El Salvador: Local vs. Foreign Pharmaceutical Companies

Salvadoran laboratories and drug suppliers are complaining that in their purchases the government favors foreign companies over national ones.

Thursday, June 11, 2015

The Association of Chemical Industrial Pharmaceutical Companies in El Salvador (Inquifar) states that a change made in the law, which allows the Ministry of Health to make direct contracts rather than tenders, is the reason behind the exclusion of domestic enterprises from drug purchases .

Eleconomista.net reports that "... According to a report issued by Inquifar, based on the COMPRASAL website (where the government publishes all purchases, both made and projected), the acquisitions made by the Government to local pharmaceutical companies have been falling, to the extent that of all the purchases performed the MINSAL related to medicines, only 20% was acquired in the domestic market. "

"... In 2010 nationals provided 52% of all drugs that the Ministry of Health requested, and foreign companies sold the remaining 48%. In 2011 the share of national laboratories began to decline, with 49% of medicines sales to the MINSAL. In 2012, the government reduced its purchases to domestic companies so they accounted for only 41% of all purchases. But the steepest jump occurred in 2014, when the participation of Salvadoran laboratories was reduced to 19% of the medicine supply. "

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