Egypt produces 3.6 B drug packages annually

CAIRO - 5 November 2024: Ali Al-Ghamrawi, Head of the Egyptian Drug Authority, revealed that Egypt's pharmaceutical industry produces 3.6 billion drug packages annually, valued at LE191 billion. With Egypt's population size, this means an average consumption of approximately 36 packages per person per month, a notably high figure.

This information was shared during a public hearing held by the Health Affairs Committee in the House of Representatives. The session, based on articles 47, 246, and 247 of the House’s internal regulations, focused on "Pharmaceutical Industry in Egypt: Prospects, Challenges, Sustainability." It aimed to develop a strategic roadmap to address drug shortages in healthcare institutions and promote the pharmaceutical industry as a key contributor to national income. The session followed up on previous recommendations and responses to motions filed by various MPs concerning severe shortages of medications.

Al-Ghamrawi outlined the authority's efforts in ensuring drug availability. Over the past three months, the authority provided nine million packages of diabetes medication, 13 million packages of blood pressure medication, 34 million packages of antibiotics, and 5.5 million packages of electrolyte effervescent tablets. In total, 483 types of medical products were supplied, amounting to 161 million packages.

He also highlighted the presence of 172 pharmaceutical factories in Egypt, along with 116 facilities producing medical devices, 120 for medical preparations, and four for biological products and raw materials. These factories include 800 production lines and 12 internationally accredited facilities. Despite 19 temporarily closed factories—five of which requested closure, two veterinary, and others in the private sector—most closures are part of modernization efforts to align with industry advancements.

Al-Ghamrawi emphasized that Egypt leads the Arab world and Africa in drug manufacturing and marketing, with local products gaining trust comparable to those from advanced nations. The total number of drug packages circulated in the past nine months reached 2.135 billion, up from 2.116 billion during the same period last year.

Addressing the issue of drug shortages, Al-Ghamrawi pointed out that the primary challenge has been foreign currency availability, not a lapse from manufacturers. The pricing difficulties stemmed from the need to source dollars, as manufacturers could not price products based on parallel market rates. He explained that the pricing was pegged to LE30 per dollar, although market dynamics complicated the situation.

Three major factors impact drug pricing: imported raw materials, inflation, and exchange rates. With an official inflation rate of 33% last year, production costs were significantly affected. Raw materials constitute 40% of a drug’s cost, making price increases proportional to their share in the final product.

To sustain production, Egypt needs USD 80 million monthly for raw materials and an additional USD 40 million for fully imported products. Thus, the total monthly requirement is USD 120 million. The July 2024 meeting of the drug availability monitoring committee, headed by the Minister of Health, confirmed that only USD 40 million was secured, with an additional USD 30 million provided in August due to currency shortages. This led to the depletion of strategic reserves, with only one month's supply left after drawing from a seven-month reserve.

Al-Ghamrawi stressed that drugs are as strategic as wheat and petroleum and must be produced with a long lead time of three to four months to secure raw materials. Currently, over 90-95% of drugs are available in the market, though shortages are not unique to Egypt.

Monthly, 800-900 import invoices for raw materials are processed. Al-Ghamrawi explained the importance of timely price adjustments to maintain drug availability, noting that Egyptian drugs remain the most affordable globally. The production process is closely monitored to ensure timely delivery to the market.

"Our priority is ensuring patients have access to medications, especially through key pharmacies," Al-Ghamrawi stated, noting that drugs are distributed to 28,000 pharmacies across the country, ensuring supply in at least three nearby pharmacies for most citizens.

He emphasized the need to eliminate the perception that imported drugs are superior, highlighting that local products match international quality and efficacy. The authority also increased the number of inspectors from 170 to over 1,000 to ensure regulation, though some are temporary, requiring legislative support for permanent solutions.

This comprehensive approach aims to strengthen the pharmaceutical industry in Egypt, secure a stable drug supply, and enhance the nation's healthcare infrastructure.