Iran’s pharmaceutical sector is experiencing a severe crisis marked by widespread medicine shortages and dramatic price increases across essential medications. According to the Iranian Pharmacists Association, approximately 800 pharmaceutical products are currently unavailable nationwide, with 90 classified as essential and life-saving. Among the domestically manufactured drugs affected, prices have surged dramatically: gabapentin rose 220 percent over the past year, acetaminophen increased 375 percent, amoxicillin jumped 285 percent, fluoxetine rose 100 percent, and insulin prices have climbed to six times their level from a year prior. These increases occur within a broader inflationary environment affecting Iran’s economy.
The pharmaceutical shortages stem from multiple compounding factors. The US has maintained long-standing “maximum pressure” sanctions that have disrupted financial and logistics networks critical for procuring medical imports. Additionally, a naval blockade affects shipping through the Strait of Hormuz and disrupts alternative air, rail and overland routes. A military conflict that began in February caused further damage, destroying approximately 44 pharmaceutical and medical equipment companies and killing or wounding some 50 industry workers. One major casualty was Tofigh Daru, a significant pharmaceutical manufacturer owned by Iran’s largest pension fund, which suffered strikes to all its research and production lines. The company’s director estimated that partial rebuilding would require at least two years and tens of millions of dollars.
While Iran has pursued pharmaceutical self-sufficiency for years by developing domestic manufacturing capacity, the sector remains heavily dependent on imports for critical ingredients, specialized equipment and certain medications. The combination of sanctions, blockade measures and physical damage has significantly increased import costs while simultaneously reducing access to essential medicines. The financial strain on the healthcare system has been compounded by unpaid debts owed to pharmacies by insurers, which local media reported amounts to approximately 8 quadrillion rials.
Despite these challenges, Iranian authorities have attempted to project resilience in the sector. Officials claimed that drug shortages this year were fewer than in the previous year, though no supporting data were provided. A pharmaceutical exhibition was held in Tehran with participation from affected companies, though attendance from international counterparts remained limited to a small number of Chinese and other representatives. Meanwhile, healthcare providers in Tehran express concern about public health threats from the shortages, including impacts on vaccine availability, with some describing the price increases as an insurmountable barrier for vulnerable populations.
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