The introduction of innovative product pipelines by Nigerian pharmaceutical companies across a wide spectrum, huge market investment and the surge in non-communicable diseases (NCDs) such as diabetes, hypertension and cancer have helped to shoot up Nigerian drug-makers’ revenues, according to BusinessDay analysis of company data.
Data compiled by BusinessDay showed that six quoted drug-makers recorded double-digit growth rate in the third quarter of 2013 as sales grew by 15 percent to N38.91 billion, from N33.97 billion in 2012.
The companies are Evans Medicals Nigeria plc, Fidson Healthcare Nigeria plc, GlaxoSmithKline Consumer (GSK) Nigeria plc, May and Baker Nigeria plc, Neimeth International Pharmaceutical plc and Pharma Deko Nigeria plc.
Many companies in the industry are making investments in this area to grow and meet the people’s demand, according to Lekan Asuni, managing director, GlaxoSmithKline (GSK) Nigeria plc, while responding to questions during the just concluded Healthcare Federation of Nigeria (HFN) consultative forum in Lagos.
“Most people engage in over-the-counter (OTC) drug intake and rising health consciousness among Nigerians is driving turnover,” said Asuni.
Industry analysts say that the ability of drug-makers to expand operations or facilities and introduce new medicines is boosting revenues outside core business.
GlaxoSmithKline Pharmaceuticals (GSK) recently launched a range of generics to provide access to safe and quality medicines across the continent. These brands cut across various categories: anti-infectives, cardiovascular, metabolic, gastroenterology, central nervous system and oncology.
The anti-counterfeiting mechanism on fake and substandard medical products by the National Agency for Food and Drugs Administration and Control (NAFDAC) has also increased the demand for locally manufactured drugs and reduced losses due to counterfeiting of medicines, which run into billions of naira annually.
“Development of local diagnostic capacity will encourage patients to remain in Nigeria for treatment and not to seek external aid, and this will expand the market,” said an industry analyst who preferred anonymity.
Pharmaceutical manufacturers are working hard to ensure that they acquire the World Health Organisation (WHO) pre-qualification that would enhance the competitiveness of locally-made drugs at the international market. This has resulted in over N70 billion ($44 million) being invested by about 14 members of the Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN) into factory expansion and upgrade of manufacturing processes in the last four years.
“We expect as many as five Nigerian manufacturers to have products pre-qualified by the World Health Organisation (WHO) by 2014,” said Bunmi Olaopa, chairman, PMG-MAN, during a media briefing organised by the association recently.
Nigerian pharmaceutical firms are not currently in a position to participate in international tenders for medicines against the three pandemics (AIDS, TB and Malaria) that require WHO pre-qualification. Health experts identify this as a major constraint on local supply of medicines, especially anti-retroviral (ARV), anti-malarial and anti-tuberculosis agents.
The WHO and the Global Fund for AIDS, TB and Malaria spend over N20 billion annually in procuring drugs for malaria, TB and AIDS intervention programmes in Nigeria, from mostly India and Brazil, because no pharmaceutical industry in Nigeria is pre-qualified. Millions of patients in resource-limited countries annually receive life-saving medicines that are purchased by or through international procurement agencies such as United Nations Children Fund (UNICEF), UNFPA, UNITAID and the Global Fund to fight these pandemic diseases.
Despite growth in revenues by these companies, their combined pre-tax profits in Q3 2013 increased marginally by an unimpressive 1 percent to N3.08 billion.
“Globally, there is a decline in pharmaceutical profits due to patent cliff (patent expiration). Nigeria pharmaceutical companies are affected in this area,” said Asuni.
Evans, Neimeth, Pharmadeko, Fidson, May and Baker and GSK share price on February 28, 2013 closed at N2.56, N1.80, N1.52, N2.94, N2.01 and N69, respectively, on the floor of the Nigerian Stock Exchange.
By: BALA AUGIE & ALEXANDER CHIEJINA
