ARGENTINA AGREES TO NEW DRUG PRICE CUT

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Argentina's government has negotiated a new price cut with the local pharmaceuticals industry, according to local media sources. A 10% reduction will be applied to 216 commonly prescribed products, with immediate effect. Local industry association CILFA says the list of products affected by the cut includes many basic antibiotics and leading generics such as omeprazole. Other leading drugs include enalapril and lovastatin.

Industry observers have noted that further price deals of this kind are expected, as the government battles to control rising inflation. A similar arrangement with supermarkets was agreed upon earlier in December.

The pricing environment in Argentina has deteriorated in recent months, with manufacturers opting to impose a unilateral cut in discounts offered on supplies to government schemes offering low-cost generics. Meanwhile, research-based companies have seen a steady deterioration in the government's attitude toward upholding intellectual property rights.