Healthcare in Iran

The Social Security Organization is responsible for insuring employed citizens in urban areas and their dependents, with the exception of government workers. All salaried and wage workers are covered, as are self-employed persons who voluntarily join. It also insures many old-age pensioners. The Medical Service Insurance Organization covers government employees, students, and inhabitants of rural areas. The Imam Khomeini Relief Foundation insures the poor who are not covered by other insurance schemes, while the Military Personnel Insurance Organization provides health insurance to members of the armed forces. Beyond these schemes, there are a number of private and semi-public insurance programs that cover the more affluent members of society.[5]

More than 90% of the population has health insurance, and the government has made universal coverage by 2018 a priority.[15] In general, health insurance covers 70% of the cost of drugs on the insurers' coverage list, and 90% of public hospital costs, with extra provision for those with rare diseases or in remote areas.[5][15]

Since 2009, a new government plan called "the comprehensive insurance plan" provides basic coverage to all Iranians.[16]

Dental care facility in Iran (circa 1970)

Iran has been very successful in training/educating the necessary human resources for its health system. The system of almost 30 years ago where the country was facing a shortage of all kinds of skilled personnel in the health and medical sector has been completely changed into one in which the necessary professionals now completely suffice the country's needs. There are now 488 government funded hospitals in Iran. There were 0.5-1.1 physicians per 1000 population in 2004 according to various estimates (about 46 percent of physicians were women).[17]

Shariati Hospital

Kasra Hospital

Imam Khomeini hospital

Atieh hospital

INI hospital

Razavi hospital

Ghods hospital

Shomal hospital

However, access and availability of health care continues to be somewhat limited in lesser developed provinces where the health indices are also lower as compared to national averages. The country is in an epidemiologic transition and faces double burden of the diseases. New emerging threats should also be considered. The demographic and epidemiological transition underway will have a significant effect on the pattern of morbidity and mortality in the near and distance future, especially as it affects the emergence of chronic non-communicable diseases and the health problems of an aging population.

Although overall improvements have been achieved in all health areas since the 1979 revolution, the present challenging economic conditions of the country, combined with rapid advances in medical technology and information technology, individuals’ expectations, and the young demographic of the population will undoubtedly challenge the sustainability of past improving trends.

Medical tourism in Iran is a very progressed and talented field. Medical tourism is about going abroad for getting medical treatment or a treatment that is not provided in your own country or at least it is not as efficient as it should be. People from  more developed countries would travel to other countries to get their treatment with lower price. Its estimated that by using medical tourism in Iran a foreigner can save up to 50% on their treatment.

Medical tourism in Iran, has a high potential of attracting tourists for medical services. Apart from the price which is considerably lower, comparing to other countries being in the same region, the quality of medical services in Iran are quite pleasing. Iran has a really well educated and experienced medical staff. Medical specialists are highly professional and supported by a qualified nursing system. Iran also has a really active team of medical researchers.[18]

In 2012, 30,000 people visited Iran each year to receive medical treatment.[19][20] Most health tourists were from Azerbaijan, Turkmenistan, Iraq, Turkey, Kuwait, Oman and Pakistan.[21]

In 2006, 55 pharmaceutical companies in Iran produce more than 96 percent (quantitatively) of medicines on the market, worth $1.2 billion annually.[25] Iran's pharmaceutical market is estimated to be worth $1.87 billion (2008), $2.31 billion (2009), $3.26 billion (2011), $3,57 billion (2013) and $3.65bn by 2013 (projected).[3][26][27][28]

The drug market in Iran is heavily in favour of generic medicines, which contributed US$1.23bn to the total in 2009, with patented drugs at US$817mn and OTC medicines at US$262mn.[27]

The market share of local production (value-wise) has declined from 85.2% to 63.4% over the past 8 (Iranian) years (2009). In this period the value of importation has jumped from 14.8% to 36.6%. The government imposes 90% tariff on the import of drugs.

In 2009, 1.8 million units of pharmaceutical products worth $1.2 billion were imported into Iran.[29]

As of 2015, Iran's share of global biotechnology products market is half a billion US dollar.[30]

In 2010, 50% of raw materials and chemicals used in the drug manufacturing sector were imported.[31] In 2019, Iranian companies were able to produce 80-90% of the raw materials needed inside the country.[22]

Iran has produced a wide range of pharmaceuticals for the treatment of cancer, diabetes, infection and depression.[32]

Iran is the first country in the East Mediterranean region which has the technical and scientific capability to export vaccines to various world countries.[33] Iran will gain self-sufficiency in vaccine production by 2014.[34] As of 2019, Iran produced 8 out of the 18 main vaccines for humans.[22] In 2020-2021, amid the COVID-19 pandemic in Iran, Iran developed multiple COVID-19 vaccines[35] with five that have received emergency use authorization (COVIran Barekat,[36] Pasteurcovac,[37] FAKHRAVAC,[38] COVAX-19[39] and Razi Cov Pars[40]).

The new drugs launched in Iran for the treatment of MS include an interferon beta-1b by CinnaGen.[41] Gamma Immunex (recombinant interferon beta 1), Pegaferon (recombinant pegylated interferon (PEG-IFN)) and regenerative human factor VIII are among other recombinant-based medication made in Iran. A generic version of fingolimod by Novartis has been launched as well as a biosimilar version of EMD Serono′s Rebif.

Iranian researchers have developed 41 types of anti-cancer medications, overcoming the need for importing pricey cancer drugs from abroad (2011).[42][43] There are also 24 additional biosimilar drugs which Iran plans to bring into production by end of 2012.

According to the Food and Drug Administration in 2014, trade in counterfeit commercial drugs has become more lucrative than dealing in illegal narcotics. Most of which come from Pakistan. Drugs for sexual enhancement, weight control, aesthetics, height enhancement, hair growth and body building are among the more prevalent fake drugs on the market. [44]

In recent years several drugmakers are gradually developing the ability to innovate, away from generic drugs production itself.[27]

Iran has around 8000 species of plant life and researches indicate that more than 2300 species have remedial characteristics or can be used as cosmetic products;[45] only 100-300 of which are being used in pharmaceutical industries at present.[46][47] Iran has 80 percent of the world medicinal herbs. Due to lack of required technology, they are exported raw and in limited quantities to foreign markets.[47]

Inside AryoGen company's production line.

In 2010, 92 companies were active in the pharmaceutical industry of Iran.[29]

The Social Security Investment Co. (SSIC), which is affiliated to the Ministry of Welfare, was reported in 2008 to be Iran's largest holding company, owning and controlling 22 pharmaceutical manufacturing companies and possessing a 40% share of Iran's total pharmaceutical production.[48]

The leading pharmaceuticals company is Darou Pakhsh, which is majority-owned by the Social Security Organization. The company manufactures, distributes, imports and exports finished products and pharmaceutical raw materials. Darou Pakhsh has an annual turnover of US$400m and claims to have the largest research and development operation of any Iranian drug firm. The company formed a plasmapheresis joint venture with a German medical firm, Biotest AG, in early 2004.[4]

The Razi Institute for Serums and Vaccines and the Pasteur Institute of Iran are leading regional facilities in the development and manufacture of vaccines.[49]

The Barkat Pharmaceutical Group is a major pharmaceutical holding that supplied 14% of the pharmaceutical market of Iran in 2016.[50]

Iranian pharmaceutical manufacturers are reported to be disadvantaged by the government's poor intellectual property protection regime and lack of foreign direct investment.[3]