This presentation made at the Pharma Insights Briefing session of CPhI Worldwide 2014, Paris, provides information on the market opportunities of the fastest growing pharmaceutical markets in Africa: Ghana and Nigeria. • Market sizing and Growth Trends • Key Merger, Acquisition and Partnership Assessment • Market Drivers and Challenges • Pharmaceutical Procurement, Supply, Distribution and Retail • SWOT and PESTLE Analysis • Competitive Landscape Analysis • Therapeutic Area Growth Analysis • Strategic Recommendations

1. Opportunities and Challenges in West Africa’s
Healthcare and Pharmaceutical Sector
Aiswariya Chidambaram
Senior Research Analyst - Life Sciences
CPhI Worldwide, Paris
8-10-2014

2. 2
Focus Points
Focus Points
Ghana & Nigeria – Macroeconomic Overview
Pharmaceutical Industry in Ghana & Nigeria Overview
Ghana & Nigeria Pharmaceutical Market Trends and Forecasts
Pharmaceutical Market Segmentation by Therapeutic Area
Therapeutic Area Growth Analysis
Key Drivers & Restraints
Pharmaceutical Procurement Process
Competitive Analysis by Company Type
Ghanaian Pharmaceutical Industry – Detailed Overview
Nigerian Pharmaceutical Industry – Detailed Overview
Key Mergers, Acquisitions & Partnerships
Future Directions for Pharmaceutical Companies in Ghana & Nigeria

3. 3
Pharmaceutical Industry in Ghana & Nigeria Overview
Total Pharmaceutical Industry: Market Engineering Measurements, Ghana & Nigeria, 2013
Market Stage
Growth
Market Revenue
$1.63 B
Market Size for
Last Year of
Study Period
$3.12 B
(2013) (2018)
(2013)
Base Year
Market Growth
Rate
14.0%
Compound
Annual Growth
Rate
13.9%
(CAGR, 2013–2018)
Customer Price
Sensitivity
9
(scale:1 [low] to 10 [High])
Degree of
Technical Change
6
(scale:1 [low] to 10 [High])
Market Overview
Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan
Decreasing Stable Increasing
(2013)
Prescription
Pharmaceutical
Segment Revenue
65.9%
(2013)
OTC
Pharmaceutical
Segment Revenue
34.1%
(2013)
Number of
Registered
Market
Participants
185
(approximately)
(active market competitors in
2013)

4. 4
Ghana & Nigeria Pharmaceutical Market Trends and
Forecasts
Key Trends
Robust industry growth expected to
near 14% p.a. in the next 5 years,
underpinned by:
 Continuous burden of infectious
diseases including malaria, TB
and AIDS among others drives
demand for anti-infectives
 Increased incidence of NCDs
including diabetes, hypertension
and cancer drives demand for
chronic prescription drugs.
 OTC segment expected to
witness growth mainly for anti-infectives,
analgesics and
vitamins
 Rapid increase in uptake of
generics anticipated owing to
increased NHIS coverage.
 100% NHIS coverage in Ghana
expected to boost prescription
drugs
Pharmaceutical Industry in Ghana & Nigeria: Revenue Forecast
3.50
3.00
2.50
2.00
1.50
1.00
0.50
Key Segments
75%
25%
20.0
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
Sales Breakdown by
Exclusivity Status, 2013
44.3%
21.6%
34.1%
Revenue Breakdown by
Geographic Region, 2013
2.4%
Ghana
Governments to encourage local production of essential medicines to improve capacity utilization and reduce imports
7
0.0
0.00
2010 2011 2012 2013 2014 2015 2016 2017 2018
Revenue 1.11 1.26 1.43 1.63 1.85 2.09 2.40 2.73 3.12
Growth Rate - 13.5 13.5 14.0 13.5 13.0 14.8 13.8 14.3
Growth Rate (%)
Revenue ($ Billion)
CAGR (2013 – 2018) = 13.9%
Branded
Nigeria
OTC
Generic
CAGR (2013 – 2018) = 13.9%

