The encyclopedia · Software & IT · Strategic decision · 2013–2022
mPharma pooled independent pharmacies' buying power to cut drug prices in Africa
Managing inventory for many pharmacies at once, mPharma negotiates bulk prices and charges only for what sells.
mPharma
the move
mPharma was founded in 2013 by Gregory Rockson, Daniel Shoukimas and James Finucane to fix a perverse market: African pharmacies negotiate prices individually with suppliers, so the same medicine costs different amounts in different shops and stock runs out unpredictably.
Its mechanism is pooled procurement with vendor-managed inventory. mPharma manages drug supply for many pharmacies, negotiates bulk prices, and redistributes medicines as needed; pharmacists pay only for what they sell, which gives mPharma an incentive to keep prices low and shelves full.
The model attracted capital and expansion: by 2022 the company had raised $65 million, operated across African markets including Ghana, Nigeria, Kenya, Zambia and Zimbabwe, and was building Mutti community pharmacies around the supply network.
why it works
- Pooled demand gives a fragmented market the bargaining power of a chain.
- Redistribution turns a stockout somewhere into a sale somewhere else.
- Pay-for-what-sells aligns the intermediary with the pharmacy's margin.
- Inventory data reveals demand well enough to plan purchases.
what transfers
Where buyers are fragmented and suppliers are strong, the intermediary that aggregates demand captures the discount and the data.
what came after
A Skoll Foundation award in 2019 brought $1.5 million; a $35 million Series D in January 2022 funded data infrastructure and expansion, with the company aiming to make community pharmacies the first point of care across Africa.
references
- mPharma: health-tech start-up makes medicines affordable and accessible to patients in Africa
- mPharma raises $35 million in round joined by Tinder co-founder's JAM fund, Bharti executive
- Award-winning startup targets affordable medicine for every African
spotted an error? The archive wants to know.