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Pharm.
com News, September 6, India is one of the main source countries of drug imports in Africa
.
According to a McKinsey report, in 2017 sub-Saharan Africa's import drug market, India's drug value accounted for 29%, ranking first, and China's drug value only accounted for 6%
.
Compared with other countries, Indian medicine can be said to be the best in Africa
.
com News, September 6, India is one of the main source countries of drug imports in Africa
.
According to a McKinsey report, in 2017 sub-Saharan Africa's import drug market, India's drug value accounted for 29%, ranking first, and China's drug value only accounted for 6%
.
Compared with other countries, Indian medicine can be said to be the best in Africa
.
1.
Why can Indian medicine establish a huge advantage in Africa?
Why can Indian medicine establish a huge advantage in Africa?
(1) Historical first-mover advantage formed objectively
The large number of Indians entering Africa can be traced back to the mid-nineteenth century, when the United Kingdom transferred more than 30,000 Indians to East Africa to build railways.
Later, a large number of Indians stayed
.
Currently, about 3 million people of Indian descent live in Africa, accounting for 12% of the total African diaspora
.
Later, a large number of Indians stayed
.
Currently, about 3 million people of Indian descent live in Africa, accounting for 12% of the total African diaspora
.
India and many African countries once belonged to the same British colonies, sharing a common language, law and even culture
.
After a long period of development, Indians have taken root in Africa, integrated into Africa, and established a strong economic influence in many industries such as medicine
.
At present, Indians are in Africa, just like overseas Chinese are to many Southeast Asian countries
.
In 2015, the African version of the Forbes ranking list, a total of 4 Indian descendants on the list, India's influence in Africa can be seen
.
.
After a long period of development, Indians have taken root in Africa, integrated into Africa, and established a strong economic influence in many industries such as medicine
.
At present, Indians are in Africa, just like overseas Chinese are to many Southeast Asian countries
.
In 2015, the African version of the Forbes ranking list, a total of 4 Indian descendants on the list, India's influence in Africa can be seen
.
(2) Inherent internationalization genes
The size of the Indian pharmaceutical market is only one-tenth that of China, and there are more than 10,000 pharmaceutical companies in the country
.
Limited by the size of India's domestic market, in order to survive and develop, Indian pharmaceutical companies have their own international genes when they are born, and they have been actively seeking to expand overseas markets very early
.
Ranbaxy, India's largest pharmaceutical company, established its first joint venture in the Nigerian capital as early as 1977, which kicked off its internationalization journey
.
Cipla took the initiative to expand the US market in 1984, becoming the first pharmaceutical company in India to obtain FDA certification, and then driving the Indian industry to follow up
.
At present, there are more than 500 pharmaceutical factories in India that have passed the US FDA certification
.
Because India faces East Africa across the sea geographically, Africa has naturally become an important choice for Indian pharmaceutical companies to explore overseas markets
.
.
Limited by the size of India's domestic market, in order to survive and develop, Indian pharmaceutical companies have their own international genes when they are born, and they have been actively seeking to expand overseas markets very early
.
Ranbaxy, India's largest pharmaceutical company, established its first joint venture in the Nigerian capital as early as 1977, which kicked off its internationalization journey
.
Cipla took the initiative to expand the US market in 1984, becoming the first pharmaceutical company in India to obtain FDA certification, and then driving the Indian industry to follow up
.
At present, there are more than 500 pharmaceutical factories in India that have passed the US FDA certification
.
Because India faces East Africa across the sea geographically, Africa has naturally become an important choice for Indian pharmaceutical companies to explore overseas markets
.
(3) Brand advantage of "World Pharmacy"
India is known as the "World Pharmacy", its generic drugs are well-known in the world, and it is the world's largest supplier of generic drugs
.
At present, Indian generic drugs account for 20% of global exports
.
Of the top 15 global generic drug companies, India has 7 companies, while none of the Chinese companies are currently on the list
.
.
At present, Indian generic drugs account for 20% of global exports
.
Of the top 15 global generic drug companies, India has 7 companies, while none of the Chinese companies are currently on the list
.
TOP15 ranking of global generic drug companies
Data source: Yaorong Circle
Drug consumption in Africa is dominated by generic drugs, and the high degree of complementarity makes Africa the second largest market for Indian drug exports, second only to North America
.
In the 2019-2020 fiscal year, India exported a total of US$3.
5 billion in African medicines (in 2019, China’s export of African preparations was US$550 million)
.
At the same time, Indian companies are taking the road of branded generic drugs in Africa, and many Indian companies have built many well-known generic drug brands in Africa
.
.
In the 2019-2020 fiscal year, India exported a total of US$3.
5 billion in African medicines (in 2019, China’s export of African preparations was US$550 million)
.
At the same time, Indian companies are taking the road of branded generic drugs in Africa, and many Indian companies have built many well-known generic drug brands in Africa
.
(4) Ability advantages of international certification and access
Many founders of Indian pharmaceutical companies have working backgrounds in international pharmaceutical companies, and they have unique advantages in international certification and access
.
Only one company in India, Macleods, has more than 60 preparations and APIs that have passed PQ certification
.
From the PQ certification data published by the WHO, we can see the huge gap between us and India
.
