Danadams Pharmaceuticals Industry Limited Company... · Danadams Pharmaceuticals Industry Limited...

Danadams Pharmaceuticals Industry Limited

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DANADAMS COMPANY PROFILE Danadams Pharmaceuticals Industry Limited is a wholly-Ghanaian owned limited liability company incorporated in Ghana. Danadams was commissioned on 8

th June

2005 by then President John Kufour, who noted that the company would be strategic for Ghana in its fight against endemic diseases. From its original staff strength of fifty-two, Danadams now employs over 250 employees, and is delivering on its promise to contribute to the growth and impact of the local manufacturing pharmaceutical industry in Africa.

Danadams’ mission is to lead Africa for best-in-class, quality, safe and efficacious pharmaceuticals at affordable prices – developed, manufactured, and distributed by Africans. Our core business is the production of anti-retroviral, anti-malarial, anti-tuberculosis and other quality generic pharmaceuticals used to fight opportunistic infections in HIV/AIDS patients.

Danadams in particular seeks to address the problem of scarcity of anti-retroviral (ARV) drugs in Ghana and the rest of West Africa, by increasing its production of quality generic ARV drugs locally, and as from 2011, collaborating with strategic partners to develop new pediatric ARV drugs especially for the African market.

Moreover, Danadams is among other West African Pharmaceutical companies selected to collectively act as catalysts to spearhead the building of the local capacity for production and distribution of ARV drugs. It is working in partnership with governmental initiatives like the Food and Drugs Board (FDB), economic

regional bodies such as West African Health Organization (WAHO) under ECOWAS, and international organizations like the United Nations Industrial Development Organization (UNIDO) and World Health Organization (WHO).

Vision

Building a strong company that will help create a healthy Africa,

where all Africans have an opportunity to make their own

success happen.

Mission

Within five years, Danadams will be the number one leader in

quality regional healthcare in West Africa, with the largest product portfolio and biggest

market share, using good people, innovative products and

world-class facilities to successfully create, produce and

sell all we do.

Quality

Our work philosophy is clear. We begin everything with quality – we design it into every product, embed it into every process, and

teach it to every employee, to ensure high quality healthcare

with excellent outputs that meet or exceed any stringent

regulatory requirements and ensure customer satisfaction.

CEO’S MESSAGE When I started Danadams in 2005, my prayer was to be a contributing leader among Africans who are taking charge of solving our continent’s challenges. My message to my employees is consistent: only Africans will build Africa. That’s why our company vision is bold: creating a healthy Africa will enable our children to live longer, better and with more independence and success. To achieve this vision, we need a strong company. Year over year, we have been re-investing in our growth, recruiting better talent, building improved facilities and expanding our business in the West Africa region.

As we move ahead, we are embracing even greater change. Our number one priority is obtaining WHO pre-qualification status within the next eighteen months. We’re also ready to move beyond the scope of manufacturing generics, and have established key joint ventures with US business partners and international research organizations to develop new products and packaging specifically for the African market.

The pharmaceutical industry in Africa is burgeoning, with Western analysts predicting that in Ghana and Nigeria alone, we’ll reach the $2B revenue mark by 2016. There is much for us to do in shaping policy, implementing better regulations and creating an ethical and viable industry that adopts new technologies and product research and innovation. Danadams is ready for the challenge. We are rapidly learning, growing and evolving to be at the forefront of the pharmaceutical industry in Africa. We believe Africa’s time is now, and we embrace like-minded thinkers to help lead the way.

Dr Yaw Adu Gyamfi CEO, Danadams Pharmaceuticals Ltd


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The Danadams Story

2005 Facility Commissioned by His Excellency J.A. Kufour, Former President of the Republic of Ghana.

Registered fourteen products for market at the Food and Drugs Board including Artemisin medicines like Artesunate, Dihydroartemisin, and Artemisin Combination medicine (Camosunate). Others included Analgesics, Dewormers and Antibiotics.

Received authorization for seven Antiretrovirals and became a pioneer by being first company in Ghana to produce “generic” ARVs.

Obtained external QA validation reports from North West University, Potchefstroom Campus, South Africa for key Danadams products: Lamivudine, Zidovudine, Lamivudine/Zidovudine combination, Nevirapine, Nelfinavir, Effavirenz and Didanosine.

2006 Products registered in other West African countries: Inspections and approvals by Drug Regulators from Burkina Faso, Sierra Leone, and Liberia.

European technical inspections of factory and dossiers commissioned through GTZ, Germany. Engagement of KPMG to do a feasibility study for Danadams in the production of Antiretroviral, Antimalarial and Anti-tuberculosis medicines in Ghana for the Sub-Region. This project was assisted by GTZ/DEG of Bonn in Germany.

Aids Technology Transfer Initiative sets up visit from Roche Pharmaceuticals.

Seven ARVs registered in the Democratic Republic of the Congo.

2007 Follow up visit/advisory meetings with Roche Pharmaceuticals through Aids Technology Transfer Initiative.

Factory inspection by Drug Regulators from Cote d’Ivoire and registration of five Danadams brand products including Camosunate Plus, Camosunate Jr. Camosunate PED, Danciflox, and Anapain Extra.

2008 Visit by Dr. Patrick Hoet, as part of the WHO Technical Assistance Mission to review and provide counseling on the implementation of GMP according to WHO requirements and review documents to be submitted for WHO Prequalification. Factory Technical inspection by Dr. Ekkehard Michahelles , Hennchstr, Augburg/Germany from the WHO Technical Assistance Program.

2009 West African Health Organization (WAHO) awards US $1.2 million contract to Danadams to provide ARVs to Togo and Gambia.

Drug Regulators from Togo and Gambia inspect plant facility and approve ARVs for marketing Danadams products in their respective countries.

Field Visit inspection by Michel Gouy and Dr. Harald Orth under the Technical Assistance by the United Nations Industrial and Development Organization (UNIDO).

Engagement of Price Waterhouse Coopers to assist Danadams in preparing 5-Year Business Plan (2009-2014), assisted by West African Health Organization (WAHO).

2010 Adjudged as the number one leader in the Health Sector in the Republic of Ghana by the Ghana Investment Promotion Centre (GIPC). Ranked overall at 6th position among the Club 100 Companies in the Republic of Ghana by GIPC.

