ta

ne

ek

Gu
p

Opportunities and Challenges in West

Africas Healthcare and
Pharmaceutical Sector

r.

Dr Aneek Gupta

ta

Focus Points
Ghana & Nigeria Macroeconomic Overview

Gu
p

Pharmaceutical Industry in Ghana & Nigeria Overview

Ghana & Nigeria Pharmaceutical Market Trends and Forecasts
Pharmaceutical Market Segmentation by Therapeutic Area

ne

Focus Points

ek

Therapeutic Area Growth Analysis

Key Drivers & Restraints

Pharmaceutical Procurement Process

Competitive Analysis by Company Type

Ghanaian Pharmaceutical Industry Detailed Overview

Nigerian Pharmaceutical Industry Detailed Overview

r.

Key Mergers, Acquisitions & Partnerships

Future Directions for Pharmaceutical Companies in Ghana & Nigeria

ta

Pharmaceutical Industry in Ghana & Nigeria

Overview

Gu
p

Total Pharmaceutical Industry: Market Engineering Measurements, Ghana & Nigeria, 2013
Market Overview

Growth

Market Revenue

$1.63 B

65.9%

Decreasing

r.

34.1%
(2013)

(2013)

OTC Pharmaceutical
Segment Revenue

Stable

Customer Price
Sensitivity

Base Year Market

Growth Rate

14.0%
(2013)
(2013)

Degree of Technical
Change

Prescription
Pharmaceutical
Segment Revenue

(2018)

ne

(2013)

$3.12 B

ek

Market Stage

Market Size for

Last Year of Study
Period

9
(scale:1 [low] to 10 [High])

6
(scale:1 [low] to 10 [High])

Compound
Annual Growth
Rate

13.9%
(CAGR, 20132018)

Number of
Registered Market
Participants

185
(approximately)
(active market competitors in
2013)

Increasing

Note: All figures are rounded. The base year is 2013.

Pharmaceutical Industry in Ghana & Nigeria: Revenue Forecast

Increased incidence of NCDs

including diabetes, hypertension
and cancer drives demand for
chronic prescription drugs.

OTC segment expected to witness

growth mainly for antianti-infectives,
infectives,
analgesics and vitamins

Rapid increase in uptake of

generics anticipated owing to
increased NHIS coverage.

Key Segments

2011
1.26
13.5

2014
1.85
13.5

2015
2.09
13.0

2016
2.40
14.8

Ghana

2017
2.73
13.8

2018
3.12
14.3

Sales Breakdown by Exclusivity

Status, 2013

Branded
Generic
21.6%

25%

44.3%
75%

Nigeria

r.

2013
1.63
14.0

Revenue Breakdown by Geographic

Region, 2013

100% NHIS coverage in Ghana

expected to boost prescription
drugs

2012
1.43
13.5

20.0
18.0
16.0
14.0
12.0
10.0
8.0
6.0 2.4%
4.0
2.0
0.0

Growth Rate (%)

Gu
p

2010
Revenue
1.11
Growth Rate
-

ek

diseases including malaria, TB and

AIDS among others drives demand
for antianti-infectives

CAGR(2013
(2013 2018)
2018)= =13.9%
13.9%
CAGR

ne

Continuous burden of infectious

3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00

Robust industry growth expected to

near 14% p.a. in the next 5 years,
underpinned by:

Revenue ($ Billion)

Key Trends

ta

Ghana & Nigeria Pharmaceutical Market Trends and

Forecasts

OTC

34.1%

Governments to encourage local production of essential medicines to

improve capacity utilization and reduce imports
7

ta

Per Cent Revenue Forecast by Region

Gu
p

Ghana is expected to witness higher growth than Nigeria because of increased NHIS
coverage and well-defined regulatory guidelines.
Total Pharmaceutical Industry: Per Cent Revenue Forecast by Region, Ghana & Nigeria, 2010
2018

ek

75.0

ne

50.0

Ghana
Nigeria

2010

2011

2012

2013

2014

2015

2016

2017

2018

27.3

25.0

26.7

25.0

27.8

28.6

29.2

29.6

29.0

72.7

75.0

73.3

75.0

72.2

71.4

70.8

70.4

71.0

r.