.
Only one company in India, Macleods, has more than 60 preparations and APIs that have passed PQ certification
.
From the PQ certification data published by the WHO, we can see the huge gap between us and India
.
Number of varieties certified by WHO PQ
Data source: WHO official website
This huge difference has caused Indian companies to take advantage of bids for African public markets and international institutions
.
According to relevant data, India contributes 40% to 70% of the diphtheria, tetanus, pertussis vaccine and 90% of the measles vaccine required by the WHO
.
.
According to relevant data, India contributes 40% to 70% of the diphtheria, tetanus, pertussis vaccine and 90% of the measles vaccine required by the WHO
.
(5) Advantages of the coordinated development of the industrial chain
India has successively invested in some physical factories in Africa
.
For example, the Indian pharmaceutical giant CIPLA invested in Cipla Quality Chemical Industries Ltd in Uganda in 2005.
It is currently the largest pharmaceutical manufacturer in East Africa, with a production capacity of 130 million tablets per month
.
.
For example, the Indian pharmaceutical giant CIPLA invested in Cipla Quality Chemical Industries Ltd in Uganda in 2005.
It is currently the largest pharmaceutical manufacturer in East Africa, with a production capacity of 130 million tablets per month
.
List of non-invested physical factories of some Indian pharmaceutical companies
Data source: compiled by the official website of Indian pharmaceutical companies
In addition to setting up local pharmaceutical factories and directly producing drugs, Indian companies have established a large number of branches in Africa and built a well-developed sales network.
For example, Ajanta has branches in 19 countries in Africa
.
In addition, many local Indians set up pharmaceutical wholesale companies and retail pharmacies in Africa
.
Many Indian expatriates became doctors and opened their own hospitals and clinics
.
Take Kenya as an example.
Since its independence in 1963, a large number of Indian medical professionals have come to Kenya to explore the market
.
To this day, most of Kenya's pharmaceutical factories, pharmaceutical companies, importers, and distributors are controlled by Indians
.
It can be said that in the entire pharmaceutical industry and system in Africa, Indians are everywhere, and the layout and coordinated development of the entire industry chain have been formed
.
For example, Ajanta has branches in 19 countries in Africa
.
In addition, many local Indians set up pharmaceutical wholesale companies and retail pharmacies in Africa
.
Many Indian expatriates became doctors and opened their own hospitals and clinics
.
Take Kenya as an example.
Since its independence in 1963, a large number of Indian medical professionals have come to Kenya to explore the market
.
To this day, most of Kenya's pharmaceutical factories, pharmaceutical companies, importers, and distributors are controlled by Indians
.
It can be said that in the entire pharmaceutical industry and system in Africa, Indians are everywhere, and the layout and coordinated development of the entire industry chain have been formed
.
2.
Chinese pharmaceutical companies' breakthrough in Africa
Chinese pharmaceutical companies' breakthrough in Africa
Stones from other mountains can be used for jade
.
Studying the development and layout of Indian medicine in Africa is of great reference for our companies, especially in the current centralized procurement, companies generally have the need to go global
.
The author believes that in the face of India's advantages in Africa, Chinese pharmaceutical companies should learn more from Indian companies and use their strengths and avoid weaknesses to better develop the African market
.
.
Studying the development and layout of Indian medicine in Africa is of great reference for our companies, especially in the current centralized procurement, companies generally have the need to go global
.
The author believes that in the face of India's advantages in Africa, Chinese pharmaceutical companies should learn more from Indian companies and use their strengths and avoid weaknesses to better develop the African market
.
(1) Identify differentiated products and markets
India’s advantage lies in generic drugs.
It is difficult to directly compete with India in Africa for generic drugs.
Our company can avoid its edge and choose generic drugs that we have comparative advantages, such as certain injection liquid injections
.
In addition, Chinese companies choose high-end complex preparations, inhalation preparations, Chinese patent medicines, biopharmaceuticals and other varieties, which may have a differentiated comparative advantage in entering Africa
.
It is difficult to directly compete with India in Africa for generic drugs.
Our company can avoid its edge and choose generic drugs that we have comparative advantages, such as certain injection liquid injections
.
In addition, Chinese companies choose high-end complex preparations, inhalation preparations, Chinese patent medicines, biopharmaceuticals and other varieties, which may have a differentiated comparative advantage in entering Africa
.
In terms of regions, Indian medicine is currently the only one in the East and South Africa market, while it is relatively weak in the French-speaking countries of West Africa
.
At the same time, India pays more attention to the public market.
We still have a lot of opportunities in the private market.
Chinese companies can consider choosing these markets for development
.
.
At the same time, India pays more attention to the public market.
We still have a lot of opportunities in the private market.
Chinese companies can consider choosing these markets for development
.
(2) Strengthen local sales network and brand building in Africa
For non-medical export, domestic enterprises mainly rely on local agents business model, lack of controllability and continuity, are "see the weather"
.
Although domestic companies have registered many varieties in Africa, many of them are in a dormant state and have not produced actual sales
.
Many companies export to Africa are based on the foundry model.
Generic drugs without a brand are likely to fall into a vicious price war and it is difficult to achieve long-term development
.
