BUS:670 Legal Environment
Dr. Gary Gentry
May 20, 2013
Outline of final paper
My final paper will focus in the Peruvian generic medicine market. The Peruvian market is dominated by the leading laboratories who set the prices and control the brands. Peruvian customers are used to follow doctors prescriptions strictly and believe that the use of generics is dangerous. This situation allows the laboratories to capture the market and set the prices (Peruvian medicines are more expensive than in the USA). The Peruvian health agency; "Ministerio de salud" signed a cooperation agreement with national association of pharmacies for them to distribute 83 of the most used generic medicines along with the brand medicines. They never kept up the agreement, and the pharmacies refuse to sell generic medicines.
The generic drug industry covers the marketing and sale of medication containing the same active ingredients and dosages as brand-name drugs manufactured by the pharmaceutical industry. Drugs can be prescribed under their chemical name without specifying a particular pharmaceutical brand or company. A key benefit of generic drugs is that they usually cost a fraction of the price of brand-name drugs. In this context, our company (consulting) is planning to open a franchise of pharmacies that will exclusively provide generic medicines to the customers. We have two investors that have different approaches for the business.
Final paper will analyze the legal environment in Peru and all aspects of liabilities, torts, ethics and legal implications of opening a parent company that will manage the franchise. Our company is based in the United States and will import products from the US. Therefore, is subject to lawsuits and liability in both the USA and Peru. Peru has a current free trade agreement with the United States. This agreement considers anti-trust laws and monopoly, international contracts, and patent