Brasília, 7/31/2003 (Agência Brasil - ABr) - The cost of medicine weighs heavily on household budgets in Brazil, declared minister of Health, Humberto Costa, speaking at the Medicine Market Regulating Chamber (Cmed). The minister went on to explain that 560 pharmaceutical drugs may have their prices reduced as part of an agreement on new prices that will go into effect on September 1.

Costa explained that it will be possible to reduce prices of drugs made by laboratories that did not comply with last year's agreement between the industry and government. Another 1,200 drugs may rise in price by as much as 2% because they did comply with the agreement.

The minister went on to explain that under the new rules for the sector, price increases will be possible only once a year in March, and the increase will be decided by Cmed, based on the IPCA (broad consumer price index).

Costa also suggested a control list for drugs that are not under price control because of abuses in the past. "In my opinion, the best way to deal with price abuses is to apply more rigorous controls," he said. Laboratories that do not comply with controls can be fined up to R$50,000. Sector oversight will be carried out by the National Sanitary Vigilance Agency (Anvisa). (AB)