ETCO Study - Informality in the Pharmaceutical Sector

Not only is the country's health bad. A study coordinated by the Brazilian Institute of Ethics in Competition (ETCO), developed by McKinsey in 2006, diagnosed that informality arising from irregular market practices, combined with our tax and labor laws, put the entire pharmaceutical sector in check.

The numbers of the survey “Informality in the pharmaceutical sector: barrier to the growth of the Brazilian economy and risk to public health” are impressive. Approximately 27% of drug sales are the result of illegal prescription changes, stimulated by pharmacy and drugstore clerks. Informality in the sector ranges from 20 to 40%, generating an annual loss of between 2 and 3 billion in tax collection and tax collection, both state and federal. Usually sales without invoice or disposal of the invoice along the supply chain. Another usual practice is adulteration of the note as to the destination of the goods. The cargo is sent by a destination, but the documents contain another route.

At the other end, the number of pharmacists present in the 52.800 establishments registered by the Federal Council of Pharmacies - estimated at 35 thousand professionals - should be at least three times higher, just to meet the regulations. And in the labor area, out of every ten employees, four do not have a formal contract.

The forms of evasion of profits multiply and the losses do not stop. Another study by Interfarma, the Pharmaceutical Research Industry Association, confirms that there is a real gap in the marketing of medicines in the country due to informality: comparing total market sales and formal sales of medicines at retail, about 12 billion reais no longer circulate formally on the market per year, or 50% of sales. McKinsey's study also points out that there is also another common practice: non-compliance with health rules and regulations.

The commitment of this system has long been visible, causing enormous risks not only to the health of the pharmaceutical sector, but mainly to the health of Brazilians. But how to combat these illegal practices? In 2005, ETCO created the Sectorial Chamber of Medicines in order to expand the area of ​​operation and promote the interaction of all those involved in the chain link - industry, distributors, retail chains and government agencies, as a way to answer this question so disturbing. But that alone would not be enough. Over time, everyone felt the need to seek the Government's partnership to adopt essential measures that would improve the sector's public policy.

One of the goals today is to implement a system that allows to follow all the steps covered by everything that the pharmaceutical industry produces. Another, to suggest changes in the national tax system in order to promote greater control over tax collection, equalization of rates and fiscal equity.