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Improving Access to Essential Medicines in Low- and Middle Income countries through a Not-for-Profit Generic Pharmacy Chain Model in Zambia

Ministry of Foreign Affairs- Netherlands
Field of Expertise:
Medical Products, Technologies; Policy/Strategy/DRA; Pharmaceutical markets (shaping, assessments, studies)
Narrative description of project:
From August to November 2018, hera carried out a study commissioned by Health Action International (HAI) on the feasibility of a Not-for-Profit Generic Pharmacy Chain (GPC) in Zambia. The consultants developed a business model for the GPC that consists of a GPC pharmacy cluster per district which entails one central pharmacy with a number of satellite pharmacies. Consultants calculated one-day household expenditure per quintile as affordability thresholds. Comparing these with the average sales price per GPC prescription line (USD 4.03; ZK 44) indicates that 60% of the population may not be able to afford GPC medicines. This would mean that GPC is not affordable unless some form of alternative payment is established. The planned roll-out of National Health Insurance (NHI) seems to be the best option.

Next steps are for HAI to identify which stakeholders are prepared to become partner-shareholder-investor (GPC will require approximately USD 6.3 million investment). HAI may establish the GPC Partner Steering Group which should start discussions with the officers responsible for NHI on the possible cooperation with GPC. It is being recommended to develop and implement a pilot-business case together with NHI so that real circumstances may be tested.
Description of services provided:
Executed a feasibility study on and developed a business model for a Not-for-Profit Generic Pharmacy Chain (GPC) in Zambia. The study team produced an inception report, a desk review report on Zambia’s preparedness and other countries’ experiences, and a feasibility study report.