5. 5
Per Cent Revenue Forecast by Region
Ghana is expected to witness higher growth than Nigeria because of increased NHIS coverage and
well-defined regulatory guidelines.
100.0
75.0
50.0
25.0
0.0
Total Pharmaceutical Industry: Per Cent Revenue Forecast by Region, Ghana &
Nigeria, 2010–2018
2010 2011 2012 2013 2014 2015 2016 2017 2018
Ghana 27.3 25.0 26.7 25.0 27.8 28.6 29.2 29.6 29.0
Nigeria 72.7 75.0 73.3 75.0 72.2 71.4 70.8 70.4 71.0
Revenue (%)
Year
Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan

6. 6
Pharmaceutical Market Segmentation by Therapeutic Area
Although anti-infectives constitute the largest segment of the prescriptive pharmaceutical market, a
marked shift in the burden of illness towards lifestyle diseases is expected.
Total Pharmaceutical Industry: Per Cent Sales Breakdown by
Therapeutic Segment, Ghana & Nigeria, 2013
Anti-infectives
25.8%
Cardiovascular
11.9%
Diabetes
6.2%
Respiratory
5.6%
CNS
4.4%
Oncology
3.5%
OTC
34.7%
Others
7.9%
Note: Others include dermatology, gastrointestinal, and rheumatology.
Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan

7. 7
Therapeutic Area Growth Analysis
Total Pharmaceutical Industry: Therapeutic Segment Growth Analysis, Ghana & Nigeria, 2014–2018
Continuous burden of
anti-infectives is
expected to contribute
to significantly high
growth of this
segment throughout
the forecast period.
Anti-infectives
14%
12%
10%
8%
6%
4%
2%
Declining
Cardiovascular Diabetes Respiratory CNS
Fast
Growing
Growing
Oncology
Source: Frost & Sullivan
Note: Bubble size represents market value
The relatively lesser
incidence of respiratory
diseases coupled with lack
of technological expertise
for the production of certain
drug types is expected to
restrict the growth of this
segment.
This is the fastest
growing segment.
Early diagnosis,
coupled with
increasing
awareness, is
expected to fuel
the growth of this
segment.
20%
Fast
Growing
CAGR
Fast
Growing
Fast
Growing
Increasing awareness
of mental conditions
and efforts to protect
mental health of
people are expected
to drive growth in the
long-term.
The increasing rate of urbanisation
and adoption of western life style are
expected to result in an increasing
incidence of NCDs, including
cardiovascular disease and
diabetes.

8. 8
Drivers
Continuous
burden of
infectious
diseases
Increasing
incidence
of NCDs
Increased
healthcare
spending
Weak
Restraints
regulatory
policies
Weak
distribution
systems
Poor
diagnosis
and patient
awareness
Pharmaceutical Industry in Ghana & Nigeria – Key
Drivers and Restraints
• Largest reservoir
of malaria, TB
and AIDS
• Recent outbreak
of Ebola virus
• Increased public
health coverage
(90%)
• Expanded
program on
immunization
(EPI)
• Increasing
adoption of
western
lifestyle
• NCDs to
constitute 21%
by 2030
• Steep rise in
chronic drugs
to essential
medicines
ratio
• Pharmaceutical
spending in Africa
to reach $35
billion by 2018
• Implementation of
NHIS to improve
access and
availability of
drugs
• FDI in Africa
expected to
double by 2016
• Inadequate
number of
pharmacies
and private
clinics
• Counterfeit
drugs and
illegitimate
drug trading
• Drug registration
process time
consuming and open
to corruption
• Absence of structured
pricing system poses
challenge to public
sector
• Private sector
challenged by high
out-of –pocket
spending
• Poor
knowledge of
diagnostic
procedures
• Patients
skeptical about
use of modern
medicines
• Lack of trained
doctors and
nurses
Source: Frost & Sullivan