Winner Best Entrepreneur Health Services Award 2010 – Entrepreneurs Foundation of Ghana and 20th Golden Award for Business Excellence 2010 – Trade Leaders Club New Millennium Award, Europe

2011 Award as Most Innovative & Multipurpose Pharmaceutical Company in West Africa 2011 – Accra, Ghana; West Africa International Magazine

International Arch of Europe Gold Award for Demonstrated Excellence and Sustainability 2011 – Frankfort, Germany, International Business Initiative

Majestic Five Continents Award for Quality and Excellence 2011 – Rome, Italy; Other Ways Consultancy

Ghana Club 100: Chosen as Leader in Manufacturing Sector, and sustained 6th overall rank among Club 100 companies based on profitability and growth performance from 2008 to 2010.

2012 UNAIDS Executive Director Michele Sidibe tours Danadams Pharmaceuticals in February and calls for government to invest more in local manufacturing.


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A Growing Opportunity in Africa PRODUCT RANGE

The world is starting to recognize Africa’s enormous potential as the next profitable frontier. Africa has some of the world’s fastest growing economies, with GDP for many countries expected to double in the next ten years. Earlier this year, the African Development Bank predicted that GDP growth for Africa could reach 7%. Economic progress and an ever growing population on the African continent translate into an untapped consumer base with spending power that is estimated to reach $1.4 Trillion in the next ten years. In the pharmaceutical industry, there is a vast untouched market of people who are rapidly getting better access to medicines and health care providers. Market demand is rising: Africa still has a vast need for infectious disease medications, and as our populations become more urbanized, we are also seeing a dramatic increase in lifestyle diseases too. Danadams currently focuses on West Africa. Ghana is a member of the Economic Community of West African States (ECOWAS), which has a market of some 250 million people. In West Africa alone, Nigerian and Ghanaian pharmaceutical revenues are expected to increase by 13% every year, with $2.3 Billion in revenue expected by 2016. Compare that with the US, where growth is expected to remain at 3%. According to Business Monitor International, profit margins for manufacturers vary from 10-40% of manufacturing cost. Danadams has a growing share of the market in West Africa, and has been recognized for its growth and profitability within the industry. The company was named by Ghana Club 100 as the number one leader in the manufacturing sector in 2010, and leader in the healthcare sector for 2009 for turnover, return on equity and impressive growth trajectory – it remains ranked sixth among Ghana’s private sector companies overall.

2010 GHANA CLUB 100 RANKINGS (for Pharmaceutical LLCs)

Company Overall Rank

2010 Turn-over (Gh c)

Rank on Turnover

3yr Growth Compounded

2010 ROE

Danadams 6 10,855,261 68 65% 44%

M&G Pharmaceuticals 35 15,761,058 62 30% 50%

Kama Health 55 12,501,303 65 19% 66%

Kinapharma 72 25,954,602 52 25% 21%

Ayrton Drug 88 12,455,486 66 9% 17%

Starwin Products 100 3,761,572 80 22% 2%

Local pharmaceutical manufacturers in West Africa face key challenges around cheaper imported drugs from Asia and high levels of counterfeit drugs in the region. Danadams is mitigating these risks by being vocal in obtaining special consideration from ECOWAS and government bodies to protect and encourage local manufacturing. The company is also active in improving anti-counterfeit measures and regulatory policies. Another challenge is limited access to funding that would help local manufacturers expand. Danadams has embarked on a strategy of partnerships and alliances to secure joint funding, while also educating the investment community about the opportunities in Africa. Danadams’ biggest challenge is to increase its capacity and the skills and know-how to match its trajectory. Funding would accelerate profitability. We recognize that investment lets us build, innovation makes us more viable, operational efficiency helps us manage costs, and industry collaboration helps us create a healthy Africa.

Danadams manufactures over 30 of its own core products and sells over 50 products across the West Africa region.

Packaging Icons

Danadams produces

unique dose-specific

sachets for children.

ANTIBIOTICS Danciflox (ciprofloxacin) Dangyl (metronidazole) Deptrin (cotrimoxazole)

Deptrin DS (double strength)

Amoxycillin

Azithromycin

Clarithromycin

Flucloxacillin

ANTIMALARIALS Camosunate (artesunate/amodiaquine) Danmether (artemether

/lumefantrine)

ANTHELMINTICS Antel (albendazole) Mentel (mebendazole)

ANTIRETROVIRALS Bivek (zidovudine/lamivudine)

Bivek-N (zidovudine

/lamivudine/nevirapine Effavek (efavirenz) Lamdek (lamivudine) Nevek (nevirapine)

Tenofovek (tenofovir)

Zivek (zidovudine)

ANTIHYPERTENSIVES Amlodipine Losadipine (losartan K/amlodipine)

Losartan

ANALGESICS Anapain (paracetamol) Anapain-Extra (paracetamol/caffeine)

Anapain 1,2,3 (paracetamol/ codeine)

Anfen (ibuprofen)

Anfen Forte/Panafen (paracetamol/ibuprofen) Dafenac (diclofenac sodium)

ANTIDIABETES

Glimepiride

Metformin

GASTROINTESTINAL

Esomeprazole

Lansoprazole

ANTI-HYPERLIPIDEMIA

Atorvastatin


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Effective Corporate Governance

A key strength in the way that Danadams operates is having an active Board of Directors that provides effective oversight, clarity about direction and credibility to the company. All Board members are highly qualified and well-respected in their own fields of expertise, and have an excellent understanding of what is needed to operate a profitable and thriving business.

Chairman Emmanuel Mahama Baba

MESSAGE FROM CHAIRMAN OF THE

BOARD

Danadams Pharmaceuticals recognizes the strategic role of the Board of Directors in sustaining the viability of the company in the long-term. The company therefore has an eight-member Board of Directors comprising highly qualified and experienced professionals drawn from the arena of business and academia. Six of the Board members are non-executive. The Board of Directors is at the forefront of leading and controlling the company, setting the strategic direction, and monitoring the activities of Executive Management. The Board meets at least four times a year to deliberate on germane issues including corporate strategy and its implementation, regular review of performance, approval of Annual Report and Accounts, and succession planning. Three key committees have been put in place to enable the Board to handle specialised matters in detail using the appropriate expertise. The committees are Finance and Audit, Administration and Remuneration, and the Executive Committee. The Finance and Audit Committee which comprises three non-executive directors meets at least two times in the year to review the financial performance of the company, the adequacy of the internal audit plan and the internal controls, among others. The Technical Committee is chaired by Professor Duwiejah and two non-executive directors. This committee oversees the Quality Assurance and Production processes of the company operations. In a bid to set the tone and standards for a culture of high performance in the company, the Board of Directors have adopted a board charter that outlines an evolving set of corporate governance guidelines. The charter spells out the matters reserved for the Board. There is every indication that with the good corporate governance climate that has been generated, the Management of Danadams will continue to enhance shareholder value while taking into account the interests of its major stakeholders.

