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Thursday, 14 June 2018

Pharma companies are using higher electricity prices as a pretext to call for a med price raise

Pharma companies are using higher electricity prices as a pretext to call for higher med prices: Pharma manufacturers are planning on petitioning the Health Ministry to increase the prices of a number of medications, using the upcoming increase in electricity prices as justification, according to Gamal El Leithy, a member of the pharmaceuticals division at the Federation of Egyptian Industries. Electricity Minister Mohamed Shaker had announced on Tuesday that power bills would jump more than 40% for industry as of 1 July. The increases will drive up manufacturing costs, which have already increased over the past few months, El Leithy says. Companies are waiting for the new Cabinet to be formed, at which point they plan on raising the issue with the health minister.

Pharma companies have been lobbying since before the float of the EGP to raise med prices. Companies also proposed alternatives to across-the-board price hikes, suggesting they could cut the retail cost of certain medications and increasing others to balance things out. The Health Ministry last permitted a “limited” price hike in January, but stressed at the time that the move was not a precursor to blanket increases.

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