The local demand for pharmaceutical products has grown by 25 per cent on average reaching 10 billion Birr in 2013/15.
A workshop on local Pharmaceutical Manufacturing Development Incentive Packages and Strategic Target Alignment with GTP II Goals spotlighted the need for establishing new pharmaceutical industries to meeting local demand.
Addressing the workshop, Ministry of Industry Domestic Investors Transformation and Investment Research and Evaluation Director Hunegnaw Abebaw said Tuesday that the local demand for pharmaceutical products has grown by 25 per cent on average reaching 10 billion Birr in 2013/15 and yet the share of local companies does not exceed 20-25 per cent.
“This shows that there is a huge discrepancy between demand and supply in pharmaceutical products and in order to meet the demand for pharmaceutical and medical equipment over the coming few years, not only it is necessary to upgrade existing companies, but also essential to establish new industries,” he added.
Presenting a paper entitled ‘Review of GTP I Performance on Pharmaceutical Industry and GTP II Prospects and Targets’, Hunegnaw said that in 2010/11, there were 13 pharmaceutical and medical utility manufacturing industries. However, in 2013/14 this number grew to 22 companies. AMpele said development in pharmaceutical manufacturing industry is key in ensuring uninterrupted availability of essential medicine in all parts of the country including rural areas which is in line with the Ethiopian primary health care policy.
“We have to pave the way for the fast development of the sector through enabling the involvement of quality investment and attracting internationally accredited GMP Compliant and research based manufacturers. The targets set in the strategic plan should also be aligned with the target of GTP as related to pharmaceutical manufacturing. WHO and other UN Agencies will provide all the necessary assistance in the implementation of the strategic plan. WHO is close to provide an expert to work with the project implementation office,” Mpele added.
It was learnt that the annual pharmaceutical market in Ethiopia is estimated at 400-500 million USD growing at an impressive rate of 25 per cent per annum. Accordingly, in 2014 local pharmaceutical manufacturing companies supplied products worth 44.2 million USD.
Among these industries, nine are engaged in the production of human drugs, one in the production of animal vaccination, and another one in producing empty capsule. Nine industries are also engaged in the production of medical equipment. In GTP I, it was targeted to build ten factories and nine have already been realized, he added.
Meskele Lera from Pharmaceutical Fund and Supply Agency (PFSA) presenting a paper entitled ‘Assessment of the Success and Challenges of Existing Incentive Schemes to Pharmaceutical Industries’ said that local pharmaceutical companies are given 25 per cent price protection while competing with foreign suppliers. Incentive packages were reasons behind the survival of the local industry in the past five years.
Industry State Minister Dr. Mebrahtu Meles also said: “It is wonderful to have this strategy in a very short period of time in such a manner. In the course of this discussion for the realization of the five-year action plan in the pharmaceutical industry, we are expected to discuss how to establish governance and management structure meant to implement the plan of action.”
World Health Organization Ethiopia Representative Dr. Pierre Mpele on the occasion said that National Strategy on Pharmaceutical Development Sector was launched in July 2015. The launching of the Strategy was a real landmark in the history of Ethiopian pharmaceutical industry to certify the economy and health aspiration of the Ethiopian people.
“Pharmaceuticals are among the most important pillars of the health system. We cannot think of a health system without availability and access to affordable, safe, effective and quality medicine. The pharmaceutical sector continues to be a priority area in the Ethiopian health policy and national strategic plan,” he added.
[allafrica.com]