We should learn more from Indian companies on this point.
Strong Chinese companies can consider actively deploying their branches in the African market, building an independent and controllable sales network, and attaching importance to brand development
.
Small and medium-sized enterprises can consider going abroad in groups, and actively seek cooperation with non-existing domestic enterprises with a sales layout, sharing resources, and achieving mutual benefit and win-win results
.
.
Although domestic companies have registered many varieties in Africa, many of them are in a dormant state and have not produced actual sales
.
Many companies export to Africa are based on the foundry model.
Generic drugs without a brand are likely to fall into a vicious price war and it is difficult to achieve long-term development
.
We should learn more from Indian companies on this point.
Strong Chinese companies can consider actively deploying their branches in the African market, building an independent and controllable sales network, and attaching importance to brand development
.
Small and medium-sized enterprises can consider going abroad in groups, and actively seek cooperation with non-existing domestic enterprises with a sales layout, sharing resources, and achieving mutual benefit and win-win results
.
(3) Make full use of medical talents in Africa
When our company is in Africa, in addition to paying attention to the competition brought about by Indian companies, we must also actively seek ways to cooperate with Indian companies
.
For example, there are many Indians in the pharmaceutical industry in Africa, and there is no shortage of talents with good professional qualities.
They can practice "usage", recruit suitable Indian employees in Africa, and use local materials for my use
.
.
For example, there are many Indians in the pharmaceutical industry in Africa, and there is no shortage of talents with good professional qualities.
They can practice "usage", recruit suitable Indian employees in Africa, and use local materials for my use
.
(4) Strengthen its own capacity building
Chinese companies lack the WHO PQ qualifications, especially the PQ certification of preparations and vaccines, which lag far behind India, causing many international tenders for Africa to be unable to participate and losing many opportunities
.
It is recommended that Chinese pharmaceutical companies fully absorb India’s successful experience in this area, strengthen their own capacity building, and increase investment in obtaining international certification qualifications
.
.
It is recommended that Chinese pharmaceutical companies fully absorb India’s successful experience in this area, strengthen their own capacity building, and increase investment in obtaining international certification qualifications
.
(5) Change concepts and establish long-term and deep-growing awareness
Africa today is no longer an adventurer's paradise where you can make quick money before.
Companies must abandon short-term and fast development ideas.
Instead, they must sink their hearts and make long-term development plans, truly establish a sense of long-term and deep cultivation, and take roots like Indian companies.
Africa can finally win in Africa
.
Companies must abandon short-term and fast development ideas.
Instead, they must sink their hearts and make long-term development plans, truly establish a sense of long-term and deep cultivation, and take roots like Indian companies.
Africa can finally win in Africa
.
About the Author:
Zhang Xiong worked in the Economic and Commercial Office of the Chinese Embassy in Nigeria and the Economic and Commercial Office of the Consulate General in Lagos
.
During his work in Africa, he participated in the international cooperation project of food and drug supervision between China and Nigeria
.
Now it is mainly engaged in medical exchanges and project cooperation with Africa
.
.
During his work in Africa, he participated in the international cooperation project of food and drug supervision between China and Nigeria
.
Now it is mainly engaged in medical exchanges and project cooperation with Africa
.
Pharm.
com News, September 6, India is one of the main source countries of drug imports in Africa
.
According to a McKinsey report, in 2017 sub-Saharan Africa's import drug market, India's drug value accounted for 29%, ranking first, and China's drug value only accounted for 6%
.
Compared with other countries, Indian medicine can be said to be the best in Africa
.
com News, September 6, India is one of the main source countries of drug imports in Africa
.
According to a McKinsey report, in 2017 sub-Saharan Africa's import drug market, India's drug value accounted for 29%, ranking first, and China's drug value only accounted for 6%
.
Compared with other countries, Indian medicine can be said to be the best in Africa
.
1.
Why can Indian medicine establish a huge advantage in Africa?
Why can Indian medicine establish a huge advantage in Africa?
(1) Historical first-mover advantage formed objectively
The large number of Indians entering Africa can be traced back to the mid-nineteenth century, when the United Kingdom transferred more than 30,000 Indians to East Africa to build railways.
Later, a large number of Indians stayed
.
Currently, about 3 million people of Indian descent live in Africa, accounting for 12% of the total African diaspora
.
Later, a large number of Indians stayed
.
Currently, about 3 million people of Indian descent live in Africa, accounting for 12% of the total African diaspora
.
India and many African countries once belonged to the same British colonies, sharing a common language, law and even culture
.
After a long period of development, Indians have taken root in Africa, integrated into Africa, and established a strong economic influence in many industries such as medicine
.
At present, Indians are in Africa, just like overseas Chinese are to many Southeast Asian countries
.
In 2015, the African version of the Forbes ranking list, a total of 4 Indian descendants on the list, India's influence in Africa can be seen
.
.
After a long period of development, Indians have taken root in Africa, integrated into Africa, and established a strong economic influence in many industries such as medicine
.
At present, Indians are in Africa, just like overseas Chinese are to many Southeast Asian countries
.
In 2015, the African version of the Forbes ranking list, a total of 4 Indian descendants on the list, India's influence in Africa can be seen
.
