To what extent are the operations of action medeor supported by donations? Do they buy most of their meds or are most of them donated?

Can you point to any public prices lists from commercial vendors? If you are aware of any, please let me know. I’d like to compare them to the IDPIG.

This weekend I’ll look around to see if I can find some financial statements for action medeor.

Here is a longer quote from the home page:

“We support around 10.000 healthcare centres, particularly small facilities, in 140 countries. action medeor sends drugs and medical equipment to developing countries, either at cost price or as donations. Potential recipients of aid are asked to provide detailed information and authorisation by local officials or may receive an on-site visit. Our partners either commission the production of generic drugs or order them in bulk from European pharmaceutical manufacturers. These drugs are patent-free, high quality and low priced. We are able to offer high quality at a low price by buying in bulk and selling at cost price.”

Here is a comment from the Tanzania page:

“Most of our products are purchased locally in line with action medeor’s policy to support local manufacturers – however, without compromising on quality. Products not available locally are procured from European and international manufacturers. We negotiate with suppliers for the lowest possible price due to bulk sourcing, thus benefiting from quantity discounts.

“To operate as a non-for-profit organisation our mark-ups are at the lowest possible margin to cover the operating and maintenance costs of our organisation, therefore we are not in the position to grant discounts to any customers.”

“Today the charitable, non governmental organisation action medeor e.V. is the largest medical aid organisation in Europe. medeor depends on the support of its donors to provide a wide range of services throughout the world.”

1. They are an aid organization and not a commercial supplier.
2. They depend on donor support to provide the drugs at the prices they do (i.e. the prices are subsidized).

They go on to say:
“We are able to offer high quality at a low price by buying in bulk and selling at cost price.”

This again indicates that they prices are not equivalent to an exit market fair value according to GAAP.

It seems that Action Medeor is validating the opinion that commercial fair market values are in fact higher than the prices indicated on the IDPIG