Emmanuel Mahama Baba Chairman of the Board

Former CEO of Vanguard Life Assurance Company and President of the Ghana Insurers Association until his recent retirement in 2009, Emmanuel Mahama Baba knows what is required strategically to sustain business success. In his role as Chairman of the Board and of the

Executive Committee, Baba focuses on bringing his expertise as a Chartered Accountant and Chartered Insurer, and his wide professional experience across several industries to bear on the decisions and actions governing Danadams. He believes the benefit of his position includes helping the CEO to avoid blind spots, and to balance the risks inherent in company growth against maintaining strong financials.

Baba also advocates that Danadams needs to grow independent of personalities that have shaped it, and therefore sees one of the cardinal roles of the current Board of Directors as ensuring the existence of the comprehensive policies, systems and structures that the company needs to ensure that Management and Staff can run autonomous of the CEO’s presence. He is of the conviction that with the right people, policies, systems and structures in place, Danadams will continue to grow in leaps and bounds.

Baba holds a B.Com degree from the University of Cape Coast, Ghana and an MBA from the Manchester Business School, University of Manchester. He is a Member of the Board of Governors, All Nations University, Koforidua, and Member of the National Insurance Commission, and of the Executive Council of the Insurance Institute of Ghana. Baba also holds directorships in several other organisations including Vanguard Life Assurance, Vanguard Properties Development Company limited, City Investments Limited, World Vision (Ghana), and Ghana Leasing Company Limited. In April 2011, Baba ended a two-year tenure as the Chairman of the Graphic Communications Group Limited. He currently consults mainly for the Vanguard Group, and also conducts training in the area of corporate governance and strategic planning.


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Board Members Honourable Dr. Joe Oteng-Adjei Few people know the Danadams story as well as Dr Joe Oteng-Adjei, a lifelong family friend who shared a childhood with CEO Yaw Gyamfi. The bond of brotherly friendship extended into the business arena, with Oteng-Adjei acting as frequent sounding board and critic for the plans that eventually gave rise to the company’s formation. Always a keen numbers man, he inspired Gyamfi to get an Executive MBA, and taught him how to apply quantitative analysis to business. Beyond being a personal mentor to the CEO, his added value to the Board has been a deep understanding of the drive and vision that inspire Danadams’

future direction, while offering unique commercial and civil insights. Oteng-Adjei is currently the Minister for Energy of the Republic of Ghana. His qualifications include a BSc in Electrical Engineering from the Kwame Nkrumah University of Science and Technology, Kumasi, Ghana, a Masters and Doctorate Degree in Power Systems from the University of Saskatchewan, Canada and an MBA in Finance and Economics, Cranfield University, Bedfordshire, England.

Dr. Afua A. Kufour Agyeman-Badu With her distinctive background as both an architect and an organizational behaviour expert, Dr Afua Kufour relates well to Danadams’ mission of building a strong company and creating a healthy Africa. After spending several years in the UK, Kufour returned to Ghana a few years ago to be a part of what she sees as Africans who are ready to look within so that Africa can do more for itself. She believes the biggest challenge to architecting a better Africa is tied to a psychological buy-in, and in her contribution to the Danadams Board, she seeks to support the CEO by bringing a different perspective, and helping to identify

barriers to achieving the company vision. She is Chairperson of the Board’s Administration and Compensation Committee. Her desire is to one day say that she was part of the Danadams story, that she was one of those who helped put down the building stones of a company of which Africans can be proud. Kufour is currently the Director of International Programmes and Development for the Ghana Institute of Management and Public Administration (GIMPA, Ghana), where she also lectures in Human Resource Management and Organizational Behaviour at the GIMPA School of Business. She holds a Ph.D (2005) in Change Management and Organizational Behaviour as well as an MSc (1998) in Computer Applications in Management Systems from Cranfield University Bedfordshire in the UK. She furthermore has a BSc (Environmental Design) P.G. Dip Arch (1993) from Kwame Nkrumah University of Science & Technology, Kumasi, Ghana.

Joe Tackie Joe Tackie’s first encounter with Danadams was as a devoted customer of the Danpong Pharmacy. A highly successful businessman in his own right, Tackie was drawn to the energy and practical entrepreneurship he witnessed as the pharmaceutical company evolved. He has been a hands-on Board member, involving himself in training Danadams management members in areas such as culture and leadership. It’s his desire to see a future where everyone will be proud of a Danadams that demonstrates a global capacity, achieving excellence, and having created within the company a crop of employees

whose mindset is not ordinary – who think and act like a world class company. Tackie is currently involved with the Ministry for Trade and Industry as Coordinator for the Trade Sector Support Programme, and as Acting Coordinator for the National Private Sector Development Strategy. He holds a BSc (Hons) in Agriculture from the Kwame Nkrumah University of Science and Technology, Ghana. He also holds an Executive MBA in Entrepreneurial Management, from University of Ghana Business School, Legon and Doctor of Business Administration (DBA) from Swiss Management Centre (Switzerland). He is Founder and CEO of Global Entrepreneurship Solutions, Meaty Foods Limited, and Co-Founder and Executive Director of the Small Business Development Foundation, (NGO).

Agbesi Kwadzo Dzakpasu The Board has a key practical benefit in the presence of Agbesi Kwadzo Dzakpasu, a qualified practicing attorney who serves both as Board Secretary and Company Secretary to Danadams. Dzakpasu's legal perspective is often brought to bear in providing the Board with immediate answers to legal issues. He believes that good corporate governance is essential to helping a company grow. Dzakpasu’s contribution is motivated by the fact that even as a solely-owned Ghanaian company, Danadams places high value on oversight and the Board’s participation. His goal is to establish permanently a business culture that

embraces an independent Board. Dzakpasu's academic qualifications include a Bachelor Degree in Law from the University of


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Ghana and a Masters in Law from London School of Economics and Political Science, UK. He also serves on the Board of the Ghana Grid Company (Electricity Transmission) and is the Company Secretary and Secretary to the Board of Ghana National Gas Company.

