Iran pharmaceutical supply chain faces currency and logistics hurdles

Mehrdad Alemi, head of the Raw Materials Department at the Food and Drug Administration, has identified the primary causes for delays and increased costs in the supply of pharmaceutical raw materials in Iran.

Alemi stated that the majority of supply chain disruptions are not due to technical production issues but are instead driven by challenges related to currency allocation and transfer, banking hurdles, customs clearance, transportation, and logistics. He noted that sanctions further complicate the process of transferring funds and purchasing materials from foreign sources, which often leads to increased procurement times and higher total costs.

While emphasizing that technical risks must still be managed to ensure quality, Alemi highlighted that domestic manufacturers possess significant technological capacity and could compete with leading nations. He stressed the necessity of distinguishing between technical, currency, and logistical risks to design effective policies and reduce supply chain vulnerabilities.