Medicine Price Reform in Morocco
Analysis of Morocco’s medicine price reform, between the end of stair-step pricing, maximum reference prices, industrial predictability, access and AMO balance.
As pharmaceutical sovereignty has become a pillar of national strategic security, the regulatory framework for medicine prices is about to undergo a major shift. After several iterations and intensive consultations between the Ministry of Health and manufacturers, the draft reform decree has just undergone substantial changes. The “stair-step logic” is out; a more readable system is taking its place, designed to encourage local production without sacrificing citizens’ purchasing power.
1. The End of the “Stair-Step Logic”: Breathing Room for Local Industry
For more than a decade, the “stair-step” system, introduced in 2013, imposed a progressive reduction in generic-medicine prices according to their order of arrival on the market. While the initial intention was to stimulate competition, the perverse effect was to penalize later entrants, often local manufacturers, thereby discouraging investment in new production lines.
Abandoning this logic marks a victory for health sovereignty. From now on, the price of generics and biosimilars will be tied to a Maximum Reference Price (PMR).
- For medicines with a PFHT of MAD 300 or less: A minimum reduction compared with the originator medicine is applied.
- For medicines above MAD 300: The calculation is based on the latest officially revised price of the originator medicine.
This change drastically simplifies market readability for laboratories and provides the predictability required for industrial investment.
2. Medicines Without Benchmarks: Welcome Flexibility
One of the most pragmatic advances concerns medicines that have no international reference price, often the case for advisory or non-reimbursed products. Until now, the administration was navigating without clear guidance, sometimes comparing products that were not truly comparable.
The new text proposes that the ex-factory price excluding tax, or PFHT, be validated by the administration based on a direct proposal from the manufacturer. This flexibility should accelerate the market launch of common treatments, such as cold and flu products, and reduce administrative blockages that sometimes created artificial stockouts.
3. Price Revision: A Fairer Adjustment Mechanism
The reform also introduces a “market maturity” threshold for price revisions.
- If an originator medicine has at least 4 generics: A uniform reduction, capped at 15%, may be applied to the entire group.
- If the market is less dense: The revision only takes place to align the generic if the originator’s price becomes lower than the generic’s price.
In addition, the initiative for price revision now lies primarily with manufacturers, within safeguards intended to prevent prices from falling below a threshold of economic viability.
Vitavox Institute’s Analysis
However, two points require attention:
- Real accessibility: Simplification must not result in price stagnation in segments where competition could mechanically lower costs.
- Support for pharmacies: Any price reform directly affects pharmacists’ margins. The success of this decree will depend on the balance found between the interests of laboratories, the viability of the distribution network and the budgetary balance of AMO (Mandatory Health Insurance).