LOCAL PURCHASES ARE EXPENSIVE

The remaining 8% of overpriced purchases are a result of uncompetitive practices, not using scale economies, and issues related to administrative formalities. These happen when the government purchases antiretrovirals from local laboratories instead of international organizations.

One of the examples is related to the Abacavir 20mg purchase of 2017. This case shows the weaknesses in local purchases: the laboratory price was 3.30 times higher than the reference price set by the Pan American Health Organization.