Decision Resources Reports Growing Demand For Pharmaceuticals In Colombia

Decision Resources, a healthcare analysis company, recently released a report outlining the positive market features of Colombia, South America. The authors state that multinational pharmaceutical companies should find a growing market due to a growing population, a positive economic environment, and government policies that broaden health insurance access and drug coverage. Government cost containment efforts have also resulted in a booming generic drug sector. Chiara Stella Cochetti of Decision Resources, said, “Drug pricing regulation has been one of the prominent themes in the new National Pharmaceutical Policy fostered by the Santos administration. This new pricing policy has focused on correcting the poor enforcement of drug pricing controls that previously existed, by enabling the government to take direct control of a more centralized pricing system."

Colombian Pharmaceutical Market

Colombia is the fifth largest market in Latin America. In Colombian pesos (COP), the pharmaceutical market was valued at 8.126 trillion (U.S. $4.35 billion) in 2013. Decision Resources expects the market to grow at a CAGR (Compound Annual Rate) of 7.3 percent, reaching 10.032 trillion COP (U.S. $5.37 billion) by 2016, categorized as a medium growth rate. Study authors cite several factors affecting the growth rate. Interested parties can view the full report for details.

• Growing population – the report lists the overall projected population to 2030, life expectancy, the urban population, and the number of senior citizens.  
• Positive economic environment – the report list the gross domestic product (GDP) and the per capita gross national income (GNI).  
• Government policies – the Colombian government has improved access to medicines.

Pharmaceutical companies should consider Colombia, according to the report, because all strata of the population have expanded access to pharmaceuticals. Currently, 95 percent of the population has health care and President Santos is targeting universal coverage by 2015. The government has increased insurance coverage through the Mandatory Health Plan (POS). The basic drug list is expanded and the new National Pharmaceutical Policy reforms the high cost of drugs by instituting a centralized drug pricing system, cutting the price of hundreds of drugs since 2013. Colombia’s domestically produced generics are in demand. Colombia established an agency, IETS, to evaluate the cost effectiveness, safety, and efficacy of drugs and to develop treatment guidelines.