The drug exports experienced strong growth during July 2024, with a 8.5% increase compared to the same month of the previous year. In parallel, a 26.4% drop in sales in the domestic market.
According to the latest report of the Argentine Chamber of Pharmaceutical Laboratories (CILFA)the value of exports reached US$90.4 million dollarsthus consolidating three consecutive months of growth in foreign trade in the sector.
So far this yearthe sector accumulated a rise of 5.5%, adding US$959 million in exportswhich generates expectations of a positive year-end for companies in the sector.
Factors that drove the export of medicines
The report of CILFA attributes this increase to the Increased demand for medicines in foreign marketsespecially in Latin America and some European countries. This as result that Argentine laboratories will improve their capacity to comply with international regulations and standardswhich has allowed them to access new commercial destinations.
On the other hand, the Drug imports also showed significant growth in July, up 35.3% from the previous year.This increase could indicate a recovery in the domestic market, driven by greater demand for medicines and the reduction of restrictions on the import of inputs.
According to CILFA analysis, Imports reached US$246 million in Julywhich ended the decline that had been ongoing for the past three years. Despite local challenges, expectations for pharmaceutical exports in the remainder of 2024 are optimistic.
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Drug sales in the domestic market are falling
However, the consumption of medicines within the Argentine market has experienced a slowdown due to falling purchasing power and the rise in the price of essential products. According to data from the Argentine Confederation of Medium-sized Enterprises (CAME)he pharmaceutical sector recorded a 26.4% drop in year-on-year sales.
This contraction impacts not only pharmacies, but also local laboratories, which must deal with the decline in domestic demand as they try to leverage export growth to offset domestic losses.
Pharmacies registered a 17.4% drop, at constant prices, and a 27.8% decline in the first eight months of the yearcompared to the same period in 2023. In the inter-monthly comparison, they decreased by 1.9%. Pharmacies indicated that In August, drug prices continued to rise significantly, making sales difficult.
Source: Ambito