0.0

25.0

Revenue (%)

100.0

Year

Note: All figures are rounded. The base year is 2013.

ta

Pharmaceutical Market Segmentation by

Therapeutic Area

Gu
p

Although anti-infectives constitute the largest segment of the prescriptive pharmaceutical

market, a marked shift in the burden of illness towards lifestyle diseases is expected.

ek

Total Pharmaceutical Industry: Per Cent Sales Breakdown by

Therapeutic Segment, Ghana & Nigeria, 2013

ne

OTC
34.7%

Anti-infectives
25.8%

Cardiovascular
11.9%

r.

Others
7.9%
Oncology
3.5%

Diabetes
6.2%
CNS
4.4%

Respiratory
5.6%

Note: Others include dermatology, gastrointestinal, and rheumatology.

Note: All figures are rounded. The base year is 2013.

Therapeutic Area Growth Analysis

20%

14%
Fast
Growing
Fast
Growing

4%

2%

ne

6%

Continuous burden of
anti-infectives is
expected to contribute
to significantly high
growth of this
segment throughout
the forecast period.

The increasing rate of urbanisation

and adoption of western life style are
expected to result in an increasing
incidence of NCDs, including
cardiovascular disease and
diabetes.

Anti-infectives

Cardiovascular

Note: Bubble size represents market value

Increasing awareness
of mental conditions
and efforts to protect
mental health of
people are expected
to drive growth in the
long-term.

Fast
Growing
This is the fastest
growing segment.
Early diagnosis,
coupled with
increasing
awareness, is
expected to fuel
the growth of this
segment.

Declining

The relatively lesser

incidence of respiratory
diseases coupled with lack
of technological expertise
for the production of certain
drug types is expected to
restrict the growth of this
segment.

r.

8%

Fast
Growing

CAGR

10%

Growing

ek

12%

Gu
p

ta

Total Pharmaceutical Industry: Therapeutic Segment Growth Analysis, Ghana

& Nigeria, 20142018

Diabetes

Respiratory

CNS

Oncology
Source: Frost & Sullivan

Drivers

Weak
distribution
systems

Restraints
Weak
regulatory
policies

ne

ek

Increased
healthcare
spending

Pharmaceutical
spending in Africa
to reach $35 billion
by 2018
Implementation of
NHIS to improve
access and
availability of drugs
FDI in Africa
expected to double
by 2016

Increasing
adoption of
western
lifestyle
NCDs to
constitute 21%
by 2030
Steep rise in
chronic drugs to
essential
medicines ratio

Largest reservoir of
malaria, TB and
AIDS
Recent outbreak of
Ebola virus
Increased public
health coverage
(90%)
Expanded program
on immunization
(EPI)

Increasing
incidence
of NCDs

r.

Continuous
burden of
infectious
diseases

Gu
p

ta

Pharmaceutical Industry in Ghana & Nigeria Key

Drivers and Restraints

Inadequate
number of
pharmacies
and private
clinics
Counterfeit
drugs and
illegitimate
drug trading

Drug registration
process time consuming
and open to corruption
Absence of structured
pricing system poses
challenge to public
sector
Private sector
challenged by high outof pocket spending

Poor
diagnosis
and patient
awareness

Poor knowledge
of diagnostic
procedures
Patients
skeptical about
use of modern
medicines
Lack of trained
doctors and
nurses
Source: Frost & Sullivan

ta

Pharmaceutical Procurement Process

Gu
p

Key Takeaway: Engaging in strategic partnerships with local distributors is crucial for effective product distribution
in Ghana and Nigeria.
Total Pharmaceutical Industry: Procurement Process, Ghana & Nigeria, 2013

Local Manufacturers

Branded
Companies

ek
ne

r.

Distributors

Direct Sales

Manufacturer
Representatives

Generic Companies

Teaching hospitals,
private hospitals, clinics,
pharmacies, and chemical
sellers

End User

Distributors

private sector, especially for in-demand therapies

 Increasing incidence of NCDs to fuel demand for
specialty pharmaceuticals driving growth of MNCs
 Importers include Indian and Chinese generic

Local
manufacturers
28.8%

ek

pharmaceutical companies.

Per Cent Sales Breakdown by Tiers of

Competition, Ghana & Nigeria, 2013

Gu
p

 Branded companies predominantly target the

ta

Competitive Analysis by Company Type

 Indian generic companies, which sell drugs

Branded
companies
34.5%

ne

mostly through NGOs and government tenders,

Importers
36.7%

fare much better than their Chinese counterparts.

