ARGENTINA REFORMS OTC DRUG ADVERTISING, DISTRIBUTION RULES

Argentina has drafted a number of notable drug sector reforms since 2002, but the retail sector has attracted much of the government's attention in recent months. Under new guidance, known as Resolution 20/2005, tight new advertising and distribution controls are set to be imposed on the non-prescription sector.

Under proposals on consumer information, all accompanying material for medicines should be "objective and rigorous" as well as "based upon reliable data." While any modernisation of Argentina's 20-year-old drug advertising laws should be welcomed, the vagueness of these terms could create problems with interpretation.

However, other draft regulations are likely to be more significant for the multinational pharmaceutical community. New measures will reform the pharmacy sector, which only accounts for two-thirds of Argentina's OTC sales of some US$200mn per year. The proposed law - which would restrict sales to registered pharmacies - would also limit the growth of pharmacy chain stores, establishing a minimum distance between any new pharmacies of three blocks.

The plans would also oblige the chains to have a pharmacist present during opening hours, and ensure that each pharmacy is owned by an individual pharmacist, not by a company. The proposals are set to change the dynamics of the sector, as fierce competition between pharmacy chains in Buenos Aires has done much to keep retail prices low.