Iranian Pharma Company Closes Down amid Conflict with Drug Regulator

The CEO of Alhavi Pharmaceutical has announced the shutdown of the company after 55 years of operation and the laying off of its 500 employees.

Mohammad Azarinia made the announcement in a letter he posted on social media, in which he blamed the "unprecedented and unlawful intervention” of the Food and Drug Organization of the Ministry of Health and Medical Education for the shutdown.

"Alhavi retains the right to voice its grievances and seek legal action,” he said, adding that the managers of the Food and Drug Organization are directly responsible for the “consequences” of their actions and the “damages” they have caused.

The Food and Drug Organization later released a statement, saying that Alhavi Pharmaceutical Company was ordered to pay a fine of 1,100 billion tomans ($22 million) and halt sales of six of its products due to “exorbitant pricing.”

"In violation of this ruling, the company continued selling the overpriced products. Instead of rectifying its practices, it chose to halt supply of all its products," it added. 

Established in 1968, Alhavi Pharmaceutical Company was a significant player in Iran’s pharmaceutical industry, boasting the production of over 80 products.

The closure of the company is the latest blow to the national pharmaceutical industry, which has been struggling with a number of challenges in recent years, including sanctions, ballooning inflation and shortages of raw materials.

It is also a major setback for patients who relied on the company’s products.