 Local manufacturers sell own brands besides

distributing brands of MNCs and importers

 High cost of local APIs poses challenge to local

r.

manufacturers

 Only a handful of local companies have gained

WHO pre-qualification status

Efforts have been made to ensure quality

production
The WHO and UNITAID have offered technical
assistance and capacity building to Nigerian drug
makers in achieving GMP standards and WHO
pre-qualification

Gu
p

ta

Total Pharmaceutical Industry: Key Competitive

Factors, Ghana and Nigeria

ek

Competitive
Pricing

Loyalty

ne

Brand
Recognition/

Good product
quality

r.

Key Success
Factors

Marketing
Strategies

Wellestablished
distribution
network

ne

Few companies equipped with the capabilities to

produce APIs. La Gray Chemical Company is one such
example.

Well-developed NHIS and major donor funding for

the provision of essential drugs

10-15% of locally produced drugs exported to other

West African countries.

Prescription
71.2%

r.

Branded
28.9%

Pharmaceutical Industry: Per Cent Revenue by Imported and

Locally Produced Pharmaceuticals, Ghana, 2013

Unregistered products account for 4% of the market;

exact share of counterfeit drugs unknown

Acute respiratory infections, malnutrition, anemia,
diarrhea, and measles account for 50% of all
childhood hospitalisation and 30% of childhood
deaths.

Generic
71.1%

OTC
28.8%

ek

Ghana
has
approximately
55
registered
pharmaceutical manufacturers producing finished
dose formulations.

Pharmaceutical Industry: Per Cent Revenue by

Product Segment, Ghana, 2013

Gu
p

The OTC product segment is considerable, attributing

to
inaccessibility
issues
with
prescription
pharmaceuticals in certain regions, increased focus of
the local participants on the OTC sector, and heavy
advertising of OTC drugs.

ta

Ghanaian Pharmaceutical Industry Overview

Locally
manufactured
34.0%
Imported
66.0%

Note: All figures are rounded. The base year is 2013.

50.6%

ne

Generic

Branded

OTC

Traditionally
largest
segment comprising half
the market
Key suppliers include
importers from India and
China
Local
manufacturers
produce drugs for PEDs
Cent
percent
NHIS
coverage major growth
driver
Generic companies likely
to win tenders in public
sector, particularly in
diabetes
and
cardiovascular segments
Expected
to
witness
highest
growth,
representing almost 60%
by 2018

r.

Increasing incidence of NCDs drive

growth in this segment
Significant proportion of Ghanaian
population are brand loyal
Growth of niche therapy areas such
as oncology and CNS expected to
increase uptake of branded drugs
Increasing patient awareness to
contribute to growth

20.6%

28.8%

ek

Local manufacturers primarily focus

on OTC.
Key products include combination
analgesics, tonics, vitamins, cold and
flu preparations
High cost of imports, APIs and
intermediates to drive growth of OTC
segment
Increased NHIS coverage could result
in slightly lesser growth

Gu
p

ta

Ghana Market Analysis by Product Segment

Note: All figures are rounded. The base year is 2013

ta

Ghanaian Pharmaceutical Industry

Procurement and Supply Management

Gu
p

Pharmaceutical Industry: Public Sector Drug

Procurement, Ghana, 2013

Public Sector Pharmaceutical Procurement

ne

ek

The Ministry of Health (MOH) Procurement

Department is responsible for the overall
steering and management of the public
sector drug procurement.

The Ghanaian health service (GHS), a
service delivery agency under the MOH, is
responsible for the allocation of resources
and liaison with the private sector.

Public sector procurement comprises 3
levels.
o Tertiary-level services are provided by central

r.

authorities that include the major public

teaching hospitals (Korle Bu, Komfo Anokye and
Tamale) via tendering
o secondary-level services are offered by district
and regional institutions.
o Primary-level services are provided by
community and sub-district/rural institutions

Tertiary
level
(Central
authorities)

Secondary level
(District and regional)

Primary level
(Community and rural areas)

ta

Ghanaian Pharmaceutical IndustryProcurement and

Supply Management (continued)

Gu
p

Pharmaceutical Industry: Public Sector Procurement Process, Ghana, 2013

National Competitive Bidding
(NCB)

Drugs that address local PEDs and

financed through TGF are
procured via ICB.
WHO
pre-qualification
and
registration with FDB is required
for a product to qualify for ICB.
Drug needs assessment is done
by the following agencies:
o ARVs Ghana Office of
UNAIDS and WHO
o Anti-malarials

Ghana
National Malarial Control
Program
o TB drugs Ghana National TB
Program and WHO
o NTD drugs Ghana MOH and
WHO

Conducted for essential

drugs not provided through
TGF
Product
qualifications
include
FDB
product
registration
and
GMP
registration.
Nearly 1% of ARVs and antimalarial drugs are procured
through NCB.

ne

r.

