Pharmaceutical industry: High production costs but set drug pricing

closeup view pharmacist hand taking medicine box from shelf drug store Pharmacy drugs
(File photo: Jordan News)
AMMAN — Pharmaceutical industry and medical devices representative of Jordan Chamber of Industry, Fadi Al-Atrash, announced Sunday that the cost of drug production in Jordan is high but the price of drugs is fixed, indicating that drug pricing in Jordan is fair. اضافة اعلان

He added that the Jordanian pharmaceutical industry has reached 80 foreign markets, including Arab and foreign markets, through 23 pharmaceutical factories, and that Jordan does not impose restrictions on the import of drugs from abroad, according to Al-Mamlaka TV.

Contribution to GDP and employmentAtrash further stated that the pharmaceutical industry contributes 4 percent to GDP and employs about 7,000 workers, of whom 35 percent are women.

He added that the Economic Modernization Vision guides the sector, and by 2033, the vision aims to reach employment to 16,000 employees, exports to JD2.1 billion, and to increase the contribution of the GDP to JD1.7 billion.

Additionally, Atrash revealed that two new drug factories will open in Al-Muwaqqar and Al-Baqaa in the current year, providing employment opportunities for Jordanians in this field.

Industry and trade balanceSecretary General and CEO of the Jordanian Association of Pharmaceutical Manufacturers, Hanan Sboul, praised the Jordanian pharmaceutical industry as advanced and ranked among the top five high-value industries.

She pointed out that the industry used to export more drugs than it imported until three years ago after the pandemic began and increased imports due to vaccines. 

Sboul confirmed that accelerating drug registration contributes to the expansion of the pharmaceutical sector and investment in it, and a proposal to amend the drug registration system has been submitted for three years.

Jordanian drugs are sold in Jordan at the same prices as foreign markets, she added, and Jordan and most markets in the region have a pricing policy that does not exceed the price of the public in the country of origin.

Reduced generic drug pricesMeanwhile, Jordan Food and Drug Administration Director-General Nizar Mhaidat announced that the prices of around 1,200 generic drugs will be reduced this year, indicating that drug prices are being studied and reviewed continuously.

Mhaidat explained that drug prices are being reviewed through a dedicated program and that many factors play a role in determining the price of the drug, including the price of the drug in the country of origin, the exchange rate, the market price of the drug, and the number of drug alternatives.

The drug price review cycle is linked to drug re-registration, which is done every five years, and there are 8,000 registered and priced drug types in Jordan, and approximately 5,000 of them are priced below JD5.

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