Mercado Livre expansion causes R$ 1.6 billion loss for Brazilian pharmacy chains

Major Brazilian pharmacy chains—RD Saúde (Raia and Drogasil), Pague Menos, and Panvel (Dimed)—lost a combined R$ 1.6 billion in market value following Mercado Livre’s announcement to expand its sale of medications.

The market decline reflects investor concerns regarding increased competition from the e-commerce giant, which plans to offer fast delivery for prescription drugs, including antibiotics and weight-loss medications, in the São Paulo metropolitan area.

In response to the move and a formal complaint by the Brazilian Association of Pharmacy Chains (Abrafarma), Anvisa has notified Mercado Livre to provide clarifications. The regulatory agency is seeking details on sanitary permits, the identification of responsible pharmacists, and logistical procedures for transporting sensitive medicines. While recent legislation allows pharmacies to use digital channels for logistics, Anvisa noted that the commercial intermediation by marketplaces still lacks specific complementary regulation.