Pharmaceutical industry in Kenya
The pharmaceutical industry is made of drug companies which develop manufacturers and sell medicine to people who have been given a prescription by a professional doctor. The mission of the pharmaceuticals industry is not to treat illness but they do collaborate with doctors in targeting diseases that have already been detected.
Market size analysis for pharmaceutical industry
The pharmaceutical industry in Kenya is growing at an annual compound rate. The market is mainly made up of the urban clients and private hospitals. Most of the drugs are sold as over the counter drugs while prescribed drugs contribute to the other segment. Most of the clients do prefer the branded products to the generic. One thing that deals to the success of this industry is that the distributors have established good networks where they supply the drugs
1. Kenya pharmaceutical association
2. Federation of Kenya pharmaceutical manufacturers
The following are the benefits that are attained by companies that do join the associations above.
• Pharmaceutical companies will get an opportunity to interact with other members for social purposes and welfare purposes.
Barriers to entry
There are three types of that limit anyone who is entering the pharmaceutical industry. The following are some of them.
• The government which gives the pharmaceutical company the legal right to solely produce a certain drug for a certain amount of time. This is done by the government in the aim of helping the firm to protect their profits and innovate the firm.
• The second barrier is the brand loyalty advantage. This is because the first mover will get to prove the quality of their products over the generic product which the quality has not been ascertained.
• The last barrier is the control input. Where an active ingredient is controlled by a certain company this leads to limiting other companies. The new upcoming pharmaceutical they need to have the inputs so that they can produce a certain drug. The pharmaceutical companies do have access to the input they may sell it to the upcoming firms if only they will be able to acquire profit and if it is not profitable they will hold onto the inputs which will lead to new firms entering the industry.
When it comes to Kenyan buying power it is high especially when it comes to over the counter drugs. The buying power is expected to increase with time since some of the drugs are cheaper than attaining health services which are of high quality.
The completion being experienced by the pharmaceutical industries in Kenya is of four types. Read on to know which these four types are.
1. Monopoly competition: this is the type of competition that there is only one supplier of certain type of medicine. There is also a perfect barrier to entry.
2. Monopolistic competition: in this type of competition there are many sellers and there is a moderate product differentiation. There is no barrier to enter in such a competition.
3. Perfect competition: in this type of competition the sellers and the buyers do not have any influence on the prices.
4. Oligopoly competition: in this type of competition the market is dominated by a small number of sellers and the action of the sellers can affect the prices.
The Kenyan pharmaceutical industry is facing a number of challenges the two major one being affordability restraining and low reimbursement rates.
Pharmaceutical companies regardless of them being large multinational corporations, subsidiaries or joint ventures they come together. Most of their work is 65% production.
The pharmaceutical industry does partake in the conferences that are held by the Africa Pharmaceutical sector. The different conferences that are held annually they do have different themes. The members who are in the summit they get to interact with other international pharmaceutical members in the world.
For upcoming events Click Here
The Kenyan pharmaceutical industry is experiencing a lot of corruption cases which leads to a lot of controversies. The major issue of this industry being corrupt has led to Kenya being ranked 18th in Pharmaceutical and healthcare reward index. This has led to a number of other problems such as:
1. Large counterfeits drugs industry
2. Poor health care
The pharmaceutical sector consists of more than 35 certified units. In these units there are both the local manufacturing companies and multi-national corporations. Most of the pharmaceutical industries are located within Nairobi and its environs.
The consultation team helps different qualified pharmaceutical companies who offer various services such as clinical trial of some of the drugs that have been developed. The following are some of the list of the consulting team that can be reached out in Kenya.
• SAI pharmaceuticals
• SGS Kenya
• AFRA pharma consultant
The following are some of the careers that are associated with pharmaceutical industry in Kenya:
• Clinical pharmacist
• Bio-technologists engineers
• Medical representatives
For one to get in the field of pharmacy they have to study Bachelor of Pharmacy from any university that is accredited.Or Diploma in accredited colleges
In Kenya the medicine distribution chain is manufacturing-distributors- retailers. Distribution is mainly carried out by Kenya Medical suppliers Agency. The retailers consist of pharmacies, chemists, health facilities and shops.