(2) Inherent internationalization genes
The size of the Indian pharmaceutical market is only one-tenth that of China, and there are more than 10,000 pharmaceutical companies in the country
.
Limited by the size of India's domestic market, in order to survive and develop, Indian pharmaceutical companies have their own international genes when they are born, and they have been actively seeking to expand overseas markets very early
.
Ranbaxy, India's largest pharmaceutical company, established its first joint venture in the Nigerian capital as early as 1977, which kicked off its internationalization journey
.
Cipla took the initiative to expand the US market in 1984, becoming the first pharmaceutical company in India to obtain FDA certification, and then driving the Indian industry to follow up
.
At present, there are more than 500 pharmaceutical factories in India that have passed the US FDA certification
.
Because India faces East Africa across the sea geographically, Africa has naturally become an important choice for Indian pharmaceutical companies to explore overseas markets
.
.
Limited by the size of India's domestic market, in order to survive and develop, Indian pharmaceutical companies have their own international genes when they are born, and they have been actively seeking to expand overseas markets very early
.
Ranbaxy, India's largest pharmaceutical company, established its first joint venture in the Nigerian capital as early as 1977, which kicked off its internationalization journey
.
Cipla took the initiative to expand the US market in 1984, becoming the first pharmaceutical company in India to obtain FDA certification, and then driving the Indian industry to follow up
.
At present, there are more than 500 pharmaceutical factories in India that have passed the US FDA certification
.
Because India faces East Africa across the sea geographically, Africa has naturally become an important choice for Indian pharmaceutical companies to explore overseas markets
.
(3) Brand advantage of "World Pharmacy"
India is known as the "World Pharmacy", its generic drugs are well-known in the world, and it is the world's largest supplier of generic drugs
.
At present, Indian generic drugs account for 20% of global exports
.
Of the top 15 global generic drug companies, India has 7 companies, while none of the Chinese companies are currently on the list
.
.
At present, Indian generic drugs account for 20% of global exports
.
Of the top 15 global generic drug companies, India has 7 companies, while none of the Chinese companies are currently on the list
.
TOP15 ranking of global generic drug companies
Data source: Yaorong Circle
Drug consumption in Africa is dominated by generic drugs, and the high degree of complementarity makes Africa the second largest market for Indian drug exports, second only to North America
.
In the 2019-2020 fiscal year, India exported a total of US$3.
5 billion in African medicines (in 2019, China’s export of African preparations was US$550 million)
.
At the same time, Indian companies are taking the road of branded generic drugs in Africa, and many Indian companies have built many well-known generic drug brands in Africa
.
.
In the 2019-2020 fiscal year, India exported a total of US$3.
5 billion in African medicines (in 2019, China’s export of African preparations was US$550 million)
.
At the same time, Indian companies are taking the road of branded generic drugs in Africa, and many Indian companies have built many well-known generic drug brands in Africa
.
(4) Ability advantages of international certification and access
Many founders of Indian pharmaceutical companies have working backgrounds in international pharmaceutical companies, and they have unique advantages in international certification and access
.
Only one company in India, Macleods, has more than 60 preparations and APIs that have passed PQ certification
.
From the PQ certification data published by the WHO, we can see the huge gap between us and India
.
.
Only one company in India, Macleods, has more than 60 preparations and APIs that have passed PQ certification
.
From the PQ certification data published by the WHO, we can see the huge gap between us and India
.
Number of varieties certified by WHO PQ
Data source: WHO official website
This huge difference has caused Indian companies to take advantage of bids for African public markets and international institutions
.
According to relevant data, India contributes 40% to 70% of the diphtheria, tetanus, pertussis vaccine and 90% of the measles vaccine required by the WHO
.
.
According to relevant data, India contributes 40% to 70% of the diphtheria, tetanus, pertussis vaccine and 90% of the measles vaccine required by the WHO
.
(5) Advantages of the coordinated development of the industrial chain
India has successively invested in some physical factories in Africa
.
For example, the Indian pharmaceutical giant CIPLA invested in Cipla Quality Chemical Industries Ltd in Uganda in 2005.
It is currently the largest pharmaceutical manufacturer in East Africa, with a production capacity of 130 million tablets per month
.
.
For example, the Indian pharmaceutical giant CIPLA invested in Cipla Quality Chemical Industries Ltd in Uganda in 2005.
It is currently the largest pharmaceutical manufacturer in East Africa, with a production capacity of 130 million tablets per month
.
List of non-invested physical factories of some Indian pharmaceutical companies
Data source: compiled by the official website of Indian pharmaceutical companies
In addition to setting up local pharmaceutical factories and directly producing drugs, Indian companies have established a large number of branches in Africa and built a well-developed sales network.
For example, Ajanta has branches in 19 countries in Africa
.
In addition, many local Indians set up pharmaceutical wholesale companies and retail pharmacies in Africa
.
Many Indian expatriates became doctors and opened their own hospitals and clinics
.
Take Kenya as an example.
Since its independence in 1963, a large number of Indian medical professionals have come to Kenya to explore the market
.
To this day, most of Kenya's pharmaceutical factories, pharmaceutical companies, importers, and distributors are controlled by Indians
.