Donations

Shopping

Large number of vaccines

and medical devices such
as
disposables
and
condoms are donated
through UNICEF and
USAID as well as ITNs
through NGOs.
Additionally, the research
industry
donates
a
significant
chunk
of
medicines, although the
exact
amount
is
unknown.

The MoH Central Medical

Stores maintains large
supplies of drugs targeting
PEDs.
Whenever there is an
acute supply shortage or
lengthy delay in ICB- and
NCB-based procurements,
MoH
fulfils
drug
procurement
orders
through shopping.
A huge amount of
essential
drugs
are
procured
through
shopping.

ek

International Competitive Bidding

(ICB)

ta

Ghanaian Pharmaceutical Industry - Distribution

Public Sector

procured

publically

via

ICB/NCB

Gu
p

Drugs

Private Sector

are

Highly

distributed by the MoHs Central Medical Stores.

ne

Anti-retrovirals, medicines for HIV/AIDS, TB, and

NTDs are distributed by the public sector and

confirmed by the Ghana Standard Treatment

Guidelines.

Few NTD drugs produced locally;

vast majority

r.

imported via ICB/ NCB and distributed through the

public sector

thousands

of

Local companies forced to create own

ek

Dispensed from public health centers

with

intermediaries involved

Transported to the district medical stores managed

by district health authorities

chaotic

Distribution

distribution agencies to ensure product

supply at fair prices
Anti-malarials,

particularly

Artemesinin-

based combination therapy (ACTs), are

distributed at subsidised rates
Malaria largely treated outside the public
health system ; ACT anti-malarials dispensed
as OTC products.
ITNs imported from donors represent an
integral part of malaria treatment

ta

Ghanaian Pharmaceutical IndustryDemand

Analysis

48.0%

0%

Gu
p

Local Pharmaceutical Market: Industry Capacity Utilisation, Ghana, 2013

(Capacity
Utilization
Potential)
100%

Local manufacturers producing drugs for malaria, TB and HIV export to other parts of West Africa.

ek

Large-scale manufacturers compelled to produce under capacity as the local pharmaceutical market is primarily
focused on the OTC non-essential products.
Local pharmaceutical industry strives to address PEDs and control population morbidity.

ne

Supply of medicines for PEDs through TGF funding and ICB procedure is as follows:
ARVs heavily dependent on Indian suppliers

Anti-malarial ACTs largely supplied from India and China

TB drugs predominantly supplied through IDA

Drugs for NTDs are principally imported.

r.

Besides traditional oral and topical formulations, Ghana also has local capacity for the production of parenteral
fluids (Intravenous Infusions Limited and San Bao Company Limited).
Vaccines and injectables imported mostly through ICB/ NCB as well as drug donations
Increasing investment by MNCs and Indian companies in local pharmaceutical production

ta

Ghanaian Pharmaceutical Industry

Competitive Landscape

Rank

Branded Companies

Local Manufacturers

ne

r.

4
5

Generic Companies

ek

Gu
p

Pharmaceutical Industry: Key Market Participants, Ghana, 2013

Other
Noticeable
Participants

Novartis, Jansen-Cilag

Glenmark, Serum Institute of

India, Mepha

Danadams Pharmaceuticals
Ltd., La Gray Chemical
Company

One of the strongest pharmaceutical industries in

the Economic Community of West African States
(ECOWAS)

High degree of economic and political stability in

Africa
Cent per cent public health coverage

Established local manufacturing industry

Existence of public budget for products that

address priority endemic diseases

WHO pre-qualification enables better access of local

producers to international markets

Utilisation of the marginal preference scheme

applied to tenders

Access to external funding sources and technical

assistance

Creation of local API, excipient, and packaging

material production

Access to the President's Special Initiative

Programme

ne

ek

ta

Gu
p

Well-functioning pharmaceutical regulation

systems in place

Effective lobbying of PMAG and WAPMA on

important local industry issues

Under-utilisation of local pharmaceutical

manufacturing capacity often by 50%

Imported raw material expense and supply

shortages

Limited incentives for PED drug production; hence

heavy reliance on OTC drugs

VAT on imported manufacturing materials

Influx of low-cost Asian generics

High cost of locally-manufactured products

Parallel pharmaceutical trade

Unable to conduct bio-equivalence studies

required for WHO pre-qualification

Continued proliferation of counterfeit

pharmaceuticals

Large variation in local ex-manufacturing prices

for comparative products

Price sensitivity of the total pharmaceutical industry.

