100%, respectively. Annual mark-ups increased dramatically each year to cover increasing recurrent costs, and by 2007, only 19% and 46% of products revealed mark-ups of < 50% and 50-99%, respectively; while 35% of products revealed mark-ups > 100%. 2007 medicine mark-ups varied substantially across these products, ranging from 32% to 244%. Mark-ups needed to sustain private pharmacies would be even higher in the absence of government subsidies. Conclusion Pharmacy networks can be established in hard-to-reach regions with little funding using public-private partnership, resource-sharing models. Medicine prices and mark-ups must be interpreted with consideration for regional costs of business. Mark-ups vary dramatically across medicines. Some mark-ups appear "excessive" but are likely necessary for pharmacy viability. Pharmacy financial data is available in remote settings and can be used towards determination of "reasonable" medicine price goals. Health systems researchers must document the positive and negative financial experiences of pharmacy initiatives to inform future projects and advance access to medicines goals."/>
Skip to main content

Table 1 Detailed non-product recurrent costs (KGS) for pharmacy network

From: Balancing medicine prices and business sustainability: analyses of pharmacy costs, revenues and profit shed light on retail medicine mark-ups in rural Kyrgyzstan

  2005 2006 2007
Non-product fixed costs    
Central office salaries (supervisors) 44,400 93,600 110,500
Warehouse salaries 39,710 35,835 38,582
Social insurance 45,602 54,557 61,856
Utilities 6,997 2,764 3,413
Travel from central office to region 30,077 12,936 42,588
Non-product variable costs    
Office supplies, repair, other 16,230 4,917 15,271
Taxes 4,736 8,159 2,854
Nurse-dispenser bonuses 91,229 125,092 135,694
Travel between warehouse and pharmacies 17,431 26,730 27,390