Iran`s drug shortage, sanctions & currency issues
Barakat Health & Pharmaceutical Group: In recent years, the Iranian pharmaceutical industry has been confronted with several challenges, which have notably affected the supply of vital and necessary medications for patients. One such challenge is the intermittent shortage of certain medications, including Lamotrigine, which is essential for controlling seizures in patients with epilepsy. These shortages are primarily driven by economic issues, financial constraints, and sanctions, which have led to difficulties in securing the timely procurement of raw materials needed for drug production. This report aims to thoroughly explore the causes of these shortages, their impact on the national healthcare system, and the potential solutions to address these problems.
Critical Drug Shortages in Iran
A serious issue in the Iranian pharmaceutical sector is the periodic shortage of specific, life-saving drugs. Lamotrigine, which is crucial for managing epilepsy, is among the medications affected by these shortages, mainly due to challenges like raw material scarcity, financial difficulties in the pharmaceutical industry, and currency issues, which delay the procurement process.
Root Causes
- Lack of Liquidity in the Pharmaceutical Industry: One of the primary reasons behind the drug shortages is the lack of liquidity within the pharmaceutical industry. Many pharmaceutical companies, facing severe financial constraints, struggle to secure the raw materials needed for timely drug production. Raw materials for medications require sufficient liquidity to be procured, and in the current economic climate in Iran, this has become a significant challenge.
- Sanctions and Currency Issues: International sanctions and the resulting currency problems are additional contributing factors to the shortage of medications. As reported by Iran’s Ministry of Health, sanctions and banking restrictions have hindered the timely transfer of funds to Europe, complicating the procurement of essential raw materials for drug production. Since many raw materials need to be imported from abroad, this issue has disrupted the drug supply chain.
- Currency Price Fluctuations: Since 2021, following significant fluctuations in currency values and discrepancies between the government’s official exchange rate and the free-market rate, the pharmaceutical industry has faced more challenges in securing the necessary foreign currency. These currency fluctuations have increased the costs of drug production, delayed raw material procurement, and ultimately led to the emergence of shortages in the drug market.
Economic & Social Impacts
The shortage of medications like Lamotrigine, which are essential for managing conditions such as epilepsy, can have far-reaching consequences for both the community at large and patients suffering from these conditions. These shortages not only create immediate medical issues for the affected individuals but also put tremendous pressure on the healthcare system as a whole.
Economic & Social Consequences
– Increased Healthcare Costs: As a result of drug shortages, patients are often forced to turn to more expensive or substandard alternatives. This increases the financial burden on patients and can also escalate the overall healthcare costs. Additionally, if these shortages persist, the cost of managing these conditions could rise significantly for the entire healthcare system.
– Health and Treatment Risks: Inaccessibility to essential drugs could jeopardize patient health and, in some cases, lead to an increase in hospital admissions or the exacerbation of diseases. Epilepsy patients who cannot access medications like Lamotrigine might experience recurrent seizures, significantly impacting their quality of life and leading to more severe long-term health complications.
– Public Trust in the Healthcare System: A continued shortage of essential medications could erode public trust in the healthcare system. People may become disillusioned with the government’s ability to provide adequate healthcare, which could lead to reduced participation in health programs and diminished confidence in the country’s medical infrastructure.
Proposed Solutions
To mitigate these issues and resolve drug shortages, multiple steps need to be taken by the Ministry of Health, the pharmaceutical industry, and relevant governmental organizations.
- Strengthening International Cooperation: Iran should work to expand its international trade relationships and cooperation to secure raw materials for pharmaceutical production. Establishing secure financial channels and addressing banking issues could help alleviate some of the challenges in obtaining the necessary foreign currency for importing raw materials.
- Optimal Management of Currency Resources: Efficient use of foreign currency resources and precise allocation of currency for raw material imports could significantly reduce drug shortages. Additionally, stabilizing currency fluctuations through sound economic policies could support the consistent supply of essential drugs.
- Enhancing Domestic Drug Production: To reduce dependency on imports, it is essential to strengthen the domestic pharmaceutical industry and support local manufacturers. Given the capabilities within Iran’s pharmaceutical sector, greater efforts could be made to increase the production of essential medications and tackle shortages from a domestic standpoint.
- Improving Distribution and Monitoring Systems: Systems like TITAC, which provide patients with access to necessary medications, should be strengthened and optimized. These systems could serve as vital tools in drug distribution and managing shortages, ensuring that medications reach the right individuals in a timely manner.
- Education and Communication with Patients: The Ministry of Health should ensure timely and accurate communication with patients regarding drug shortages and available alternatives. This would help patients explore options like visiting the TITAC system or other governmental services to secure their medications, reducing uncertainty and distress.
Conclusion
The shortage of essential drugs in Iran, particularly medications like Lamotrigine, which are critical for epilepsy patients, is a direct consequence of economic problems and international sanctions. These shortages not only create serious challenges for patients but also place significant pressure on the national healthcare system.
However, through the implementation of sound economic policies, strengthening domestic pharmaceutical production, expanding international collaborations, and improving drug distribution systems, these issues can be alleviated.
Addressing these challenges is crucial for ensuring that patients have timely access to necessary medications, ultimately improving both individual health outcomes and the overall functioning of the healthcare system in Iran.