9. 9
Pharmaceutical Procurement Process
Key Takeaway: Engaging in strategic partnerships with local distributors is crucial for effective
Total Pharmaceutical Industry: Procurement Process, Ghana & Nigeria, 2013
Local Manufacturers
Generic
Companies
Distributors
Branded
Companies
Manufacturer
Representatives Direct Sales
Distributors Teaching hospitals,
private hospitals,
clinics, pharmacies,
and chemical sellers
Source: Frost & Sullivan
product distribution in Ghana and Nigeria.
End User

10. 10
Competitive Analysis by Company Type
Per Cent Sales Breakdown by Tiers of
Competition, Ghana & Nigeria, 2013
Local
manufacturers
28.8%
• Efforts have been made to ensure quality
production
• The WHO and UNITAID have offered technical
assistance and capacity building to Nigerian drug
makers in achieving GMP standards and WHO
pre-qualification
 Branded companies predominantly target the
private sector, especially for in-demand therapies
 Increasing incidence of NCDs to fuel demand for
specialty pharmaceuticals driving growth of MNCs
 Importers include Indian and Chinese generic
pharmaceutical companies.
 Indian generic companies, which sell drugs
mostly through NGOs and government tenders,
fare much better than their Chinese counterparts.
 Local manufacturers sell own brands besides
distributing brands of MNCs and importers
 High cost of local APIs poses challenge to local
manufacturers
 Only a handful of local companies have gained
WHO pre-qualification status
Importers
36.7%
Branded
companies
34.5%
Source: Frost & Sullivan

11. 11
Key Competitive Factors for Pharmaceutical Companies
Competitive
Pricing
Key Success
Factors
Good
product
quality
Well-established
distribution
network
Marketing
Strategies
Brand
Recognition/
Loyalty
Source: Frost & Sullivan
Total Pharmaceutical Industry: Key Competitive
Factors, Ghana and Nigeria

12. 12
Ghanaian Pharmaceutical Industry Overview
Pharmaceutical Industry: Per Cent Revenue
OTC
28.8%
by Product Segment, Ghana, 2013
Generic
71.1%
Branded
Prescription 28.9%
71.2%
Pharmaceutical Industry: Per Cent Revenue by
Imported and Locally Produced Pharmaceuticals,
Ghana, 2013
Locally
manufactured
34.0%
Imported
66.0%
 The OTC product segment is considerable,
attributing to inaccessibility issues with
prescription pharmaceuticals in certain regions,
increased focus of the local participants on the
OTC sector, and heavy advertising of OTC drugs.
 Ghana has approximately 55 registered
pharmaceutical manufacturers producing finished
dose formulations.
 Few companies equipped with the capabilities to
produce APIs. La Gray Chemical Company is
one such example.
 Well-developed NHIS and major donor funding
for the provision of essential drugs
 10-15% of locally produced drugs exported to
other West African countries.
 Unregistered products account for 4% of the
market; exact share of counterfeit drugs unknown
 Acute respiratory infections, malnutrition, anemia,
diarrhea, and measles account for 50% of all
childhood hospitalisation and 30% of childhood
deaths.
Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan

13. 13
Ghana – Market Analysis by Product Segment
50.6%
28.8%
20.6%
Generic Branded OTC
• Local manufacturers primarily
focus on OTC.
• Key products include combination
analgesics, tonics, vitamins, cold
and flu preparations
• High cost of imports, APIs and
intermediates to drive growth of
OTC segment
• Increased NHIS coverage could
result in slightly lesser growth
• Increasing incidence of NCDs
drive growth in this segment
• Significant proportion of Ghanaian
population are brand loyal
• Growth of niche therapy areas
such as oncology and CNS
expected to increase uptake of
branded drugs
• Increasing patient awareness to
contribute to growth
• Traditionally largest
segment comprising half
the market
• Key suppliers include
importers from India and
China
• Local manufacturers
produce drugs for PEDs
• Cent percent NHIS
coverage – major
growth driver
• Generic companies
likely to win tenders in
public sector, particularly
in diabetes and
cardiovascular
segments
• Expected to witness
highest growth,
representing almost
60% by 2018
Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan

14. 14
Ghanaian Pharmaceutical Industry—Procurement and
Supply Management
Tertiary
level
(Central
authorities)
Secondary level
(District and regional)
Primary level
(Community and rural areas)
Public Sector Pharmaceutical Procurement
The Ministry of Health (MOH) Procurement Department is
responsible for the overall steering and management of
the public sector drug procurement.
The Ghanaian health service (GHS), a service delivery
agency under the MOH, is responsible for the allocation
of resources and liaison with the private sector.
 Public sector procurement comprises 3 levels.
o Tertiary-level services are provided by central authorities that
include the major public teaching hospitals (Korle Bu, Komfo
Anokye and Tamale) via tendering
o secondary-level services are offered by district and regional
institutions.
o Primary-level services are provided by community and sub-district/
rural institutions
Pharmaceutical Industry: Public Sector
Drug Procurement, Ghana, 2013
Source: Frost & Sullivan

15. 15
Ghanaian Pharmaceutical Industry—Procurement and
Supply Management (continued)
International Competitive
Bidding (ICB)
• Drugs that address local PEDs
and financed through TGF are
procured via ICB.
• WHO pre-qualification and
registration with FDB is
required for a product to
qualify for ICB.
• Drug needs assessment is
done by the following
agencies:
o ARVs – Ghana Office of
UNAIDS and WHO
o Anti-malarials – Ghana
National Malarial Control
Program
o TB drugs – Ghana National
TB Program and WHO
o NTD drugs – Ghana MOH
and WHO
Pharmaceutical Industry: Public Sector Procurement Process, Ghana, 2013
National Competitive
Bidding (NCB)
• Conducted for essential
drugs not provided
through TGF
• Product qualifications
include FDB product
registration and GMP
registration.
• Nearly 1% of ARVs and
anti-malarial drugs are
procured through NCB.
Donations
• Large number of
vaccines and medical
devices such as
disposables and
condoms are donated
through UNICEF and
USAID as well as ITNs
through NGOs.
• Additionally, the
research industry
donates a significant
chunk of medicines,
although the exact
amount is unknown.
Shopping
• The MoH Central
Medical Stores
maintains large supplies
of drugs targeting PEDs.
• Whenever there is an
acute supply shortage or
lengthy delay in ICB-and
NCB-based
procurements, MoH
fulfils drug procurement
orders through
shopping.
• A huge amount of
essential drugs are
procured through
shopping.
Source: Frost & Sullivan

16. 16
Ghanaian Pharmaceutical Industry - Distribution
Public Sector Private Sector
Distribution
• Drugs procured publically via ICB/NCB are
distributed by the MoH’s Central Medical
Stores.
• Transported to the district medical stores
managed by district health authorities
• Dispensed from public health centers
• Anti-retrovirals, medicines for HIV/AIDS, TB,
and NTDs are distributed by the public sector
and confirmed by the Ghana Standard
Treatment Guidelines.
• Few NTD drugs produced locally; vast majority
imported via ICB/ NCB and distributed through
the public sector
• Highly chaotic with thousands of
intermediaries involved
• Local companies forced to create own
distribution agencies to ensure product
supply at fair prices
• Anti-malarials, particularly Artemesinin-based
combination therapy (ACTs), are
distributed at subsidised rates
• Malaria largely treated outside the public
health system ; ACT anti-malarials
dispensed as OTC products.
• ITNs imported from donors represent an
integral part of malaria treatment
Source: Frost & Sullivan