Philip Danso-Abeam Philip Danso-Abeam has served on the Board for over six years, and the strength of his contribution has been his well-rounded business experience and insight as a seasoned financial and management consultant. He has an excellent record of being available to handle Board tasks that help the company stay well on track. Danso-Abeam’s professional focus involves turning around companies in acute financial distress or facing severe management issues, and his assignments have extended across several industries, including manufacturing, construction, transport, education, IT, and financial sectors in Ghana.

In the public sector, Danso-Abeam has worked on evidence-based performance management programmes and financial management control and compliance. Danso-Abeam is a Chartered Accountant. He also holds a Bachelor’s degree in Finance & Accounting from the University of Ghana (1985) and a Master’s degree in International Relations (with a major in Management) from the International University of Japan, Niigata, Japan (1991). He is a member of the Institute of Chartered Accountants (Ghana) (1994).

Prof. Mahama Duwiejua Cognisant of the fact that Danadams Pharmaceuticals operates in a specialized industry, the Board has sought to include relevant technical guidance and proficiency with the appointment of Prof Mahama Duwiejua. Not only is Duwiejua a pharmacist by profession (he is a product of the Kwame Nkrumah University of Science and Technology), he is also highly respected as an educator and influential lobbyist for local pharmaceutical manufacturing. His presence on the Board allows Danadams to widen its regional network in Africa, where Duwiejua is well-connected with pharmaceutical leaders through the nature of

his work over the years. In addition to his primary contribution as Head of the Board’s Technical Committee, Duwieja would like the company to benefit from his continuing advocacy in government sectors and the sub-region. Formerly the Dean of the Faculty of Pharmacy and Pharmaceutical Sciences, College of Health Sciences, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana; Duwiejua is presently serving as Executive Secretary for the National Council for Tertiary Education, where he is focused on moving tertiary education to higher levels. He is also the author of several pharmaceutical publications.

Mohammed Ibrahim Awal A key characteristic of many Board members is a strong entrepreneurial determination, and when it comes to business instincts and the drive to succeed, Mohammed Awal features prominently. Journalism has always been his passion – the desire to use information to drive change – and being well-informed has also contributed to his ongoing business successes. His tenacity helped build the Graphics Media empire in Ghana. Awal has served on the board for over five years, and in this time, he has especially influenced Danadams’ marketing and corporate social responsibility strategies. Awal has a Master of Arts degree in

Journalism and an MBA in Marketing. He is both Founder and Managing Director of the Marble Communications Group Ghana Limited. In August 2011, he launched his latest media endeavor, The Finder newspaper. He was the adjudged Marketing Man of the Year for 2009 by Chartered Institute of Marketing (CIMG).

Dr. Yaw Adu-Gyamfi Dr. Yaw Adu-Agyei Gyamfi is an inspired entrepreneur and committed proponent of African manufacturing. He is currently the CEO of the Danpong Group of Companies and Danadams Pharmaceuticals Industry Ltd. He has been a National Council Member of Ghana’s Pharmaceutical Manufacturers Association for three years, and among other roles also holds the post of Board Chairman for the Ghana Cylinder Manufacturing Company, and is Commissioner for Ghana’s Public Utilities Regulatory Commission. He is an Executive Council Member of the Ghana Employers Association, and an

Examiner for the Ghana Pharmacy Council Professional Examination. He has BSc. in Chemistry and Mathematics from Clark College in Atlanta, Georgia, USA. He also holds a doctorate degree in Pharmacy from Mercer University in Atlanta Georgia, USA, and an Executive MBA from the Ghana Institute of Management and Public Administration (GIMPA), Accra, Ghana. (Full profile on page 9.)


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Empowering Management and Transferring Skills Since 2009, Danadams has embarked on a strategy of hiring foreign experts on contract to come in and raise manufacturing and business operations standards to a higher level. A team of pharmaceutical production experts were contracted from India to specifically help set up the necessary WHO standard operating procedures and to ensure Good Manufacturing Practices are being adopted and implemented. Additional business consultants have been brought in from the USA to advise on areas such intellectual property, strategy, change management and finances. As part of the strategy developed in 2010, the company has restructured and hired key personnel for senior positions in Engineering, and Sales and Marketing. The heads of these departments were hired from multinational companies (Unilever and Vodafone respectively) to draw on their experience of global business standards. The company has also increased its level of diversity, especially in hiring French-speaking individuals who will be instrumental in the strategy for Francophone countries. The HR department has furthermore assessed all current employees and determined a training plan to help improve know-how and skills across the company. This training ranges from day-to-day efficiencies such as how to use laptops, photocopiers and other business machinery for lower level staff, to specialized courses such as scaffold safety and first aid, as well as leadership and management training. Dr. Adu-Gyamfi also hosts monthly CEO breakfasts so that he can retain a connection with everyone in the company and ensure people understand the company’s vision and direction. In looking beyond the company, Danadams has adopted a Corporate Social Responsibility strategy that is built on three pillars of community engagement: touching lives, building and maintaining trust, and doing business responsibly. Danadams supports causes related to the primary communities in which it operates, especially to further education around the correct use and benefits of medicines and preventative actions that lead to healthier living. The company also invests and works with as many African-owned businesses as possible as part of its commitment to helping Africans build Africa.

Danadams Organizational Structure


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CEO Profile: Dr Yaw Adu-Agyei Gyamfi

FOUNDER AND CEO

DANADAMS PHARMACEUTICALS INDUSTRY LTD and DANPONG GROUP

During his earliest days in Adanwomasi, in the Ashanti region of Ghana, Yaw Adu-Adjei Gyamfi learned the value of good honest

hard work as a means of getting ahead in life. His commitment to his school studies drew the attention of a local benefactor,

who sponsored his journey to the USA, where he obtained a dual BSc degree in Chemistry and Mathematics at Clark College,

Atlanta, Georgia. He then went on to attain his Pharm.D. doctorate from Mercer University in Atlanta, Georgia in 1985, and was

the first black Resident at the historical pioneering Montefiore Medical Center in New York.

