Drugmakers will meet next week with theEgyptian Drug Authority (EDA) to request hiking their prices, a source in the pharma sector with knowledge of the matter told Enterprise. Drugmakers want to increase prices by 30-50% in response to ongoing FX and raw materials shortages and higher shipping costs.

The rationale: Disruptions to shipping in the Red Sea have forced pharma companies to resort to the pricier air cargo alternative, the source tells us. Meanwhile, some 1.5k drugs — 9% of the total 17k sold in Egypt — have been hit by the shortage of raw materials.

Further strains on the state budget: The price increases go for all pharma sales, those made to the private healthcare sector and the public healthcare sector. Pharma companies also want to ditch fix-price contracts with the government and have the state pay a 40% premium on already in effect contracts. Half of their desired increase — 20% — has been approved, while the remainder of the hike is still pending approval, the source said.

The government is working to address the shortage: Prime Minister Moustafa Madbouly said earlier this week that his cabinet is working to ensure the availability of pharma products and medical equipment, calling for an increase in reserves and stockpiles of critical meds.

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