17. 17
Ghanaian Pharmaceutical Industry—Demand Analysis
Local Pharmaceutical Market: Industry Capacity Utilisation, Ghana, 2013
(Capacity
Utilization
Potential)
0% 48.0% 100%
• Local manufacturers producing drugs for malaria, TB and HIV export to other parts of West Africa.
• Large-scale manufacturers compelled to produce under capacity as the local pharmaceutical market is primarily focused
on the OTC non-essential products.
• Local pharmaceutical industry strives to address PEDs and control population morbidity.
• Supply of medicines for PEDs through TGF funding and ICB procedure is as follows:
o ARVs heavily dependent on Indian suppliers
o Anti-malarial ACTs largely supplied from India and China
o TB drugs predominantly supplied through IDA
o Drugs for NTDs are principally imported.
• Besides traditional oral and topical formulations, Ghana also has local capacity for the production of parenteral fluids
(Intravenous Infusions Limited and San Bao Company Limited).
• Vaccines and injectables imported mostly through ICB/ NCB as well as drug donations
• Increasing investment by MNCs and Indian companies in local pharmaceutical production
Source: Frost & Sullivan

18. 18
Ghanaian Pharmaceutical Industry – Competitive
Landscape
Pharmaceutical Industry: Key Market Participants, Ghana, 2013
Rank Branded Companies Generic Companies Local Manufacturers
1
2
3
4
5
Other
Noticeable
Participants
Novartis, Jansen-Cilag
Glenmark, Serum Institute of
India, Mepha
Danadams Pharmaceuticals
Ltd., La Gray Chemical
Company
Source: Frost & Sullivan

19. 19
Ghanaian Pharmaceutical Industry—SWOT Analysis
Source: Frost & Sullivan
• Under-utilisation of local pharmaceutical
manufacturing capacity often by 50%
• Limited incentives for PED drug production; hence
heavy reliance on OTC drugs
• High cost of locally-manufactured products
• Unable to conduct bio-equivalence studies
required for WHO pre-qualification
• Large variation in local ex-manufacturing prices
for comparative products
• Lack of consensus regarding TRIPS
implementation and compulsory licensing.
• Imported raw material expense and supply
shortages
• VAT on imported manufacturing materials
• Influx of low-cost Asian generics
• Parallel pharmaceutical trade
• Continued proliferation of counterfeit
pharmaceuticals
• Price sensitivity of the total pharmaceutical industry.
• Unmet human resource development needs
• Lack of focus on pharmaceutical R&D issues
Strengths
Opportunities
Weaknesses
Threats
• Well-functioning pharmaceutical regulation
systems in place
• One of the strongest pharmaceutical industries in
the Economic Community of West African States
(ECOWAS)
• High degree of economic and political stability in
Africa
• Cent per cent public health coverage
• Established local manufacturing industry
• Existence of public budget for products that
address priority endemic diseases
• WHO pre-qualification enables better access of local
producers to international markets
• Utilisation of the ‘marginal preference scheme’
applied to tenders
• Access to external funding sources and technical
assistance
• Creation of local API, excipient, and packaging
material production
• Access to the President's Special Initiative
Programme
• Effective lobbying of PMAG and WAPMA on
important local industry issues

20. Branded
37.1%
20
Nigerian Pharmaceutical Industry Overview
Pharmaceutical Industry: Per Cent Revenue
by Product Segment, Nigeria, 2013
OTC
39.4% Generic
62.9%
Prescription
60.6%
Pharmaceutical Industry: Per Cent Revenue by
Imported and Locally Produced Pharmaceuticals,
Nigeria, 2013
Locally
manufactured
30.0%
Imported
70.0%
 The OTC product segment is quite large as a
significant proportion of population yet to be
covered under NHIS operational since 2005.
 Nigeria has over 10,000 unregistered patent and
proprietary drug stores selling OTC products only
 Vibrant pharmaceutical industry employing about
500,000 people in manufacturing and distribution
 According to the Pharmacists Council of Nigeria,
there are 128 registered drug manufacturers, 724
drug distributors, 1,543 retail pharmacies, and
292 drug importers in Nigeria.
 Only 50% of population covered under NHIS
 Nigerian pharmaceutical industry is quite
susceptible to parallel trading.
 It is estimated that nearly 17% of essential
generic medicines and as high as 30% of anti-malarials
are routinely faked in Nigeria.
 ARVs, ACTs, and anti-TB drugs considered life-saving
drugs, the government strives to
encourage local production of these medicines
Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan

