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Conversation highlights:
The disconnect between Argentina’s GDP rebound and stagnant or declining pharma volumes highlights a critical reality: in a high-inflation environment, peso-based growth offers limited insight, reinforcing the need to focus on real demand indicators.
A comparison between Argentina’s highly atomized system and more structured regional models such as Colombia illustrates how similar macro indicators can translate into very different access dynamics and system efficiencies.
The country’s coverage structure—35–40% public, ~10% PAMI accounting for ~40% of spend, and ~50% across private payers—provides a clear and highly operational view of a complex but well-established payer landscape.
Private payers, historically the most accessible entry point for innovation, are evolving toward more rigorous and structured HTA frameworks, reflecting a broader shift toward value-based decision-making.
Argentina’s federal setup, where national guidelines coexist with provincial implementation, combined with recent funding shifts, is reshaping access pathways and increasing the importance of local-level execution.
While value-based healthcare remains challenging, the recognition that long-term outcomes must be better integrated into decision-making is gaining traction, particularly in high-impact areas such as chronic disease and prevention.
EF: Can you tell us about your role at IQVIA and your current priorities in Argentina?
MLD: I have been with IQVIA for almost 16 years, working in the consulting area that supports companies in strengthening their go-to-market and market access strategies. Our role is to help clients design and execute tailored approaches, leveraging the breadth of data and experience we have built over time.
My experience with Argentina spans nearly six years, initially, after which I expanded into a regional role covering the South Cone and later moved to Brazil for three years. Since mid-last year, I have returned to Argentina, bringing both local and regional perspectives.
Argentina is one of the largest pharmaceutical markets in Latin America, typically ranking third or fourth depending on the metric used. In value terms, it is closer to third place, while in volume it is generally fourth, particularly when compared to Colombia. At the same time, it is a complex market, with a number of structural challenges that require careful navigation from both a commercial and an access perspective.
EF: What are the key structural challenges and emerging opportunities in Argentina’s pharmaceutical market today?
MLD: The situation is quite complex. Before the pandemic, Latin America’s growth projections were aligned with those of other emerging markets, at around 4 to 5 percent GDP growth. Since then, projections have declined to levels closer to mature European economies, in the range of 2 to 3 percent. This creates a more challenging environment for global companies when making investment decisions across regions.
In Argentina specifically, the market has been contracting in recent years. This contraction is primarily in volume terms, as discussing market performance in monetary terms is less meaningful in a context of very high inflation. The market has remained flat or slightly declining in units, which is notable given that the economy has recently shown GDP growth of around 4.5 percent.
This suggests that the recovery has been driven more by macroeconomic variables than by underlying improvements in the healthcare system or demand level. You can see this reflected in the real economy, for example, in Buenos Aires, where commercial activity has been impacted, and some areas have become less dynamic.
At the same time, the current government has implemented significant changes to public healthcare spending, including reductions in programs, workforce adjustments, and the defunding of certain national initiatives.
Argentina’s federal structure adds another layer of complexity, as responsibilities are increasingly shifting toward the provinces, which are now expected to manage healthcare delivery with more limited national support. This environment is also forcing a shift in how companies operate. Greater fragmentation and resource constraints are increasing the need for more targeted go-to-market strategies and a deeper understanding of local dynamics. In that sense, companies that are able to adapt their models and navigate this complexity effectively can still identify meaningful opportunities.
EF: How does the structure of Argentina’s healthcare system shape market access dynamics, particularly for innovative therapies?
MLD: Argentina’s healthcare system is highly atomized, which creates both opportunities and inefficiencies. The population is broadly segmented into 35 to 40 percent who rely on the public system, around 10 percent covered by PAMI, and the remaining 50 percent split across union-run HMOs, provincial systems, and private payers.
PAMI plays a particularly critical role. Although it covers only around 10 percent of the population, it represents close to 40 percent of total healthcare expenditure, as it serves an older population with higher healthcare needs.
