• Egypt’s Pharma Division is planning to request a price hike on 1,000 medicines due to rising production costs and inflation.
• Drug production costs rose 50% last year, driven by higher fuel, electricity, insurance, and labor expenses, says Ali Ouf.
• The request also calls for activating 15% interest loan initiative and boosting exports to ease pressure on the pharma sector.

Pharmaceutical Division

Ali Ouf, Head of the Pharmaceuticals Division at the Federation of Egyptian Chambers of Commerce, revealed that the division plans to submit a request to the Egyptian Drug Authority to raise the prices of at least 1,000 medicines by a minimum of 10% in the coming period.

Furthermore, Ali Ouf told Alarabiya Business, that the cost of drug production in Egypt has increased by 50% over the past year. This is due to increases in gasoline, electricity, social insurance and employee wages. 

He also adds that the Egyptian Drug Authority raised the prices of around 2,000 to 2,500 medicines by an average of 30%. This was following the Central Bank of Egypt’s decision to float the exchange rate in March 2024. 

Finance Initiative

Additionally, the request will also entail a request for the activation of the government initiative to finance pharmaceutical factories. This will be at an interest rate of 15% and also includes six other industrial sectors.

At the end of last year, the Egyptian government launched the first phase of the initiative in support of companies in essential industrial sectors. It was worth a total of EGP 30 billion, for purchasing machinery, equipment, and production lines. Moreover, it came with a cap of EGP 75 million per company.

The Head of the Pharmaceutical Division, Ali Ouf, also adds that the request will include a call of urgent solutions to boost pharmaceutical exports. This is in order to increase the sector’s foreign currency earnings.