The supreme administrative court issued a final ruling yesterday, endorsing the ex-minister of health's decision to tie drug prices in Egypt to international prices. This does not necessarily mean they will be sold at international prices.
The decision applies only to new drugs and excludes generic drugs and those currently sold in the market.
Beltone Financial indicates that the decision is unlikely to impact the market value of pharmaceuticals in the Egyptian Exchange, as most of the companies listed produce only generic drugs, which are unaffected by the ruling.
However, Beltone adds, Egyptian drug companies, such as EIPICO, could benefit in the long-run by producing these higher-priced, higher-margin drugs.
Egyptians have a slew of choices of generic medicines at much below international market prices.