Pharmaceuticals company share 65per with N300bn Investment

Nigerian pharmaceutical companies now share 65 percent of the West African market, having so far invested N300 billion in machinery and quality upgrade in an effort to end drug importation into the country, estimated at $700 million.

Four companies have so far obtained the World Health Organisation (WHO) pre-qualification, while four others are in line to obtain same, in an effort to dig into the local market and remain competitive in the international scene, BusinessDay can report.

drugs

Evans Medical, Chi Pharmaceuticals, May&Baker and Swiss Pharma have already obtained prequalification. These four companies, alongside four others that are processing the WHO prequalification, have invested $50 million in different levels of upgrade in the last five years, BusinessDay has learnt.

Similarly, ten drug firms have met the requirements of the International Standards Organisation (ISO), which now enables them to raise their competitive capacity in the international market. The companies that have achieved this feat include Afrabchem Limited, Chi Pharmaceuticals, Dana Pharmaceuticals, Drugfield Pharmaceuticals, Emzor Pharmaceuticals, Fidson Healthcare, SKG Pharma Limited, Evans Medical  and Swiss Pharma, as well as May &Baker.

“Nigerian pharmaceutical manufacturers

have also developed manufactured and registered products for the UN Commission on Life-Saving Commodities for Women and Children’s Health,” said Okey Akpa, chairman, Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN) , at the opening ceremony of the Pharmaceutical exposition in Lagos.

Akpa, who is the CEO of SKG Pharma Limited, said sustaining the competitiveness would require tax holidays for companies investing more in quality upgrades and new factories, as well as collaborations with international partners.

“Patronage of Nigerian pharmaceutical manufacturers by government, donors and international procuring agencies is critical and must be backed by political will,” he said, while recommending implementation of the Domestic Preference Policy of the Public Procurement Act 2007 as well as the Presidential Directive on Patronage of Nigerian Manufacturers.

The world drug market is estimated to hit $1.3 trillion in 2020. Nigerian drug firms have failed to tap into the market over the years, as the country relies mainly on Asia, particularly India, for drugs and raw materials.

“Many manufacturers are presently upgrading their factories, while others are looking for partners,” said Bunmi Olaopa, president, West African Pharmaceutical Manufacturers Association and managing director of Evans Medical.

“Many more in Nigeria and Ghana are also in the process of acquiring prequalification. So, the issue of low quality of drugs is now over,” Olaopa said.

India, a major drug importer into Nigeria, plays host to many Nigerian manufacturers who rely on the country for raw materials and excepients.

In 2014, trade between the two countries hit $500 million, but much of it went in the favour of India. This may be attributed to the poor capacity of the local manufacturing industry, as well as lack of support  to the industry by relevant government agencies.

“There is the need to reduce the trade deficit between the two countries,” Bassey Edem, president, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) said.

“India can take advantage of investment incentives in Nigeria to set up local plants,” Edem said.

Investments in the pharmaceutical and chemical industry fell from N223.3 billion in 2013 to N184.2 billion in 2014. Raw materials sourcing in the sector nosedived to 61.18 percent to 39 percent, according to data from the Manufacturers Association of Nigeria (MAN). Harsh investment climate and poor infrastructure have been fingered as key factors that  have kept this sector down.

According to Olumide Akintayo, president, Pharmaceutical Society of Nigeria (PSN), no nation can grow successfully without support to the manufacturing sector, which creates jobs and brings in foreign exchange.

“If we talk of security of the nation, self-sufficiency on medicines is critical,” Akintayo said.

ODINAKA ANUDU