pharmaceutical companies in Nigeria
Pharmaceutical Manufacturing

Challenges and prospects of pharma manufacture in Nigeria

Nigeria is the largest economy in Africa. It has a huge consumer market. In fact, Nigeria is considered the hotspot of the pharma industry in entire Africa. Unfortunately, the pharmaceutical companies have become victims of the recent recession.

The International Monetary Fund has decreased the GDP growth forecast of Nigeria to 1.8% in July 2016. Gathering the challenges faced by pharma manufacture in Nigeria:

  • Absence of immediate accessibility to pharmaceutical products
  • Lack of good quality of medicines
  • The extremely high price of imported medicines

The respective challenges have urged certain things related to political and public interests in Nigeria:

  • Promotion of self-sufficiency
  • Development of capacity of local industries
  • Creation of new jobs
  • Freedom of international medicine suppliers
  • Production of foreign exchange via local medicine exports

Pharmaceutical companies in Nigeria used to import dosage forms:

Majority of Nigeria’s developing countries used to import finished dosage forms till mid 20th century.

  • Tablets
  • Syrups
  • Powders
  • Suspensions
  • Creams
  • Capsules
  • Parenteral preparations
  • Suppositories
  • Ointments

There was a lack of strict focus on local production of processing equipment, necessary dosage forms, and raw materials. But, the recent days are experiencing a shift towards local production.

More than the top 20 pharmaceutical companies in Nigeria are manufacturing simple medicinal products presently. Still, large numbers of pharma products come from India, Europe, China, the USA, Brazil, Taiwan, Pakistan, and so on. Experts say that Nigeria has to go a long way in the matter of producing medicines locally and meet the health needs of the citizens.

Let’s look at the recent prospects on Nigeria:

Local government and private manufacturing laboratories and research organizations are competing with many reputed foreign companies. In fact, pharmaceutical exporters in Africa are distributing their locally produced products to other nations.

Training is being given to the pharmacists. Lots of workshops and educational programs are being held in African countries. Now, people are showing confidence in the locally manufactured medicines that are good in quality.

Now, in Nigeria, highly trained and registered pharmacists consult about analysis of drug production as well as quality assurance. They have the power to give certificates to the deserved pharmaceutical companies in Nigeria.

Presently, there are many local industries producing starches for gums, non-internal preparations, plastic containers, etc. Now, local manufacturers no longer receive certain drug excipients from other countries. The top 20 pharmaceutical companies in Nigeria are manufacturing finished products, excipient raw materials, specific dosage forms, etc. for exporting and local usage.

Nigeria is developing a comprehensive commercial model:

The leading pharma companies in Nigeria are revisiting the commercial model. They are coming up with innovative strategies for the country ensuring certain aspects.

Firstly, they are focusing on the actual ambition related to the global priorities and Nigeria’s present conditions.

Secondly, stress is being given to the main buyers and the value they can bring.

Thirdly, strategies are working on geographical conditions including districts and cities to prioritize.

Fourthly, improvement of the product portfolio is being done.

Fifthly, the experts are finding the right ways to address patients’ pain points easing their access to high quality pharmaceutical products.

Sixthly, they are researching the best sales and distribution model that can enable patients to the right healthcare solution.

Seventhly, stakeholders from local areas and international zones are taking interest in investing in Nigeria’s pharmaceutical industry. The pharma companies in Nigeria are approaching long-term partnerships with big medicine producers from India, Europe, China, etc. Extensive research is going on about the return on investment and sales growth.

Eighthly, specialist pharmacists are finding skill gaps and organizational flaws. They are planning for filling the potential gaps for the growth and development of Nigeria’s pharma industry.

Ninthly, plans are being held in order to reach milestones, targets, etc. to make the future pharma market better.

As per estimation, the Nigerian pharma market value can increase by approximately 9% each year. By the year 2026, it can reach around $3.6 billion. It will be the largest market in South Africa. Again, as per expert study and opinion, Nigeria will gain the power and capacity to contribute approximately $2.2 billion to pharmaceutical sales which will include prescription drugs and other products.

In short:

Nigeria is gradually overcoming the past and current challenges. The nation is progressing towards a strong pharmaceutical industry that can export good quality drugs at affordable prices. The pharmacists are getting training from internationally certified professionals. They are concentrating on boosting the local market so that entire Africa doesn’t have to import costly drugs from outside.

