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Greater Regulatory Control and a Shift of Focus Away from Costly and Branded Drugs will Increase Generic Drugs’ Market Share
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The African continent grapples with a huge burden of communicable diseases, particularly HIV/AIDS, tuberculosis, and malaria. With African governments facing major health financing challenges, a significant proportion of these disease areas are financed by global aid organizations that are also helping in poverty eradication in the continent. Parallelly, with each passing year, the incidence of non-communicable diseases has also been on the rise, along with the rising incomes of the African people. With rising incomes, there is greater indulgence in Westernised diets and unhealthy lifestyles that involve high alcohol intake and tobacco smoking. The pharmaceutical market in Africa has had to keep up with these trends, providing the necessary medicines to combat the various diseases affecting people in African countries. While branded medicines have dominated the pharmaceutical market in the past decades, the current situation seems to favour the generic alternatives instead, as these achieve similar therapeutic outcomes. Taking into consideration the major financing challenges mentioned above, price becomes a key negotiating factor, resulting in governments focusing on acquiring the cheapest drugs in the global market. Moreover, the supply chains and distribution channels in countries such as Kenya and Nigeria cater to more than 240 million people collectively. These channels are often overwhelmed, particularly with the additional challenges posed by an underdeveloped regulatory environment. This has led to a stronger focus on developing local pharmaceutical capabilities amongst both private and public sectors to cut down on imports that have historically been subject to exchange rate fluctuations. Interest in local manufacturing is growing, and governments are slowly transforming the regulatory environment to create a more conducive operating environment for pharmaceutical investors.
The study covers the following pharmaceutical therapeutic segments: anti-infective, cancer, cardiovascular, central nervous system, diabetes, and respiratory.
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