Egyptian drug prices have remained relatively stable since October 2024, with the last major price adjustment occurring at that time. According to Dr. Ali Aouf, head of the Egyptian Drug Chamber, around 300 drug types saw price increases of 30-50%. However, Aouf emphasized that these changes were limited and mostly affected drugs without alternatives, which are often imported from abroad.
The Egyptian drug market comprises approximately 17,000 medications, with only a small fraction experiencing price adjustments in the past two years. Aouf noted that essential medications for chronic diseases, such as diabetes and hypertension, have not seen significant price increases. He attributed the stability in prices to the government's strict control over the pharmaceutical sector.
Dr. Aouf discussed the potential for future price increases on the "Hikaya" program, a popular Egyptian talk show. He stated that prices would remain stable until the end of 2026 and possibly into the first quarter of 2027, provided the dollar exchange rate remains steady. Aouf explained that the last pricing decision was based on a dollar exchange rate of 50 pounds.
According to Dr. Aouf, any potential price increase would be contingent upon the dollar exceeding 55 pounds and maintaining that level for 45 days. In such a scenario, he estimated that prices might rise by 10-12%. Aouf emphasized that the pricing system is subject to review every six months to account for economic fluctuations.
The Egyptian Drug Authority has implemented a new pricing system, as outlined in Decision 480. Dr. Aouf clarified that this decision primarily concerns new medications and does not directly impact existing ones. The new system ties price adjustments or reductions to three economic indicators: exchange rates, inflation, and interest rates.
Dr. Aouf assured that the pharmaceutical sector is subject to rigorous oversight, making it difficult for manufacturers or distributors to manipulate supply and drive up prices. He emphasized that the government closely monitors the sector and takes swift action against any irregularities.
Despite assurances of stability, some observers have noted discrepancies between official statements and actual price trends. Dr. Aouf maintained that any perceived increases might be attributed to specific medications or limited supply chain adjustments, rather than a general price hike.
Key points
- Egypt's drug prices are expected to remain stable until 2026, provided the dollar exchange rate remains steady.
- Potential price increases are tied to the dollar exceeding 55 pounds for 45 days.
- The Egyptian government closely monitors the pharmaceutical sector to prevent price manipulation.