Unmet human resource development needs

Lack of consensus regarding TRIPS

implementation and compulsory licensing.

Lack of focus on pharmaceutical R&D issues

r.

Threats

Weaknesses

Opportunities

Strengths

Ghanaian Pharmaceutical Industry

SWOT Analysis

Source: Frost & Sullivan


Nigeria has over 10,000 unregistered patent and

proprietary drug stores selling OTC products only

Vibrant pharmaceutical industry employing about
500,000 people in manufacturing and distribution

Pharmaceutical Industry: Per Cent Revenue

by Product Segment, Nigeria, 2013

Gu
p

The OTC product segment is quite large as a

significant proportion of population yet to be covered
under NHIS operational since 2005.

ta

Nigerian Pharmaceutical Industry Overview

OTC
39.4%

Generic
62.9%

Branded
37.1%

ek

According to the Pharmacists Council of Nigeria,

there are 128 registered drug manufacturers, 724
drug distributors, 1,543 retail pharmacies, and 292
drug importers in Nigeria.

ne

Prescription
60.6%

Pharmaceutical Industry: Per Cent Revenue by

Nigerian pharmaceutical industry is quite susceptible Imported and Locally Produced Pharmaceuticals,
Nigeria, 2013
to parallel trading.

Only 50% of population covered under NHIS

r.

It is estimated that nearly 17% of essential generic

medicines and as high as 30% of anti-malarials are
routinely faked in Nigeria.

ARVs, ACTs, and anti-TB drugs considered life-saving

drugs, the government strives to encourage local
production of these medicines

Locally
manufactured
30.0%

Imported
70.0%

Note: All figures are rounded. The base year is 2013

ek

OTC segment quite large as people

practice self-medication
Anti-malarial ACTs, analgesics, and
multivitamins constitute a large
share
Increasing demand for vitamins and
health supplements drive growth
Over 10,000 unregistered stores
selling OTC drugs

Gu
p

ta

Nigeria Market Analysis by Product Segment

38.1%

22.5%

Smaller as compared to
Ghana as consumers are
price-sensitive
70% of generics imported
while
30%
produced
locally
Anti-infectives,
cardiovascular
and
diabetes
are
key
therapeutic segments
Expected to witness high
growth CAGR 14.6%

Generics

Branded

OTC

r.

High out-of-pocket payment by

patients is likely to restrict use of
premium branded drugs
Branded drugs more commonly used
in private sector by brand-loyal
customers
Increasing incidence of life-style
diseases and absence of cheaper
generic equivalents to drive growth
of this segment

ne

39.4%

Note: All figures are rounded. The base year is 2013.

Public Sector Pharmaceutical Procurement

Pharmaceutical Industry: Public Sector Drug

Procurement, Nigeria, 2013

Tertiary
healthcare
under Federal
Government

Secondary healthcare
controlled by the
State MOH

r.

ne

ek

Gu
p

The federal government is responsible for

over all policy formulation and technical
guidance to all healthcare providers.

Public sector procurement comprises 3
levels
oThe tertiary healthcare centres (University
teaching hospitals) and federal medical
centres located in 36 states procure drugs
and supplies from the federal government.
oThe secondary level healthcare comprised
of state hospitals is supplied by the State
MoH, which also offers technical support
to the local government areas (LGAs).
oThe primary level healthcare services are
taken care of by the LGAs.
The private sector, NGOs, and traditional
health practitioners provide service across
the healthcare delivery system.

ta

Nigerian Pharmaceutical Industry

Procurement and Supply Management

Primary healthcare controlled by the

Local Government Areas

ta

Nigeria Pharmaceutical IndustryProcurement and

Supply Management (continued)
The Bureau of Public Procurement (BPP)

BPP established in 2007 by the Public

Gu
p

Pharmaceutical Industry: Public Sector Procurement Process, Nigeria, 2013

Domestic Preference Policy

Provision of PPA that grants a margin of

preference

overall steering and management

comparing bids from domestic and foreign

ek

Procurement Act (PPA) is responsible for the

ne

Aims to ensure accountability, integrity, and

transparency in the procurement process,

Frames policies and guidelines for the

approval of the National Council on Public

r.

