Salvadoran Pharmaceutical Industry Investment Stalled

Lack of legislation encouraging growth of the industry is holding up about $50 million in potential investments.

Monday, June 18, 2012

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.

"We are holding the necessary meetings in order to generate law reforms, which are essential for the institutions to work, especially when we find out that no budget has been assigned yet to the new entity that will regulate the issue of medicines", said Ancalmo to Elsalvador.com

The chemical pharmaceutical industry currently generates 35,000 direct and indirect jobs, and with good pay.

More on this topic

Medications: Regulations Contradict Law

March 2013

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.

Drug Price Adjustments in El Salvador

January 2013

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.

High Energy Prices Affect Industry

August 2012

Salvadoran industrialists resent the high value of electricity bills, the second most important factor in the cost structure.

Ricardo Moran, president of the Salvadoran Association of the Plastics Industry (ASIPLASTIC) noted that currently the cost of energy represents between 18% and 20% of the final product cost.

Drug Price Regulation in El Salvador

March 2013

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.

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