The clap:
Confirming earlier reports of drug price hikes, the Egyptian Drug Authority (EDA) is looking to gradually raise certain med prices by up to 30% over the next 15 months, MBC Masr’s Sherief Amer quotes an EDA source as saying.
Which drugs are targeted?
Price increases will only affect newly manufactured drugs and do not include products already in stores, head of the Federation of Egyptian Chambers of Commerce’s pharma division Ali Auf noted last week. Meds for chronic illnesses are targeted for smaller price upticks of between 10-15% compared to those for diseases that are not long-lasting, Amer said.
How will the price hike process go about?
Amer said every three months a group of drugs will be selected for a 25% price hike. As for the date of implementing the price increase, Chairman of the Manufacturing Committee of the Pharmacists Syndicate Mahfouz Ramzi told MBC the timeline will be different for each company.
Remember:
Egypt’s FX shortage, import restrictions, and inflation woes have hampered pharma companies efforts to bring in needed raw materials to boost domestic production, leading to a number of key drugs — including ones for immune diseases, diabetes, and multiple sclerosis — to vanish from pharmacy shelves. Last year, pharma firms submitted requests to the EDA to increase the prices of 3,500 drug items, with most companies requesting an average increase of 25% as a first phase.
Where we stand:
Now some producers are requesting a 40% price hike, Ramzi told MBC Masr.
Will this alleviate the supply gap?
The price hikes are expected to see shortages of some meds in the Egyptian market “resolved within the next ten days,” Auf said last week.
Going forward:
“After raising prices, the company that delays the production of its medicines will have its license withdrawn immediately, “ Ramzi said. Companies looking to disrupt the market by shorting supplies will be replaced/overtaken by new entrants, he cautioned.
