The pharmaceutical industry continues to be a highly regulated sector that has a very important presence in Argentina. Its financial results are highly affected by the influence of agreements entered into with social security organizations – mainly the social security organization that covers retired people – and private health insurance companies. These organizations agree on coverage that favours their affiliates with regard to prices from laboratories, wholesalers, and pharmacies. Despite the fact that these kinds of agreements continue to be in place, at least until March 2020, there have been changes in the financial politics these organizations have, owing to the fact that they are now calling for bids and joint purchases of certain products – mainly those related to oncologic and special treatment prognosis, which are usually the most expensive products.

An important change in the commercialisation of pharmaceutical products in the social organisation, that covers retired and challenged people (it includes the higher percentage of sales in the market), is the fact that this organisation decided to terminate agreements with the whole industry, switching to agreements company by company, in an additional effort to reduce the impact of the price of products. We cannot assure that this effort has been successful.

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Source: The Life Sciences Law Review 8th Edition - Argentina