The Head of the Pharmaceutical Division at the Federation of Egyptian Chambers of Commerce (FEDCOC), Ali Aouf stressed on Tuesday that the Egyptian pharmaceutical market is in a real crisis due to the imbalance between current production costs and selling prices.
During a phone interview with Azhari TV channel, Aouf stated that this crisis is not an excuse for the companies to force a raise on prices, but instead reflects the critical economic situation currently facing the pharmaceutical industry.
The current crisis is not just a shortage of certain items, he added, but also due to the emergence of a black market for the sale of medicines, especially imported ones or those without local alternatives.
These drugs are sold at double the price, sometimes reaching LE 50,000 per package, instead of the usual LE 30,000, he noted.
He explained that the Egyptian Drug Authority is rejecting company demands for further price increases, explaining that last year’s price increases were sufficient.
These increases were not comprehensive and did not keep pace with the actual rise in production costs, he said, especially with the dollar rising from LE 30 to LE 50, and the rising prices of packaging, printing, and raw materials, most of which are imported.
He noted that the Egyptian pharmaceutical industry remains a national industry, covering 92 percent of the local market’s needs – however, it faces fierce competition from importers, who may leave the Egyptian market if they fail to achieve economic viability.
Aouf emphasized that maintaining the continuity of local production requires reaching a compromise that preserves the industry and does not burden patients.
Regarding the future of this shortage, Aouf said, “If the Drug Authority continues to completely reject any increases without a reduction in costs, some companies will be forced to reduce production or lay off workers, which will exacerbate the drug shortage.”
He emphasized that the proposed increase for this year does not exceed 10 percent, a percentage far less than the rate of cost increases.
“We are not seeking profit, but rather maintaining a balance between production and the provision of medicine. If the government helps us reduce expenses, we will not demand any increase.”
He called on the state to put the interests of patients first and work to provide safe and fair medication, while protecting the local industry from disruption or collapse.
