Luis Caputo came face to face with the laboratories for the first time in 10 months. The meeting took place at the Ministry of Economy and served to review the situation of the industry, including drug prices, a point that provokes Frictions amid the government’s battle to lower inflation and his plan to open imports.
The drop in inflation to 3.5% in September reinforced the idea in the economic team to prioritize that front. In this framework, the Minister of Economy analyzed this Tuesday the evolution of the values of the remedies with the Industrial Chamber of Argentine Pharmaceutical Laboratories (CILFA). “The industry adjusts below inflation, INDEC says so,” they explained in the entity.
Medicinal products rose 2.3% in September, below general inflation. While year-on-year they increased 216%, just above the 214% of the CPI. However, billing in the second quarter rose 326% year-on-year. In that framework, The Government announced the possibility of provinces importing medicines to reduce costs.
The deregulatory advance put the UIA on alert, whose board of directors expressed its concern about the “negative impact” of reducing import tariffs of final goods ordered two weeks ago “contrary to what the world and the region are doing” and the recent elimination of controls on imports and exports.
During the meeting this Tuesday, which lasted 40 minutes, the Minister of Economy ratified the fiscal adjustment and said he was looking for “fight skepticism that exists after so many years of failure because Argentina did things wrong.” “The impact of having fiscal order is underestimated, but reality is going to lead to skepticism“, he warned, according to the official statement.
Thus, in the midst of the takeovers of universities due to the cut of funds, he said that “There is no chance of the Government deviating from fiscal course”. Then, he ratified the elimination of the PAIS tax at the end of the year, and maintained that the government’s credibility on the economic level is beginning to generate “greater optimism” in the sectors.
In turn, the businessmen congratulated him for the “excellent numbers” and guaranteed that they will continue investing. “The sector will accompany the Government at all times,” they added. In this framework, Caputo offered them to enter the large investment regime (RIGI)despite the fact that the sector is not contemplated. “He told us to present a project,” explained a businessman.
CILFA representatives also supported the adjustment within PAMI and the reduction in recent months of the 100% free medication coverage of the largest social insurance scheme for retirees and pensioners, with 5.4 million members. “There is good leadership reducing the deficit and expenses,” they told Caputo.
On the other hand, the laboratories recognized that they are “much better” than the rest of the industry, although the sector has accumulated a drop of 9.2% until August. They highlighted the growth of exports in recent months, especially to the Latin American market, and the importance of working on the pharmaceutical patent system.
“It was the first meeting with the minister, We thanked him because Bopreal allowed us to pay suppliers from abroad and we agreed to meet every two or three months,” they added from the chamber after the meeting, which was also attended by the Secretaries of Production Coordination, Juan Pazo; and of Industry and Commerce, Pablo Lavigne.
Present on behalf of CILFA were Jorge Belluzzo (president), Eduardo Macchiavello (1st vice-president), Gustavo Pelizzari (2nd vice-president), Edgardo Vazquez (3rd vice-president), Juan Craveri (secretary), members of the board of directors, Luciano Boccardo. and Alfredo Weber, Eduardo Franciosi (executive director) and Mariano Genovesi (attorney).