EPA-Wrokshop/20-21 Jan 06

Pharmaceuticals and Medical Supplies

Manufacturers in Ethiopia; Their Contribution to

Better Health Care

Background

Opportunities

Importance of Local Industries

Challenges and Problems

Best Practices & Prospects

Lessons to be Learned

Ethiopian Pharmaceuticals and Medical Supplies Manufacturers Association1

EPA-Wrokshop/20-21 Jan 06

Background

Pharmaceutical Industries in Ethiopia

S/N

Name Product Type Year of Estab.

1 EPHARM Pharmaceuticals

1964

2 National Vet Institute

Vaccines 1964

3 MOAB Sanitary Towels

1990

4 APF Pharmaceuticals

1992

5 ASMI PLC Dressings & Disin

1995

6 Dan Trading Abs. Cotton 19957 EAP Pharmaceutical

s1996

8 Bethlehem Pharmaceuticals

1997

9 Biosol* IV Solutions 199710 ETAB PLC Disp. Syringes 1999

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11 SUNSHINE Pharmaceuticals

2000

12 FEWS Pharmaceuticals

2000

13 PHARMACURE IV Solutions 200114 Life Line* IV Solutions 200115 SEAA Empty

Capsules2003

16 Desta PLC Fist Aid Plaster -

Total Pharmaceutical utilization/demand in

Ethiopia:

13-15 Billion Birr/annum.

Pharmaceutical and medical supplies market

share of local manufacturers:

Birr 150-180 Million/annum

Manufacturable products in the LIDE: 750

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Locally manufactured products: 80-90

Capacity utilization of local manufacturers

Aggregate: 20-30% [all except

EPHARM]

Note: Biosol and Life Line are already on

foreclosure.

Insignt To Pharmaceutical Industries In

Neighboring Countries

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Country No. of Pharma Ind

Population

Kenya 28-30 30M

Sudan >22

32M

Egypt >70 75M

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Opportunities of the Pharmaceutical

sector in Ethiopia

Current Market:

(1.5-2.0) Billion Birr /Year

Market Projection in 2025:

(8.0-10.0) Billion Birr/Year

Population 2005:

73M

Population Projection 2025:

Expected to Exceed 100M

No. Of Pharmaceuticals and Medical Supply Industries in

Eth.: 16

Pharmaceutical Manufacturing Business is generally

profitable except in------------------------------???

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Strategic, Social & Economic Importance

of Local Manufacturers

Strategic Importance

Confirmed Quality Control & Assurance of

products though Regulatory Authorities and

Industries themselves.

Supply of products in emergency situations

(Epidemics, War, International Traffic Problems,

Natural Disaster & etc).

Economic Importance

Utilization of local input materials

Savings in foreign currency

Export possibility and generation of foreign

currency

Reduces expiry of finished

Products Can be the basis for further

investments (chemical industries)

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Social Importance

Job opportunity

Production of most required essential

medicines

Encouraging research and development

Training opportunity

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Major Challenges

Market Related Challenges

Open Tender Purchasing Procedures of

Ethiopian Major Pharmaceuticals Buying

Institutions

Experiences of Other Countries (Sudan,

Nigeria, India, Pakistan, USA/Canada).

Banning Imports Of Locally Produced

Pharmaceuticals [Temporarily]

Contractual Purchases From Local

Manufacturers [By Gev. Health

Institutions]

Heavy Duty Taxes On Imported

Pharmaceuticals, If Produced Locally

Purchases based on loans and donations.

80% lot kit based purchases (MoH).

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Duty taxes on input materials compared to

imported finished products.

Controband and counter freight products.

Technical & Capacity Challenges

GMP Certification & Market Authorization

Drugs registration by DACA/ inside the

country/

New Products Development/Formulation

Know-how

Skilled Manpower Shortage

Management Capabilities [Same to other

industries]

Financial Challenges

Huge Capital Requirement of the Sector;

Investment& Working Capital

Availability/Provision of Suppliers Credit

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Funds for Working Capital From Banks

Grace Period of Loans

Interest Rate of DBE

Best Practices and prospects

Accumulation of Knowledge

Regulatory Support/Inspection

Certification by Local Authority (GMP)

Diversification of Products

WHO-GMP Pre-qualification Inspection

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WHO-GMP Trainings

Lessons to be learned

Pharmaceutical Manufacturing Sector,

Though Lucrative, Requires all Rounded

Support Until Fully Matures

Well-Taking & Understanding The

Experience of Other Developing Countries

[How They Reached Current Status] is

Extremely Important

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EPA

THANK YOU

Ethiopian Pharmaceuticals and Medical Supplies Manufacturers Association13

EPA-Wrokshop/20-21 Jan 06

EPMSMA

Ethiopian Pharmaceuticals and Medical Supplies Manufacturers Association14