Procurement (NCPP)

Right to debar any supplier, service provider

or, contractor in case of violation of the Act.

evaluating

tenders,

companies.

establishment of pricing standards and

benchmarks

while

Margins of preference applies only to

tenders procured under ICB.

It is required that the bidding documents

clearly state the preference and furnish
information required to establish the
eligibility of a bid for such preference.

ta

Nigerian Pharmaceutical Industry - Distribution

Public Sector

Gu
p

Private Sector

Traditionally 3 different warehouses The Central

Local manufacturers and importers have their

Central Medical Stores, the Federal Medical Stores

own

(FMS), and the State Medical Stores

distribution

channels

to

supply

medicines
Drugs are traded in unregistered and

Medical Stores with one branch in Oshodi and

unlicensed premises, and sometimes by non-

another in Abhuja.

pharmacists

ne

ek

Currently, all integrated into one the Central

A mega distribution consensus model was framed to

improve distribution

Drugs collected from the FMS in Oshodi are

country

r.

distributed directly to health institutions across the

Drug distribution to pharmacists is prevented,

thereby promoting rational drug use.

Distribution

A predominant hub of counterfeit drugs 17% of essential generic drugs and 30% of
anti-malarials are routinely faked
NAFDAC strives to tackle this problem
through radio frequency identification (RFID)
technology for logistics and tagging to detect
fake medicines

Source: Frost & Sullivan

ta

Nigerian Pharmaceutical IndustryDistribution

(continued)

Gu
p

Pharmaceutical Industry: Public Sector Drug ProcurementMega Distribution Company Consensus Model, Nigeria, 2013

FACTORY/EXPORT

Regional Hub
North

Wholesalers

Wholesalers

Retailers Clinics

Retailers Clinics

Hospitals

Hospitals

ne

Regional Hub
SE

Regional Hub
SW

ek

Mega Distribution

r.

Wholesalers

Retailers Clinics
Hospitals

Regional Hubs

ta

Nigerian Pharmaceutical IndustryDemand Analysis

42.0%

0%

Gu
p

Local Pharmaceutical Market: Industry Capacity Utilisation, Nigeria, 2013

(Capacity
Utilization
Potential)
100%

Local industry meets 30% of demand while 70% is imported from India and China

ek

Local manufacturers produce tablets, capsules, ointments, liquid preparations, creams, lotions, and ophthalmic
preparations

ne

Fluctuations in capacity demand are attributed to low purchasing power within the population and the irregular
government purchase of drugs and delayed payments
Drugs locally produced in Nigeria represent as much as 60% of the pharmaceutical production in the ECOWAS
region.

Judicious efforts to increase utilization rate of available capacity include:

Upgrading of facilities of local drug manufacturers to obtain the WHO pre-qualification status

In 2010, 6 Nigerian companies gained WHO pre-qualification for supply of ARVs, anti-malarials and anti-TB drugs

Ban imposed by Nigerian FMoH on the import of certain essential medicines to attain self-sufficiency and
reduce parallel trade

Revised ECOWAS tariff structure for import of drugs: essential medicines, industry machinery and equipment 0% tariff; raw materials and other capital goods 5% tariff; intermediates 10%; finished goods 20% tariff;
finished products with adequate local capacity 50% tariff

r.

ta

Nigerian Pharmaceutical Industry Competitive

Landscape

Rank

Branded Companies

Gu
p

Pharmaceutical Industry: Key Market Participants, Nigeria, 2013

Generic Companies

ek

Local Manufacturers

ne

r.

AstraZeneca, Jansen-Cilag,
Eli Lilly

Other
Noticeable
Participants

Nigeria German Chemicals

Plc, Greenlife
Pharmaceuticals Ltd.

Juhel Nigeria Ltd., Swipha,

Neimeth International
Pharmaceuticals Plc.
Source: Frost & Sullivan

Attainment of WHO cGMP and pre-qualification status

by certain companies enables participation in
international tenders.

