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Casablanca – Morocco’s competition watchdog is calling for a broad rethink of how medicine prices are set and shared across the supply chain, warning that the current system is starting to strain both distributors and local manufacturers.
In a fresh opinion on the state of competition in drug distribution, the Competition Council says the existing pricing framework, while more transparent than before, is no longer well aligned with economic realities. It argues that the model now weighs on the viability of wholesalers and risks weakening the competitiveness of domestic production.
The council is pushing for a more balanced approach. One of its main proposals targets pharmaceutical wholesalers, known as EPGR, whose remuneration would shift to a hybrid model. That would combine a margin linked to the manufacturer’s price excluding tax with a fixed fee per unit distributed.
The idea is simple and would allow even low-priced medicines to guarantee a minimum income for distributors, helping keep supply chains running and shelves stocked.
Pharmacies are also part of the overhaul. The council suggests introducing a mixed system that blends commercial margins with dispensing fees. This would give more value to the pharmacist’s role, not just the product itself, and better reflect public health goals.
Read also: Morocco’s Competition Council Calls for New Criteria to Rebalance Pharmacy Distribution
Some medicines are getting special attention. High-cost drugs in price brackets three and four should see their margins increased, according to the council, to ensure they remain available across the country and to avoid market distortions.
At the other end of the spectrum, very low-priced medicines should be shielded from systematic price revisions. These products are essential for access, and further pressure on margins could disrupt their distribution.
The report also points to a structural imbalance in trade. Morocco imported more than MAD 10.6 billion ($1.13 billion) worth of medicines in 2024, compared to about MAD 1.6 billion ($170.94 million) in exports, leaving a deficit of MAD 9 billion ($961.55 million). The council says imported and locally produced medicines should not be treated the same way in pricing policies, especially if the goal is to support the national industry.
On the technical side, it recommends revising prices more often, every three years instead of five, and harmonizing the methods used. This could reduce gaps between Moroccan prices and those seen abroad. It also suggests adding an exemption clause for negligible price changes to avoid heavy administrative work with little benefit.
Finally, the council backs freeing the prices of non-reimbursable comfort medicines, letting competition set them instead of regulation.
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