Egypt

Doctors Syndicate: Floating pound leads to increase in medicine cost by LE50 bln

A workshop organized by the Doctors Syndicate revealed that the shortages in some medicines have worsenned since the floation of the Egyptian pound and surge of the US dollar rate. This is expected to lead to an increase of LE50 billion in the price of the medicines.

The syndicate undersecretary Mona Mina said the crisis started two months ago. We found that the cost of medicines will rise by almost LE50 billion, since all our needs in medicines and medical requirements are imported, she said.

“There have been growing demands that social insurance should foot the bill and cove the cost. But this is very hard, as the social insurance budget is currently LE100 billion, LE50 billion of which goes directly to medicine. If it is to cover the increase, then it will need (a budget of) LE150 billion,” she explained; adding that the syndicate will send recommendations to all authorities involved in the manufacturing of medicines in Egypt, to work on resolving the issue.

Ahmed Hussein, member of the syndicate board, said the workshop was held to find solutions to the crisis, adding that they urged all authorities in question to find solutions.

Ahmed Farouq, secretary general of the Pharmacists Syndicate, said that medicine is a matter of national security to Egypt, adding that the syndicate had urged the formation of a fact-finding committee to tackle the issue, however, the committee in question stopped working for no apparent reason.

Farouq described the necessity of replacing the central department of pharmaceutical affairs with a supreme drug authority.

He added that no pharmaceutical company is ever penalized for violating its pledges; and now, they are threatening to either raise prices or stop production.

He also indicated that the business sector companies used to represent 60 percent of total Egyptian medicine production 15 years ago. Nowadays, they represent no more than four percent.

He explained that  the Health Ministry had accrued debts to the Egyptian pharmaceutical companies reaching upwards of LE1.3 billion; and that this is part of a scheme that targets weakening the business sector companies to be sold, giving as an example what happened with SID pharmaceutical company. 

Meanwhile, Mohie Hafez, member of the Pharmaceutical Cosmetics and Appliances chamber, said the medicine shortage crisis is to be blamed on the failure of a 2030 strategy which put short-term and long-term solutions that required the effective issuance of legislations.

Egypt has 154 medicine factories, he explained. The business sector represents only four percent of the medicine market, while multinational companies represent the rest, even though they used to represent no more than 45 percent.

He revealed that 14,000 medicines are registered at the Health Ministry, while another 14,000 medicines are yet to be registered. However, no more than 7,000 medicines are found at almost 60,000-70,000 pharmacies (surveyed).

Between 30-35 companies monopolize 85 percent of the medicine market in Egypt, which shows the failure of the strategy in place to regulate the pharmaceutical industry.

Mahmoud Metawei, head of the food supplements department at the National Organization for Drug Control and Research, said they will publish several bulletins that show that several medicines do not conform to the stated standards.

Omar abdel Aaty, employee at Nasr pharmaceuticals, said during the workshop that the main work of the company is producing the raw material, but this has stopped since the company became affiliated to the public business sector.

He added that the company was going to carry out a national project to meet production requirements. But this was suspended due to hindering of the registration on the part of the Health Ministry. He urged pumping LE500 million to save the company and granting it additional advantages at the customs.

Edited translation from Al-Masry Al-Youm

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