Burkina Faso Caps Profit Margin for Private Pharmacies at 32%

Ouagadougou, Burkina Faso – The government of Burkina Faso has set the maximum profit margin for private pharmacies at 32% of the wholesaler’s sale price, in response to the significant increase in medical specialties since February 2023. This decision is part of a broader effort to regulate drug pricing in the country.

According to Burkina Information Agency, stipulates the new pricing structure for medicines in private pharmaceutical pharmacies. According to the decree, the public sale price of medicines is determined by applying a multiplier coefficient of 1.89 to the ex-factory or wholesale price.

The transfer price of medicines is set with a multiplier coefficient of 1.43 on the wholesale price, and for locally produced medicines, the sale price is determined by applying a multiplier coefficient of 1.20. The profit margin is capped at 32% of the transfer price from the wholesale distributor.

This decree is effective for six months from the date of signing, and violations will be penalized according to existing regulations. The move follows denunciations in April 2023 by the Consumer League and the Ministry of Health of unilateral price increases in private pharmacies. Pharmacists had argued that the already existing 32% margin was insufficient, citing inflation and rising operational costs.

The government’s intervention aims to balance the need for pharmacies to operate sustainably while preventing excessive pricing that could impact consumer access to essential medicines.