Drug costs are anticipated to stay excessive in 2024 as import costs of pharmaceutical merchandise might exceed N900 billion as a result of depreciation of the naira.
This may put additional stress on Nigerians who have been battling excessive drug costs in 2023. Nigeria imported $1.05 billion value of pharmaceutical merchandise in 2022, in accordance with knowledge from the Worldwide Commerce Heart. On the then alternate charge (N451/$ ), it price N475.17 billion. On the February 19, 2024 alternate charge (N902.45/$), this can price N950.81 billion.
The multilateral company, which has a joint mandate with the World Commerce Group and the United Nations, will get its knowledge from the United Nations Nationwide Bureau of Statistics and COMTRADE, and because the NBS doesn’t but have knowledge on international commerce for the fourth quarter of For 2023, the info for the 12 months will not be accessible, which is why the 2022 knowledge is used.
Prescribed drugs contain extra than simply medication. In keeping with the ITC, this contains: “Dried glands and different organs for organotherapeutic makes use of, whether or not or not in powder type; extracts of glands or different organs or their secretions, for organotherapeutic makes use of; heparin and its salts; different human or animal substances ready for therapeutic or prophylactic makes use of.
“Medicinal merchandise consisting of two or extra elements blended collectively for therapeutic or prophylactic use, not in measured doses and never put up for retail sale. Medicines consisting of blended or unmixed merchandise for therapeutic or prophylactic use, put up in measured doses “incl. these for transdermal administration' or in kinds or packages for retail sale.
“Wool, gauze, dressings and the like, for instance bandages, plasters, compresses, impregnated or coated with pharmaceutical substances or put up for retail sale for medical, surgical, dental or veterinary functions. Pharmaceutical preparations and merchandise of subheadings, and extra…”
Nigeria imports most of its pharmaceutical merchandise from India, China, Malaysia, Netherlands and Belgium.
Since 2019, pharmaceutical imports into Nigeria have remained above the $1 billion mark. It amounted to $1.45 billion in 2019, $2.84 billion in 2020, $1.37 billion in 2021 and $1.05 billion in 2022. This may enhance in 2024 after quite a lot of international pharmaceutical corporations stepped up this 12 months concentrated imports.
In August 2023, GlaxoSmithKline Shopper Nigeria Plc introduced plans to shut its operations within the nation and transfer to a direct third-party distribution mannequin for its pharmaceutical product.
The corporate, which has been working within the nation for 51 years, mentioned: “In our printed second quarter outcomes, we disclosed that GSK UK Group has notified GlaxoSmithKline Shopper Nigeria PLC of its strategic intention to speed up the commercialization of its prescription medicines and droop vaccines in Nigeria by the GSK. native working corporations and the transition to a direct third-party distribution mannequin for its pharmaceutical merchandise.”
In November 2023, Sanofi, a French pharmaceutical multinational, additionally introduced plans to exit and undertake a third-party distribution mannequin within the nation. It acknowledged that its third-party distributor will begin managing its industrial portfolio of medicines from February 2024.
Since then, drug costs have risen above 100%. In keeping with SBM Intelligence, rising inflation and the forex disaster in Nigeria are placing stress on companies and customers, not leaving out the pharmaceutical business.
A pharmaceutical professor on the College of Lagos, Boladele Silva, who spoke to the corporate, defined that the pharmaceutical business in Nigeria was extremely susceptible to shocks because of alternate charge volatility.
Explaining the current enhance in drug costs, he mentioned: “In Nigeria, now we have packaging hubs. The lively pharmaceutical elements utilized by the producers are imported. That makes them very susceptible to financial shocks.”
In its evaluation, the info insights firm mentioned that Ampiclox's price worth confirmed the best annual charge of enhance between 2022 and 2023, growing 346 share factors, whereas Amoxil's retail worth rose the quickest. charge of enhance in the identical interval, with a rise of greater than 400 share factors. These two medication are each manufactured by GSK.
In a current interview with The PUNCH, HunPharm Africa founder and CEO Sesan Kareem blamed the alternate charge for rising drug costs.
He mentioned: “In our free market system, costs are topic to the affect of assorted components, permitting every participant to independently decide the price of medicines. The fluctuating alternate charges have a major impression on the price of importing pharmaceutical merchandise and uncooked supplies.
“When the native forex weakens towards foreign currency echange, the price of buying these important medical provides rises, growing the general costs of medicines within the nation. The shortage or restricted availability of international alternate worsens the state of affairs.
“Pharmaceutical corporations rely closely on imports of medication and pharmaceutical producers additionally rely closely on imported supplies for drug manufacturing, and the shortage of forex hinders their potential to accumulate these supplies at steady costs. This scarcity creates a ripple impact, forcing producers to compensate by elevating drug costs to cowl their increased working prices.”
Olatunbosun Oyintiloye, a pacesetter of the All Progressive Congress in Osun, drew the federal government's consideration to the rise in drug costs and ordered the Federal Authorities to intervene.
The Nigeria Medical Affiliation, Lagos State chapter, lately expressed concern over the rising costs of medicines and medical companies.
The Chairman, NMA State Chapter, Dr. Benjamin Olowojebutu, mentioned: “The unaffordability of medical companies should be addressed. In an period of pricey healthcare and price range constraints, we should discover sustainable fashions that assure each the monetary stability of healthcare establishments and the affordability of companies for sufferers.”
President Bola Tinubu at a current Federal Govt Council assembly authorised three resolutions to handle the rising price of pharmaceutical merchandise within the nation.
Saying this, the Coordinating Minister of Well being and Human Providers, Prof. Ali Pate, mentioned: “At present, within the Federal Govt Council, the President took three far-reaching selections referring to the healthcare sector.
“The primary considerations the rising price of pharmaceutical merchandise, the rise in costs now we have within the pharmaceutical sector, which is past the attain of many Nigerians, life-saving uncooked supplies, gadgets comparable to syringes and needles, and the exit of main corporations from the pharmaceutical sector. our market.
“These selections additionally embody the regulation of the sector to guard individuals's well being and well-being and the third resolution considerations how we take care of the disaster of human assets within the well being sector.”
