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Wednesday, 1 June 2016

Health Ministry to reassess decision to cap med price increases at EGP 6

The Health Ministry is reportedly considering exempting some medications priced at under EGP 30 from its EGP 6 limit on price increases, following a meeting between Health Minister Ahmed Rady and the [healthcare compounds] Division of the Federation of Egyptian Industries (FEI). The ministry apparently promised the industry association that it will outline a more detailed breakdown of the new changes in pricing, which have stirred confusion across the industry. As we noted on Sunday, the ministry had imposed a EGP 6 cap on retail price hikes for products priced under EGP 30 to stop manufacturers from repricing based on blister packs and not the entire box. The cap was vehemently opposed by manufacturers. The ministry also told industry officials that cabinet is studying incentives for manufacturers interested in exporting medication, the FEI’s Ahmed El Ezaby tells Al Borsa.

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