It can be said that in the entire pharmaceutical industry and system in Africa, Indians are everywhere, and the layout and coordinated development of the entire industry chain have been formed
.
For example, Ajanta has branches in 19 countries in Africa
.
In addition, many local Indians set up pharmaceutical wholesale companies and retail pharmacies in Africa
.
Many Indian expatriates became doctors and opened their own hospitals and clinics
.
Take Kenya as an example.
Since its independence in 1963, a large number of Indian medical professionals have come to Kenya to explore the market
.
To this day, most of Kenya's pharmaceutical factories, pharmaceutical companies, importers, and distributors are controlled by Indians
.
It can be said that in the entire pharmaceutical industry and system in Africa, Indians are everywhere, and the layout and coordinated development of the entire industry chain have been formed
.
2.
Chinese pharmaceutical companies' breakthrough in Africa
Chinese pharmaceutical companies' breakthrough in Africa
Stones from other mountains can be used for jade
.
Studying the development and layout of Indian medicine in Africa is of great reference for our companies, especially in the current centralized procurement, companies generally have the need to go global
.
The author believes that in the face of India's advantages in Africa, Chinese pharmaceutical companies should learn more from Indian companies and use their strengths and avoid weaknesses to better develop the African market
.
.
Studying the development and layout of Indian medicine in Africa is of great reference for our companies, especially in the current centralized procurement, companies generally have the need to go global
.
The author believes that in the face of India's advantages in Africa, Chinese pharmaceutical companies should learn more from Indian companies and use their strengths and avoid weaknesses to better develop the African market
.
(1) Identify differentiated products and markets
India’s advantage lies in generic drugs.
It is difficult to directly compete with India in Africa for generic drugs.
Our company can avoid its edge and choose generic drugs that we have comparative advantages, such as certain injection liquid injections
.
In addition, Chinese companies choose high-end complex preparations, inhalation preparations, Chinese patent medicines, biopharmaceuticals and other varieties, which may have a differentiated comparative advantage in entering Africa
.
It is difficult to directly compete with India in Africa for generic drugs.
Our company can avoid its edge and choose generic drugs that we have comparative advantages, such as certain injection liquid injections
.
In addition, Chinese companies choose high-end complex preparations, inhalation preparations, Chinese patent medicines, biopharmaceuticals and other varieties, which may have a differentiated comparative advantage in entering Africa
.
In terms of regions, Indian medicine is currently the only one in the East and South Africa market, while it is relatively weak in the French-speaking countries of West Africa
.
At the same time, India pays more attention to the public market.
We still have a lot of opportunities in the private market.
Chinese companies can consider choosing these markets for development
.
.
At the same time, India pays more attention to the public market.
We still have a lot of opportunities in the private market.
Chinese companies can consider choosing these markets for development
.
(2) Strengthen local sales network and brand building in Africa
For non-medical export, domestic enterprises mainly rely on local agents business model, lack of controllability and continuity, are "see the weather"
.
Although domestic companies have registered many varieties in Africa, many of them are in a dormant state and have not produced actual sales
.
Many companies export to Africa are based on the foundry model.
Generic drugs without a brand are likely to fall into a vicious price war and it is difficult to achieve long-term development
.
We should learn more from Indian companies on this point.
Strong Chinese companies can consider actively deploying their branches in the African market, building an independent and controllable sales network, and attaching importance to brand development
.
Small and medium-sized enterprises can consider going abroad in groups, and actively seek cooperation with non-existing domestic enterprises with a sales layout, sharing resources, and achieving mutual benefit and win-win results
.
.
Although domestic companies have registered many varieties in Africa, many of them are in a dormant state and have not produced actual sales
.
Many companies export to Africa are based on the foundry model.
Generic drugs without a brand are likely to fall into a vicious price war and it is difficult to achieve long-term development
.
We should learn more from Indian companies on this point.
Strong Chinese companies can consider actively deploying their branches in the African market, building an independent and controllable sales network, and attaching importance to brand development
.
Small and medium-sized enterprises can consider going abroad in groups, and actively seek cooperation with non-existing domestic enterprises with a sales layout, sharing resources, and achieving mutual benefit and win-win results
.
(3) Make full use of medical talents in Africa
When our company is in Africa, in addition to paying attention to the competition brought about by Indian companies, we must also actively seek ways to cooperate with Indian companies
.
For example, there are many Indians in the pharmaceutical industry in Africa, and there is no shortage of talents with good professional qualities.
They can practice "usage", recruit suitable Indian employees in Africa, and use local materials for my use
.
.
For example, there are many Indians in the pharmaceutical industry in Africa, and there is no shortage of talents with good professional qualities.
They can practice "usage", recruit suitable Indian employees in Africa, and use local materials for my use
.
(4) Strengthen its own capacity building
Chinese companies lack the WHO PQ qualifications, especially the PQ certification of preparations and vaccines, which lag far behind India, causing many international tenders for Africa to be unable to participate and losing many opportunities
.
It is recommended that Chinese pharmaceutical companies fully absorb India’s successful experience in this area, strengthen their own capacity building, and increase investment in obtaining international certification qualifications
.
.
