Competition Council pushes shake-up of drug pricing system to protect supply, fairness

Morocco’s Competition Council is calling for a major rethink of how medicines are priced and distributed, warning that the current system is starting to strain both supply and competition.

In a new opinion, the council says the existing framework is no longer keeping up with economic realities and that the rules are putting pressure on drug distributors and weakening the competitiveness of local pharmaceutical production.

One of the biggest proposed changes targets how wholesalers are paid. The council suggests a hybrid model that combines a profit margin tied to the factory price (excluding taxes) with a fixed fee per unit distributed.

The goal of this model is to  guarantee a minimum level of compensation regardless of a drug’s price, and keep this key link in the supply chain financially stable.

Pharmacists could also see a shift. The council recommends a mixed payment system that includes both a commercial margin and a dispensing fee, in odrer to better reflect the value of their work and support public health goals.

The report also points out a growing imbalance between imports and exports. In 2024, Morocco imported more than MAD 10.6 billion worth of medicines, compared to about MAD 1.6 billion in exports, leaving a trade deficit of around MAD 9 billion.

For that reason, the council stresses the need to clearly distinguish between locally made and imported drugs to better support national industry.

At the same time, it warns against over-regulating very low-priced medicines, saying they should be excluded from regular price reviews to avoid harming supply.

The council suggests simplifying procedures when price changes are minimal, arguing that complex administrative steps often bring little benefit to patients.

The council is also pushing for faster approvals. Right now, getting authorization to sell a drug can take two to three years.

That delay slows access to new treatments and cheaper generic alternatives. Cutting review times and allowing earlier submission of generic drug applications could help speed things up.