Local manufacture of drugs presents pharmaceutical industry with business opportunity of $40.8 billion

0

Local manufacture of drugs presents pharmaceutical industry with business opportunity of $40.8 billion

TMG Digital | 2017-02-20 12:49:33.0

A manufacturing operator works at the Mildronate (Meldonium) medication packaging process in the production plant of the Grindeks pharmaceutical company in Riga

Western lifestyle diseases will present the pharmaceutical industry in Africa with a business opportunity of $40.8 billion in 2019. File photo.

Image by: INTS KALNINS
/

REUTERS

The growing incidence of more Western lifestyle diseases such as cardiovascular disease (CVD)‚ cancer‚ diabetes and respiratory disease‚ in addition to infectious and parasitic illness‚ will present the pharmaceutical industry in Africa with a business opportunity of $40.8 billion in 2019‚ according to research by Frost & Sullivan.

The pharmaceuticals market in Africa is expected to reach a business opportunity of $45 billion in 2020‚ it adds.

“An increase in health spending will encourage local manufacture of drugs‚” said Transformational Health Research Analyst Saravanan Thangaraj. “We expect this increase in local formulation and filling to be protected by regulatory and tariff barriers‚ so international players will be looking for local contract manufacturers and other strategic partnerships.”

A report‚ titled ‘African Pharmaceuticals Market‚ Forecast to 2020’‚ part of Frost & Sullivan’s Life Sciences Growth Partnership Service programme‚ aims to provide insights for big pharmaceutical companies and generic manufacturers looking to set up manufacturing units in Africa; as well as over-the-counter (OTC) and chronic disease therapeutics manufacturers‚ as well as distributors.

Therapeutic areas covered include haematology‚ oncology‚ men’s health‚ central nervous system (CNS)‚ women’s health‚ diabetes‚ cardiovascular‚ dermatologicals‚ gastrointestinals‚ cough and colds‚ nutritionals‚ analgesics and anti-infectives.

Heavy dependence on price‚ coupled with complexities associated with public sector tendering‚ make it difficult for multinationals to compete in this space. The private market‚ on the other hand‚ faces challenges with regards to fragmented payer channels between donors‚ private insurance payers and employers‚ even as high out-of-pocket expenses restrict patient access to medicines‚ the research showed.

Nonetheless‚ Frost & Sullivan said‚ “several trends are encouraging investment”. These are:

– The regulatory environment for manufacturing in East Africa is improving rapidly with increasing regional harmonisation;

– Pharmaceutical spending in Africa was noted to be growing by 10.6 percent;

– Out-of-pocket spend on healthcare is increasing;

– The share of OTC drugs is high‚ indicative of a culture of self-medication in Nigeria and Kenya; and – Contribution of NCDs to the healthcare burden in Africa will rise by 21 percent through 2030.

“Addressing loopholes in the supply chain and distribution channels is crucial for foreign companies to ensure product availability and prevent circulation of counterfeit drugs‚” said Thangaraj. “Investing in technical training of distributors and pharmacists‚ and product-specific initiatives like barcodes and holograms to track counterfeits‚ can also help minimize drug trafficking and enhance the brand’s image.”



rn rn

You might also like

Leave a comment