Tag: Sectorial Chamber of Medicines

Sectorial Chamber of Medicines of ETCO coordinates study on informality

Source: National Insurance Brokers Portal, 09/05/2007

Not only is the country's health bad. A study coordinated by the Brazilian Institute of Ethics in Competition (ETCO), developed by McKinsey consultancy, 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. Stimulated by pharmacy and drugstore clerks, approximately 27% of drug sales are the result of the illegal exchange of one drug for another. 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 to a destination and the documents go to another location.


Informality does not stop there. 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. It is also worth noting that, of every ten employees in the sector, 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 in retail, about 12 billion reais no longer circulate formally on the market per year, that is, 50% of total sales. According to the president of ETCO, André Montoro, "one of the goals of the Medicines Chamber is to enable the implementation of a system that allows to follow all the steps covered by everything that the pharmaceutical industry produces".


McKinsey's study also points out that there is also another common practice: non-compliance with health rules and regulations causing enormous risks not only to the health of the pharmaceutical sector, but mainly to the health of Brazilians.


“With the creation of the Chamber of Pharmaceuticals at ETCO, we intend to combat the illegal practices proven by the McKinsey study”, says Montoro. “In this way, we work to promote the integration of all those involved in the chain - industry, distributors, retail chains and government agencies and, thus, adopt essential measures that provide improvements in the sector's public policy. In addition, suggest changes in the national tax system in order to promote greater control over tax collection, equalization of rates and tax equity, ”adds Montoro.

About the Medicines Chamber


Created in December 2005, the Medicines Chamber of the Brazilian Institute of Ethics in Competition is a non-profit organization that brings together 34 drug manufacturing companies, representing 54% of the sector. It acts strongly in the improvement and improvement of the sector, developing intersectoral relations with the industries, retail and government.

Sectorial Chamber of Medicines of ETCO coordinates study on informality

Source: Maxpress, 08/05/2007

Not only is the country's health bad. A study coordinated by the Brazilian Institute of Ethics in Competition (ETCO), developed by McKinsey consultancy, 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. Stimulated by pharmacy and drugstore clerks, approximately 27% of drug sales are the result of the illegal exchange of one drug for another. 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 to a destination and the documents go to another location.


Informality does not stop there. 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. It is also worth noting that, of every ten employees in the sector, 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 in retail, about 12 billion reais no longer circulate formally on the market per year, that is, 50% of total sales. According to the president of ETCO, André Montoro, "one of the goals of the Medicines Chamber is to enable the implementation of a system that allows to follow all the steps covered by everything that the pharmaceutical industry produces".



McKinsey's study also points out that there is also another common practice: non-compliance with health rules and regulations causing enormous risks not only to the health of the pharmaceutical sector, but mainly to the health of Brazilians.

“With the creation of the Chamber of Pharmaceuticals at ETCO, we intend to combat the illegal practices proven by the McKinsey study”, says Montoro. “In this way, we work to promote the integration of all those involved in the chain - industry, distributors, retail chains and government agencies and, thus, adopt essential measures that provide improvements in the sector's public policy. In addition, suggest changes in the national tax system in order to promote greater control over tax collection, equalization of rates and tax equity, ”adds Montoro.


About the Medicines Chamber


Created in December 2005, the Medicines Chamber of the Brazilian Institute of Ethics in Competition is a non-profit organization that brings together 34 drug manufacturing companies, representing 54% of the sector. It acts strongly in the improvement and improvement of the sector, developing intersectoral relations with the industries, retail and government.

Pharmaceutical products

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.