What will be the duty of Al-Hawi shareholders?

According to Tejarat News, the closure of Al-Hawi these days has raised two views from the social and economic point of view among the experts. From a social point of view, experts believe that medicine as a basic and vital commodity should be easily available to patients at the lowest possible cost. Accordingly, it is necessary for the government to control and supply this market using its tools.

In the meantime, however, the economic point of view believes that if mandatory pricing continues in the pharmaceutical industry, this industry will gradually fall into the pit of losses and will be closed down. Examining the financial statements of pharmaceutical manufacturers shows that due to the jump in production costs, even the currency of 4200 Tomans cannot guarantee the profit of this industry for survival.

Based on this, economic experts say that it is necessary for the government to control the price of medicine by using other solutions, such as insurance support and subsidies, and make this essential product available to patients.

Now it seems that the double-edged sword of prescriptive pricing has gripped both the drug market and the drug industry with the challenge of survival.

At the very beginning, it should be emphasized that this report was not prepared to support Al-Hawi’s disobedience to the law, and it only points to the dire consequences of mandatory pricing in commodity markets and industries. A policy that goes to companies one by one and drags them into the pit of loss.

What do the accompanying financial statements say?

According to the Food and Drug Organization, Al-Hawi Pharmaceutical Company oversold about 222 billion tomans, and accordingly, the Food and Drug Organization has fined 1,100 billion tomans. This became an excuse to examine Dahawi’s financial statements.

A look at the annual financial statements of Alhawi Pharmaceutical Company shows that the company has recognized about 207 billion tomans of net profit from its 924 billion tomans income last year. This profit of 207 million tomans was obtained in a situation where the Food and Drug Organization called it high selling and defying the approved prices.

Now the question is, what would happen if Dahawi did not offer its products above the mandated price? The answer is simple; A loss equivalent to 14 billion and 865 million tomans remains on the hands of this pharmaceutical company, which is considered a high figure considering the small size of the company.

Increasing government pressure on industries

Homayoun Darabi, a capital market expert, told Tejarat News in this regard: “In recent weeks, worrying news has been heard about various companies that have been closed due to mandatory pricing and high feed rates. This issue started with Ganave Petrochemical and then two other petrochemicals were closed and finally the capital market witnessed the closure of Alhawi Pharmaceuticals.

This capital market expert added: “It should be noted that mandatory pricing has put pressure on companies, which has brought a wave of unemployment and recession. Finally, it should be said that the news of the closing of the companies is first of all worrying for the national economy of the country, and secondly, it lowers the investment security in the country. Because currently our country is facing cruel sanctions and the issue of mandatory pricing and other unilateral decisions is considered as a self-sanction. “Decisions that are in the direction of foreign sanctions and follow the same goal of bringing the country’s economy to a standstill.”

By sending the letter of the Al-Hawi company about the closure of the production lines, some people considered this as hostage-taking and considered it as running away. In this regard, this capital market expert added: “No economy can work with this amount of mandated pricing, interest rate pressure, and unrealistic exchange rates.” The discussion of the pressure of current policies does not end only with adjunctive pharmaceuticals. Because if you look at this week, the work of two petrochemicals has also been closed. The question that should always be asked is, if a company incurs a loss, what is the importance of keeping the light of this unit on?

This capital market expert continued: “Looking at the decisions of the last month also proves this issue. For example, in May, it was decided that the feed rate of 5,000 tomans would be available to petrochemical companies with a price of 7,000 tomans, and many companies producing methanol and urea announced the possibility of closing. “Now the consequences of mandatory pricing have reached the food and drug industry, and the first victim of this group is al-Hawi.”

He continued: “Statistics analysis shows that since the beginning of this year, there has been about 270 thousand billion tomans in foreign exchange rent. So that currency has been taken from the pockets of production companies and spent on brokers and importers.

Who is the cause of the current situation?

Darabi went on to say: “Currently, mandated pricing is the most important reason for the current situation. But it should be noted that it is a set of policies that have set the current wrong path. Therefore, contractionary policies and incorrect exchange rates have fueled this crisis.”

The fate of “Dahavi” shareholders

Now, an issue that is important for capital market activists is the discussion of the fate of “Dahavi” shareholders. If Alhawi pharmaceutical company is officially closed, what will be the shareholders’ duty?

In response to this question, Darabi added: “According to the commercial law, if an extraordinary meeting is held for a company and the decision of the shareholders is to liquidate the company, the settlement manager will be determined for the company first. After that, the settlement manager will distribute the remaining assets among the shareholders after paying the debt.

He stated: “On this account, it should be said that the work will probably not end here and this issue will be resolved with a discount from the Food and Drug Organization. But the issue that should be paid attention to and is currently affecting all industries one by one, is the victimization of mandated pricing.

How does command pricing suffer?

In order to know what harm the mandatory pricing brings to the companies, it should be noted that the production price is increasing day by day and the conditions for the production of any product have become more difficult. For example, the final price of al-Hawi products has doubled in the past year compared to 1400. But this issue is not seen in the sales rate of the company’s products. This report is not in support of increasing drug prices. But the government has hidden its inability to manage the country’s economy behind the prevention of price growth under the pretext of controlling the household livelihood portfolio. No matter what this issue does to the production companies.

The current policy of the government has already failed the car manufacturers and then went to the petrochemicals. But the pharmaceutical industry, which deals directly with people’s lives, should not be captured by the government’s failed policies. In this way, the government should green the production path for pharmaceutical manufacturers. Now in any way possible; If the prices are to be at the will of the populist government, the price difference must be compensated by any means, such as insurance or drug subsidies. Of course, considering the current conditions, these methods also seem to have failed; Because a large part of the problems of pharmacists is due to the country’s insurance system and the government’s debt to insurance companies.

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