21. 21
Nigeria – Market Analysis by Product Segment
38.1%
22.5%
39.4%
Generics Branded OTC
• OTC segment quite large as
people practice self-medication
• Anti-malarial ACTs, analgesics,
and multivitamins constitute a
large share
• Increasing demand for vitamins
and health supplements drive
growth
• Over 10,000 unregistered stores
selling OTC drugs
• High out-of-pocket payment by
patients is likely to restrict use of
premium branded drugs
• Branded drugs more commonly
used in private sector by brand-loyal
customers
• Increasing incidence of life-style
diseases and absence of cheaper
generic equivalents to drive
growth of this segment
• Smaller as compared to
Ghana as consumers
are price-sensitive
• 70% of generics
imported while 30%
produced locally
• Anti-infectives,
cardiovascular and
diabetes are key
therapeutic segments
• Expected to witness
high growth – CAGR
14.6%
Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan

22. Pharmaceutical Industry: Public Sector Drug
22
Nigerian Pharmaceutical Industry—Procurement and
Supply Management
Procurement, Nigeria, 2013
Tertiary
healthcare
under Federal
Government
Secondary healthcare
controlled by the
State MOH
Primary healthcare controlled by the
Local Government Areas
Public Sector Pharmaceutical Procurement
The federal government is responsible for over all policy
formulation and technical guidance to all healthcare
providers.
Public sector procurement comprises 3 levels
o The tertiary healthcare centres (University teaching
hospitals) and federal medical centres located in 36
states procure drugs and supplies from the federal
government.
o The secondary level healthcare comprised of state
hospitals is supplied by the State MoH, which also offers
technical support to the local government areas (LGAs).
o The primary level healthcare services are taken care of
by the LGAs.
• The private sector, NGOs, and traditional health
practitioners provide service across the healthcare
delivery system.
Source: Frost & Sullivan

23. 23
Ghanaian Pharmaceutical Industry—Procurement and
Supply Management (continued)
Pharmaceutical Industry: Public Sector Procurement Process, Nigeria, 2013
The Bureau of Public Procurement
(BPP)
• BPP established in 2007 by the Public
Procurement Act (PPA) is responsible for
the overall steering and management
• Aims to ensure accountability, integrity,
and transparency in the procurement
process, establishment of pricing
standards and benchmarks
• Frames policies and guidelines for the
approval of the National Council on
Public Procurement (NCPP)
• Right to debar any supplier, service
provider or, contractor in case of
violation of the Act.
Source: Frost & Sullivan
Domestic Preference Policy
• Provision of PPA that grants a margin of
preference while evaluating tenders,
comparing bids from domestic and
foreign companies.
• Margins of preference applies only to
tenders procured under ICB.
• It is required that the bidding
documents clearly state the preference
and furnish information required to
establish the eligibility of a bid for such
preference.

