Distributors warn of the risk of lack of medicines in hospitals for financial imbalance and high default
The increase in the cost of drugs for the institutional market – which includes hospitals, clinics and outpatient units – has raised pressure on distributors. The sector faces financial imbalance, reduced profit margins and high default, which can lead to the shortages of essential products.
The warning is from (Brazilian Association of Specialized, Exceptional and Hospital Distributors), based on a study prepared by the consultancy, to which the Poder360 had access.
ABRADIMEX brings together the 15 largest distributors of medicines aimed at the institutional market, which supplies both public and private network. In these companies, the main expense is the purchase of the medicines themselves, which corresponds, on average, to 83% of total costs.
According to the study, in 2022 and 2023, the increase in the costs of goods sold exceeded the growth of net revenue in the sector. The scenario is attributed, among other factors, to the readjustments defined by the (drug market regulation) and the pricing strategies adopted by the pharmaceutical industry.
Another factor that contributes to financial pressure is the mismatch between the payment deadlines to the laboratories and the receipt of hospitals. Distributors usually pay the industry within 42 days, while hospitals make the payment on average within 75 days – which can be extended.
In the last 3 years, the net margin of distributors has dropped 48%, while the volume of debts to receive has increased. High default on the hospital canal further aggravates the scenario. According to the executive president of Abradimex, Paulo Maia, the sector has bored with damage to avoid interruption in the supply of drugs to patients.
The entity also points to concerns about the tax reform. The assessment is that any changes in tax incentives may further compromise profitability, especially in regions with higher logistics costs. “The risk of shortages can become imminent,” says Maia.
Abradimex distributors act mainly with high complexity medications, such as cancer, immunosuppressants and products aimed at higher outpatient treatments.