It is recommended that Chinese pharmaceutical companies fully absorb India’s successful experience in this area, strengthen their own capacity building, and increase investment in obtaining international certification qualifications
.
(5) Change concepts and establish long-term and deep-growing awareness
Africa today is no longer an adventurer's paradise where you can make quick money before.
Companies must abandon short-term and fast development ideas.
Instead, they must sink their hearts and make long-term development plans, truly establish a sense of long-term and deep cultivation, and take roots like Indian companies.
Africa can finally win in Africa
.
Companies must abandon short-term and fast development ideas.
Instead, they must sink their hearts and make long-term development plans, truly establish a sense of long-term and deep cultivation, and take roots like Indian companies.
Africa can finally win in Africa
.
About the Author:
Zhang Xiong worked in the Economic and Commercial Office of the Chinese Embassy in Nigeria and the Economic and Commercial Office of the Consulate General in Lagos
.
During his work in Africa, he participated in the international cooperation project of food and drug supervision between China and Nigeria
.
Now it is mainly engaged in medical exchanges and project cooperation with Africa
.
.
During his work in Africa, he participated in the international cooperation project of food and drug supervision between China and Nigeria
.
Now it is mainly engaged in medical exchanges and project cooperation with Africa
.
Pharm.
com News, September 6, India is one of the main source countries of drug imports in Africa
.
According to a McKinsey report, in 2017 sub-Saharan Africa's import drug market, India's drug value accounted for 29%, ranking first, and China's drug value only accounted for 6%
.
Compared with other countries, Indian medicine can be said to be the best in Africa
.
com News, September 6, India is one of the main source countries of drug imports in Africa
.
According to a McKinsey report, in 2017 sub-Saharan Africa's import drug market, India's drug value accounted for 29%, ranking first, and China's drug value only accounted for 6%
.
Compared with other countries, Indian medicine can be said to be the best in Africa
.
1.
Why can Indian medicine establish a huge advantage in Africa?
1. Why can Indian medicine establish a huge advantage in Africa?
Why can Indian medicine establish a huge advantage in Africa?
(1) Historical first-mover advantage formed objectively
(1) Historical first-mover advantage formed objectively The large number of Indians entering Africa can be traced back to the mid-nineteenth century, when the United Kingdom transferred more than 30,000 Indians to East Africa to build railways.
Later, a large number of Indians stayed
.
Currently, about 3 million people of Indian descent live in Africa, accounting for 12% of the total African diaspora
.
Later, a large number of Indians stayed
.
Currently, about 3 million people of Indian descent live in Africa, accounting for 12% of the total African diaspora
.
India and many African countries once belonged to the same British colonies, sharing a common language, law and even culture
.
After a long period of development, Indians have taken root in Africa, integrated into Africa, and established a strong economic influence in many industries such as medicine
.
At present, Indians are in Africa, just like overseas Chinese are to many Southeast Asian countries
.
In 2015, the African version of the Forbes ranking list, a total of 4 Indian descendants on the list, India's influence in Africa can be seen
.
.
After a long period of development, Indians have taken root in Africa, integrated into Africa, and established a strong economic influence in many industries such as medicine
.
At present, Indians are in Africa, just like overseas Chinese are to many Southeast Asian countries
.
In 2015, the African version of the Forbes ranking list, a total of 4 Indian descendants on the list, India's influence in Africa can be seen
.
(2) Inherent internationalization genes
(2) Inherent internationalization genes The size of the Indian pharmaceutical market is only one-tenth that of China, and there are more than 10,000 pharmaceutical companies in the country
.
Limited by the size of India's domestic market, in order to survive and develop, Indian pharmaceutical companies have their own international genes when they are born, and they have been actively seeking to expand overseas markets very early
.
Ranbaxy, India's largest pharmaceutical company, established its first joint venture in the Nigerian capital as early as 1977, which kicked off its internationalization journey
.
Cipla took the initiative to expand the US market in 1984, becoming the first pharmaceutical company in India to obtain FDA certification, and then driving the Indian industry to follow up
.
At present, there are more than 500 pharmaceutical factories in India that have passed the US FDA certification
.
Because India faces East Africa across the sea geographically, Africa has naturally become an important choice for Indian pharmaceutical companies to explore overseas markets
.
.
Limited by the size of India's domestic market, in order to survive and develop, Indian pharmaceutical companies have their own international genes when they are born, and they have been actively seeking to expand overseas markets very early
.
Ranbaxy, India's largest pharmaceutical company, established its first joint venture in the Nigerian capital as early as 1977, which kicked off its internationalization journey
.
Cipla took the initiative to expand the US market in 1984, becoming the first pharmaceutical company in India to obtain FDA certification, and then driving the Indian industry to follow up
.
At present, there are more than 500 pharmaceutical factories in India that have passed the US FDA certification
.
Because India faces East Africa across the sea geographically, Africa has naturally become an important choice for Indian pharmaceutical companies to explore overseas markets
.
(3) Brand advantage of "World Pharmacy"
(3) Brand advantage of "World Pharmacy" India is known as the "World Pharmacy", its generic drugs are well-known in the world, and it is the world's largest supplier of generic drugs
.
At present, Indian generic drugs account for 20% of global exports
.
