"Buy Brazilian" gives 25% price premium for home grown innovation
This article was originally published in Scrip
Executive Summary
New rules on bidding for government contracts in Brazil mean that manufacturers can charge up to 25% extra if any innovation relating to the product has taken place in the country. The law is potentially good for the pharmaceutical industry in Brazil, but Interfarma, the R&D-based pharmaceutical industry association there, warns that without a clear definition of innovation, the new law could lead to confusion and expensive legal wrangling for companies.