The following are some of the Kenyan pharmaceutical disclosure:
• Beta healthcare international limited
• Goodlife pharma
This is the application of known drugs and compounds to new indication. The main advantage of drug repurposing is that the efficiency and safety is well known unlike for a new drug. For instance Requip was originally used as an anti-Parkinsonian agent and it was later discovered it can be used to treat restless legs syndrome.
• The pharmacist should use his or her professional knowledge and skills for the benefit of those who seek their professional services.
• Maintain a good professional relationship with others.
• The pharmacist should act in a way that promotes confidence and trust in pharmacy professions.
Commonwealth Jubilee Travel Fellowship which is offered by the Royal Pharmaceuticals society and commonwealth.
The following are some firms that are in the pharmaceutical industry of Kenya
1. Alpha medical manufacturers- Nairobi
2. Bayer east Africa limited-Nairobi
3. Cosmos limited-Nairobi
for List of Pharmaceutical manufactures Click Here Growth projection The Kenyan pharmaceutical industry in 2015 it was valued KES 73.74billion. The growth projection is estimated to be 15.1% in Kenyan currency and 0.4% in USD. Government regulation The Kenyan government regulates the pharmaceutical industry using the pharmacy and poisons act chapter 244 of Kenyan laws. The regulation is done through a number of ways which include; 1. Product evaluation and registration. 2. Ensuring good manufacturing practice. 3. Enrollment of pharmaceutical technologists. 4. Issuance of annual practice license. 5. Approval of institutions that do offer pharmacy training program. 6. Registration of pharmaceutical premises. Journals Pharmaceutical journal of Kenya is a publication of the pharmaceutical society of Kenya. The main aim of the topic of the journal is to show the realm of pharmacy. Marketing issues Kenya is heavily relying on imported drugs to help meet the need of the general public. The local pharmaceutical industry access 30% of the government and private sector. The efforts that are being made to increase revenue in the local market are hampered mainly by poor or inadequate infrastructure. The local pharmaceutical companies they have a chance to export their products to the neighboring countries such as Uganda and Tanzania. The local pharmaceutical companies that are manufacturing drugs they do lack the capacity to achieve the world health organization. Some of these requirements that are required by the World Health Organization are as follows: • Good laboratory practice • Good manufacturing practice The requirements will help in ascertaining the quality, safety and effectiveness of the drug. Most of the Kenyan pharmaceuticals companies do not reach to the limit required hence this limits the number of markets they get to serve. Research In Kenya does not have a very active biomedical research and development, this includes the public and private sector. If Kenya had a vibrant biomedical research and development sector both in the private and the public sector can help in boosting innovation and industrial development in the pharmaceutical industry. Salary information The following is the salary range for people who work in the pharmaceutical companies. The median monthly salary that can be received by a pharmacist is150,000 . Supply chain There are some pharmacies that do have their outlets well distributed in the country. The following are some of the pharmacies. • Mimosa pharmacy it has three retail shops where one is in the junction mall, Westgate mall and Oasis mall in Malindi. • Kam pharmacy which has three retail shops that are located in Cargen house in Harambee Avenue, IPS building in Kimathi Street and Mpaka house in Westlands. • Halton pharmacy it has about four stores and it is planning to hit a target of 20 stores. Seminars Kenya Pharmaceuticals Association hold seminar for all pharmacist. The following is what is expected in the seminars. • To keep up with the changing trends • To satisfy the pharmacy and poisons board requirement • Mentorship of the members Magazines The Pharmacist is a pharmacy magazine launched by the Pharmaceutical Society of Kenya. Internship For all graduates who are through with the four year pharmacy degree ,and those with Diplomas they have to go for internship. The internship is supposed to last for one year and it is a post university internship program. The internship can be done in an industry, hospital or a community pharmacy. This will help to equip the graduate with the skills that he or she will use in future when they start working. Some of these skills are pharmacy management and patient communication Pricing issues Price of medicine in Kenya wildly across the country, this means for people who live in areas that are remote they have to pay for more to get safe and effective medicine than others. This is mainly caused by the fact that there is no national pricing policy that has been place on medicine to regulate the price of medicine that is being sold over the counter. Trends The latest trend in the pharmaceutical industry is that healthcare services be transferred back to national government since after the health services were developed. This is because a lot of problems have emerged after the health services were devolved. Data sources • www.kenyapharmaexpo.com • www.pharmatimes.com • www.store.bmiresearch.com