Of the top 15 global generic drug companies, India has 7 companies, while none of the Chinese companies are currently on the list
.
.
At present, Indian generic drugs account for 20% of global exports
.
Of the top 15 global generic drug companies, India has 7 companies, while none of the Chinese companies are currently on the list
.
TOP15 ranking of global generic drug companies
Data source: Yaorong Circle
Drug consumption in Africa is dominated by generic drugs, and the high degree of complementarity makes Africa the second largest market for Indian drug exports, second only to North America
.
In the 2019-2020 fiscal year, India exported a total of US$3.
5 billion in African medicines (in 2019, China’s export of African preparations was US$550 million)
.
At the same time, Indian companies are taking the road of branded generic drugs in Africa, and many Indian companies have built many well-known generic drug brands in Africa
.
.
In the 2019-2020 fiscal year, India exported a total of US$3.
5 billion in African medicines (in 2019, China’s export of African preparations was US$550 million)
.
At the same time, Indian companies are taking the road of branded generic drugs in Africa, and many Indian companies have built many well-known generic drug brands in Africa
.
(4) Ability advantages of international certification and access
(4) Ability advantages of international certification and access Many founders of Indian pharmaceutical companies have working backgrounds in international pharmaceutical companies, and they have unique advantages in international certification and access
.
Only one company in India, Macleods, has more than 60 preparations and APIs that have passed PQ certification
.
From the PQ certification data published by the WHO, we can see the huge gap between us and India
.
.
Only one company in India, Macleods, has more than 60 preparations and APIs that have passed PQ certification
.
From the PQ certification data published by the WHO, we can see the huge gap between us and India
.
Number of varieties certified by WHO PQ
Data source: WHO official website
This huge difference has caused Indian companies to take advantage of bids for African public markets and international institutions
.
According to relevant data, India contributes 40% to 70% of the diphtheria, tetanus, pertussis vaccine and 90% of the measles vaccine required by the WHO
.
.
According to relevant data, India contributes 40% to 70% of the diphtheria, tetanus, pertussis vaccine and 90% of the measles vaccine required by the WHO
.
(5) Advantages of the coordinated development of the industrial chain
(5) Advantages of the coordinated development of the industrial chain India has successively invested in some physical factories in Africa
.
For example, the Indian pharmaceutical giant CIPLA invested in Cipla Quality Chemical Industries Ltd in Uganda in 2005.
It is currently the largest pharmaceutical manufacturer in East Africa, with a production capacity of 130 million tablets per month
.
.
For example, the Indian pharmaceutical giant CIPLA invested in Cipla Quality Chemical Industries Ltd in Uganda in 2005.
It is currently the largest pharmaceutical manufacturer in East Africa, with a production capacity of 130 million tablets per month
.
List of non-invested physical factories of some Indian pharmaceutical companies
List of non-invested physical factories of some Indian pharmaceutical companies Data source: compiled by the official website of Indian pharmaceutical companies
Data source: compiled by the official website of Indian pharmaceutical companies In addition to setting up local pharmaceutical factories and directly producing drugs, Indian companies have established a large number of branches in Africa and built a well-developed sales network.
For example, Ajanta has branches in 19 countries in Africa
.
In addition, many local Indians set up pharmaceutical wholesale companies and retail pharmacies in Africa
.
Many Indian expatriates became doctors and opened their own hospitals and clinics
.
Take Kenya as an example.
Since its independence in 1963, a large number of Indian medical professionals have come to Kenya to explore the market
.
To this day, most of Kenya's pharmaceutical factories, pharmaceutical companies, importers, and distributors are controlled by Indians
.
It can be said that in the entire pharmaceutical industry and system in Africa, Indians are everywhere, and the layout and coordinated development of the entire industry chain have been formed
.
Hospital hospital hospitalFor example, Ajanta has branches in 19 countries in Africa
.
In addition, many local Indians set up pharmaceutical wholesale companies and retail pharmacies in Africa
.
Many Indian expatriates became doctors and opened their own hospitals and clinics
.
Take Kenya as an example.
Since its independence in 1963, a large number of Indian medical professionals have come to Kenya to explore the market
.
To this day, most of Kenya's pharmaceutical factories, pharmaceutical companies, importers, and distributors are controlled by Indians
.
It can be said that in the entire pharmaceutical industry and system in Africa, Indians are everywhere, and the layout and coordinated development of the entire industry chain have been formed
.
2.
Chinese pharmaceutical companies' breakthrough in Africa
2. Chinese pharmaceutical companies' breakthrough in Africa
Chinese pharmaceutical companies' breakthrough in Africa
Stones from other mountains can be used for jade
.
Studying the development and layout of Indian medicine in Africa is of great reference for our companies, especially in the current centralized procurement, companies generally have the need to go global
.
The author believes that in the face of India's advantages in Africa, Chinese pharmaceutical companies should learn more from Indian companies and use their strengths and avoid weaknesses to better develop the African market
.
.
Studying the development and layout of Indian medicine in Africa is of great reference for our companies, especially in the current centralized procurement, companies generally have the need to go global
.
The author believes that in the face of India's advantages in Africa, Chinese pharmaceutical companies should learn more from Indian companies and use their strengths and avoid weaknesses to better develop the African market
.
