Continued Criticism of Drug Price Hikes; Pezeshkian: The Currency We Provide Gets Lost

Criticism of the sharp increase in drug prices continues in recent days; simultaneously, the President of Iran has spoken about the 'loss' of part of the currency allocated for drug imports and subsidies. Masoud Pezeshkian, on Saturday evening, January 22, at a meeting of university and medical school heads, stated: 'Experience has shown that part of the currencies we provide for drug imports and their subsidies gets lost.' He did not provide an explanation for the reason behind the 'loss' of currencies or the lack of oversight in this process. Mr. Pezeshkian also criticized the current method of drug distribution, saying: 'With this method, justice cannot be achieved.' These remarks come as Mohammad Reza Zafarghandi, the Minister of Health in Pezeshkian's government, recently announced that due to currency fluctuations, drug prices would increase. Following this, pharmaceutical companies issued statements in recent days announcing price increases for some drugs ranging from 200% to over 400%. A few days ago, Kamal Hosseinpour, a member of parliament, sharply criticized the 'staggering increase in drug prices' and the lack of accountability from officials, stating that the Minister of Health personally confirmed in a commission meeting that drug prices had increased by up to 400%. Reports indicate a collapse in drug production and the exodus of pharmacists from Iran. The Minister of Health has promised that the government will pay the difference in price increases to insurance companies. However, previously, Mehdi Pir-Salehi, the head of the Food and Drug Organization, stated that the government's debt in the drug sector has reached about 36 trillion tomans, and the debt in equipment has reached 20 trillion tomans. In previous years, preferential currency [4,200 toman dollar] was allocated for drug imports and their subsidies, but this currency was removed last year, and contradictory news has been published about its replacement. Last month, Mohammad Reza Zafarghandi announced that drugs would now be imported with the Nima exchange rate [66,000 toman dollar]. However, one day later, following criticism, he clarified that he meant 'type 2 preferential currency' [28,500 toman dollar]. In addition to the sharp increase in drug prices, some specific types of drugs have also become scarce or unavailable in recent weeks. Masoud Pezeshkian, in his remarks on Saturday, also described the distribution of treatment per capita in different regions of the country as unjust, stating that during provincial trips, especially during his recent trip to Sistan and Baluchestan, this medical injustice was clearly evident.