In a recent television interview, President Rodrigo Chaves admitted that the government's initiative to regulate the profit margins on pharmaceuticals has not yielded the desired results.

Effective from February 15, the regulation establishes that wholesale distributors may charge a margin between 11% and 28%, while retailers, which include supermarkets and pharmacies, are allowed margins ranging from 25% to 43.5%.

The decree, signed on January 15, aimed to intervene in consumer prices and was intended to last for six months.

During the interview, which aired on June 4, Chaves stated, "The plan for pharmaceuticals did not work for us.

I confess that I did not achieve it, but let them record it to see if I have not made every possible effort and I continue to do so." He directed criticism towards Esteban Vega de la O, Logistics Manager of the Costa Rican Social Security Fund (CCSS), accusing him of sabotaging his plans, as well as other entities including the Commission for the Promotion of Competition (Coprocom) and businesses involved in the pharmaceutical market, particularly the DOKKA Group, formerly known as Cuestamoras Salud.

Vega, when consulted, indicated that the CCSS and the Logistics Management do not have jurisdiction over price margins in the private sector.

He noted that the Logistics Management has been promoting regulations to enable the CCSS to place a portfolio of medications on sale in the private sector.

The CCSS is the largest pharmacy operator in the country, with 422 establishments, representing approximately 24% of the total, according to the pharmaceutical market study conducted by Coprocom.

The pharmaceutical market study presented by Coprocom in January revealed that the regulation of price margins lacks justification, as significant overpricing has not been substantiated to support this measure.

Chaves criticized the Commission, pointing out the presence of oligopolistic structures within the market, notably referring to groups that manage pharmacies, suggesting that they were favored by the commission’s assessment.

The Costa Rican pharmaceutical sector consists of three main actors: pharmaceutical laboratories, wholesale drug distributors responsible for importation and distribution, and retail pharmacies.

The DOKKA Group, which owns several pharmacy brands, holds a 35% market share in drug distribution and ranks second in pharmacy establishments, with brands La Bomba and Fischel accounting for a total of 124 locations.

Viviana Blanco Barboza, President of Coprocom, expressed that the commission had previously identified deficiencies in the regulatory project and potential consumer detriment.

She stated, "It did not work because it does not address the structural problems of the pharmaceuticals sector.

The government refused to implement all recommendations put forth by Coprocom to improve access and pricing of medications."

Blanco highlighted that the comprehensive study of the pharmaceutical sector took 11 months to complete, incorporating interviews and statistics, guided by a team of experts in competition.

The report recommends against price regulation or margins, a point raised from the outset.

The Ministry of Economy, Industry and Commerce (MEIC) confirmed that the price regulation decree remains in effect until August 18, pursuant to the prevailing regulations.

The MEIC indicated that it continues to analyze data on the implementation of the regulatory measure to evaluate its effects on the market.

In related developments, the legislative agenda has included discussions surrounding a debt condonation project for water services owed by the municipalities of Paraíso and Cartago to the Costa Rican Institute of Aqueducts and Sewers (AyA), reflecting ongoing tensions in local governmental financial management.