High degree of economic and political stability

Established local manufacturing industry technical

skills, trained manpower, and basic manufacturing
infrastructure already exists.

ta

Large market size, strong demand and need for better

management of anti-infectives (malaria, AIDS, and TB)

Gu
p

More than 60% of pharmaceutical production in

ECOWAS countries is domiciled in Nigeria.

Positive economic growth and macroeconomic stability

in recent years

Judicious efforts taken by NAFDAC to reduce counterfeit

trade

Government ban of imports of certain essential

medicines for which there is adequate capacity and
technical skills

Establishment of NHIS scheme to provide universal

health coverage by 2015

ne

Current capacity utilisation rate in Nigeria is only 45%.

Access to affordable funding for local manufacturers is

hampered by high bank interest rates.

Weak purchasing power threatens scope for marketing

drugs.

VAT on imported manufacturing materials

High cost of locally manufactured products than those

imported

Influx of low-cost Asian generics

Parallel pharmaceutical trade

Unable to conduct bio-equivalence studies required

for WHO pre-qualification

Continued proliferation of counterfeit pharmaceuticals

Price sensitivity of the total pharmaceutical industry

Large variation in local ex-manufacturing prices for

comparative products

Failure to address loopholes in the distribution system

Lack of focus on pharmaceutical R&D issues

r.

Threats

Weaknesses

ek

Opportunities

Strengths

Nigerian Pharmaceutical Industry

SWOT Analysis

ta

Key Mergers, Acquisitions & Partnerships

Gu
p

Pharmaceutical Industry: Key Mergers, Acquisitions & Partnerships, Ghana & Nigeria, 2012 - 2014

Imperial Logistics
Worldwide
Commercial Ventures
Limited (WWCV)

ne

Value: Undisclosed
Year of Deal: February 2014
Key Reason:
Imperial Health Sciences, the
Life Sciences division of Imperial
Logistics, a leading distribution
company in South Africa, bought
53% stake in WWCV.
By this deal, Imperial Logistics is
expected to leverage the wellestablished supply chain network
of WWCV in Nigeria, thereby
pioneering into the healthcare
space.

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Value: $86.0 million

Year of Deal: July 2012
Key Reason:
Bought the manufacturing
facility and sales and
distribution infrastructure of
Cosme Farma
Adcock Ingram strives to expand
its presence in the Indian
pharmaceutical market by
leveraging Cosme Farmas strong
sales forces and nearly 60 wellestablished brands in
dermatology gynecology, among
others.

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Adcock Ingram
Cosme Farma

Sanofi aventis
Medreich

Value: Undisclosed
Year of Deal: May 2012
Key Reason:
Sanofi Aventis acquired
Medreichs portfolio of
branded generics in SubSaharan Africa
Med Reich being the leading
generic pharmaceutical
company, Sanofi has managed
to significantly increase its
market shares in the generic
pharmaceuticals segment by
this acquisition.

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Future Directions for Pharmaceutical Companies

in Ghana & Nigeria

Foreign traders in Africa are expected to bolster their distribution channels by

engaging in strategic partnerships with local trustworthy stakeholders.

Given the immense growth potential and business opportunities, it is expected

that companies would invest significantly in their marketing capabilities, patient
awareness programmes, and treatment support services to enhance brand
loyalty.

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Branded companies are expected to adopt a differential pricing strategy specific

to patient segments and geographies in Africa to make treatment affordable to a
large group of patients, thereby significantly expanding their customer base.

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Future Directions for Pharmaceutical Companies

in Ghana & Nigeria (continued)
Patient support programs for
technically challenging
formulations
Revisiting cost of commodity
generics

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Game-changing Strategies for the success of market participants

Close coordination with
NGOs to penetrate rural
areas

Investing in R&D and engaging

local patient groups

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Branded Companies to adopt Differential Pricing Strategy

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Engage in strategic
Addressing
Technical Training of
partnerships with loopholes in supply
distributors and
trustworthy local chain and distribution
retailers
stakeholders
channels

Bar codes and

holograms to track
counterfeits

Pharmacists
influence choice of
customers and
brand image

Detailing by medical Continual medical

representatives
education (CME)
programs

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Training of
physicians and
nurses

Foreign Companies to Bolster Distribution Channels

Advisory/Advocacy
Boards

Enhance Patient Awareness and Treatment Support Services

Corporate Social
Responsibility (CSR)

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Thanks

Dr Aneek Gupta