After practicing as a clinical pharmacist in several drug companies and medical facilities, and serving as Executive Vice President

and COO of Atlanta’s Southwest Hospital and Medical Center, it was time for a change. Yaw realized his entrepreneurial

ambitions by opening his own pharmacy in Southwest Atlanta in 1990. His past experience in working within communities to

help people who were disadvantaged or at risk played an important role in his decision to make this a delivery-service

pharmacy. In doing deliveries, he was able to serve the elderly and the handicapped, and provide them with more effective

medication counseling.

By the early nineties, Yaw reached another key turning point in his life. He decided that he wanted to return to his home

country of Ghana. His choice surprised many, but Yaw knew there was a need as well as an incredible opportunity to make a

difference in health services. By 1999, he’d launched a supermarket and pharmacy chain, under the auspices of the Danpong

Group (named after two of the most respected people in his life – his mother and his earlier benefactor). Soon after he set up

his Danpong Medical Laboratory and Prima Health Services to provide integrated healthcare to the people of the Baatsona

community in Accra.

Soon Yaw was able to be both benefactor and businessman, investing in people around him, sponsoring their education and

encouraging them to realize their potential. Ever aware of the challenges being faced in Africa, Yaw also became more certain

that Africans themselves need to be a part of the healthcare solutions for the continent. In June 2005, Yaw established

Danadams Pharmaceuticals Ltd, and focused on manufacturing and selling antiretroviral agents for HIV treatment, and anti-

malarial medications. From its humble beginnings with 20 employees, Danadams has grown to be Ghana’s #1 leader in

healthcare, employing over 250 people and producing and distributing high quality and effective drugs into the West Africa

region. In 2010, the company began its upgrade projects to obtain World Health Organization (WHO) certified status and launch

its own new drug products range.

Yaw has rounded out his entrepreneurial endeavors by also furthering his business education, completing an Executive MBA in

2007. As his enterprises continue to show sustained growth and success, the local and international business community is

recognizing Yaw’s entrepreneurship and leadership through several awards for his companies, and as an individual. In 2010, he

won the Best Entrepreneur Health Services Award, from Ghana’s 2010 Entrepreneur of the Year, as well as the Nobles

International Award 2011 from the West African Nobles Forum.

Yaw continues to be an active member of his community, and a vocal proponent of the local pharmaceutical industry in Africa.

He has been a National Council Member of Ghana’s Pharmaceutical Manufacturers Association for three years, and among

other roles also holds the post of Board Chairman for the Ghana Cylinder Manufacturing Company, and is Commissioner for

Ghana’s Public Utilities Regulatory Commission. Global organizations such as the UN, WAHO and Global Fund regularly seek his

advice around African healthcare issues. Yaw has also been a featured speaker at several events, and has been invited to

participate in forums in Japan, South Korea, the US and South Africa. Throughout, his message remains the same, encouraging

Africans to work hard and find their own solutions to their challenges, ultimately creating a healthy Africa.


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Profiles of Current Management Team

General Manager, Finance and Logistics: Adwoa Serwaah Nutsugah (Acting)

Adwoa Nutsugah is the most recent leadership appointment at Danadams, and she has been hired to help strengthen and

develop the financial expertise in the company. Having worked in several chartered accounting and business analyst roles in the

UK and in Ghana, she brings extensive practical knowledge in world-class systems and processes to this role. Adwoa is a

certified Chartered Accountant (ACCA – UK), and also holds an MBA in Finance (Leicester University, UK). She has run her own

Accounting consultancy and was formerly with Prudential Bank of Ghana. Her primary mandate is to regulate, supervise and

implement effective accounting processes, and help identify system inefficiencies. She will also report to the Board regarding

financial operations and planning.

General Manager, Business Development and Administration: Janine de Nysschen (Acting)

Janine de Nysschen is an expert strategist and change management consultant who excels at coming up with unique strategies,

prioritizing opportunities, and dealing with unknowns in complex problems for businesses seeking to increase impact and

performance. In 2009 she set up her consultancy Whytelligence, Inc. where she uses 20+ years strategic experience to help

executives and entrepreneurs find clarity and direction. It’s a role that has earned her the tagline “GPS for CEOs”. Her client list

includes Fortune 500 companies like Microsoft, IBM and American Express, and CEOs from fields as diverse as IT, Banking,

Manufacturing, Research and Non-Profits. Danadams hired her in early 2011 to help accelerate organizational growth and

business development. She is focused on developing core business strategies and helping to train and empower the Danadams

leadership team.

General Manager, Manufacturing Operations: Prince Yamoah (Acting)

Prince Yamoah is a well-qualified Plant Maintenance / Electrical and Instrumentation Engineer, who has worked in the mining

and manufacturing sectors. He has over seven years’ experience in a maintenance environment, handling aspects such as

predictive and preventive maintenance, automation, energy efficiency and safety. While with multinational Unilever GH Ltd, he

was trained in Total Productive Manufacturing (TPM). Since joining Danadams, he has introduced essential maintenance and

efficiency programmes across the company, and has brought about many cost savings while improving standards of

engineering. Prince has a BSc Electronics and Communication Engineering degree (All Nations University, Ghana), an Electrical

Engineering Diploma from Takoradi Polytechnic, as well as several electrical and telecommunications certifications.

Production and Packaging Manager: Kalyan K. Deshpande

Kalyan Deshpande is a seasoned production manager, with over 12 years’ experience working in Indian companies like Ranbaxy

Laboratories, producing different tablet, capsule, liquid and dry formulations for various drugs, including ARVs, anti-malarials,

antihypertensives, antibiotics, analgesics, etc. His career has included roles as production chemist and manager for regulatory-

approved companies like Ranbaxy, Cipla, Encore Healthcare and Medicore Laboratories. At Encore, his noted achievement was

managing the new plant set up, with the installation and commissioning of equipment and systems. Since joining Danadams, he

has been instrumental in streamlining and improving production operations. His goal is to help the company achieve greater on

going capacity and transfer skills to the production workforce. Kalyan obtained his B. Pharm. with first class from Aurangabad

University, India in 1998.

