Some forty companies submitted bids in the tender, worth $25 million, convened by the Panamanian Ministry of Public Health to provide drugs on the basic list for 2013.
The ministry has 30 days to review the proposals, so it is estimated that in about 60 days the drugs will be supplied to all health facilities.
"The order is intended to benefit the 14 health regions, Nicolás Solano Hospital in La Chorrera, the Tejeira Aquilino Hospital in Cocle, the Cecilio Castillero Hospital in Herrera, the Regional Hospital Luis "Chicho" Fabrega, in Veraguas, the Hospital Anita Moreno in Los Santos, the Joaquin Pablo Franco Sayas Hospital, in Las Tablas, the Hospital Jose Domingo de Obaldía, in Chiriqui, and in the capital city of the Children's Hospitals, Santo Tomás and San Miguel Arcángel, as well as the Cancer and Mental Health Institutes , among others", reported Laestrella.com.pa.
Pharmaceutical unions in El Salvador have denounced the regulations determining maximum pricing as being contradictory to the Medicines Act
Elsalvador.com reports that the legal counsel for Fedefarma y Diprofa, Luis Chávez, explained that the pricing for drugs is based on the active ingredient and not on each product: "This is the same as me asking for a point of law establishing a price ceiling on mobile phones.
Pharmaceutical industry representatives have expressed concerns about the regulation of the recently passed Medicines Act, noting that it will produce distortions in the functioning of the market.
In an article in Elsalvador.com FEDEFARMA's president, Alvaro Soto, said: "By setting maximum prices for medicines you can get the opposite effect: instead of prices going down, the cheapest generic medicines could go up.
A bill proposes creating a Regulatory Office to control the prices of the most widely used medicines.
The legislator behind the bill argues that there is a de facto monopoly in the drug market, which must be removed for prices to go down, which in his opinion are kept artificially high.
Crhoy.com reports that Congressman José María Villalta said the initiative will be discussed in May at the legislative plenary.
Two bills before the Guatemalan Congress are seeking free competition in medicines, including foreign manufacturers.
A bill submitted by the Lider party, also plans to exclude open contracts. "The goal of the new law would be free competition in medicines including non-national producers, facilitating imports in order to lower prices," said Edgar Ajcip from the Lider party.
National pharmaceutical companies will not be able to provide medicines to the government, which owes them more than $30 million for previous purchases.
Laprensa.hn reports that "The authorities of the Ministry of Health announced yesterday that the upcoming auction of medication may be awarded to international companies."
"The government owes about 600 million lempiras to national pharmacists, who have repeatedly said they will not participate in the tender for 2013, as they have no production capacity. The problem is that medicine businesses have undercapitalized their industries by granting multi million dollar loans to the State due to the lack of financial liquidity that for years has characterized government administrations. "
Authorities announced that all regulated sales of drugs will likely experience a progressive reduction in prices, which by law must adjust to international averages.
The review article in Diariocolatino.com Coto statements José Vicente, director of Medicines, on the effective date of the regulation of drug prices.
According to the article, Coto said "except over the counter medications, all drugs are susceptible to progressive reduction in prices in the coming months, as they must adjust to international averages."
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."
Although the bill that regulates the drug prices in Costa Rica, is based on good 'intentions', imposing maximum prices and profits for the pharmaceutical industry is not right.
So said Deputy Economy Minister Marvin Rodriguez, regarding bill 17. 738, on drug price regulation, which imposes limits on drug prices.
According to the deputy minister distortions in the prices of medicines should be addressed but not through a permanent fixing of prices.
In 2011, the Country imported $398 million worth of medicines, 13% than in the previous year, when imports summed $351 million.
CentralAmericaData's report on Drug Imports allows an in-depth study of this indudstry in the country. It makes it easy to analyze purchasing patters, identify and monitor the top products and supplier countries, as well as studying price trends, among other uses.
Guatemala did not participate in the final joint price negotiations and purchase of medicines at the regional level in the month of June.
Since 2008, Guatemala has not participated in any regional purchase of medicines, missing out on the opportunity to make savings by buying in bulk.
The negotiations ended in June with six pharmaceutical companies, for the purchase of 19 drugs, representing savings of $16 million for the region, "...
Lack of legislation encouraging growth of the industry is holding up about $50 million in potential investments.
Mario Ancalmo, president of the Association of Pharmaceutical Chemical Industry in El Salvador (Inquifar) noted that at the moment there are only investments in small works to improve existing facilities, but no company is backing large investments in infrastructure, and this is a result of uncertainty in the sector generated by the recent approval of the Medicines Act.
The country is to implement a so-called "reverse auctions" and price catalogs, with which they intend to save $12 million a year.
The authorities want to replicate a method practiced in Colombia which has enabled "extraordinary" savings, lowering prices by up to 40%, said the Honduran Minister of Health, Arturo Bendaña.
The ministry has budgeted to spend $31.49 million (600 million lempiras) on drugs in 2012, and using reverse auctions and catalogs, expects to save at least $12 million, reports Tiempo.hn.
A National Directorate of Drugs has been created which will set prices using an international reference value and ensure that the cost of medicines is not above the Central American average.
Mauricio Funes, El Salvador’s president, has passed the Medicines Act, which seeks to regulate the prices charged by distributors, reported Diario de Centroamerica on their website.
The Union of Pharmaceutical Manufacturers in Guatemala is protesting over the cancellation of purchases processed at the end of the previous government, and the start of the current one.
The Union of Pharmaceutical Manufacturers (Grefarma) declared its opposition to the rescindment of open contracts for drug purchases by the Finance Minister Pavel Centeno.