Pharmaceuticals

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Pharmaceutical products imported to Ecuador

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Pharmaceuticals

  1. 1. Students: Teacher: MSc Max Galarza • • • • • STEEVEN ASTUDILLO MELISA MOINA NESTOR PARADA DAVID SALTOS FÉLIX VERA
  2. 2. Introduction • Ecuador as a country initiated some meetings in Brussels with the E.U. to achieve an agreement that will beneficiate them mutually. These meetings have been considered very important because the results could affect positively or negatively to the local producers that export and the local retailers that import many sorts of products.
  3. 3. Pharmaceutical Sector Currently the local market still The Ecuadorian pharmaceutical industry maintains a development of controlled 85% by imported medicines, 14% annually over the past three years. while domestic products are 14%. In Ecuador 1,784 drug submissions are Population's access to medicines and made of 902 marks. health services increases gradually. The drug market in Ecuador, covered in selling price to pharmacies totaling $ 1,200'000,000, of which $300'000,000 are public market and $900’000,000 to the private market. National laboratories have sold to the government $ 145 million, generating a mutual gain saved to the country and injected money to the sector for 2 years.
  4. 4. • According to the measures, the national production of medicines is too low in comparison with the quantity of imports in the same issue. Due to this reality, the national market is looking forward to acquire new investments in the industry that will generate a better percentage in the national production of medicines. • In a communication of the BCE about the highest percentage of import commodities in Ecuador, the results show that the Medicines with the tariff code 3004.90.29 are third. In other words the medicines are considered one of the biggest expenses of Ecuador in the international trade. • The Ecuadorian pharmacist growth increased from the nationalization of the production of drugs that began in 2009. Since then the corporation has expanded enormously. Sales volume has been generated by our procurement has risen to small and medium industry, because big business has increased four times
  5. 5. Possible benefits There are a lot of expectations in the possible agreement that will be established between Ecuador and the European Union. Consider as a possible solution to get better the international trade that Ecuador has. According to Felipe Rivadeneira, the Chief executive of the Ecuadorian Federation of exporters (FEDEXPOR), reiterate about the expectations that the country have after the first meetings in from January 13 to 17 in Brussels.
  6. 6. Possible benefits Anexes One of the possible benefits could be the increase of the exportations to Europe in $ 300 million of dollars in the next 3 years. Also, this negotiation with the European Union will generate a model for future negotiations as an opportunity to open our markets and extend them to other regions and countries over the world.
  7. 7. Treatments & deadlines • According to the President Rafael Correa, there are no disagreements between the country and the European Union on this negotiation. But first it is necessary to establish some points and measures to get the flexible commercial agreement that Ecuador wants to achieve. • This points and measures are related with the deadlines that were presented by the country in the negotiations. The principles are the public purchases, intellectual property and outflow of foreign exchange which are considered issues that could be affected with the agreement if there are not taken possible measures to protect them.
  8. 8. Currently in an interview the Minister Rene Ramirez said: • The subject named "test data" you know that pharmaceutical companies are granted an additional period of exclusive use of a certain drug, to ensure profitability. We proposed financial compensation so that there is no such privilege to the detriment of what they represent profits for companies. A study of the Pan American Health Organization (PAHO) states that the exclusive "test data" (similar to the clause that exists in the trade agreement Colombia and Peru) imply an additional expense in the drug market 500 million dollars, equivalent to health costs of about 1 million 180 thousand people, resulting in a 18% increase in the price of medicines. In the public sector, this legislation would increase spending by nearly $ 60 million or, seen another way, a reduction of 16 % of their purchases. These data are from 2010... So can imagine that these dates have increased, right?
  9. 9. At the same time he said: • Remember that at this time a strategic company for Ecuador is “Enfarma” (drug public company) that produce generic drugs. Exclusive rights to "test data" complicate the production of generic Enfarma but not only in the pharmaceutical industry in general nationwide. Enfarma: • Enfarma EP is a public corporation of the Ecuadorian State, created by Executive Order No. 181, dated December 21, 2009, with the aim of having an important tool to define policies and actions in the field of the provision and supply of medicines the country, considering their health needs and respecting the principles of equity, identity and culture. • The National Drug Company (Enfarma EP), plans to invest USD 156.7 million to install a Pharmaceutical Complex in 2017 and achieve production of 82 human medicines.
  10. 10. Public Purchases • As we said before the local pharmaceuticals are stronger suppliers for the government in medicines, as an incentives for the development of this industry locally. This is a win-win commercial transaction because this allows to the government to generates an income on the national economy and at the same time obtain the necessary resources. • So, if we analyze the intentions of European Union, they would try to export more of this issue to our country that has a poor local industry on this commodity. This could be a treatment for the local industry that depends on the government to sell their productions.
  11. 11. Intellectual Property • This is the other topic that it will be necessary to analyze in order to get the correct measures to avoid problems in the agreement. • The national norms of the Intellectual property recognize the ancestral knowledge about the manipulation of plants and the protection of the patents. That must be analyzed to get in a positive agreement according to the Trade Chamber of Quito. • On this way, Marco Alban, director of the CCQ, explain that the national constitution proved on 2008, forbid the appropriation of ancestral knowledge on biodiversity. That is an issue important for the local pharmaceutical and agricultural industry.
  12. 12. Conclusion • This agreement would cause a real impact inside the country economy because of all the things that could happen between Ecuador and The E.U., although the project has no a solution yet, but what the government should do is a deal between the U.E. and this country in order that provide us the facilities to have the patent for the pharmaceutical sector and they could collect the money that we should pay for the patent but with a lower price. The government is looking for the answer that they need to complete this agreement, it means that the government have established some time in this to do a good conclusion of the agreement with the intention of both parties stay benefited.
  13. 13. Netgraphy • http://www.telegrafo.com.ec/economia/item/farmaceuticasproducen-el-40-de-su-capacidad.html • http://www.industrias.gob.ec/bp007-industrias-siderurgicas-yfarmaceuticas-de-china-interesadas-en-potenciar-la-inversion-enecuador/ • http://www.eluniverso.com/noticias/2014/02/13/nota/2177296/expect ativa-acuerdo-ue • http://www.elcomercio.com.ec/negocios/Ecuadoracuerdo_comercial-Union_Europea-negociacion-EconomiaRafael_Correa_0_1070293140.html • http://www.vistazo.com/webpages/pais/imprimir.php?id=14914 • http://www.elcomercio.com/negocios/Empresas-publicas-GobiernoEcuador-importaciones_0_1080492003.html

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