Regulatory Affairs and Quality Assurance Manager: Prasad S. Bedhikal

Prasad Bedhikal has worked in different quality operations in pharmaceutical manufacturing facilities (formulations as well as

API) in India for over 15 years. His primary focus since joining Danadams has been to raise QA standards through documenting

processes and teaching his team how to implement cGMP standards. Prasad started his professional career in 1996, and has

worked at several well-known pharmaceutical quality operations in various levels of management. He has extensive experience

with regulatory approved plants (USFDA/MHRA/MCC/TGA/WHO) such as Emcure Pharmaceuticals, RPG Life Sciences, Ranbaxy

Laboratories and Piramal Healthcare. Prasad’s work focus has been on Quality Control, Stability Studies, Review and

Compliance, Quality Assurance and Regulatory Affairs. Prasad has an MSc (Analytical Chemistry) from Shivaji University, India

attained in 1996.


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Quality Control Manager: Neimatu Adjabui

Neimatu Adjabui has five years’ experience in conducting QC analysis. She joined Danadams in 2006 as an intern and after

completing her studies, was appointed as the QC Manager in 2009. She has played an essential role in commissioning a new QC

lab, which now allows the company to carry out comprehensive analysis on raw materials and finished products to meet

regulatory and international specifications/standards. Neimatu has also brought her international perspective to the company,

having been raised in Sierra Leone and having lived and studied abroad in Canada and the UK. Neimatu has an Honours BSc

Chemistry from Toronto University, and an MSc in Pharmaceutical Science. She excelled with the best overall performance in

the MSc pharmaceutical society program 07/08 for the Royal Society of Chemistry (UK).

National Sales Manager: Sherlock D. Ashiagbor

Sherlock Ashiagbor joins us from the banking industry, with over 10 years’ experience in Customer Service Management and

Marketing Communications. He has worked in various managerial capacities for HFC Bank and Ghana Commercial Bank, where

he received recognition for increasing market share, growing profitability and expanding the customer base. He was also

instrumental in setting up HFC’s Private Banking department. Prior to joining the finance world, Sherlock was a prime time

show host for Atlantic Radio. He has an Executive MBA from the University of Ghana’s Business School, a professional

Marketing Diploma from the UK’s Chartered Institute of Marketing, and a Bachelor of Education with a Psychology

specialization from the University of the Cape Coast.

International Sales Manager: William C. Acquah

William Acquah has been in sales and marketing for over eleven years. He has worked in different areas such as customer

loyalty, campaign and accounts management, credit control and customer care. He joined Ghana Telecom in 2000, and was

selected as one of their few change agents for their transition over to the new Vodafone Company in 2008. With Vodafone, he

launched successful Welcome Calls and Wednesday Red Day campaigns. William made a strategic move to Danadams in

January 2010 to utilize his sales and marketing expertise together with his passion for international relations and pioneering

business opportunities. At Danadams he has instituted greater accountability and a more results-oriented approach for his

team, which has resulted in an increase in sales. He has worked in national sales for Danadams for the past year, and is now

turning his focus to improving the strategic export market, where his French language skills are put to good use. William has a

BA degree and an MA in International Relations, University of Ghana, Legon.

National Credit Manager: Bernard Boadu

Bernard Boadu joined Danadams in early 2010 from a successful career in finance that has spanned over 26 years in a variety of

roles within banking and industrial environments. His wealth of expertise in the financial arena stems from roles as a finance

manager, accounts supervisor and internal auditor for companies such as SW Global, Textile Pro, Evanspenny Industrial, Pioneer

Tobacco, and over a decade working at Ghana Cooperative Bank. He has served in a managerial capacity for most of his career.

Since joining Danadams, he has been instrumental in improving financial controls and accounting practices, raising the

standards of accountability. Bernard has a BSc Administration (Hons) in Accounting and is currently pursuing an Executive MBA

in Finance and his final certification with the Association of Chartered Certified Accountants (ACCA).

Information and Communications Technology Manager: Mark Abuabu Dadzie

Mark Abuabu Dadzie has worked in multinational and multicultural ICT settings – his most recent role being as an IT Manager

for World Vision in Afghanistan. He has a proven track record of developing and maintaining state of the art data network and

telecommunications systems, ensuring cost efficiencies, high availability and security. Mark has twenty years of practical

experience, reinforced by Masters of Science degrees in both Networking Management (London Metropolitan University, UK)

and IT Professional Networking Sheffield Hallam University, UK). He also has project management and data processing

certifications. Mark’s core expertise lies in developing and reviewing policies, asset management and team leadership.

Procurement and Logistics Manager: Joseph Mensah

Joseph Mensah brings a wealth of procurement and logistics expertise to his role at Danadams. Prior to joining the company,

Joseph worked for Woodbury Procurement as a consultant, fine tuning supply chain and logistics for client companies such as


Page | 12

Oweri Mines. He also spent over four years as a Senior Materials Planner for Anglogold Ashanti, and a further three years as a

Warehouse Manager for Kinapharma, where he oversaw raw materials. He has an MBA from Edinburgh Business School (UK)

and post graduate diplomas in Purchasing and Supply. He has furthermore completed project management and strategic

planning certifications. His valuable contribution is already improving procurement cost efficiencies at Danadams.

Human Resources and Training Manager: Esther J Tseko

Esther Tseko has been a part of the Danpong Group for over nine years, and in 2005, she was appointed as one of Danadams

Pharmaceuticals very first employees. Prior to that, she worked as Assistant Secretary to the Director of Operations at the

Electricity Company of Ghana. Her first role with Danpong was as an administrator, and she was soon recruited to be Dr Yaw

Gyamfi’s Executive Assistant, a job she held for over six years. Esther chose to further her education with a BSc in Business

Administration, focused on Human Resources. After graduating, she was promoted to the HR department in 2009. She stepped

up from the Assistant HR Manager role to take over as Manager in 2012. She has introduced new standard operating

procedures, performance review processes and hiring policies that are in line with international HR practices.

Internal Auditor: Benjamin Agor Benjamin Agor sees Internal Auditing as an essential part of a company’s governance system and an important tool for

advancing business overall. His results-oriented style in his former role as Audit Manager for Batsa Nakotey & Associates

allowed him to develop valuable experience helping businesses pursue cost-saving strategies. He provided audit and assurance

accounting services for clients in various fields, including in the manufacturing sector. Then as an Accountant for

Transcontinental Financial Services, Benjamin devised innovations that gave the company a competitive advantage. He has a

Bachelor’s Degree in Social Services from the University of the Cape Coast, and is currently completing his Chartered

Accountant certification.