(1) Identify differentiated products and markets
(1) Identify differentiated products and markets India’s advantage lies in generic drugs.
It is difficult to directly compete with India in Africa for generic drugs.
Our company can avoid its edge and choose generic drugs that we have comparative advantages, such as certain injection liquid injections
.
In addition, Chinese companies choose high-end complex preparations, inhalation preparations, Chinese patent medicines, biopharmaceuticals and other varieties, which may have a differentiated comparative advantage in entering Africa
.
It is difficult to directly compete with India in Africa for generic drugs.
Our company can avoid its edge and choose generic drugs that we have comparative advantages, such as certain injection liquid injections
.
In addition, Chinese companies choose high-end complex preparations, inhalation preparations, Chinese patent medicines, biopharmaceuticals and other varieties, which may have a differentiated comparative advantage in entering Africa
.
In terms of regions, Indian medicine is currently the only one in the East and South Africa market, while it is relatively weak in the French-speaking countries of West Africa
.
At the same time, India pays more attention to the public market.
We still have a lot of opportunities in the private market.
Chinese companies can consider choosing these markets for development
.
.
At the same time, India pays more attention to the public market.
We still have a lot of opportunities in the private market.
Chinese companies can consider choosing these markets for development
.
(2) Strengthen local sales network and brand building in Africa
(2) Strengthen local sales network and brand building in Africa For non-medical export, domestic enterprises mainly rely on local agents business model, lack of controllability and continuity, are "see the weather"
.
Although domestic companies have registered many varieties in Africa, many of them are in a dormant state and have not produced actual sales
.
Many companies export to Africa are based on the foundry model.
Generic drugs without a brand are likely to fall into a vicious price war and it is difficult to achieve long-term development
.
We should learn more from Indian companies on this point.
Strong Chinese companies can consider actively deploying their branches in the African market, building an independent and controllable sales network, and attaching importance to brand development
.
Small and medium-sized enterprises can consider going abroad in groups, and actively seek cooperation with non-existing domestic enterprises with a sales layout, sharing resources, and achieving mutual benefit and win-win results
.
Agent agent agent enterprise enterprise enterprise.
Although domestic companies have registered many varieties in Africa, many of them are in a dormant state and have not produced actual sales
.
Many companies export to Africa are based on the foundry model.
Generic drugs without a brand are likely to fall into a vicious price war and it is difficult to achieve long-term development
.
We should learn more from Indian companies on this point.
Strong Chinese companies can consider actively deploying their branches in the African market, building an independent and controllable sales network, and attaching importance to brand development
.
Small and medium-sized enterprises can consider going abroad in groups, and actively seek cooperation with non-existing domestic enterprises with a sales layout, sharing resources, and achieving mutual benefit and win-win results
.
(3) Make full use of medical talents in Africa
(3) Make full use of medical talents in Africa When our company is in Africa, in addition to paying attention to the competition brought about by Indian companies, we must also actively seek ways to cooperate with Indian companies
.
For example, there are many Indians in the pharmaceutical industry in Africa, and there is no shortage of talents with good professional qualities.
They can practice "usage", recruit suitable Indian employees in Africa, and use local materials for my use
.
.
For example, there are many Indians in the pharmaceutical industry in Africa, and there is no shortage of talents with good professional qualities.
They can practice "usage", recruit suitable Indian employees in Africa, and use local materials for my use
.
(4) Strengthen its own capacity building
(4) Strengthen its own capacity building Chinese companies lack the WHO PQ qualifications, especially the PQ certification of preparations and vaccines, which lag far behind India, causing many international tenders for Africa to be unable to participate and losing many opportunities
.
It is recommended that Chinese pharmaceutical companies fully absorb India’s successful experience in this area, strengthen their own capacity building, and increase investment in obtaining international certification qualifications
.
.
It is recommended that Chinese pharmaceutical companies fully absorb India’s successful experience in this area, strengthen their own capacity building, and increase investment in obtaining international certification qualifications
.
(5) Change concepts and establish long-term and deep-growing awareness
Africa today is no longer an adventurer's paradise where you can make quick money before.
Companies must abandon short-term and fast development ideas.
Instead, they must sink their hearts and make long-term development plans, truly establish a sense of long-term and deep cultivation, and take roots like Indian companies.
Africa can finally win in Africa
.
Companies must abandon short-term and fast development ideas.
Instead, they must sink their hearts and make long-term development plans, truly establish a sense of long-term and deep cultivation, and take roots like Indian companies.
Africa can finally win in Africa
.
About the Author:
About the Author: Zhang Xiong worked in the Economic and Commercial Office of the Chinese Embassy in Nigeria and the Economic and Commercial Office of the Consulate General in Lagos
.
During his work in Africa, he participated in the international cooperation project of food and drug supervision between China and Nigeria
.
Now it is mainly engaged in medical exchanges and project cooperation with Africa
.
Drugs Drugs Drugs medicine medicine medicine .
During his work in Africa, he participated in the international cooperation project of food and drug supervision between China and Nigeria
.
Now it is mainly engaged in medical exchanges and project cooperation with Africa
.