Argentine government makes efforts to deregulate healthcare and pharmaceutical industries

Under President Javier Milei, a top priority of the new administration is to ease restrictions on businesses in Argentina and stimulate competition as a result. As one of its first actions toward this goal, Milei issued Decree 70/2023, which deregulates specific sectors within the Argentine economy, such as healthcare and pharmaceuticals. Below we outline some of the significant changes brought on by the new legislation:

1. Changes to medical prescriptions now allow competition. Law of Medicinal Specialties 25,649 originally allowed prescriptions to include both generic and commercial names. A recent amendment now mandates that all medical prescriptions can only state the generic name of the medication or its international nonproprietary name. In the same vein, Law 17,132, which governs medical practices, now specifies that prescriptions can only include the generic name of the medication or its international nonproprietary name.


2. Sale of over-the-counter medications is no longer limited to pharmacies. Initially, Pharmacy Law 17,565 restricted the sale of over-the-counter (OTC) medications to pharmacies. Decree 70/2023 eliminates that requirement and now allows for the sale of OTC medications in any store. The pharmacy sector has pushed back against the new legislation, arguing that even OTC medications need pharmacist advice, and that pharmacies are better equipped to manage issues such as proper storage, expiration dates, and verifying the authenticity of OTC medications.


3. Barriers to open pharmacies are eliminated. The new deregulation of Pharmacies Law 17,565 allows pharmacies to be established through any legal entity permitted by current legislation. However, in health matters, provinces retain the right to adhere or not adhere to the regulations. Currently, the province of Buenos Aires does not allow the operation of corporations (sociedades anónimas) due to multiple entry barriers imposed by Provincial Law 10,606.


4. Foreign laboratories can participate equally with domestic laboratories in public tenders. Law 18,875, which promoted a preference for bids from domestic companies in public tenders, has been repealed. The elimination of the preference could allow for greater international competition in public tenders, potentially benefiting foreign laboratories.


5. Modernization of the healthcare system by implementation of electronic prescriptions and archives. Law 27,553 related to electronic prescriptions was amended to remove the requirement for handwritten prescriptions. Instead, prescriptions and medication dispensation may now be conducted through authorized electronic platforms. In addition, the requirement for handwritten entries in prescription books, narcotics and psychotropic control logs, and inspection records has been replaced with a mandate for digital storage. Prescriptions must now be kept digitally for three years, after which they may be deleted with prior notification to health authorities.

These updates reflect ongoing efforts to encourage competition, promote deregulation, and modernize healthcare practices in Argentina. If you have any questions please contact the author.