Heavy Claims Make It Difficult for Medical Equipment Companies to Continue Operating

Tehran – The Deputy Health Minister and Head of the Food and Drug Organization says that rising exchange rates and production costs, along with unpaid company receivables, have intensified financial pressure on the country's medical equipment industry.

Mehdi Pirsalehi, deputy minister of health and head of the Food and Drug Organization, on the sidelines of the visit of the minister of health to the exhibition of medical, dental, laboratory and pharmaceutical equipment, in a conversation with a Mehr reporter, referring to the increase in financial demands of medical equipment companies, said: delay in providing liquidity, in the conditions of increasing exchange rates and production costs, can limit the activities of some companies in this industry.

He said: The problem of companies' claims is not a new issue, but the war conditions and the increase in prices have caused the volume of these claims to become heavier and the continuation of the producers' activities is more difficult.

According to Pirsalehi, the Ministry of Health is pursuing various solutions in cooperation with the Central Bank, the Program and Budget Organization and the Presidency to provide the financial resources needed by these companies. These strategies include providing cash resources, issuing financial bonds and using banking facilities to support the medical equipment industry.

The head of the Food and Drug Organization, emphasizing the necessity of providing financial resources on time, said: if the delays continue, some companies may have to limit the scope of their activities; An issue that can affect the continuity of this industry.

Pirsalehi added: The Minister of Health continuously and even on a weekly basis follows up the issue of companies' demands and ways of providing financial resources with the economic officials of the government to enable the continuation of the companies' activities.

In another part of his speech, he mentioned the export market of Iranian medical equipment and said: the products of this industry are used in neighboring countries, including Iraq and Afghanistan, and countries in the north of Iran.

According to Pirsalehi, medical equipment produced in Iran has the capacity to expand exports and be more present in global markets, but the existing restrictions have affected the amount of exports.

He expressed hope that by reducing these restrictions, the export of medical equipment will increase and Iranian companies will be able to gain a larger share of foreign markets.

At the same time, the head of the Food and Drug Organization emphasized: the realization of this export capacity, along with the removal of restrictions, depends on the continuation of the activities of producers and the provision of their financial needs.

Referring to the financial pressures on companies, he said: the increase in exchange rates and costs has increased the need for liquidity in these collections, and the lack of resources at the right time can make it more difficult to continue production.

In the end, Pirsalehi emphasized the continuation of follow-ups to support the medical equipment industry and said: The aim of these measures is to provide the necessary conditions for the continuation of the companies' activities and to maintain the production capacity in the country.