Consequences of the wrong policy of allocating preferential currency to drugs / Stopping the production of some drugs due to economic problems

According to Fars News Agency’s health correspondent, the Iranian Scientific Association of Drug Management and Economics in a letter to the President warned of the consequences of allocating government currency to the pharmaceutical industry.

The text of the letter is as follows:

Honorable President of the Islamic Republic of Iran

Greetings and politeness

Yours sincerely, Following the concerns that have arisen regarding the non-supply of medicines to patients due to the implementation of the preferential drug policy in recent years, the country’s pharmaceutical industry, which after the glorious Islamic Revolution, despite the departure of international pharmaceutical companies, imposed war. And the oppressive sanctions have always been a source of pride and have been able to meet the country’s pharmaceutical needs to the desired extent.

In recent years, due to the wrong policy of allocating preferential currency to drugs, it has faced many challenges. Challenges such as increasing the preferred currency allocation time, forming long queues for currency allocation for companies and creating money transfer costs due to administrative problems in accessing this currency, which sometimes disrupt the production planning of pharmaceutical companies and lead to some drug shortages in the country. Has been.

Other challenges in allocating preferential currency to drugs include the observability of these resources by warring countries, the mismatch of drug prices commensurate with rising drug production costs, and the cessation of production of some drugs due to economic problems of pharmaceutical companies. Consequences of the policy of allocating preferential currency to this field can in the long run lead to the inability of pharmaceutical companies to cover the costs of modernization and depreciation of production lines, as well as reduce attention to research and development in these companies. In addition to endangering the health of society, this issue will also damage the forty-year achievements of this industry in the Islamic Republic. The naming of this year by the Supreme Leader as the Year of Production, Supports and Barriers underscores the importance of paying special attention to this issue and resolving the problems of the pharmaceutical industry.

The problems caused by the policy of allocating preferential currency to drugs have not only affected the pharmaceutical industry, but also challenged the people and policymakers in the field of medicine. The allocation of preferential currency to drugs has caused the price of drugs in the country to be much lower than the prices of similar drugs in other countries, which has led to the reverse smuggling of drugs from the country and shortages of some drugs and severe access to these drugs. Dropped.

Patients, on the other hand, turn to the black market for these drugs, which are sometimes not available in pharmacies, and they supply these drugs at several times the price and of unknown quality, which is a serious risk to their health. On the other hand, the allocation of this currency has made it very difficult for policymakers and suppliers of the drug supply chain, because it is very difficult to monitor the complex and long supply chain to prevent corruption caused by the rent of the preferred currency and make decisions for policymakers. Some have made it difficult, including the pricing of medicines, the necessities of which are provided in free currency, and only the active ingredient of the medicine is allocated to the preferred currency.

It should be noted that these issues have been discussed in detail in the specialized meetings of this association and other related scientific and research centers, and according to the opinion of all experts participating in these meetings, stop the policy of multi-currency in the field of medicine and Medical equipment and the elimination of preferred currency are essential in this area, and what is at stake is the timing and manner of implementing this policy to achieve the best possible access to medicines for patients.

Although opponents of drug currency liberalization have always pointed out that with the liberalization of the exchange rate, patients’ access to drugs will be difficult and out-of-pocket payments will increase sharply, the existence of insurance protection mechanisms and proper enforcement methods can also On providing medicine to patients and increasing access to medicines, lead to increasing the efficiency of industry in the country, avoiding shortages of medicines and fair access of patients to medicines.

In view of the foregoing, it seems that the reform of foreign exchange policies of the country’s pharmaceutical sector should be a priority of government policies. The suggestions of this association with regard to summarizing the opinions of experts in this regard and in summary include the following:

Stop the allocation of preferential currency to drugs, raw materials and intermediates of the pharmaceutical industry and liberalize the exchange rate as soon as possible in order to streamline the drug supply chain and reduce the deficiencies caused by currency allocation queues, as well as prevent root corruption and misuse and reverse drug trafficking.

Allocation of difference and income from exchange rate liberalization to insurance organizations and change of drug franchise in order to prevent increased out-of-pocket payments

Adequate and fair pricing of domestically produced pharmaceutical products after the liberalization of the exchange rate in order to avoid further financial losses to manufacturers. In the end, it is worth mentioning that regarding the problems of the preferential exchange rate policy of the drug and also how to implement the elimination of this policy so that the least harm is done to patients, thorough scientific studies have been conducted in related scientific centers and a report will be submitted.

It is hoped that with His Excellency’s measures, necessary and appropriate measures will be taken in this area so that we see the least disturbance in meeting the medical needs of patients and the pharmaceutical industry.

Iranian Scientific Association of Drug Management and Economics

End of message /

You can edit this post