Director India: Pradeep Kulkarni Pradeep Kulkarni is an Industrial Pharmacist with over 30 years of industry experience. He has worked for some of the most

reputable Indian (Lupin, Wockhard, Cadila) and International (Sandoz, Boots, RPG) pharmaceutical companies. He has also

spent a year in Tanzania as General Manager for Tanzania pharmaceuticals. Further he was a core team member in the

implementation of SAP at two of his previous assignments, viz, Paras Pharmaceuticals and RPG life services. As Danadams

former General Manager of Manufacturing, Pradeep continues to provide technical advice and runs all Danadams business

affairs in India.

Danadams Market Share Forecast

To increase its market share over the next five years, Danadams is pursuing an aggressive business strategy to make it more

globally competitive. The key objectives of this strategy include streamlining businesses and operations, cutting down on costs,

stabilizing the supply pipeline and establishing partnerships that will allow Danadams to compete by increased volume

purchasing of APIs, a wider product portfolio and further steps towards complete vertical integration. Danadams is also

recruiting and training a world class workforce to help achieve its mission of building a strong company, and creating a healthy

Africa.

Danadams is well-positioned for future growth and market expansion in Ghana and the West Africa region. The company is

riding the wave of development that sees Africa having some of the world’s fastest growing economies, with GDP for many

countries expected to double in the next ten years. Earlier this year, the ADB predicted that GDP growth for Africa could reach

7%. The ever growing population on the African continent also represents an untapped consumer base with spending power

that is estimated to reach $1.4 Trillion in the next ten years. In the pharmaceutical industry, there is a vast untapped market of

people who are gradually getting better access to medicines and health care providers. Governments in Africa are also stepping

up regulatory and policy measures in areas such as IP and drug controls.


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There is a strong and growing market in West Africa for

antiretroviral (ARV) and antimalarial drugs in view of the

high prevalence of malaria and HIV/AIDS. West Africa

accounts for 25% of people living with HIV/AIDS in sub-

Saharan Africa as at the end of 2009. Furthermore, a

UNIDO report indicates that 90% of all malaria cases occur

in sub-Saharan Africa. An IMS Health Report for UNIDO in

March 2009 indicates that there is a great potential for the

manufacturing and formulation of malaria drugs in Less

Developed Countries. Unfortunately the Report indicates

that African countries lack the capacity and capabilities,

technology and infrastructure to produce to meet the high

demand for anti-malarials in the Region. In the anti-

malaria and the analgesics segment of the market, an

estimated 100 tons – representing about 25% of the national demand – are imported annually. Thus about 300 tons are

produced locally. The market demand for antibiotics is about 800-1,000 tons per year and it is estimated that about 405 tons or

50% of this is imported annually into Ghana. This gap can be narrowed by the local pharmaceutical manufacturing companies

such as Danadams.

The ARV and antimalarial market is driven by donor funds and government spending. A Global Fund Disbursement Report

indicates that more than US$830 Million was spent on ARVs and anti-malarials in the ECOWAS sub-region in 2008 alone. If this

spending on ARVs should continue, there is a huge potential that Danadams can tap into when it is prequalified by the World

Health Organisation. WHO pre-qualification is a prerequisite for suppliers that want to participate in tenders for donor funded

medicines supplied to the sub-region. The absence of the WHO prequalification has limited the company from participating in

this lucrative donor-funded market.

In Ghana, Danadams has a broad and well-established customer segmentation base. Its largest revenue source comes from

contracts to supply Ghana’s Ministry of Health with ARVs – Danadams is the only locally-based ARV manufacturer in Ghana, and

the company has capitalized on its ability to fulfil government’s supplemental needs. Generally the Government of Ghana

through the Government Hospitals is the largest single buyer of pharmaceutical products in Ghana.

Danadams is one of the key players in this segment of the market supplying an estimated GH¢2,420,358.23 bi-monthly or about

GH¢15,000,000 worth of its products annually. Local sales of all Danadams products are directed towards four additional

customer segments: government institutions, private institutions, wholesalers and healthcare retailers. The ECOWAS export

market, while negatively impacted by political instability in the region, is also a strong source of revenue, and Danadams is

especially active in Cote d’Ivoire, Burkina Faso, Togo, and Gambia.

Danadams is continuing to grow more rapidly than its core competitors, many of whom are moving away from pure

manufacturing. Added to that, the size of the untapped ECOWAS market means a positive forecast for capturing additional

market share. In West Africa alone, the Nigerian and Ghanaian pharmaceutical revenues are expected to increase by 13% every

year, with $2.3 Billion in revenue expected by 2016. Compare that with the US, where growth is expected to remain at 3%.

There is also a growing need for medicine in the region: we continue to see an increase in infectious disease medications, and

as our populations become more urbanized, we are also seeing a dramatic increase in lifestyle diseases too. Ghana, like many of

its neighbours, is currently importing about 70% of its drugs. While this high dependence on foreign suppliers in India and China

increases the competitiveness of the market, Danadams is proving there is still a need for local manufacturers who can respond

timeously to market demands and produce high quality, effective drugs. Moreover, with Ghana’s 2010 pharmaceutical market

size calculated to be US$ 360M, the predicted analyst growth suggests a market in excess of US$800M by 2015 – a significant

size.


Page | 14

Five Year Expansion Strategy

The company’s primary strategic direction is to obtain WHO prequalification status to be able to access the market for donor

funded tenders specifically in West Africa as a start and eventually in Africa. In addition, the company has to achieve several

related growth strategies:

1. The company intends to relocate and expand its warehousing facilities to enable it to optimize warehouse space for

finished goods and raw materials.

2. It intends to conduct clinical bioequivalence tests for its products in a WHO-approved Contract Research Centre

(CRO).

3. It needs to hold increased volumes of raw materials to support the anticipated increased presence in the sub-region.

This will require additional working capital.

Danadams is therefore currently seeking capital injection in the form of equity or debt at a concessionary rate. The company

has employed the services of a financial investment consultancy to complete all due diligence and reporting in preparation for

potential investors. It is also engaging in debt-equity discussions with regional and international financial and development

institutions. The expansion arising out of investment will enable the company to accelerate obtaining WHO pre-qualification

status, which in turn will accelerate the company’s growth and distribution market.

