Warning from the President of Tehran Chamber of Commerce: The Pharmaceutical Industry is in Poor Condition, We Will Face a Drug Shortage

On Wednesday, March 9, the President of the Tehran Chamber of Commerce expressed concerns about currency issues, stating that "the condition of the country's pharmaceutical industry is not good, and if this trend continues, we will face a drug shortage." Mohammad Najafi Arab, in an interview with ILNA news agency, announced that "there are problems in the allocation and supply of currency for drugs and the timing of their delivery," adding that "the government and social security are not fulfilling their commitments to pay the private sector's claims." According to him, this situation has caused the private sector active in health and pharmaceuticals to face challenges in recovering working capital. This private sector representative also reported sending a letter signed by pharmaceutical companies, including raw material producers, manufacturers, and drug importers, regarding the consequences of the current trend to Ebrahim Raisi, but did not specify whether a response had been received. Earlier, on January 29, the Chairman of the Board of the Syndicate of Human Pharmaceutical Industries of Iran stated at a meeting titled "Securing Liquidity in the Drug Supply Chain" that "the supply chain, production, and distribution of drugs are facing serious problems and need help and support from higher authorities." Mohammad Abdeh-Zadeh identified issues such as currency repayment problems, payment irregularities in insurance organizations, supply and payment, multiple directives from the Central Bank, and existing discussions within the Food and Drug Organization as challenges facing this sector. Ebrahim Hashemi, President of the Iran Distribution Association, also mentioned in this meeting that they currently have a debt of 17 trillion tomans from medical universities, and the total debt of universities and the public sector amounts to 25 trillion tomans. Hadi Ahmadi, Public Relations Manager of the Tehran Pharmacists Association, stated that pharmacies are owed 6.5 trillion tomans per month from insurance organizations, and insurance companies have not paid pharmacies' claims for about four months, now totaling 26 trillion tomans. This comes at a time when Mohammad Mokhber, the First Vice President of the Islamic Republic of Iran, claimed on December 20 that the government has a serious will to address the issues in the health and treatment sector, especially in securing drugs, and that this year, 30% more currency has been allocated for drug procurement compared to last year. The President of the Iranian Pharmacists Association stated on January 27 regarding the created problems that when the 2023 budget law was approved, the Ministry of Health requested 105 trillion tomans for the Drug Aid Plan, but this was reduced to 69 trillion tomans in Parliament, and only 30% of the total actual budget needed for this sector has been secured since the beginning of the year. The currency and rial issues in drug procurement occur while the Islamic Republic has no restrictions on securing drugs and financial transactions for drug purchases globally, but consistently cites sanctions as a barrier to timely drug and currency procurement. In such circumstances, financing for militias supported by the Islamic Republic from Tehran continues, and in recent years, public sensitivity to this issue has increased, leading to protests where slogans like "No Gaza - No Lebanon - My life is for Iran" have been chanted. Patients with SMA gathered in front of Ebrahim Raisi's office, urging not to play with human lives. Drug inflation has exceeded 80%, dentistry has been deprioritized, the Iranian Psychiatric Association reported a shortage of 12 psychiatric drugs, and there are disputes over the 2024 budget; the Budget and Planning Organization reacted to the Joint Commission's decisions, stating that the decisions have financial implications and are not final. There is a shortage of the vital "anticoagulant" drug in Zanjan.