PHARMACEUTICAL COMPANIES CUT PROFIT TO REDUCE DRUG PRICES – FIRM
The article discusses how pharmaceutical companies in Nigeria, including May & Baker Nigeria Plc, have been cutting their profits to help make drugs more affordable amid rising prices.
1. Key Points:
a. Efforts to Make Drugs Affordable:
- May & Baker Nigeria Plc has increased drug prices only about three times in the past year to keep them affordable.
- The CEO of May & Baker, Patrick Ajah, mentioned that the exit of companies like GlaxoSmithKline prompted the Minister of Health, Muhammad Pate, to encourage local manufacturers to find solutions to rising drug costs.
b. Challenges in the Pharmaceutical Industry:
- Local manufacturers, including May & Baker, are compromising their profits and margins to reduce the cost of the drugs they produce.
- The industry faces significant challenges with Active Pharmaceutical Ingredients (APIs), most of which are imported, along with other materials necessary for drug production.
- The impact of foreign exchange rates has compounded these challenges, with the exchange rate rising from NGN 461/$1 to NGN 1,600/$1. This has made it difficult for pharmaceutical companies to maintain profitability.
c. Struggles with Foreign Exchange and Import Duties:
- Ajah pointed out that pharmaceutical companies struggle to buy dollars, and the rising cost of APIs is making it difficult to stay profitable.
- Despite the Federal Government's announcement of an import duties waiver, Ajah described it as a "fake announcement" due to lack of implementation, noting that even if implemented, it would only address a small portion of the problem.
d. Future Plans and Initiatives:
- May & Baker is part of a consortium under the Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN) that is looking into API production locally.
- The company is also advancing in vaccine manufacturing through its subsidiary BioVaccine, with plans to supply vaccines for routine immunizations in Nigeria.
e. Research and Development:
- May & Baker's R&D department is gearing up to launch about seven new products in 2024, highlighting the company's ongoing efforts to innovate despite the challenges.
2. Conclusion:
- The article emphasizes the ongoing struggles of pharmaceutical companies in Nigeria due to economic challenges but also highlights their efforts to mitigate drug costs and continue developing new products.
The article discusses how pharmaceutical companies in Nigeria, including May & Baker Nigeria Plc, have been cutting their profits to help make drugs more affordable amid rising prices.
1. Key Points:
a. Efforts to Make Drugs Affordable:
- May & Baker Nigeria Plc has increased drug prices only about three times in the past year to keep them affordable.
- The CEO of May & Baker, Patrick Ajah, mentioned that the exit of companies like GlaxoSmithKline prompted the Minister of Health, Muhammad Pate, to encourage local manufacturers to find solutions to rising drug costs.
b. Challenges in the Pharmaceutical Industry:
- Local manufacturers, including May & Baker, are compromising their profits and margins to reduce the cost of the drugs they produce.
- The industry faces significant challenges with Active Pharmaceutical Ingredients (APIs), most of which are imported, along with other materials necessary for drug production.
- The impact of foreign exchange rates has compounded these challenges, with the exchange rate rising from NGN 461/$1 to NGN 1,600/$1. This has made it difficult for pharmaceutical companies to maintain profitability.
c. Struggles with Foreign Exchange and Import Duties:
- Ajah pointed out that pharmaceutical companies struggle to buy dollars, and the rising cost of APIs is making it difficult to stay profitable.
- Despite the Federal Government's announcement of an import duties waiver, Ajah described it as a "fake announcement" due to lack of implementation, noting that even if implemented, it would only address a small portion of the problem.
d. Future Plans and Initiatives:
- May & Baker is part of a consortium under the Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN) that is looking into API production locally.
- The company is also advancing in vaccine manufacturing through its subsidiary BioVaccine, with plans to supply vaccines for routine immunizations in Nigeria.
e. Research and Development:
- May & Baker's R&D department is gearing up to launch about seven new products in 2024, highlighting the company's ongoing efforts to innovate despite the challenges.
2. Conclusion:
- The article emphasizes the ongoing struggles of pharmaceutical companies in Nigeria due to economic challenges but also highlights their efforts to mitigate drug costs and continue developing new products.