GeneralIran’s Pharmacies Nearing Bankruptcy Due to New Government Regulation

Iran’s Pharmacies Nearing Bankruptcy Due to New Government Regulation

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According to Shahram Kalantari, the head of the Iranian Pharmacists Association, the uncontrolled increase in the establishment of new pharmacies has pushed older pharmacies to the brink of bankruptcy. Experts attribute this phenomenon to the commercialization and the dominance of economic aspects over the therapeutic function in this profession.

Kalantari emphasized that the uncontrolled increase in the number of pharmacies by 30% in one year has put pressure on the economy of older pharmacies. This has led to some older pharmacies reaching the verge of bankruptcy, while others have attracted investors or changed their profession.

The commercial outlook on this profession is evident in the dispersion of pharmacies. According to Kalantari, in some provinces, there is one pharmacy for every 11,000 people, while in certain areas in the northern part of Tehran, there is one pharmacy for every 1,500 people.

The regime’s Mehr News Agency confirmed the commercialization of pharmacies in a report published on December 22, 2023, stating, “The reckless issuance of pharmacy establishment licenses in the past year has led pharmacies to turn to the sale of cosmetics, hygiene products, and supplements in order to avoid bankruptcy.”

Statistics also show that after the implementation of the new regulations for establishing pharmacies, between 250 to 300 pharmacies are established monthly in the country. Based on these statistics, Mehr stated that the number of pharmacies has increased by 30 to 40 percent in different provinces over the past two years.

One criticism of the pharmacy establishment system is the elimination of geographical distance and the removal of the monopoly on issuing establishment licenses. Critics argue that this has led to competition among pharmacies, despite the fact that according to the rules of the Medical Council, medical institutions such as pharmacies do not have the right to compete with each other.

On the other hand, supporters of this new policy believe that the existence of a competitive environment and the elimination of monopolies will lead to increased access for people to their pharmaceutical and healthcare needs, as well as an improvement in the quality of goods and services provided by pharmacies.

This comes at a time when in the past year or two, the crisis of drug shortages and the uncontrolled increase in drug prices have put Iranian families in a healthcare and medication crisis.

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