Lebanese Pharmacies Face Risks

Lebanese pharmacies are facing a severe financial crisis that threatens the closure of many of them. Over 200 pharmacies have already shut down, and around 600 are at risk of closing. The sector is suffering from rising operational costs and declining revenues, compounded by suppliers tightening payment terms, and profit margins that have decreased to no more than 40% of their 2019 levels. The crisis has led to significant losses, property sales, and distributors demanding cash payments, further worsening the pharmacies' difficulties. They are also struggling with inventory issues and the threat of medicines expiring before being sold, while pricing regulations constrain pharmacies, especially as costs continue to rise. This situation is leading to a decline in the number of pharmacies, despite an oversupply in the market, and the downturn poses serious health and financial risks. It is imperative for the government to intervene with solutions that ensure the sector's sustainability and prevent its potential collapse.

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