investing in pharmaceuticals in central west africa

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  • Investment ra+onale The African generic drugs market is totally reliant on foreign sources. almost 90% of available medicines come from abroad but do not cover the needs of the popula=on. The popula=on con=nued access to quality fairly priced, safe and eec=ve essen=al medicines accessible is a major challenge of na=onal drug procurement agency.

    Key issues in pharmaceu+cal drugs The development of the industry the pharmaceu=cal in Central West Africa requires concerted ac=on across manufacturers, na=onal regulators, government, wholesalers and others stakeholders to create an environment favorable for industry to realize its full poten=al

    Counterfeit and sub-standard drugs are a signicant problem in the Central West African region. Pharmaceu=cal products of dubious origin are traded through informal channels There are oIen poorly documented processes in the quality control system that can lead to the manufacture of sub-standard drugs. However, Nigeria is the second largest producer of counterfeit medicines, accoun=ng for about 23% of counterfeit medicines distributed worldwide aIer India which is thought to account for about 35%; and Pakistan, 13.3% . In Africa as a whole, 25 to 50 percent of the pharmaceu=cal market is counterfeit, with Nigeria being the most aected, accoun=ng for 50 percent of the total sales of fake drugs (Chioma Joy Onwuka. 2010. The School of Pharmacy, University of London. The SituaBon of Medicines counterfeiBng in Africa). Another serious issue in the pharmaceu=cal sector is corrup=on. In the processes in the selec=on and delivery of generic drugs in general, procurement is par=cularly suscep=ble to corrup=on. Countries should promote a documented open bidding process that prevents personal discre=on in the selec=on of suppliers. Sub-op=mal policies, inecient and incompetent management, and conscious viola=on of rules for personal gain are other observed problems in the sector that

    Generic Drugs in Central West Africa Execu+ve Summary

  • Key ndings

    Public pharmaceu=cal ins=tu=ons and NGOs are principal generic buyers Nigeria, Democra=c Republic of Congo and Cameroon are the only countries in the region to have pharmaceu=cal

    industries. Eurapharma-CFAO, OA VISION SANTE; UBIPHARM and Phillips Pharmaceu=cals Ltd with their distribu=on

    network in the region are well posi=oned to benet from the regional market The absence of transparency in tenders and awards process associated with the lack of code of conduct

    governing the behavior of public procurement agencies in their interac=ons with sales representa=ves and wholesalers.

    The marke=ng prac=ces of the pharmaceu=cal industry (rela=on between doctors and drugs representa=ves): doctors decision as to which drugs to prescribe may be inuenced by pressure from pharmaceu=cal companies

    Failure of states to control the pharmaceu=cal sector and enforce regula=on illustrated by taxability of the informal pharmaceu=cal sector through ci=es taxes makes informal trade legal, leading to the indirect promo=on of illicit and counterfeit drug market

    Easy access of good-quality, cost-eec=ve, safe and ecacious medicines, medical personnel good prac=ce and the general popula=on educa=on on generics ecacy will determine the growth of generics market.

    companies have forged strategic alliances with branded pharma for the marke=ng rights and exclusivity to certain generic blockbusters

    The introduc=on of na=onals health insurance in the region would boost the regions generics market

    Generic Drugs in Central West Africa Execu+ve Summary

  • What is the research about?

    This research report focuses on the situa=on of pharmaceu=cal generics (procurement and distribu=on) in Central West Africa, and address the present and future investment opportuni=es. We will also take a look at why some African countries produc=on of generic drugs failed or succeeded and which companies or ins=tu=ons are best posi=oned to benet from future growth in this part of the con=nent

    Why are we doing this research?

    In developing countries ensuring the popula=ons access to quality essen=al medicines at aordable prices is among the prime challenges facing many governments Africas healthcare industry is characterized by a huge gape between the private and public sectors in terms of healthcare delivery. In Africa Public facili=es provide more than two-third of healthcare services. The high burden of diseases con=nue to place considerable strain on the public health system in many African countries including Angola, Cameroun, Central African Republic (CAR), Chad, Congo, Democra=c Republic of Congo (DRC), Equatorial Guinea, Gabon and Nigeria.

    Because healthcare is cri=cal in any eort to emerge and develop this sector is con=nuously subsidized by public, private and NGOs Funds. All eorts (government and non governmental) are directed on making healthcare more accessible and aordable for the general popula=on. As a result there is a great opportunity the supply of a wide range of medical drugs, diagnos=c tools, hospital equipment and allied medical products. However due to budgetary restrain, the African market is price-sensi=ve. Buyers are looking for high quality and compe==vely priced products.

