Pharmaceutical

Source:  Transaction database – USD million / Uruguay XXI Reports.

*Including Free Trade Zones.

HTSUS:  2936, 2937, 2939, 2941, 3001, 3002, 3003, 3004, 3005, 3006 (pharmaceutical products) Total Market Size = (Total Local Production + Total Imports) – (Total Exports).

Pharmaceuticals are the leading industry in the life science sector.  Uruguay has a long history in pharmaceuticals and has over 30 pharmaceutical facilities.  Approximately 77 percent of the national production is produced for the domestic market and 23 percent for export markets. The workforce is highly skilled and knowledgeable, and the government has established a transparent regulatory framework in which companies and laboratories operate.  International firms have raised concerns about Uruguay’s pharmaceutical intellectual property regime, which can take up to 10 years to grant intellectual property rights to international pharmaceutical producers.   

In 2021, Uruguay’s pharmaceutical exports amounted to USD $193 million, predominantly sold to other Latin American countries, primarily Argentina.  Uruguay’s contraceptive pharmaceutical production is the main pharmaceutical export, followed by medicines.  Additionally, Uruguay’s pharmaceutical industry exports vaccines and serums, primarily for veterinary use and packaged for retail sale.  Pharmaceutical laboratories are dependent on imported raw materials, mainly from China, because Uruguay and other countries in the region do not produce these chemicals.

The United States is one of the larger suppliers of pharmaceuticals to Uruguay although competitor countries are increasing their sales significantly.  In 2021, Uruguay’s main imports were medicines, followed by immunologic reagents.  13 percent of the pharmaceuticals imported from the United States were medicines, followed by veterinary vaccines at 11 percent.  Uruguay’s regulatory framework offers important advantages for logistics operations, with incentives for the installation of regional distribution centers that handle goods in transit.  In 2021, the transit of pharmaceutical products in Uruguay reached $792 million, which is almost four times the amount exported by the sector.  This business model has grown over the last decade and has become an important option for companies serving the region.  The transit of pharmaceuticals through Uruguay shows an important flow of goods from the northern hemisphere, primarily Europe and the United States, through Uruguay to final destinations around South and Central America. 

Health Information Technology

In 2012, Government of Uruguay created the website, Salud.uy, which is an online healthcare platform shared by multiple government agencies.  Uruguay’s Presidency, the Ministry of Health, the Ministry of Economy, and the National Agency of Electronic Government (AGESIC) all coordinate the development of health IT initiatives on the platform.

The Government of Uruguay approved Decree 242/017 in September 2017, which created the National Electronic Health Record platform (HCEN).  Resolution No. 1085 generated a staged-plan where forty-three healthcare providers created compatible electronic health records for their respective patients.  By the end of 2020, healthcare providers were to have registered 100 percent of patients (2.1 million people) and 90 percent of the healthcare activities such as medical studies, medical appointments, and others on the HCEN platform.

In 2019, Uruguay also implemented a National Digital Receipt, allowing patients to order prescriptions online and have the prescriptions delivered.  There is also a National Network of Image Diagnosis, enabling doctors to check the results of imaging studies through any device connected to the network.

In March 2020, the government of Uruguay passed a telemedicine law to promote healthcare IT development in the country.  This law contains general regulations to support the implementation of telemedicine in Uruguay.    

Medical Equipment

Source: Transaction database 

HS Codes: 9011;9012;9018;9019;9021;9022;9027

In 2021, U.S. products accounted for 28 percent of medical equipment imports in Uruguay, followed by China (14 percent) and Germany (10 percent).  Opportunities for U.S. exports in this sector include middle and high-end technology products, such as electro-diagnostic equipment and telemedicine technologies, among others.  Medical institutions in Uruguay have shown interest in purchasing portable devices to improve diagnosis in rural areas or small towns located in the interior of the country.

Opportunities

Due to its geographical location, free trade zones, and legal and tax framework, Uruguay has positioned itself as a logistical hub for the pharmaceutical industry.  The free trade zones, free seaport, free airport, and warehouse regulations provide a complimentary framework for establishing distribution centers that supply medical goods to other locations in Latin America. 

Additionally, Uruguay is an attractive innovation hub for the research divisions of international companies.  Uruguay offers government support that assist life science firms who invest in Uruguay.

On the other hand, it should be noted too that in December 2020, the Uruguayan Congress issued Article 325 of Law No. 19924 which modified Article 99 of Patent Law No. 17164 regarding patent infringement protection occurring between the time of patent publication and the granting of the patent. This change affects the protection of pharmaceutical products whose research occurred outside of Uruguay.  This is a concern to many international pharmaceutical producers because it can take up to 10 years to be granted intellectual property protection rights for pharmaceuticals.