Tracked remedies

By ETCO

Author: Gustavo Paul

Source: O Globo, 05/05/2008

BRASILIA

Starting on the production line, from the factories, through the trucks that lead to the distributors and until the time of sale at the pharmacy counter, the route of the boxes will be monitored. Government and manufacturers believe that, thus, they will have a powerful instrument to control the medicines sold in the country, avoiding tax evasion, preventing theft of cargo and the illegal sale of medicines. The price of tracking, however, tends to be diluted throughout the chain, from the manufacturer to the buyer. That is, at least part of the bill must be left to the consumer.

The decision to trace the medicines was taken in March by the National Health Surveillance Agency (Anvisa). Yesterday, the public consultation ended for the presentation of criticisms and suggestions on the minimum requirements to define how the monitoring and authentication of medicines will be.

Brazil started at the front and was the first country to discuss the issue, but it is not alone. Two weeks after the start of the local public consultation, the European Union and the United States launched similar consultations.


- It is a worldwide trend and we can work with Americans and Europeans in this system - says Dirceu Raposo, president of Anvisa.

The concern of governments, industry and consumer protection and ethics bodies is the exponential growth of drug-related crimes. According to the Brazilian Institute of Ethics in Competition (Etco), informality in the sector is alarming. In Brazil, tax evasion is 10% on companies' revenues, equivalent to US $ 1 billion. Worldwide, 30% of the active ingredients of medicines sold are counterfeit.

The incidence of counterfeit drugs in Brazil is also increasing, the majority originating in Southeast Asia. The figures for cargo theft as a whole are growing annually, much of it targeting trucks with medicines.

System should start in 2009

For strategic reasons, the industry does not reveal how much it loses with the assaults, but the president of the Association of the Pharmaceutical Research Industry (Interfarma), Gabriel Tannus, has an indicator of the scale of the problem: - Insurance companies refuse to take out insurance pharmaceutical cargo if transport is not monitored by satellite and followed by armed escort.

The idea is to place some type of instrument on the packaging - barcode, dots, numbers, or chips - that will identify the medicine and can be sent via the internet or radio frequency to a central computer of the manufacturer, which will store the data. Anvisa will have access to the information whenever it deems necessary.

In 30 days, the agency intends to analyze the suggestions presented in the public consultation. By the end of April, 57 contributions had been sent. Anvisa's goal is to implement the system in the first half of next year.

The measure was suggested by the Etco Institute, whose inspiration came from the flow control system implemented by the Federal Revenue in breweries, which practically ended the sector's evasion. For the president of the institute, André Franco Montoro Filho, when implemented, the system will have a cascade effect of good news. Public authorities - particularly states and municipalities - recover lost tax revenue, health authorities improve the control of medications with repercussions on public health, the industry ceases to bear theft losses and unfair competition and consumers are guaranteed buy a quality medicine.

- It will be a win-win system.


The measure will not be able to end all irregularities, but it is an important step to contain them - summarizes Montoro.

Preliminary calculations indicate that this process will cost R $ 70 million per year, since the estimated cost is R $ 0,06 per unit sold. In Brazil, 1,4 billion packages are sold per year.

According to Dirceu Raposo, from Anvisa, companies will reduce the expenses they have today with insurance, escorts and security measures already adopted. This is the case of the “scratch cards” that come in medicine boxes and the seal of the packaging. This cost reduction will offset the investment in tracking.

Anvisa does not want cost transfer

Cost sharing should be the most controversial part of the process. After all, Anvisa doesn't want the bill over to the consumer. Currently, about 70% of medicines have their prices controlled and in this list are the most targeted by counterfeiters and thieves. The other 30% can be increased according to the manufacturer's interest. The president of Anvisa already has the answer: - The industry, which will have less expenses, should pay the bill.

But Gabriel Tannus, from Interfarma, admits that the cost tends to be diluted in the chain and may be left to the consumer.


- Let's not be naive. It will cost and we have to find a way to divide it. Perhaps the consumer pays a small part of the bill.