Algerian government tackles drug shortage

2008-07-16

Drug shortages have sparked panic among Algeria's chronically ill. In a bid to solve the crisis, the government decided last week to lift import restrictions imposed in December 2007.

By Achira Mammeri for Magharebia in Algiers – 14/07/08

[Achira Mammeri] Algeria's new health minister, Saïd Barkat, announced the lifting of a ban on the importation of certain pharmaceuticals. The ban had contributed to a shortage of essential drugs in the country.

The Algerian government has taken steps to alleviate a drug shortage which has caused alarm among chronically ill patients. The Ministry of Health signed 40 import licenses on July 7th for 30 different drugs used to treat cancer and cardiovascular ailments.

Under former Health Minister Amar Tou, imports were banned in December last year to spur domestic pharmaceutical production and reduce the country's annual expenditure of 1.3 million euros on drugs.

The measure was counterproductive, however, and stocks of drugs in pharmacies have been dwindling ever since. Despite the Algerian government's efforts to encourage investment in the drug manufacturing sector, the fifty or so factories located in the country meet only 35% of domestic demand.

Saïd Barkat, the new Minister of Health and Hospital Reform, who took office less than three weeks ago, expressed confidence in his ministry's policy reversal.

"The problem with regard to the drug shortage has been 80% solved. There is no cause for concern. We will find a solution to the rest of the problem within a few weeks," he said.

The move has received mixed reviews.

"The signature on July 7th of around forty import licences by the Ministry of Health in no way means that the drug shortage will be resolved in the immediate future," said Amar Ziad, president of the National Union of Pharmacy Operators (UNOP).

"Foreign laboratories have received other priority orders which were made well before July by a number of other countries," he continued, warning that the shortage of drugs in hospitals and pharmacies may continue until October.

Ziad added that he is not convinced by the Algerian authorities’ argument regarding rising drug expenditures, which he says are "tiny compared with those of developed countries".

While France spends 400 euros per inhabitant per year, Algeria spends only 33.

Healthcare professionals believe the shortage is caused by more than import blocks alone.

Faisal Abed, president of the SNAPO pharmacists’ union, said that the problem is compounded by other government policies. He added that a government regulation requiring 45% of imported drugs to be generics encourages imports at the expense of domestic production.

Amine Kali, the manager of a pharmacy in Algiers, told Magharebia that the state-mandated profit margin for drugs has fallen to 17%, driving many pharmacies out of business.

"I don’t have any exact figures," he said, "but I can assure you that a large number of pharmacies have closed down because they weren't making much money."