The bulk of investment proceeds will be applied to develop new factory facilities as well as to install a new production line and

introduce new lines of products. New equipment and machinery will be purchased to improve production efficiency and

automation. All core investment will be geared towards meeting WHO prequalification standards. Working capital will also be

employed to rebrand and package product lines, to increase marketing and promotions, and to implement a planned regional

growth strategy.

The company’s five-year expansion is furthermore projected within the context of being strategically located in Ghana:

Ghana has a sizeable population (24 million) to support large scale manufacture of medicines. There is an even larger market in the ECOWAS sub region of about 300 million to support such a venture.

Ghana’s private healthcare sector attracts medical tourists from the sub-region as medicines and healthcare generally is considered better than in neighbouring countries.

Ghana is politically stable and gives good pharmaceutical policy continuity.

Ghana has its own drug-makers who manufacture generic and over-the-counter drugs that are exported to the ECOWAS sub-region.

The disease burden creates a high demand for various medicines including HIV/AIDs, TB and malaria medicines.

Investment in healthcare and pharmaceuticals by the government is anticipated to increase in the wake of the oil find.

The introduction of the NHIS and the abolition of the cash-and-carry system have increased the usage of health facilities in the country. One concern now is increasing the capacity at hospitals, clinics as well as increasing the number of healthcare services in the country. The potential for players in the medical and associated industries is very high and Danadams stands to benefit immensely from the NHIS.

Danadams holds a great and bright future. The company is poised to upgrade its infrastructure to back the operational efficiency it has been experiencing since its establishment.


Page | 15

Summary of Company Financials Selected Financial Information for the period 2007-2011 is shown below and it depicts a healthy operating performance for the

company.

Selected Income Statement information (2007-2011) (Amount in GH¢)

2011 2010 2009 2008 2007

Sales 11,041,947 10,855,261 5,948,058 3,296,066 2,384,665

Cost of Sales (5,380,350) (5,238,023) (2,444,849) (1,200,390) (1,212,272)

Gross Profit 5,661,597 5,617,238 3,503,209 2,095,676 1,172,393

Selling, General & Admin Expenses (3,046,205) (1,728,128) (910,912) (735,298) (577,510)

Trading Profit/Loss 2,615,392 3,889,110 2,592,297 1,360,378 594,883

Other Income 11,642 81,393 15,948 43,306 36,540

Profit / Loss Before Finance cost & Tax

2,627,034 3,970,503 2,608,241 1,403,684 631,423

Finance Cost (824,509) (800,798) (703,179) (257,156) (316,027)

Profit/Loss before Taxation 1,802,524 3,169,705 1,905,066 1,146,528 315,396

Profit/Loss After Taxation Transferred to Income Surplus Account

1,430,288 2,456,175 1,476,153 859,896 315,396

Selected Balance Sheet Information ((2007-2011) (Amount in GH¢)

ITEM 2011 2010 2009 2008 2007

GH¢ GH¢ GH¢ GH¢ GH¢

PROPERTY, PLANT & EQUIPMENT

18,672,212 5,105,120 3,325,255 2,805,165 2,582,284

INVESTMENT 234,254 234,254 4,254 400 400

Total Current Assets 6,608,168 8,628,753 6,973,019 3,311,178 1,971,091

Total Current Liabilities 3,497,033 3,256,755 3,550,995 1,638,694 1,873,111

NET CURRENT ASSETS 3,111,135 5,371,998 3,422,024 1,672,484 97,980

Long Term Loan 2,447,441 4,077,062 2,204,972 3,136,437 2,199,249

NET ASSETS 19,570,160 6,634,310 4,546,561 1,341,611 481,715

FINANCED BY:

Stated Capital 2,000,000 2,000,000 2,000,000 300,000 300,000

Capital Surplus 12,106,976 386,871 386,871 386,871 386,871

Income Surplus 5,463,184 4,247,439 2,159,690 654,740 (205,156)

19,570,160 6,634,310 4,546,561 1,341,611 481,715

US$:GH¢ 1.700 1.4100 1.4400 1.0100 0.9282


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Way Forward

Markets in and outside of Ghana in the Pharmaceutical industry are experiencing powerful

changes, which creates big opportunities for companies like ours to meet the healthcare

needs of our people in Africa.

In five years we have demonstrated significant commitment to improvement in quality,

training, technology and innovation, by re-investing more than one million Ghana cedis

back into the company. Danadams is also adopting cutting edge technologies and

developing new intellectual property assets to streamline next generation products

through systematic innovation, in collaboration with strategic global partnerships.

One challenge to address is the availability of quality raw materials which are often

imported from Asia. This could see us entering the market with the production of Active

Pharmaceutical Ingredients locally to feed our production sector.

We have a clear vision and mission. Our company has only come this far through the

common understanding of the entire staff, management and our Board of Directors that

the way forward is to achieve the WHO Prequalification Status for our products used for

the treatment of HIV/AIDS, Malaria and Tuberculosis. This will ensure that all the products

from Danadams are of the highest quality, safe and efficacious. The upcoming challenge

will be to set up world-class facilities and operational processes to design and scale up new

quality products needed for African markets. We’ll achieve this by bringing in and

developing newer technologies of cutting-edge drug delivery systems to acquire leverage

over market competition. This strategy, together with plans for select joint ventures, is in

line with our commitment to deliver efficacious medicines at affordable prices in sub

Saharan Africa.

Our management team reflects the competence and level of expertise we are seeking in all

our employees. Management constantly strives to recruit and develop talented and expert

personnel in this very specialized domain of Pharmaceutical Technology and know-how.

We are already reaping the rewards in manufacturing and production. Our production

capacity alone has escalated from 5 million doses per month to over 25 million doses per

month, and we are only now scaling up a second production shift. Having grown in installed

capacity to 200% in the year 2010, the next 18 months should see further growth of

another 100% over the 2009 level, delivering prequalified ARV products from our new

production block.

Major opportunities, apart from building a WHO certified facility, include undertaking the

validations, product development, clinical and bioequivalence studies and submitting

dossiers to WHO for prequalification of drugs we plan to bring to market.

We are growing every day, and take pride in making our vision a reality.

AWARD WINNING

WORLD CLASS

TOP QUALITY

VERY EFFECTIVE

PROUDLY AFRICAN

AFFORDABLE

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