Mercado Livre expansion into Brazilian pharmacy market

E-commerce giant Mercado Livre has announced an expansion into the Brazilian pharmaceutical market, specifically targeting the sale of prescription medications, including GLP-1 weight-loss treatments.

The company is utilizing a third-party marketplace model to act as a digital bridge for approximately 20 partner pharmacy networks. To support this, Mercado Livre is launching ‘Envios Agora’, a logistics service designed to facilitate deliveries in under 60 minutes in São Paulo.

The move has caused significant volatility for established Brazilian pharmacy chains on the Ibovespa, with notable share price drops for Pague Menos, RD Saúde, and Panvel. Following the announcement, major chains including RD Saúde (Raia and Drogasil), Pague Menos, and Panvel (Dimed) saw a combined loss of R$ 1.6 billion in market value due to investor concerns regarding increased competition.

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