Medicine Under Siege from Inflation and Debt | Prices Up by as Much as 400% | Patients Pay the Price of the Crisis

Multiple-fold increases in drug prices, delays by insurers in covering new treatments, and mounting unpaid claims from manufacturers have put Iran's drug supply chain under growing pressure. At the same time, disruptions in maritime transport and difficulties importing raw materials have increased the risk of reduced production and shortages of some medicines, a situation that could ultimately make treatment costs heavier for patients.

According to Ambassador Arjan, pharmaceutical industry activists warn that the relative improvement in the supply of foreign currency alone is not enough to solve the problems of this industry, and the continued lack of liquidity, increase in production costs, and the uncertainty of the government's compensation resources can make it more difficult for patients to access medicine.

400% increase in the price of some medicines

Bahman Sabour, Deputy Chairman of the Board of Directors of the Greater Tehran Medical System, referring to the change in the government's foreign exchange policy, said that the exchange rate used to supply medicine, which was previously 28,500 Tomans, was transferred to the second market of the exchange center and reached more than 170,000 Tomans in the third week of Mehr.

According to him, the price increase of medicines has varied from 50 to 400 percent depending on the type of product and supply conditions. Of course, several hundred percent increases are mainly related to cheap drugs that were previously offered at very low prices.

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These changes have occurred in a situation where the cost of raw materials, packaging, transportation and energy has also increased. As a result, producers are faced with the growth of costs and the reduction of available resources to continue their activities; An issue that can affect the sustainability of domestic production.

Disturbance in transportation and the risk of drug shortage

Mohammad Abdezadeh, a member of the board of directors of the Syndicate for the production of human medicines, called the disruption of sea routes one of the important problems of supplying raw materials. A significant portion of these materials are imported from India and China, and transportation restrictions have made it more difficult to move shipments.

In such a situation, some companies have been forced to use alternative routes such as air transport or transporting goods through Türkiye; Methods that increase the cost and time of provision. These solutions are also not applicable for all shipments, especially bulky raw materials.

According to Abdezadeh, the disruption in the supply of raw materials, along with the increase in production costs, has fueled the shortage of some drugs, including neuropsychiatric drugs. The continuation of this situation can limit the production of some medicinal items in the coming months.

insurances; A link left behind in the chain

One of the main problems of patients is the gap between the announcement of the new drug price and the application of appropriate coverage in insurance systems. Sabour says that in some cases, the registration of the new price and its implementation in the insurance system are one to two months apart; A period that may cost the patient more than expected.

For example, if the price of medicine goes from 100 million tomans to 200 million tomans, the insurance coverage should be calculated according to the new price. A delay in this process can increase the patient's share of payment and put more pressure on families.

On the other hand, the government's promise to compensate for the difference caused by the change in the exchange rate also faces the problem of providing and allocating resources. According to Sabour, the resources that were supposed to prevent the increase in costs from being passed on to patients have not yet fully returned to the relevant department.

Insurance debt, a threat to production

Delay in payment of claims of pharmaceutical companies and medical centers is another problem that has put pressure on the liquidity of this chain. Saboor spoke about the cases where the claims of the private sector have not been paid for about 9 to 10 months.

These delays occur when producers need to pay raw materials, wages and other running costs on time. Therefore, even increasing the selling price cannot solve the liquidity problem of the companies without collecting the claims.

In sum, curbing the drug crisis requires a series of coordinated measures: settlement of insurance debt, provision of government compensatory resources, acceleration of the application of new coverages, and facilitation of the importation of raw materials. Otherwise, the combination of price increases, transportation restrictions, and lack of liquidity can lead to a decrease in patients' access to medicine; A crisis whose final cost will be borne by consumers.