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Monday, 18 July 2016

Pharma companies threaten to pull products priced over EGP 30 is gov’t doesn’t allow price increase

Apparently, a number of multinational [healthcare compounds] manufacturers have warned they will curtail supplies in Egypt of products currently priced over EGP 30 if the government does not allow them to increase retail prices, insiders tell Al Borsa. The threat follows the Health Ministry’s rejection of a proposal to increase prices. The companies argue that the devaluation and FX shortage has made its untenable to sell under the current ministry-imposed price formula. They’re arguing that raising prices on medication over EGP 30 is no less important than the ministry’s decision to allow a 20% increase on compounds under EGP 30. Pharmacist Syndicate is siding completely with the ministry on this, with its head saying that manufacturers are raking in 600% profit margins and vowing to challenge the motion. The Syndicate’s support was crucial in getting the ministry to approve the 20% increase in May.

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