‘War has driven up medicine procurement costs, but stock levels remain stable’

The ongoing conflict in the Middle East is significantly impacting the global economy, leading to increased costs for pharmaceutical imports to the Maldives, said Dr. Shah Abdul Mahir, Managing Director of the state-owned State Pharma on Monday night, warning that medicine prices may continue to rise if the conflict persists.

Speaking on SSTV’s ‘Baaru Hathareh’ program, Dr. Shah stated that the company is presently working in close coordination with the Health Ministry enhance pharmaceutical procurement mechanisms.

Addressing the broader challenges faced by multiple sectors amid regional instability, Dr. Shah observed that escalating shipping and logistics costs are directly contributing to the upward pressure on medicine prices. He emphasized that the cost of importing pharmaceuticals has already risen noticeably compared to before.

With regard to specific logistical constraints, Dr. Shah noted that although there have been no major disruptions to overall supply, minor difficulties have arisen in certain regions.

"We have observed that some medications are flown in from Dubai. In instances where Emirates flights are cancelled or delayed due to regional tensions, it poses a challenge for maintaining the cold chain, as certain airlines like Emirates and Sri Lankan Airlines are better equipped with specialized refrigeration for medicines," Dr. Shah explained.

"There was a slight disruption and a brief delay recently linked to the conflict, but it did not reach a level that significantly impacted our current stock levels,” he added.

However, Dr. Shah cautioned that a prolonged conflict would necessitate the maintenance of higher stock levels of high-quality medicines to ensure consistent availability. He further pointed out that while Aasandha, the national social health insurance scheme, currently regulates retail prices, an increase in procurement costs remains unavoidable.

He also disclosed that concerns have been raised by the private sector, with certain suppliers indicating that rising import costs have rendered it commercially unviable to procure specific categories of medication.

"We are receiving complaints from the private sector stating that the cost of bringing in medicine has risen to a point where it is no longer 'worth it' for them to import specific items," he said.

Dr. Shah reaffirmed that State Pharma, acting on behalf of the government, remains committed to ensuring the availability of essential medicines at affordable prices.

He added that the company’s primary focus is to closely monitor global developments and undertake all necessary measures to safeguard the nation’s pharmaceutical supply.