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Institute Report
Innovative Funding for Medicines in Latin America
A Framework for Advancing Access
Aug 13, 2020
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About the Report

The pharmaceutical industry has made great strides in recent years developing novel medicines, however, in Latin America, access to most of the latest innovative medications is limited, particularly in oncology and rare disease. This report outlines a solution framework aimed at improving access to medicines within Latin America and increasing critical funding for innovative medicines. The solution framework builds upon real world examples from other countries that address inequality in access to innovative oncology and rare disease therapies. Possible solutions are presented for five countries (Brazil, Mexico, Argentina, Colombia, and Costa Rica) based on their unique context and needs.

Report Summary

Constrained healthcare budgets in Latin America and the lack of an adequate funding framework for innovative medicines present significant hurdles to access and reimbursement for innovative medicines. Among fourteen solutions implemented globally to overcome funding challenges, four were assessed to be more feasible to implement and likely to have a greater impact on healthcare financing in Latin America. These four policy building blocks — creation of dedicated drug funds, earmarked taxes, social impact bonds and R&D capital investment through public/private partnerships — can form the foundation of a solution framework for funding innovative medicines in Latin America.

Potential application of this framework in the context of multiple countries requires some adjustments to properly fit specific country contexts. Solutions put forth for Argentina, Colombia, Mexico, Costa Rica and Brazil do not include every component of the framework, but elements of the framework provide a basis for a tailored context-specific solution that can be further evaluated with government and other stakeholders. These country-level funding frameworks target current resources that could be reallocated to meet objectives of previously passed legislation on rare disease and oncology and involve innovative funds that can generate a sustainable and traceable funding mechanism to provide resources to clinicians and patients.

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