This paper presents a non-parametric method for calculating a Malmquist productivity index, applied to Swedish pharmacies from 1980 to 1989. The approach combines ideas from Farrell's efficiency measurement and Caves, Christensen, and Diewert's productivity measurement. The Malmquist index is based on input distance functions, which measure technical efficiency. The method allows for distinguishing between changes in efficiency and changes in the production frontier, which is important for policy analysis. In Sweden, the retail trade of pharmaceutical products has been managed by a public monopoly since 1971. Apoteksbolaget, the National Corporation of Swedish Pharmacies, is responsible for ensuring an adequate supply of drugs while minimizing costs. Currently, Apoteksbolaget calculates productivity as the ratio of a weighted sum of outputs to total labor input. However, this method is sensitive to the choice of weights and does not account for all inputs. The study uses data from 42 group pharmacies in Sweden from 1980 to 1989. These pharmacies are similar in size and responsibilities, making them suitable for analysis. The results show that productivity increased in seven periods and decreased in two. However, the periods of progress and regress differed between the two methods. For example, the authors found regress between 1980 and 1981 and progress between 1985 and 1986, while Apoteksbolaget reported the opposite. The current method has several drawbacks, including assumptions about technology, inability to distinguish between efficiency and technological changes, limited input variables, and the need for a priori weights. The proposed method addresses these issues by using a non-parametric approach that allows for more accurate measurement of productivity changes. The results suggest that the new method may provide different insights into productivity changes compared to the current approach.This paper presents a non-parametric method for calculating a Malmquist productivity index, applied to Swedish pharmacies from 1980 to 1989. The approach combines ideas from Farrell's efficiency measurement and Caves, Christensen, and Diewert's productivity measurement. The Malmquist index is based on input distance functions, which measure technical efficiency. The method allows for distinguishing between changes in efficiency and changes in the production frontier, which is important for policy analysis. In Sweden, the retail trade of pharmaceutical products has been managed by a public monopoly since 1971. Apoteksbolaget, the National Corporation of Swedish Pharmacies, is responsible for ensuring an adequate supply of drugs while minimizing costs. Currently, Apoteksbolaget calculates productivity as the ratio of a weighted sum of outputs to total labor input. However, this method is sensitive to the choice of weights and does not account for all inputs. The study uses data from 42 group pharmacies in Sweden from 1980 to 1989. These pharmacies are similar in size and responsibilities, making them suitable for analysis. The results show that productivity increased in seven periods and decreased in two. However, the periods of progress and regress differed between the two methods. For example, the authors found regress between 1980 and 1981 and progress between 1985 and 1986, while Apoteksbolaget reported the opposite. The current method has several drawbacks, including assumptions about technology, inability to distinguish between efficiency and technological changes, limited input variables, and the need for a priori weights. The proposed method addresses these issues by using a non-parametric approach that allows for more accurate measurement of productivity changes. The results suggest that the new method may provide different insights into productivity changes compared to the current approach.