    Generic Drugs in Central West Africa Research Introduc+on

  • Generic Drugs in Central West Africa

    Who should be interested in that research report?

    o Investment companies that have already invested in the pharmaceu=cal sector of this region

    o Investment companies looking to invest in the region o Local companies looking to growth their market share or to enter new markets within

    the region o Pharmaceu=cal companies either involved in the region or planning to get involved in

    the region o Financial ins=tu=ons that commit funds to government programmes o Na=onal states and na=onal ins=tu=ons of the countries studied

    Research Introduc+on

  • Investin market assessment integrates: an assessment of healthcare systems and na=onal states

    priori=es, quan=ca=on of need, market characteris=cs and compe==ve landscapes

    Informa=on is gathered through extensive secondary research, primary research (telephone and

    face-to-face interviews with countries specialists and stakeholders), beneciaries, service users, the general public experiences and percep=ons

    Generic Drugs in Central West Africa Research Methodology

  • For the purpose of its research programme, Investin divides Africa into ve regions: Central West Africa, East Africa, North Africa, Southern Africa and West Africa

    The Central West Africa region includes nine countries: Angola, Cameroon, Central African Republic, Chad, Congo, Democra=c Republic of Congo, Equatorial Guinea, Gabon and Nigeria o Central West Africa has a total popula=on of is 284.5 million, which represents a third of Africas total

    popula=on

    Generic Drugs in Central West Africa Market Segmenta+on: Geographic Scope

    284.5 (26%)

    821.77 (74%)

    Popula+on (in million)

    Central West Africa

    Rest of Africa

  • o Its cumulated GDP accounts for 23% of Africas total GDP over the past ve years (2006-2010)

    Generic drugs in Central West Africa Market Segmenta+on: GDPs and Economies Growth

  • Generic drugs in Central West Africa

    o Two of 20 worlds fastest growing economies for the past ve years (average growth 2006-2010) can be found in the region

    2006-2010 average growth

    Angola is the worlds 4th fastest growing economy of the past ve years (11.95%). Africa 1st Equatorial Guinea is the 16th fastest growing economy of the past ve years (7.93%). Africa 4th Nigeria is the world 31st fastest growing economy of the past ve years (6.69%). Africa 12th Democra=c Republic of Congo is the world 49th fastest growing economy of the past ve years

    (5.52%). Africa 16th Congo Brazzaville is the world 56th fastest growing economy of the past ve years (5.24%). Africa

    20th Central African Republic is the world 121st growing economy of the past ve years (2.9%). Africa

    41tst Cameroon is the world 123rd growing economy of the past ve years (2.84%) Africa 42nd Gabon is the world 128th growing economy of the past ve years (2.66%). Africa 43rd Chad is the world 171st growing economy of the past ve years (0.54%). Africa 49th

    Market Segmenta+on: GDPs and Economies Growth

  • Generic drugs in Central West Africa

    GDP Real Growth 2006-2015

    -5.0

    0.0

    5.0

    10.0

    15.0

    20.0

    25.0

    Countries

    GD

    P g

    row

    th

    2006

    2007

    2008

    2009

    2010

    2011 (P)

    2012 (P)

    2013 (P)

    2014 (P)

    2015 (P)

    2006 18.6 3.2 3.8 0.2 5.1 1.3 1.2 6.2 6.1

    2007 22.7 3.5 3.7 0.2 6.3 21.4 5.6 6.4 -1.6

    2008 13.8 2.9 2.0 -0.4 6.2 10.7 2.3 6.0 5.6

    2009 2.4 2.0 1.7 -1.6 2.8 5.3 -1.4 7.0 7.5

    2010 2.3 2.6 3.3 4.3 7.2 0.9 5.7 7.9 8.8

    2011 (P) 7.5 3.8 4.3 5.7 6.7 5.0 4.2 6.9 8.4

    2012 (P) 8.5 4.2 5.3 5.3 8.4 3.5 6.4 8.0 10.2

    2013 (P) 7.7 5.9 6.4 6.9 8.2 2.9 4.8 7.6 4.6

    2014 (P) 7.6 6.2 7.1 5.7 9.7 4.3 5.4 7.9 3.2

    2015 (P) 7.3 6.5 7.3 4.3 8.2 2.5 4.7 7.7 4.2

    Angola CameroonCentral African

    RepublicChad

    Democratic

    Republic of the

    Congo

    Equatorial

    GuineaGabon Nigeria

    Republic of the

    Congo

    Market S

    egmen

    ta+o

    n: GDP

    s and

    Econo

    mies G

    rowth

    Gene

    ric Drugs in

    Cen

    tral W

    es

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