The benefits of protecting local pharmaceutical companies from drug counterfeiters
Nigeria’s pharmaceutical sector with estimated US$3billion current market value is poised for further significant growth at 8% annual growth projection. Forecasts by leading authorities such as PricewaterCoopers (PwC) indicate that certain indices project a favourable outlook for the sector. These include Nigeria’s rising population, and increase in demand for medicines due to the surging cases of chronic diseases.
Another key factor is the increased government’s attention to healthcare towards improving access to quality health services for the people, which is necessitating improved budgets for health services. Opportunities in the non-oil sectors in line with the Federal Government’s economy diversification also contribute significantly.
Emzor Pharmaceutical Industries Limited’s US$23m Active Pharmaceutical Ingredients (API) manufacturing plant in Sagamu, Ogun State, lends credence to the potential of the nation’s pharmaceutical companies to play pivotal roles in Nigeria’s socio-economic growth. Known as Emzor Campus, the facility is both a World Health Organization – (WHO) compliant and a cGMP – compliant factory occupying more than 60 Hectares of land and is the largest API facility in West Africa set up to combat the pervasive threat of malaria in Nigeria and sub Saharan Africa.
With the capacity to produce 400 million metric tonnes of quality APIs annually; the state-of-the-art pharmaceutical complex is a major hub for the manufacture and supply of millions of doses of medication ranging from antimalarials, pediatrics care, vitamins, and antiretrovirals to various international organisations through partnerships for public health intervention.
In addition to creating thousands of direct and indirect jobs, it is making a significant impact on the delivery of quality healthcare services both in Nigeria and across the African continent. It is boosting government revenues in taxes, and contributing significantly to Nigeria’s GDP growth.
Emzor has also received commendations from a wide spectrum of influencers, including members of the Senate Committee on Health, Federal Ministry of Health top officials, and NAFDAC leadership, describing the facility as one of the biggest significant single investments in Nigeria.Investments by local pharmaceutical companies like Emzor and other players need to be adequately protected for the good of all – consumers who use drugs to treat illnesses, families, the government, local investors, global investing community, and the country.
This is because the rising menace of drug counterfeiting threatens to undermine the contributions of local pharmaceutical companies and other investors. The consequences of counterfeit, fake and substandard drugs are wide and far-reaching. Counterfeit drugs pose significant health risks to consumers, including treatment failure, adverse drug reactions, prolonged hospital visits, and even death.
The presence of counterfeit drugs in the market can erode trust in Nigeria’s healthcare system, making it challenging for healthcare professionals to provide effective care. Loss of investors’ confidence in the nation’s economy is also a serious implication.Fake and substandard drugs can damage the reputation of both local pharmaceutical companies and Nigeria at large.
Even though they produce high-quality drugs, the presence of counterfeit drugs can create a market barrier for made-in-Nigeria in other markets. This will also limit the capacity of local companies to expand both their operations and market. It will deny them foreign exchange earnings too.
There is a likelihood of a loss of public trust, which can be challenging to regain. The implications for local companies and the national economy also include reduced investment volume, which is a big threat to national GDP growth and balance of trade.Counterfeiting can impair local pharmaceutical companies by creating basic business fundamentals of sustainability and profitability.
This means they will be denied the needed capital to grow and scale. Consequently, pressure of survival can lead them into taking difficult cost-cutting measures, including pay cuts for their workers, redundancy or outright staff disengagement. The recent raids on fake drug outlets in Idumota, Aba, and Onitsha by NAFDAC came as the right and commendable steps.
The agency’s continuous awareness, education, and enlightenment advocacy, and enforcement action against substandard drug cartels, would go a long way in safeguarding the health and quality of life of Nigerians, as well as protecting the investments of genuine local pharmaceutical companies.
It is imperative for local pharmaceutical companies, investors, regulatory and security agencies, the government, National Assembly, communities, researchers, academia, non-governmental organizations, and international development agencies to work together to implement effective anti-counterfeiting strategies, improve the security of the supply chain, and enhance public awareness about the risks of counterfeit drugs.
