The Egyptian Drug Authority (EDA) does not intend to raise medicine prices in the near future, according to Ali Al-Ghamrawi, head of the EDA.
The statement comes despite the drug producers’ complaints of rising production costs and other challenges in the pharmaceutical market. But there is “no urgent need” to adjust prices at this time, especially given the stability of the dollar against the pound, Al-Ghamrawi told local news outlets.
The stance reflects a set of measures taken by the government to address demands for price increases that include initiatives aimed at ensuring both market sustainability and access to medicines for all without imposing additional cost burdens.
Karim Hosny, treasurer of the Right to Medicine Association (RMA), a local NGO, supports the EDA’s decision. “I don’t believe the situation warrants a price increase,” he told Al-Ahram Weekly.
“We adhere to a globally recognised pricing system based on production cost plus profit margin. If the companies claim their costs have risen, they must prove it by showing us the figures,” he said.
“The government must not succumb to blackmail by manufacturers, whether local or multinational. We have local alternatives that can be called into play if a firm pulls out of the market,” he added.
The first step the government took to address the crisis was to offer additional financing to local pharmaceutical companies and the Unified Procurement Authority (UPA). Established in 2019, the UPA is responsible for purchasing and contracting medicines, medical supplies, and equipment for all state entities, including ministries, hospitals, and governorates.
In a meeting with the UPA and pharmaceutical company representatives earlier this month, Finance Minister Ahmed Kouchouk announced a support package for drug producers that included LE14.7 billion in credit facilities, LE7.4 billion in soon-to-be-disbursed cash assistance, LE7.3 billion in bank-issued letters of credit, and LE14 billion for the UPA.
Kouchouk said that these measures aim to ensure “the sustainability of supply chains” and to “settle outstanding claims through compromise solutions.”
However, Mustafa Dawoud, head of the Egyptian Pharmacists Association, argued that the seeming “stability” cited by the EDA hides a deeper crisis.
“The EDA’s refusal to adjust prices under these conditions is untenable. The industry is slowly collapsing,” he warned, explaining that while some products cost LE9 to produce, they are sold to consumers for only LE7, for example.
“This makes no sense. A fixed pricing policy is unsustainable amid ongoing inflation and rising operating costs. Unless this situation is corrected, we will lose our factories one by one. 1,600 pharmacies have already closed, and thousands more are operating without making a profit,” Dawoud said, warning of a “looming pharmaceutical disaster.”
The government hopes that financial injections into the UPA and local companies, combined with simplified registration procedures and a gradual reduction of the EDA’s regulatory and administrative fees, will calm the market and avert the need to raise retail prices for pharmaceuticals.
According to government sources, a new initiative is being studied to support local production inputs either through customs exemptions or reverse export subsidies. The latter would incentivise the pharmaceutical manufacturers not to export medicines that are in short supply and market them locally instead at stable prices.
Prescribing and selling medicines under their generic names rather than their brand names would mean that doctors could write prescriptions using the chemical name of the drugs. Pharmacies could then offer multiple options containing the same active ingredient, allowing patients to choose based on price.
Hosny said that this is already standard practice in many developed countries, where the focus is on the active ingredient, not the brand. Patients are empowered to make informed choices, and the system is more cost-effective and transparent.
“This alone could restore balance to the market,” he said, adding that it would also help to minimise expired stock, eliminate price gaps, and revive the professional role of pharmacies.
“In many developed countries, doctors prescribe the active ingredient, leaving it to patients to make their choice of brand based on price and the reputation of the manufacturer. Surely we could apply the same thing here,” Hosny said.
Representatives of foreign pharmaceutical firms who attended the meeting with the finance minister expressed their approval of the financial measures taken by the government. However, they stressed the need for clarity on pricing and investment frameworks to ensure horizons for their expansion and continued presence in Egypt’s “large and promising” market.
Kouchouk pledged to continually review the pricing and financing structure while safeguarding patients’ interests.
For Hosny, the solution should begin with trimming costs, not price hikes. “For example, manufacturers could eliminate the paper information leaflets inside medicine boxes and replace them with QR codes, or they could cut packaging costs by using simpler containers,” he said.
Expanding local production and localising manufacturing are long-term strategies for offsetting high import costs. In a ministerial meeting, Prime Minister Mustafa Madbouli reviewed government efforts to support the sector by attracting foreign direct investment and streamlining registration and technical approval processes.
Hosny was firm that this is not the time to discuss price liberalisation. “People are already finding it difficult to access the medicines they need. Only when the universal health insurance system is fully implemented, and we can be sure that every patient can pay for their prescriptions, can we consider deregulating medicine prices,” he said.
The government is determined to take the steps it believes are necessary to remedy medicine shortages with minimal additional costs to consumers. However, the efficacy of the solution may depend on how quickly it is implemented, how transparently it is applied, and how much cooperation exists among all the players in the market.
* A version of this article appears in print in the 2 October, 2025 edition of Al-Ahram Weekly
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