24. 24
Nigerian Pharmaceutical Industry - Distribution
Public Sector Private Sector
Distribution
• Traditionally 3 different warehouses – The
Central Central Medical Stores, the Federal
Medical Stores (FMS), and the State Medical
Stores
• Currently, all integrated into one – the Central
Medical Stores with one branch in Oshodi and
another in Abhuja.
• A mega distribution consensus model was
framed to improve distribution
• Drugs collected from the FMS in Oshodi are
distributed directly to health institutions across
the country
• Drug distribution to pharmacists is prevented,
thereby promoting rational drug use.
• Local manufacturers and importers have
their own distribution channels to supply
medicines
• Drugs are traded in unregistered and
unlicensed premises, and sometimes by
non-pharmacists
• A predominant hub of counterfeit drugs -
17% of essential generic drugs and 30%
of anti-malarials are routinely faked
• NAFDAC strives to tackle this problem
through radio frequency identification
(RFID) technology for logistics and
tagging to detect fake medicines
Source: Frost & Sullivan

25. 25
Nigerian Pharmaceutical Industry—Distribution
(continued)
Pharmaceutical Industry: Public Sector Drug Procurement—Mega Distribution Company
FACTORY/EXPORT
Mega Distribution
Wholesalers Wholesalers Wholesalers
Retailers Clinics
Hospitals
Retailers Clinics
Hospitals
Retailers Clinics
Hospitals
Regional Hub –
SW
Regional Hub –
SE
Regional Hub –
North
Regional Hubs
Consensus Model, Nigeria, 2013
Source: PMG-MAN; Frost & Sullivan

26. 26
Nigerian Pharmaceutical Industry—Demand Analysis
Local Pharmaceutical Market: Industry Capacity Utilisation, Nigeria, 2013
(Capacity
Utilization
Potential)
0% 42.0% 100%
• Local industry meets 30% of demand while 70% is imported from India and China
• Local manufacturers produce tablets, capsules, ointments, liquid preparations, creams, lotions, and ophthalmic
preparations
• Fluctuations in capacity demand are attributed to low purchasing power within the population and the irregular
government purchase of drugs and delayed payments
• Drugs locally produced in Nigeria represent as much as 60% of the pharmaceutical production in the ECOWAS region.
• Judicious efforts to increase utilization rate of available capacity include:
o Upgrading of facilities of local drug manufacturers to obtain the WHO pre-qualification status
o In 2010, 6 Nigerian companies gained WHO pre-qualification for supply of ARVs, anti-malarials and anti-TB drugs
o Ban imposed by Nigerian FMoH on the import of certain essential medicines to attain self-sufficiency and reduce
parallel trade
o Revised ECOWAS tariff structure for import of drugs: essential medicines, industry machinery and equipment - 0%
tariff; raw materials and other capital goods – 5% tariff; intermediates – 10%; finished goods – 20% tariff; finished
products with adequate local capacity – 50% tariff
Source: Frost & Sullivan

27. 27
Nigerian Pharmaceutical Industry – Competitive
Landscape
Pharmaceutical Industry: Key Market Participants, Nigeria, 2013
Rank Branded Companies Generic Companies Local Manufacturers
1
2
3
4
5
Other
Noticeable
Participants
AstraZeneca, Jansen-Cilag,
Eli Lilly
Nigeria German Chemicals
Plc, Greenlife
Pharmaceuticals Ltd.
Juhel Nigeria Ltd., Swipha,
Neimeth International
Pharmaceuticals Plc.
Source: Frost & Sullivan

28. 28
Nigerian Pharmaceutical Industry—SWOT Analysis
• Current capacity utilisation rate in Nigeria is only
45%.
• Access to affordable funding for local
manufacturers is hampered by high bank interest
rates.
• High cost of locally manufactured products than
those imported
• Unable to conduct bio-equivalence studies
required for WHO pre-qualification
• Large variation in local ex-manufacturing prices
for comparative products
• Weak purchasing power threatens scope for
marketing drugs.
• VAT on imported manufacturing materials
• Influx of low-cost Asian generics
• Parallel pharmaceutical trade
• Continued proliferation of counterfeit
pharmaceuticals
• Price sensitivity of the total pharmaceutical industry
• Failure to address loopholes in the distribution
system
• Lack of focus on pharmaceutical R&D issues
Strengths
Opportunities
Weaknesses
Threats
• More than 60% of pharmaceutical production in
ECOWAS countries is domiciled in Nigeria.
• Attainment of WHO cGMP and pre-qualification
status by certain companies enables participation
in international tenders.
• High degree of economic and political stability
• Established local manufacturing industry –
technical skills, trained manpower, and basic
manufacturing infrastructure already exists.
• Large market size, strong demand and need for
better management of anti-infectives (malaria, AIDS,
and TB)
• Positive economic growth and macroeconomic
stability in recent years
• Judicious efforts taken by NAFDAC to reduce
counterfeit trade
• Government ban of imports of certain essential
medicines for which there is adequate capacity and
technical skills
• Establishment of NHIS scheme to provide universal
health coverage by 2015
Source: Frost & Sullivan

