Government Targets Pharmaceutical Sector With New Regulation

BMI View: While Venezuela's decision to formally regulate margins on goods and services, including healthcare, is likely to help President Hugo Chávez win political support and control prices in the short term, we caution that the country's increasingly harsh pricing regime is unlikely to help rein in high inflation. Instead, the measures could lead to tighter profitability constraints, higher operational risks and a business environment that ultimately hurts

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