Wholesale and retail distribution of pharmaceutical products can only be carried out by companies owned by pharmacists registered with National Order of Pharmacists (owned in its entirety by phamarcists in the case of a retail company, and by at least 51% in the case of wholesale company). Only Malagasy nationals or nationals of a country with which a reciprocity agreement has been signed (and this, within the limit of a quota defined each year by order of the Minister in charge of Health) are entitled to register and practice the phamarcist profession. In practice, therefore, foreign investment/participation in pharmaceutical manufacturing is much restrained by such requirement, albeit not entirely precluded.
"TITLE II - PRACTICE OF PHARMACY CHAPTER ONE GENERAL CONDITIONS
 Article 153.- The preparation, manufacture, division, packaging, import, export and wholesale of medicines and other pharmaceutical products subject to the same provisions are reserved exclusively for pharmacists.
Except as provided for in Articles 202 and following of this Code, are reserved exclusively for pharmacists, the retail sale and delivery for payment or free of charge of drugs and other products subject to the same provisions, as well as breast milk substitutes.
Article 154.- The preparation and wholesale and retail sale of medicines for veterinary use are reserved for pharmacists and veterinarians.
The sale of sterile solutions for ocular contact lenses is reserved for pharmacists and opticians.
CHAPTER II - THE PROFESSION OF PHARMACIST
Article 155.- No one may practice the profession of pharmacist if he does not fulfill the following conditions:
‐ hold a pharmacist's degree;
‐ be of Malagasy nationality or a national of a country with which a reciprocity agreement has been signed and this, within the limit of a quota defined each year by order of the Minister in charge of Health;
- be fluent in Malagasy;
- be resident in Madagascar;
- not have any pharmaceutical activity outside of Malagasy territory;
[...]
Article 157.- The head pharmacist practicing in an establishment manufacturing or preparing drugs and similar products must meet the conditions listed in article 155 concerning the exercise of the profession of pharmacist. The pharmacist in charge of a pharmaceutical industry must be in possession of an industrial pharmacist diploma or a pharmacist diploma and a minimum of three years of recent experience in a pharmaceutical manufacturing establishment.
The head pharmacist supervises the activities of all other qualified persons in the establishment and determines their functions and attributions.
The head pharmacist applies the principles and guidelines related to good manufacturing, distribution, promotion and advertising practices recognized by the Malagasy State.
[...]
TITLE III - PHARMACEUTICAL ESTABLISHMENTS
CHAPTER ONE - COMMON PROVISIONS
Article 165.‐ The opening and operation of any establishment for the manufacture, importation intended for wholesale, wholesale, dispensation of medicines and similar products, are subject to an authorization issued by the Minister in charge of of Health after consulting the Order of Pharmacists.
The authorization is issued in the name of the owner of the pharmaceutical establishment if it is a natural person or in the name of the owner company. It is non-transferable.
[...]
Article 168.‐ The opening and operation of any pharmaceutical manufacturing, wholesale distribution and import establishment are subject to the effective exercise of a Responsible Pharmacist.
[...]
Article 176.‐ The pharmacist must be the owner of the pharmacy of which he is the holder.
Pharmacists are authorized to set up a company among themselves with a view to operating a pharmacy. Each pharmacist who is a member of the Society is bound by personal practice and is entirely responsible for the ethical rules applicable to the profession.
In order to encourage the liberalization of operations concerning the sale of medicines and other health goods, the following principles govern the different forms that establishments carrying out a pharmaceutical activity may take:
Pharmacists can associate according to the provisions regulating commercial companies, while respecting the specificities of the profession of pharmacist. These principles must be the subject of an implementing text issued by the Minister responsible for Health.
Managers and partners are liable to third parties. No limit is placed on the criminal and quasi‐criminal liability of the managers, who are compulsorily guaranteed against professional risks. and quasi-criminal behavior of the managers, which are compulsorily guaranteed against professional risks.
Any pharmacist whose diploma is already registered for the operation of a pharmaceutical establishment or a pharmacy or in any capacity whatsoever may join forces with one or more pharmacists whose diploma(s) are not yet registered in view of of a creation of a pharmacy. The newly created pharmacy must be managed by the associate pharmacist whose diploma is not yet registered. A pharmacist cannot be associated with more than two pharmacies.
The share capital must belong in its entirety to one or more pharmacists who have fulfilled the conditions for practicing pharmacy on national territory.
[...]
CHAPTER IV - IMPORT, WHOLESALE AND DISTRIBUTION ESTABLISHMENTS
Article 184.- Wholesale pharmaceutical establishment means any approved establishment, public or private, engaged in external or local purchase for sale as is to persons or structures authorized to dispense drugs, pharmaceutical products and devices. medical. This wholesale pharmaceutical establishment must import products not available from local manufacturers.
[...]
Article 185.- Any wholesale pharmaceutical establishment must be placed under the responsibility of a Responsible Pharmacist.
Article 186.- Any Responsible Pharmacist is personally liable with regard to the laws and regulations in force with regard to the exercise of the profession of pharmacist, without prejudice, where applicable, to the joint and several liability of the company. He is subject to all the obligations imposed on the community pharmacist, in particular with regard to inspections carried out by pharmacy inspectors.
Article 187.- Any establishment for the preparation or wholesale sale, either of simple drugs or of chemical products intended for the pharmacy and packaged with a view to sale by medical weight, or of pharmaceutical compositions or preparations, must be the property of a State-certified Pharmacist or that of a company in the Management or General Management of which a Head pharmacist participates and in this case, the capital of the company must belong in majority to one or more pharmacists in the proportion of 51 % for pharmacists and 49% for anyone who is not a member of the profession. It may be, in whole or in part, granted for lease management to a company under the same conditions as above. The terms and conditions for exercising the management lease are determined by regulation. Managers and partners are liable to third parties. No limit is placed on the tortious or quasi-tortious liability of the Managers.[...]" (Law No. 2011-002 of July 15, 2011 on the Health Code [google translation])
Law No. 2011-002 of July 15, 2011 on the Health Code [google translation]
[<a href="http://www.sante.gov.mg/gestechu/textes.pdf">Law</a>]