Health Ministry increases price of over 3000 medicines

Health Minister Ahmed Rady announced an increase in the price of 3,010 medications, including 619 medicines for treating chronic illnesses, during a press conference held on Thursday.

Rady said that the price increases were mandated by the Cabinet in response to the devaluation of the pound which has lead to a pharmaceutical shortage, affecting 3,010 of the 12,400 medicines on the Egyptian market. Both imported and local medicines will be affected by the price hike.

The Pharmacists Syndicate has condemned the increase, sending a formal letter to President Abdel Fattah al-Sisi asking him to intervene, and demanding the formation of a committee to determine a fairer system for pricing pharmaceuticals. The syndicate announced a partial strike starting next Sunday in protest.

As of Thursday the price of local medicines under LE50 was increased by 50 percent of the increase in the price of the US dollar compared to the Egyptian pound. The value of the dollar increased from LE8.8 to LE18.5 following the flotation of the pound in November.

Local medicines priced between LE50 and LE100 saw an increase of 40 percent of the increase in the dollar price, while those over LE100 rose by 30 percent of this value. The price of imported medicines was also affected, with those under LE50 increasing by 50 percent of the dollar value, and those above LE50 by 40 percent.

Rady clarified that the increases will only be applied to medicine produced or imported after the announcement, warning that anyone manipulating prices or withholding supplies will face legal consequences.

Negotiations between pharmaceutical companies and the ministry preceded the announcement, with medication for chronic diseases proving the most divisive point. However, the government ultimately ceded, including them on the list of medicine facing price hikes.

Egypt is currently facing a pharmaceutical crisis due to the increased cost of producing medicine in the wake of the pound flotation, despite the legally mandated fixation of medicine prices, as most local medicine production depends on imported material. Medicine manufacturers have also lost their prioritized access to foreign currency in banks at a guaranteed lower price.