Nigeria – Pharmaceutical market to yield US$ 2.61 bn in 2016

January 26, 2013 12:51 pm0 commentsViews: 50
26012013

Lagos, one of the most crowded capital in the world (15 m habitants)

Pharmaceutical distribution analyst Frost & Sullivan has projected that Nigeria will earn $2.61 billion from her pharmaceutical industry in 2016 from a paltry $778 million in 2009. The analyst credits stiff regulations in the nation’s drug distribution chain for itts forecast, which has seen greater consumer confidence in drugs supplied and a decrease in illegal distribution networks.

The researchers say that in the past, poor regulation and enforcement had fuelled concerns about the quality and legitimacy of products, thus affecting all suppliers including formal distributors and suppliers. It however adds that this is poised to change in the future, with an improving regulatory environment.

“Growh in the pharmaceutical market is expected to be driven by the increasing availability of low cost generic drugs”, nots Frost & Sullivan Healthcare Research Analyst, Ishe Zingoni, adding that the positive trend will be further reinforced by an improving regulatory system.

The researchers belive that an improved regulatory system will boost uptake of drugs by inspiring end-user confidence and eliminating competition from illegal imports and sub-standard products, adding that the leakage of supply into the informa sector has been a key challenge for manufacturers, as quality assurance mechanisms cannot be enforced within the sector. “These mechanisms include monitoring of storage conditions and product exportation – all factors that affect treatment outcomes”, they add.

In Zingoni’s estimation, “NAFDAC has been making considerable progress in reducing the problem of sub-standard and illegal products. Recent interventions which include the introduction of the Drug Distribution Inspection Committee (DDIC) will improve enforcement through regular inspection of documentation throughout the supply chain.”

According to him, manufacturers in Nigeria are now moving into distribution, and gaining greater control of the supply chain. The major manufacturers in the country are setting up their own distribution subsidiaries that distribute directly to retail pharmacies and patent medicine vendors (PMVs).

“Since PMVs are more likely to purchase through the informal sector, supplier relationship with these outlets has to improve through eduction and training”, advise Zingoni.

Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

[by Kemi Ajumobi - http://www.businessdayonline.com]

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