Data showed that approximately 918 million units of medication were sold in the first quarter, up from 863 million units during the same period the previous year.
Pharmaceutical sales in Egypt recorded a sharp increase during the first quarter of 2025, with total market value reaching EGP 96 billion (approximately USD 1.9 billion), according to the Egyptian Drug Authority.
Despite this significant jump in revenue, the volume of sales rose by just 6%, pointing to a broader trend of price-driven growth in the sector, noted Ali El-Ghamrawy, head of the Egyptian Drug Authority, to Al Asharq.
He attributed the rise in value to several contributing factors: higher investment levels, expansion of local production capacity, the addition of new manufacturing lines, and full operational output at many facilities. He also noted that elevated prices played a key role in the increase.
Data showed that approximately 918 million units of medication were sold in the first quarter, up from 863 million units during the same period the previous year. However, the pace of growth in sales volume appears to be slowing.
Ali Ouf, head of the Pharmaceuticals Division at the Chamber of Commerce, observed that sales volume growth dropped below the typical 10–15% range seen in recent years.
The discrepancy between volume and value was primarily driven by price increases, according to Ouf, who estimated that medicine prices rose by 30% to 50% during the quarter. The introduction of high-cost treatments—such as oncology drugs—further contributed to the uptick in market value.
Industry representatives including Mahmoud Abdel Maqsoud (General Division of Pharmacy Owners), El-Sayed El-Hindawy (Mash Pharmaceutical Industries), and Hesham Tharwat Hagar (Borg Pharmaceutical Industries) echoed these views, emphasizing that price adjustments became necessary following successive currency devaluations.
Between March 2022 and the end of March 2024, Egypt undertook four currency devaluations. During that time, the pound lost more than half its value against the U.S. dollar, reaching an exchange rate of approximately EGP 50 per USD.
The government's 2024/2025 budget had assumed a rate of EGP 45 to the dollar, underscoring the financial strain caused by exchange rate volatility.
This currency pressure, combined with a rise in short-term borrowing costs, has added to the fiscal burden. According to the Drug Authority, higher interest rates led the government to take on additional debt at elevated costs, resulting in EGP 57.1 billion in added debt servicing obligations related to the health sector.
Meanwhile, local pharmaceutical producers continue to account for the majority of Egypt’s medicine supply, currently covering around 93% of domestic demand.
In support of this local capacity, industry leaders plan to invest approximately EGP 4 billion during the year to introduce 20 new production lines. These efforts align with broader government goals to reduce reliance on imported pharmaceuticals.
The broader market saw total drug sales exceed EGP 307 billion in 2024, marking an increase of over 40% compared to the previous year. However, supply shortages and repeated price increases have remained persistent issues, driven by raw material constraints and port delays amid Egypt’s continuing currency crisis.
