Despite Its Limited Size, Chile's Pharmaceutical Market Offers Growing Opportunity for Drug Industry

BURLINGTON, Mass., Sept. 22, 2014 /PRNewswire/ -- Decision Resources Group finds that by the end of 2014, the Chilean pharmaceutical market is expected to be worth $2 billion (U.S. dollars), increasing at a compound annual growth rate of 11.3 percent over the next five years (to 2018). This growth comes as Chile experienced GDP growth of 4.8 percent in 2013 and 4.9 percent expected over the next three to five years. Chile's pharmaceutical landscape is small but highly competitive. The pharmaceutical market is dominated by prescription drugs, with a smaller share of the market for nonprescription, over-the-counter medicines.

Other key findings from the Market Access Tracker report entitled Chile Market Access Tracker:

• Chile's new national medicines agency: In September 2013, a new national medicines agency—the Agencia Nacional de Medicamentos (ANAMED)—replaced the Institute of Public Health (ISP), and became responsible for the marketing approval and registration of drugs. ANAMED is a new regulatory body that is responsible for the regulation and inspection of pharmaceutical bodies in Chile, according to international standards.
• No requirement for HTA or pharmacoeconomic evaluation: In Chile there is still no compulsory requirement for either health technology assessment (HTA) or a pharmacoeconomic evaluation. The Evaluacion de Tecnologias Sanitarias (ETESA; Health Technology Assessment Unit) is a small HTA body within the Health Ministry's Quality and Patient Safety Department, but its role is still developing; hence, payers in the country tend to act independently.
• Chile remains on the PhRMA watch-list: Efforts by the Chilean government are still in progress to address the concerns of the U.S. government and the biopharmaceutical industry regarding insufficient fulfillment of Chile's Intellectual Property agreements and the absence of effective regulatory data protection and patent enforcement. Chile remains on the Pharmaceutical Research and Manufacturers of America's (PhRMA) watch-list for 2014 due to its shortcomings in the implementation of free-trade agreement (FTA) obligations and delays in granting pharmaceutical patents.
• Efforts to increase access and affordability of healthcare: Healthcare remains a significant government priority for President Michelle Bachelet. A variety of reforms were initially enacted by former President Pinera, such as the BONO AUGE program, that have sought to increase the access and affordability of the healthcare system.

Comments from Decision Resources Group Analyst Chiara Stella Cochetti, M.Sc.:

• "Chile remains on the PhRMA watch-list for 2014 because of delays in implementing its FTA obligations and granting pharmaceutical patents. While Chile is increasingly working to strengthen intellectual property protection, pharmaceutical companies should remain cautious as it can still pose a threat to manufacturers in the country."
• "Prices are set through free market pricing in both the public and private sectors. Free market pricing policies give manufacturers the flexibility to set their own prices in both sectors—a profitable strategy for those looking to enhance visibility and market share in the country."

About Decision Resources Group
Decision Resources Group offers best-in-class, high-value information and insights on critical issues within the healthcare industry. Clients rely on this analysis and data to make informed decisions. Find out more at www.DecisionResourcesGroup.com. 

All company, brand, or product names contained in this document may be trademarks or registered trademarks of their respective holders.

For more information, contact:

Decision Resources Group
Christopher Comfort
781-993-2597
[email protected]

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SOURCE Decision Resources Group

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