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Sunday, 29 May 2016

Health Ministry restricts price increase of medicine to EGP 6

The Ismail cabinet has set EGP 6 as the maximum price increase on packages of medicine previously sold under EGP 30. The maximum price rise goes into effect immediately, said Health Minister Ahmed Rady after the cabinet’s weekly meeting on Thursday. The decision applies regardless of the number of blister packs within each package (see Health + Education for more). The ministry will also issue a detailed list of medications (estimated to be around 1,200) and their new prices, said Rady, who warned companies of dire consequences for taking advantage of the decision to allow price rises. The [healthcare compounds] division of the Federation of Egyptian Industries held a meeting yesterday to discuss the ramifications of the move, which many feel would be damaging to the industry. Sources from the division tell Al Borsa that the limit will hurt manufacturers and only benefit retail outlets and distributors.

Furthermore, the confusion in policy since its announcement a few weeks back has led some manufacturers to halt imports of medication, said the treasurer of the Alexandria branch of the Pharmacists Syndicate. Three major producers have stopped shipping in compounds listed in the decision, he added. We should see this trend continue for the next 60 days until the situation is clarified, he tells Al Mal.

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