‘The problem with manufacturing drugs locally’

IN terms of innovation and research drive in the sector, how do NIROPHARM contribute?

If you look at research and development in Nigeria, in fact, across Africa, it is still at its infancy, except in South Africa and maybe some other parts of North Africa. There is no infrastructure both tangible and intangible on ground to support research and development units of pharmaceutical industry. Our members are committed to Africa; they believe Africa has sizeable populations. They are beginning to see that Africa research and development is different from what we have in other parts of the world. They are beginning to build capacity and capability. NIROPHARM is committed to improve research and development in Africa.

We want to set up what we called open lab model, where scientists in Africa who are working on certain projects that can be screened. These scientists should have access to world-class lab for research and development. World-class lab has best ideas, so these scientists would be attached to world-class lab.

When we set up our footprint on research and development there would be improvement because we have people with skills and knowledge to work with in those research and development centres.

Considering the problem of electricity and other infrastructure in the country how possible is it to locally produce and still make profit?

Like we know, electricity is a major challenge in Nigeria. There is gap between what we need and what we generate now. Even the little that is available cannot adequately meet the requirements both for the industry and the domestic consumption. Power is a major cause of operating expenditure. We cannot do without electricity even if we are not in production. Drugs need to be in a certain temperature until they are ready to be used by patients. So, for you to maintain the required temperature you need electricity to sustain the drugs for a particular duration until they are ready for consumption.

We spend a lot of money in buying diesel and gas for generating sets. The epilepsy in power supply cripples our business because there are certain operations we cannot allow amid possible power failure. In the warehouse where drugs are been stored you need to maintain a certain temperature, so it is a huge impact in our business. If there would be a reform in power sector our problem would be a thing of the past.

So, how are you surviving in the light of these constraints?

We have to survive; we look at other means of generating power. We share power with those who do not have electricity. We put the cost on price of drugs and other services we render to the patients. Most times, it reduces our profits because we try to meet our aspirations to ensure as many as possible have access to our products. What role does NIROPHARM play in all of these things?

We are part of power generating community and we are in partner with other stakeholders to make proper advocacy to the government, especially on how to ensure there is improvement in terms electricity, in area where we operate for instance like the industrial estates. We collaborate others who do not have electricity to ensure improvement within the community where we operate.
Four drug companies in Nigeria have achieved the World Health Organisation (WHO) certificate in terms of Good Manufacturing Practices (GMP).

What does this portend in the light development of the local industry?

It is a good development. We are multinational companies; we manufacture very high-tech drug products that are new to the world. Though some are new to the world while others are not new because they are quite established. The end point of manufacturing is to ensure quality drugs and affordable drugs to the people. This has to do with volumes, the number of people benefit from the product. We manufacture drugs but when it comes to factories that would manufacture globally it requires international organisation certification like the World Health Organisation (WHO). We partner with the WHO in order to get good manufacturing certification and to have adequate technology transfer. We also partner with WHO to enable us benefit from global fund tenders. Again it opens collaboration for those who want to do international transfer.

What level of support do drugs manufacturing companies get from government?

There are quite number of things which government is doing to support drugs manufacturers. Members of NIROPHARM are both into manufacturing and importation of drugs. If you look at local manufacturers, government is trying to improve local contents. So, there are prospects if certain drug-manufacturing companies are equipped with technologies.

We also have opportunity, if our members want to make capital expenditure the person should go through the Bank of Industry (BoI). As small manufacturer, one can get loan to support his business but there are taxes here and there that can actually affect local manufacturers.

Our members who are into importation taxes affect them too. Importation of drug is very difficult because it is not like importation of other commodities. Most of the imported products are life-saving products. Others that are not life saving drugs, government has tried to close them down. We do have the capacity to manufacture some drugs locally now, so there are a lot of things government can do to solve those problems.

How does tax affect local drug manufacturers?

Some of the local drugs have restricted drug importation. Some life-saving drugs, since we do not have capacity to manufacture them here right now, there are need for government to remove all kinds of levies for drug importation. There is need for government to reduce taxes so, that the drugs can be affordable to patients. The medication that account for 75 per cent is expensive. So reducing this burden on Nigerians, government needs to do something. Government needs to fix zero import duty on these drugs.