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Home > Synthesis

Paraguay Revolutionizes Drug Price Regulation to Improve Public Health

KO YONG-CHUL Reporter / Updated : 2025-03-11 18:51:01
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Asunción, Paraguay – The Paraguayan government, with technical collaboration from the Pan American Health Organization (PAHO), has implemented a groundbreaking reform in its drug price regulation. Effective November 2024, the National Directorate of Health Surveillance (DINAVISA) has adopted the new 'DINAVISA Resolution 174/2004', shifting from a pricing system based on intermediary margins to an international reference pricing model.

The core objective of this transformation is to enhance transparency in drug pricing and improve the accessibility of essential medicines for the Paraguayan population. To achieve this, a multi-sectoral 'Drug Price Observatory' has been established, strengthening the monitoring of prices and oversight of regulatory compliance.

Early results following the implementation of the new regulation have been highly positive. Notably, significant price reductions have been observed in medicines crucial for public health, such as cancer drugs. This development is expected to substantially alleviate the financial burden of healthcare on Paraguayan citizens and contribute to improved public health outcomes.

The Paraguayan government and PAHO are committed to ongoing collaboration, ensuring meticulous monitoring of the new regulation's implementation and making necessary methodological adjustments. Furthermore, they plan to conduct in-depth analyses of the regulation's economic and social impacts to maximize policy effectiveness.

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