Turmoil in the pharmaceutical and medical supply market and the emergence of brokers on the streets of the capital reflect the depth of the crisis. Securing foreign currency and importing foreign products for patients with special illnesses has become an unsolvable problem that has destabilized the market. This situation has caused vital medical items either to become scarce or to be sold at astronomical prices in unofficial markets.
Production Challenges and the Deadlock in Drug Pricing
Mohammad Jamalian, a member of the Health Commission in the Iranian regime’s parliament, stressed on May 2 the necessity of choosing between higher prices or the absence of medical supplies. He believes that rising prices of raw materials and plastic have created serious difficulties for manufacturers in continuing operations. Jamalian stated: “Today, one of the main concerns is the sharp increase in the price of plastic, raw materials, and other pharmaceutical necessities. To preserve the ability to continue production, we have no choice but to increase drug prices.”
He warned that imposing price controls would certainly intensify shortages and create severe dependence on imports.
In the past two weeks, out of 1,030 reviewed items, 800 failed to receive permits due to objections. This lack of economic viability has gradually pushed manufacturers out of the production cycle and created secondary shortages. Jamalian emphasized: “An increase in drug prices is unavoidable, and if we try to suppress prices through pressure, production will certainly stop and we will be forced to import at much higher prices.” According to him, under current conditions, having products available at higher prices is more vital for patients than their complete disappearance.
The provision of foreign currency resources and fluctuations in exchange rates have severely affected distribution capacity and destabilized the market. In addition to currency-related problems, phenomena such as hoarding and profiteering in provincial centers have led to the distribution of expired products in the market. This situation creates crushing additional costs for residents of smaller cities who must travel to Tehran to obtain a single medication. The pressures of travel, lost time, and the possibility of missing critical treatment opportunities have endangered the health of many families.
The Removal of Subsidized Currency and Its Consequences for the Supply Chain
Distrust in the ability of insurance providers to respond and their failure to settle payments with pharmacies have turned access to medical supplies into a catastrophe. On May 2, Homayoun Najafabadi reported the complete disappearance of products that were previously easy to obtain in the market. He described the current situation as follows: “Many medicines that were essential and previously very easy to obtain and abundant like خاک are now unfortunately unavailable even in a single unit. There is now a severe shortage in cardiac, ophthalmic, and injectable products.”
The main reason for the price surge is due to budget legislation and the complete removal of subsidies and preferential currency rates for importing raw materials. Previously, raw materials were obtained using currency valued at one-fifth of the current rate, but they must now be purchased at the free-market rate. This currency policy change has sharply increased production costs and transferred the burden to consumers. Mohammadreza Zafarghandi, the health minister of the Iranian regime, stressed on May 1 that the country’s conditions are akin to wartime and that meeting needs requires comprehensive cooperation.
Fluctuating currency policies and ineffective management have transformed the pharmaceutical crisis from an economic challenge into a serious threat to patients’ lives.
The regime’s promises of free healthcare are made while patients with special illnesses now remain stuck in long lines just to receive minimum treatment services. The government’s 300 trillion rial debt to the industry, approximately $158 million, has pushed the healthcare system to the brink of collapse and restricted access to treatment.
Shocking Statistics on Price Increases and Risks for Rare Disease Patients
Reports show that out of every 10 pharmacy customers, three refrain from purchasing medicine after seeing the prices. This abandonment of treatment means the spread of disease and an increase in silent deaths across different layers of society. Prices of seizure-related medications have risen by 220%. Domestically produced insulin has also experienced a price increase of more than threefold.
Supplement syrups such as Vitamin D3 and zinc have become 3.2 times and 286% more expensive, respectively. Anesthesia-related items such as propofol, with a 122% increase, and betadine, with a 161% increase, have raised hospitalization and surgery costs. Even simple products such as clopidogrel and stroke-treatment syrups have not escaped inflationary increases of 116% and 37%, respectively. Major companies such as Zahravi have increased the prices of some products by as much as 415%, reflecting the depth of the crisis in the private sector.
Hamidreza Edraki, CEO of the Rare Diseases Foundation, warned about interruptions in medication use and described them as a cause of disruption in treatment. He believes continuous access to medicine for the 560 identified rare diseases in Iran is absolutely vital and cannot be ignored. In a letter to the Iranian regime’s Supreme National Security Council, the Pharmacists Association warned about the complete collapse of the supply chain and its security risks. The theft of chemotherapy drugs from hospitals is also a symbol of the regime’s disorder and incompetence in protecting the country’s limited medical resources.
