Drug Prices and Policies in Peru

This article examines the evolution of drug prices in Peru, with a particular focus on the differences between brand-name and generic drugs, as well as the impact of pricing policies. Over the analysis period, which spans from 1996 to March 2004, the study documents that drug prices have risen at a rate exceeding that of the Consumer Price Index, raising concerns about the population’s access to essential medicines. The study uses data from the Peruvian pharmaceutical market and sales figures, revealing that the generic drug segment still accounts for less than 10% of the market. Through a conceptual framework that considers the influence of patents and information asymmetry, the authors suggest that the lack of effective competition and market segmentation are critical factors contributing to high prices. Policy implications include the need to promote the use of generic drugs and to adjust regulations to foster greater transparency and competition in the pharmaceutical sector. (Abstract and audio: Department of Economic Publications)