Analysis of the Oharmaceutical Industry in Nigeria
PHARMACEUTICALS INDUSTRY ANALYSIS –USING MAY & BAKER NIGERIA PLC.
EMBA 14A GROUP 8
MEMBERS
IFEYINWA OKONKWO
TINA EBUEHI
ADEWALE ADEDIRAN
BOLA ADEROGBA
ADEROGBA TAIWO
OLUTOBI OLUFUNWA
IFEANYI IBE
2010
8/13/2010
OVERVIEW
Pharmaceuticals companies are very vital to the health care delivery systems in every country of the world. These companies are licensed to market, develop, research and distribute drugs for the prevention, treatment and cur of diseases and other medical conditions. In doing this, they compliment other healthcare service providers to improve the general well being of members of the society. The pharmaceutical industry is one of the top 5 industries in the world providing employment to millions, providing healthcare services to a greater population and large contributions to worldwide GDP.
In the world over, the industry is generally regarded as a high risk/high return industry especially in the area of Research & Development of drugs, vaccines etc. There has been a lot of activities in this area in the last 5 years with over 100 drugs going on patent between 2001 and 2006. The industry has shown great potentials with an average sales growth of 9.5% annually.
The Nigerian Pharmaceutical industry is one of the largest in the continent, however, its size, relative to the size of the population and economy is remarkably small. The size of the Nigerian Pharmaceutical industry is estimated at N99billion which is only about 1% of the GDP. Average capacity utilisation is below 55% for most of the companies operating in the industry.
Production in Nigeria is mostly secondary with R & D virtually non-existent. The key substances for drug manufacturing are not manufactured in Nigeria. Players in the industry are thus divided between local manufacturers, who import the active ingredients and mix with other expedients to produce and the importers who engage in strict importation. Estimates of installed capacity showed capacity
EMBA 14A GROUP 8
MEMBERS
IFEYINWA OKONKWO
TINA EBUEHI
ADEWALE ADEDIRAN
BOLA ADEROGBA
ADEROGBA TAIWO
OLUTOBI OLUFUNWA
IFEANYI IBE
2010
8/13/2010
OVERVIEW
Pharmaceuticals companies are very vital to the health care delivery systems in every country of the world. These companies are licensed to market, develop, research and distribute drugs for the prevention, treatment and cur of diseases and other medical conditions. In doing this, they compliment other healthcare service providers to improve the general well being of members of the society. The pharmaceutical industry is one of the top 5 industries in the world providing employment to millions, providing healthcare services to a greater population and large contributions to worldwide GDP.
In the world over, the industry is generally regarded as a high risk/high return industry especially in the area of Research & Development of drugs, vaccines etc. There has been a lot of activities in this area in the last 5 years with over 100 drugs going on patent between 2001 and 2006. The industry has shown great potentials with an average sales growth of 9.5% annually.
The Nigerian Pharmaceutical industry is one of the largest in the continent, however, its size, relative to the size of the population and economy is remarkably small. The size of the Nigerian Pharmaceutical industry is estimated at N99billion which is only about 1% of the GDP. Average capacity utilisation is below 55% for most of the companies operating in the industry.
Production in Nigeria is mostly secondary with R & D virtually non-existent. The key substances for drug manufacturing are not manufactured in Nigeria. Players in the industry are thus divided between local manufacturers, who import the active ingredients and mix with other expedients to produce and the importers who engage in strict importation. Estimates of installed capacity showed capacity