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LACK OF REIMBURSEMENT IMPACTS MEXICAN ED MARKET

June 30, 2005

Throughout much of Latin America, the lack of reimbursement offered for erectile dysfunction (ED) products has not prevented soaring sales. However, there are indications that the size of the Mexican market for impotence therapies may be larger than previously thought. Many leading ED drug producers are now seeking greater reimbursement for their products.

Recent studies indicate that some 7mn Mexican men, or about 7% of the population, suffer from some kind of ED-related problem. These high levels have been linked to fast-growing rates of diabetes, ulcers and cardiovascular disorders.

Major manufacturers of ED treatments are therefore lobbying the government for reimbursement, in view of the drugs' relatively high local cost, at some MXN100 (US$9.25) per tablet. Rival therapies to Viagra, such as Abbott's Uprima and Bayer's Levitra, are available in Mexico, although attitudes to the condition are not thought as favourable as in countries such as Venezuela or Brazil.

In the longer term, however, Mexico's ongoing health sector reforms - which envisage wider pharmaceutical coverage - could help resolve the gap between demand and availability of ED treatments. In the meantime, the drugs seem set to remain a luxury for sufferers.