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BRAZIL UNVEILS NEW DRUG MARKET REFORMS

August 4, 2005

A congressional committee in Brazil has approved a tough new prescribing law, which -- if granted final approval -- could fine private sector health professionals who fail to prescribe according to new rules. Under draft law 1564/03, doctors would be obliged to use either Brazilian or international definitions of active ingredients. However, prescribers would still be able to stipulate brand names given sufficient reason.

The doctor fine would be equivalent to two months' national minimum wage, or roughly BRL600 (US$260). While the measure does not amount to mandatory generic prescribing along the lines of regulations in Argentina, for example, it should serve to further discourage prescribing by brand name in Brazil. In 2002, 80% of prescriptions written in Brazil were by brand name, and only a quarter were switched for generics. Currently, only 5% of Brazilian consumers specifically ask their doctor for a generic.

Meanwhile, the government has unveiled a new web portal, which is to detail all federal and local drug tenders and purchases. Officials claim the internet site will create a "point of reference" for government drug tenders, as well as improving transparency and competitive purchasing. Brazil is to spend roughly BRL4.2bn (US$1.82bn) acquiring drugs for official programmes this year.