Many multinational pharma companies have set up their manufacturing units in Nigeria and are contributing a lot to increase the market capacity. Local people are given education and training so that they can be employed. People’s life is getting better as they can now avail proper healthcare at an affordable cost within the country.

pharmaceutical companies in Nigeria
pharmaceutical exporters

Developing Pharmaceutical Industry in Africa

The African pharmaceutical market is developing at a rapid speed due to changing economic profiles, growing investment in healthcare, rapid urbanization, and increase in chronic lifestyle diseases. In 2013, the pharmaceutical industry’s value touched $20.8 billion. Multinational pharma companies got a good chance to boost and expand their business. Also, patients gained access to world-class medicines that were not available earlier.

The tropical climate is responsible for various infectious diseases:

The continent encounters infectious diseases like tuberculosis, malaria, AIDs, polio, cholera, yellow fever, meningitis, pandemic influenza, hepatitis, measles, tetanus, etc. There is a visible shift towards non-communicable diseases due to the growing adoption of western lifestyle in Africa, Nigeria, etc.

The pharmaceutical companies in Nigeria, Africa, etc. are manufacturing and importing generic and prescription drugs from other countries. Certain lifestyle diseases including cancer, cardiovascular ailments, diabetes, etc. are growing at a high rate. According to the prediction of the World Health Organization, the NCDs’ proportional contribution to the healthcare burden in these nations will grow by 21% by 2030.

The transitional phase of Africa and Nigeria:

Currently, the nations are in a transitional phase. They are looking forward and working hard towards adherence to certain global standards like the WHO pre-qualification to manufacture. Local production by the top 20 pharmaceutical companies in Nigeria, Africa, etc. is considered as the main strategy for persistent access to high-quality medicines for the long term.

Again, the regulatory environment for medicine production in East Africa is rapidly growing due to the regional harmonization. Experts are expecting expansion of healthcare coverage to a greater number of people through the initiatives of National Health Insurance and through memberships with providers of Private Health Insurance.

The rising popularity of generic medicines:

Generic drugs are getting more market share in Nigeria, South Africa, Kenya, Algeria, Egypt, and Morocco. Between the year 2010 and 2014, the share of generic drugs’ market raised from 22 to 25 percent in Algeria. In Morocco, the rise was from 23 to 28 percent. The pharmaceutical exporters in Africa are finding various factors.

  • The pharmacists and physicians are getting habituated to prescription drugs.
  • There is an expansion of national insurance programs.
  • Many people are gaining access to modern healthcare.
  • The demands for generic drugs are growing instead of costly branded medicines.
  • Governments are displaying strong support for generic medicines. In South Africa, pharmacists are informing private patients about these medicines while they are buying prescription drugs. Again, Nigeria is also following similar law.

 

The business environment is changing:

Governments have taken various initiatives like introducing price controls, import restrictions to give way to the manufacturing of domestic drugs. Country-specific labelling is required for reduction of parallel imports and counterfeiting. Again, the government has initiated stricter laws on import, retail margins and wholesale.

Pharma manufacture in Nigeria, Africa and other locations is on a steady rise. Several joint ventures, partnerships, merging, strategic alliances and private-equity deals are taking place and expanding the present market.

Presently, South Africa is the most superior region for products of medicines in Sub-Saharan Africa. The local market of pharmaceutical manufacturing in East and West Africa are likely to develop. Majority of Africa-based pharmaceutical firms are producing medicines having simple mixtures and formulations.

Technological development is crucial for the development of the manufacturing sector in Nigeria and Africa mainly due to the change in disease burden. Nowadays, the nations are adopting complex formulations aligning with treatment guidelines related to AIDS, HIV, and NCDs.

Grounds of the pharmaceutical industry in African countries:

The pharmaceutical markets in African countries are growing in all sectors. In the recent past till last year, there was a steady growth of prescription drugs, generic medicines, over the counter medicines and lots of medical devices.

The driving grounds are:

Speedy urbanization: The population of Africa is currently passing through a tremendous shift. It is estimated that by the year 2025, around two-fifth of the total economic growth will arrive from 30 cities that consist of around 2 million people. Again, 22 of these cities can have excess GDP of around $20 billion. These cities are likely to enjoy better healthcare and logistics infrastructure. The urban people have more buying capabilities and they can adopt modern best-in-class medicines.

The infrastructure of healthcare: Africa has added 70,000 hospital beds, 16,000 good doctors and 60,000 trained nurses between 2005 and 2012. The provision of healthcare is becoming more methodical via various initiatives. Moreover, the origination of avant-garde delivery models is boosting the capacity.

African pharma market has a better future:

Africa is not a single unified market. It is consisting of 54 distinct markets embracing wide gaps between countries in respect to a growth trajectory, market size, legal structure, macroeconomic landscape, and political complexities. The number of households interested in consuming world-class medicines is increasing. Hence, the pharmaceutical companies in Nigeria and pharmaceutical exporters in Africa are focusing on providing more quality medicines to all.

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