Between 2009 and 2013 generic drugs lost ground to original brands, reversing a trend seen in the last five years.
Monday, February 24, 2014
The generics market in the country has a value of $159 million and represents 36% of the drug market.
Although their prices are lower than original brand name drugs, in recent years purchases by the public sector have been declining, while in the private sector they are growing but timidly.
According to the Costa Rican Social Security Department "in the period 2003-2008 more than half of the medicines purchased by the institution were generic, but from 2009 the situation was reversed."
Gabriela Jimenez, Marketing Manager of the Pharmacy Fischel explained that "the sale of generic medicines in pharmacies has had a stable share, its share exceeded 30% in the last three years."
Between 2008 and 2013 the income generated by sales in pharmacies established in the country grew by 61% reaching $405 million last year.
The four strongest and most competitive market chains have opened new points of service have expanded their investments and plan to give the same continuity in 2015, despite the fact that a slight reduction in the historical rate of growth in the sector is expected, of approximately 2%.
A study by the Universidad de Costa Rica notes that one company controls the distribution of 80% of drugs sold, with price differences of up to 1,000%.
An article in Nacion.com reports that there is "little or no competition in the private sector of medicine, product of an industry that is "highly concentrated", causing Costa Rica to have higher drug prices compared to other Central American countries."
Corporation Cefa-Fischel is gaining more and more of the market share in Costa Rica, with tactics that are being denounced as anti-competitive business practices.
An article by César Quirós Brenes in Elfinancierocr.com reports on up to what point Cefa-Fischel Corporation has reached in the drug retail sector in Costa Rica: "Of the 950 active pharmacies as of 15 June, 67 (7% of total) are Fischel stores.