While the Iranian regime’s Food and Drug Administration claims that the recent currency policy changes do not mean the complete elimination of subsidized exchange rates for medicines or the beginning of a new wave of price hikes, reports indicate a sharp increase in the prices of some medications in Iran.
According to a report published by Baamdadno, citing a notice from a pharmaceutical company, the prices of 82 of the company’s products have increased by an average of about 120%. The largest increases were for Donepezil tablets, at about 543%, and Clarithromycin, at about 308%.
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The state-run website Asr Iran also wrote: “According to Tasnim News Agency, a pharmaceutical company announced in a notice that the prices of 82 of its pharmaceutical products have increased, raising the average price of the affected items from about 1.8 million rials (approximately one dollar) to 3.9 million rials.”
In response, Mohammad Hashemi, spokesperson for the Iranian regime’s Food and Drug Administration, claimed that the recent currency changes affect only certain pharmaceutical intermediates and precursor materials and should not be interpreted as the removal of subsidized exchange rates across the entire pharmaceutical supply chain.
He also said that foreign currency for raw materials and precursor substances used by the pharmaceutical industry has been allocated at the same level as last year and that the Health Ministry’s policy is to prevent financial pressure from being passed on to patients.
The debate over the gradual elimination of subsidized exchange rates for medicines has continued for months. In March 2026, the Food and Drug Administration announced that, due to limited foreign currency resources, subsidized exchange rates would be removed for certain active pharmaceutical ingredients and precursors used in over-the-counter medicines, low-cost non-chronic medications, and some licensed drugs, although vital and essential medicines would continue to qualify for the subsidy.
Following these changes, numerous reports of price increases for some medications have been published, and concerns have grown about rising treatment costs and more difficult access to medicines for patients.
The state-run website Khabar Online wrote about the rise in drug prices: “Drug prices increased this year in two stages, first on April 5 and then in early June. About two-thirds of all medicines were repriced during these two stages. Mehdi Pirsalehi, head of the Food and Drug Administration, said a few days ago at a press conference that ‘this increase is not solely the result of manufacturers’ decisions. The prices of raw materials, auxiliary materials, packaging, petrochemical products, aluminum, and transportation costs have also affected this sector.'”
The head of the Iranian regime’s Food and Drug Administration added: “In just one example, we have seen transportation costs increase. The cost of shipping a container from countries such as China and India, which used to be about $2,000 to $3,000, has in some cases reached $30,000, and it is paid using the free-market exchange rate. Rising global energy costs and higher raw material prices in countries such as India and China have also increased production costs.”
This regime official then combines these figures and claims that not all of the costs will be paid by patients and that “we are pursuing a collective system.” However, in this official’s so-called collective system, there is no mention of the government. Instead, it is once again the people, pharmaceutical companies, and ultimately insurance providers who are expected to bear the costs—something that never happens, with the result being drug price increases of 300% to 500%.
