmacies or pharmacies, can feel this increase of 20%, although, according to Sandro Stapleton, the transfer could not be sudden.

Faced with this scenario, why does the consumer choose? Industry sources have told Management that the first is that in order to seek a lower price, the customer goes for generic drugs, although in this situation, they are not exempt from a rise in price.

“What he is going to choose is for one of the exits that the Peruvian has, to go to herbal or alternative medicine, and in the worst case not to spend on medicines, putting his health at risk,” says a source. A few years ago, after the high price of specialized baby food, consumers chose to replace them with homemade products.