Following the recent rise in medication prices, many patients have refrained from obtaining their prescribed drugs, with some pharmacists reporting that one-third of patients forgo purchasing medication due to its high cost.
Mohammad Abdozadeh, chairman of the Iranian Syndicate of Human Pharmaceutical Industries, told the state-run IRNA news agency that the root of rising medication prices lies in the country’s macroeconomic conditions and the budget deficit of the Ministry of Health.
He added: “While the Ministry of Health avoids adjusting prices in line with inflation, the costs of drug production—including raw materials, packaging, and transportation—have sharply increased due to the exchange rate and inflation.”
According to Abdozadeh, the increase in medication prices not only stems from manufacturers’ need for domestic and foreign resources but has also exacerbated the decline in production capacity.
Alireza Azani, a pharmacist, also highlighted the challenges faced by manufacturers, noting that companies are grappling with severe issues due to liquidity shortages and unpaid receivables from drug distribution companies.
The pharmacist further stated that some factories are operating at only 30 to 40 percent capacity, leading to protests within these companies.
He added that the average collection period for receivables has exceeded 400 days, creating significant liquidity challenges for pharmaceutical companies.
Shahram Ghafari, Deputy Director of Treatment at the Social Security Organization of the Iranian regime, told IRNA that the increase in drug prices was implemented by the Food and Drug Administration but without coordination with basic insurance organizations.
He added that this lack of coordination led to higher out-of-pocket payments for patients, and some medications have yet to be updated in the insurance systems.
According to this official, this period of misalignment lasted about a week, resulting in increased costs for both patients and insurers.
Despite these price increases, Abdozadeh emphasized that the pharmaceutical industry is not inclined to raise prices but, given the economic pressures and prevailing inflation, pharmaceutical companies need “price adjustments” to continue production.
In recent weeks, Mohammadreza Zafarghandi, Iran’s Minister of Health, announced the removal of subsidized exchange rates for drugs, stating that the import of pharmaceutical items would be conducted using NIMA rates, and the preferential exchange rate for medical equipment would also be eliminated.
The uncontrolled rise in drug prices continues despite his claim about a month ago that after removing subsidized exchange rates for drugs and medical equipment, “monitoring” would prevent placing pressure on patients.
Resolving the challenges of insurance and healthcare has consistently been one of the primary demands raised in the economic protests of retirees and workers from various industries in Iran.