In terms of market access, what we have seen in recent years is a shift in the role of private payers. Historically, they were considered the most accessible entry point for innovation. Five years ago, most companies would have identified the private sector as the easiest path for market access. Today, that dynamic has changed significantly. Private payers have become much more restrictive, implementing more structured and rigorous health technology assessment processes. As a result, access to new technologies has become increasingly challenging, even within segments that were previously more flexible.
EF: Building on this shift toward more rigorous evaluation, how do you see value-based healthcare models working in Argentina’s current environment?
MLD: Value-based models face a fundamental challenge in Argentina, which is the lack of intertemporal thinking. For these models to work, payers need to consider long-term outcomes rather than short-term budgets.
Take obesity as an example. A 35 to 40-year-old patient with obesity has a high cardiovascular risk. The key question is whether investing in treatment today can reduce the likelihood of heart attacks or strokes in the future. The long-term cost of managing that patient without proper treatment, potentially into their 70s or 80s, is significantly higher than the cost of early intervention with new technologies.
The challenge in Argentina, and more broadly in Latin America, is that decision-making tends to be short-term. Payers often focus on monthly budgets, or at best short planning cycles, rather than the long-term impact of their decisions.
That said, there are some important exceptions. We have seen a successful example of a results-based agreement at the national level for a treatment in spinal muscular atrophy. In this case, the total cost of treatment, around 1.5 to 2 million dollars, is financed over five installments, with payments linked to treatment outcomes. This type of model works because it shares risk between the payer and the manufacturer.
Looking ahead, these kinds of schemes, where part of the risk is absorbed by the manufacturer, could create more opportunities to introduce high-cost innovative therapies in a sustainable way.
EF: What is the current state of healthcare digitalization in Argentina, and how far is the system from meaningfully integrating AI?
MLD: The level of digitalization in Argentina still remains very basic. In many cases, we are not yet at the stage of discussing AI, but still addressing foundational elements such as electronic medical records.
A large share of the population, particularly the 40 percent that relies on the public system, receives care in environments where records are not properly formalized. In some hospitals, patient information is still managed through physical files, with large volumes of paper records that must be manually searched to retrieve information.
Even in institutions that have adopted electronic medical records, the level of sophistication is often limited. In many cases, these systems function as simple text documents, similar to a Word file, where physicians record notes without structured data fields. This makes it difficult to extract or analyze key information, as relevant data points, such as blood pressure, are embedded within unstructured text.
System fragmentation further complicates the situation. Even when certain regions or institutions have implemented digital solutions, these systems are not interoperable. For example, if a patient receives care in one province and then moves to another, their medical information typically does not transfer across systems.
That said, there are some early examples of AI being applied in a very targeted way. Some private payers are developing tools to improve operational efficiency, such as identifying fraudulent billing patterns. These types of applications can deliver immediate value. Compared to more mature systems, Argentina still has ground to cover, but also the opportunity to build on these foundations and accelerate digital and AI adoption.
EF: Given the current context, why should investors consider Argentina as an attractive market today?
MLD: This is actually a very relevant moment to consider Argentina for investment. Market timing plays a key role. When a market is still flat, and before a growth cycle begins, entry tends to be more attractive than at a later stage when valuations are already higher.
We expect the market to remain relatively flat in the short term, potentially beginning to recover in the second half of the year, with stronger momentum as investment flows increase over time. While short-term projections remain conservative, the current policy direction is focused on creating long-term stability.
The government is implementing a more disciplined economic approach, including fiscal balance, reduced public spending, stronger conditions for external investment, and greater emphasis on property rights. It is also opening opportunities across key industry sectors. While some of these measures may have a short-term impact, they are designed to support a more stable and predictable environment over time.
In addition, Argentina remains highly attractive for R&D. The country has a strong network of hospitals, highly qualified medical professionals, and comparatively low healthcare costs. This creates a favorable environment for clinical research and multinational investment. Overall, the outlook for investors is becoming more positive, particularly for those able to take a longer-term perspective and enter the market ahead of the next growth cycle.
