Medication for non-communicable diseases (NCDs) are often not affordable to patients in Kenya due to high drug prices. Hospitals incur high procurement costs as they individually buy small amounts of the medication, instead of buying large quantities that entitles them to volume discounts. These high prices are then passed on to patients.
CDMS ("Cronical Drugs Medical Scheme") decreases the procurement costs of NCD drugs for small and medium-sized hospitals by aggregating their demand. They then obtain quantity discounts from pharmaceutical companies and bypass distributors and wholesalers.
The second component of CDMS’ points of action is a pre-screening program that creates demand for the low-cost NCD medication. In order to enable patients to benefit from the lower drug prices, the pre-screenings raise awareness on NCDs and identify high-risk patients in the community. These patients are then referred to the hospital and can benefit from the lower costs.
The business model:
CDMS receives a commission fee on NCD medication from the hospitals.
CDMS is a registered entity in Kenya. Out of 70 approached hospitals, 50 declared strong interest in the solution. The team is currently working to receive working capital to buy larger bulks of NCD medication, e.g. in a pitch in front of the Merck investor forum in November. In cooperation with community workers, they are also currently conducting pre-screenings. Up until now, 5.000 pre-screenings have already taken place.
CDMS aims to conduct 30.000 pre-screenings per year; currently 2.500 take place per month
CDMS received a total of 70.000 € of external investment from Merck and Boehringer Ingelheim
Lowering the costs of NDC medication for the end user
Lowering procurement costs for small and medium sized-hospitals
Identifying high risk patients via a pre-screening and referring them to a hospital
Raising awareness among the community on NCDs
Changamka, Boehringer Ingelheim