Nigeria Pharmaceuticals and Healthcare Report Q4 2008

Summary

In BMI's updated Pharmaceutical Business Environment Rankings for Q408, which now includes Algeria and Kenya, Nigeria is again found towards the bottom of the table featuring 15 key markers in the Middle East and Africa (MEA) region. However, in comparison to the previous quarter, Nigeria's position is somewhat improved, with the country rising to a joint 12th place, up from the secondlast. While Nigeria continues to be considered one of the least attractive markets in the region, its potential beyond the forecast period is relatively considerable, given the sheer population size and the rising number of minority wealthy elite, which are getting rich on the back of substantial oil revenues.

In the shorterterm, however, Nigeria's pharmaceutical market is forecast to grow to US$1.27bn in 2012, thus more than doubling the 2007 figure of US$596mn. In local currency values, fiveyear growth will be considerably lower, given the forecast inflation levels. In the meantime, the government remains supportive of the local pharmaceutical industry, despite the fact that it is failing to meet the target of 70% of domestic supply. Still, in July 2008, the Health Minister declared that Nigeria can be the primary source of pharmaceuticals for West Africa. He stated that approximately US$150mn is needed to overhaul Nigeria's underperforming pharmaceutical industry, with the state willing to provide a third of the sum, if drugmakers can contribute the remainder. However, it is clear that farreaching reforms are required, coupled with the involvement of the private sector.

Nevertheless, the government continues to actively support the development of healthcare and pharmaceutical industries in the country. To this end, in July 2008, the Federal Capital Territory Administration (FCTA) reported plans to create a 500 hectare free zone for healthcare near the Nigerian capital. The development would join more than 20 designated free zones set up in Nigeria, following the Nigeria Export Processing Zones Act of 1992, which boast a favourable tax and business environment. The development, the first of its kind in the country dedicated to healthcare, is a response to plans by KB & Partners International Healthcare Nigeria to establish a 400bed private hospital in Abuja.

The pharmaceutical market also remains relatively dynamic, with larger local companies in particular stepping up their commercial efforts. For example, in July 2008, Neros Pharmaceuticals launched a new OTC product, Mekoamin Syrup, which acts to fortify the body's immune system, as well as boost energy levels and stimulate recovery from malnutritioncaused emaciation, among its other uses. Around the same time, Neros revealed that in partnership with Vietnamese Mecophar it may be building a manufacturing plant in Nigeria, with a view to exporting to other African countries. Neros already has considerable ties with Vietnam, which will clearly facilitate any future cooperation.

Contents

• Executive Summary
• Nigeria Pharmaceuticals And Healthcare Industry SWOT
• Nigeria Political SWOT
• Nigeria Economic SWOT
• Nigeria Business Environment SWOT
• Pharmaceutical Business Environment Ratings
• Limits To Potential Returns
• Risks To Realisation Of Returns
• Market Summary
• Regulatory Regime
• Import Regime
• Recent Regulatory Developments
• Counterfeit Drugs
• Recent Developments in Regards to Counterfeit Drugs
• Intellectual Property
• Pricing And Reimbursement Regime
• Industry Developments
• Epidemiology
• HIV/AIDS
• Healthcare Sector
• Recent Healthcare Sector Developments
• Healthcare Reforms
• Health Insurance
• Traditional African Medicine
• Domestic Pharmaceutical Sector
• Foreign Pharmaceutical Sector
• National Drug Policy
• Medical Devices
• Recent Developments in the Medical Devices Market
• Industry Forecast Scenario
• Overall Market Forecasts
• Key Growth Factors Industry
• Key Growth Factors Macroeconomic
• Prescription Market Forecast
• OTC Market Forecast
• Patented Drug Market Forecast
• Generics Market Forecast
• Export/Import Market Forecasts
• Other Healthcare Data Forecasts
• Key Risks To BMI's Forecasts
• Competitive Landscape
• Company Profiles
• Pfizer
• Novartis
• SanofiAventis
• GlaxoSmithKline (GSK)
• Indigenous Producers
• NigeriaGerman Chemicals PLC (NGC)
• Emzor
• Fidson Healthcare
• Archy
• Neros Pharmaceuticals
• Drugfield Pharmaceuticals Limited
• Neimeth
• BMI Forecast Modelling
• How We Generate Our Pharmaceutical Industry Forecasts
• Ratings Overview
• Weighting
• List of Tables
  • Table: Middle East And Africa Pharmaceutical Business Environment Ratings
  • Table: Leading Causes Of Death In Africa, 2002
  • Table: Some Indian Drugmakers Moving Into Africa In 2031
  • Table: Nigeria Free Zones: Key Incentives
  • Table: Nigeria Drug Market Expenditure, 20032012 (NGNmn unless otherwise stated)
  • Table: Nigeria Health Expenditure, 20032012 (NGNmn unless otherwise stated)
  • Table: Nigeria Economic Activity
  • Table: Nigeria's Prescription Drug Market, 20032012 (NGNmn unless otherwise stated)
  • Table: Nigeria OTC Market Data Forecasts, 20032012 (NGNmn unless otherwise stated)
  • Table: Nigeria Patented Drug Market Indicators, 20032012
  • Table: Nigeria Generic Drug Market Indicators, 200348
  • Table: Nigeria Pharmaceutical Trade Balance, 20032050
  • Table: Nigeria Other Health Indicators, 20032012
  • Table: Pharmaceutical Business Environment Indicators
  • Table: Weighting Of Components