Volume 20, Issue 61 (4-2026)
MLJ 2026, 20(61): 289-302 |
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Ardalan Najafi S A, Ostovar Sangari K, Shojaeian K. The Approach of the Securities and Exchange Law toward Government Intervention in Mandatory Pricing of Medical and Pharmaceutical Goods and Services. MLJ 2026; 20 (61) :289-302
URL: http://ijmedicallaw.ir/article-1-1975-en.html
URL: http://ijmedicallaw.ir/article-1-1975-en.html
1- Department of Public Law, Shiraz Branch, Islamic Azad University, Shiraz, Iran.
Abstract:
Background and Aim: Mandatory pricing of goods and services, particularly in the healthcare and treatment sector, has long been regarded as a persistent legal and economic challenge within the Iranian regulatory system. The Securities Market Act of the Islamic Republic of Iran (2005, as amended), aimed at regulating capital markets and ensuring transparency in price discovery mechanisms, is grounded in principles that address the scope and legitimacy of governmental intervention in pricing. This study examines the legal approach of the Securities and Exchange framework toward state intervention in mandatory pricing of medical and pharmaceutical goods and services and analyzes its interaction with the broader legal regime governing the Iranian healthcare system.
Method: This research adopts a descriptive–analytical methodology and is based on documentary analysis. Relevant provisions of the Securities Market Act, complementary legislation in the health and medical sector, and regulatory instruments governing the pricing of medical and pharmaceutical services were examined through legal and comparative analysis.
Ethical Considerations: The study was conducted in full compliance with research ethics, including academic integrity, accurate legal citation, avoidance of bias, and respect for stakeholders’ rights.
Results: An analysis of Articles 2, 4, 5, 18, and 43 of the Securities Market Act indicates that its foundational principles are based on market-driven price discovery mechanisms, transparency, fair competition, and the rejection of administratively imposed pricing, even in relation to sensitive commodities. However, in the healthcare and pharmaceutical sectors, the state extensively intervenes in pricing based on sector-specific legislation, including the Law on Medical, Pharmaceutical, Food and Beverage Affairs (1988) and annual budgetary statutes. This has generated a structural normative conflict between the market-oriented logic of the Securities Market Act and the interventionist regulatory framework governing healthcare pricing. The findings suggest that this duality may result in market distortions, weakened production incentives, shortages of medicines and healthcare services, and reduced investment in the health sector.
Conclusion: The Iranian legal system operates through two distinct yet overlapping regulatory paradigms in the field of healthcare pricing: the Securities Market Law, which is grounded in economic liberalization and market-based price formation, and the healthcare regulatory framework, which is based on state intervention for public welfare objectives. This legal dualism has contributed to inefficiency, rent-seeking behavior, and social dissatisfaction. Addressing this challenge requires either legislative reform or the development of integrated policy frameworks capable of reconciling market mechanisms with public health governance imperatives.
Please cite this article as:
Najafi SAA, Ostvar Sangari K, Shojaeeian KH. The Approach of the Securities and Exchange Law towards Government Intervention in the Field of Mandatory Pricing of Medical and Pharmaceutical Goods and Services. Medical Law Journal. 2026; 20: e19.
Method: This research adopts a descriptive–analytical methodology and is based on documentary analysis. Relevant provisions of the Securities Market Act, complementary legislation in the health and medical sector, and regulatory instruments governing the pricing of medical and pharmaceutical services were examined through legal and comparative analysis.
Ethical Considerations: The study was conducted in full compliance with research ethics, including academic integrity, accurate legal citation, avoidance of bias, and respect for stakeholders’ rights.
Results: An analysis of Articles 2, 4, 5, 18, and 43 of the Securities Market Act indicates that its foundational principles are based on market-driven price discovery mechanisms, transparency, fair competition, and the rejection of administratively imposed pricing, even in relation to sensitive commodities. However, in the healthcare and pharmaceutical sectors, the state extensively intervenes in pricing based on sector-specific legislation, including the Law on Medical, Pharmaceutical, Food and Beverage Affairs (1988) and annual budgetary statutes. This has generated a structural normative conflict between the market-oriented logic of the Securities Market Act and the interventionist regulatory framework governing healthcare pricing. The findings suggest that this duality may result in market distortions, weakened production incentives, shortages of medicines and healthcare services, and reduced investment in the health sector.
Conclusion: The Iranian legal system operates through two distinct yet overlapping regulatory paradigms in the field of healthcare pricing: the Securities Market Law, which is grounded in economic liberalization and market-based price formation, and the healthcare regulatory framework, which is based on state intervention for public welfare objectives. This legal dualism has contributed to inefficiency, rent-seeking behavior, and social dissatisfaction. Addressing this challenge requires either legislative reform or the development of integrated policy frameworks capable of reconciling market mechanisms with public health governance imperatives.
Please cite this article as:
Najafi SAA, Ostvar Sangari K, Shojaeeian KH. The Approach of the Securities and Exchange Law towards Government Intervention in the Field of Mandatory Pricing of Medical and Pharmaceutical Goods and Services. Medical Law Journal. 2026; 20: e19.
Type of Study: Original Article |
Received: 2025/07/5 | Accepted: 2025/11/1
Received: 2025/07/5 | Accepted: 2025/11/1
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