29. 29
Key Mergers, Acquisitions & Partnerships
Pharmaceutical Industry: Key Mergers, Acquisitions & Partnerships, Ghana & Nigeria, 2012 - 2014
Value: Undisclosed
Year of Deal: February 2014
Key Reason:
• Imperial Health Sciences, the
Life Sciences division of
Imperial Logistics, a leading
distribution company in South
Africa, bought 53% stake in
WWCV.
• By this deal, Imperial
Logistics is expected to
leverage the well-established
supply chain network of
WWCV in Nigeria, thereby
pioneering into the healthcare
space.
Value: $86.0 million
Year of Deal: July 2012
Key Reason:
• Bought the manufacturing
facility and sales and
distribution infrastructure of
Cosme Farma
• Adcock Ingram strives to
expand its presence in the
Indian pharmaceutical market
by leveraging Cosme Farma’s
strong sales forces and nearly
60 well-established brands in
dermatology gynecology,
among others.
Value: Undisclosed
Year of Deal: May 2012
Key Reason:
• Sanofi Aventis acquired
Medreich’s portfolio of
branded generics in Sub-
Saharan Africa
• Med Reich being the
leading generic
pharmaceutical company,
Sanofi has managed to
significantly increase its
market shares in the generic
pharmaceuticals segment by
this acquisition.
Adcock Ingram –
Cosme Farma
Imperial Logistics –
Worldwide
Commercial Ventures
Limited (WWCV)
Sanofi aventis –
Medreich
Source : Frost & Sullivan .

30. 30
Future Directions for Pharmaceutical Companies in
Ghana & Nigeria
2 Foreign traders in Africa are expected to bolster their distribution channels by
engaging in strategic partnerships with local trustworthy stakeholders.
3
Given the immense growth potential and business opportunities, it is expected that
companies would invest significantly in their marketing capabilities, patient awareness
programmes, and treatment support services to enhance brand loyalty.
1
Branded companies are expected to adopt a differential pricing strategy specific to
patient segments and geographies in Africa to make treatment affordable to a large
group of patients, thereby significantly expanding their customer base.
Source: Frost & Sullivan

31. Future Directions for Pharmaceutical Companies in
Ghana & Nigeria (continued)
Game-changing Strategies for the success of market participants
engaging local patient groups
•Corporate Social
Responsibility
Source: Frost & Sullivan
31
•Patient support programs
for technically challenging
formulations
•Revisiting cost of
commodity generics
•Addressing
loopholes in supply
chain and
distribution
channels
•Close coordination
with NGOs to
penetrate rural areas
•Technical Training
of distributors and
retailers
•Investing in R&D and
•Engage in
strategic
partnerships with
trustworthy local
stakeholders
Foreign Companies to Bolster Distribution Channels
•Pharmacists
influence choice of
customers and
brand image
Branded Companies to adopt Differential Pricing Strategy
•Bar codes and
holograms to track
counterfeits
•Training of
physicians and
nurses
•Detailing by
medical
representatives
•Continual medical
education (CME)
programs
•Advisory/Advocacy
Boards
Enhance Patient Awareness and Treatment Support Services
(CSR)

32. Questions

33. 33
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34. 34
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